Diversity, equity and inclusion
Does your benefits programme deliver?
“Diversity is being invited to the party; inclusion is being asked to dance.”[1]
This metaphor from inclusion strategist, author and social commentator Vernā Myers gives us an interesting insight into the differences between two terms that are often bundled together to mean the same thing. While they are connected, diversity and inclusion are not interchangeable.
Most people are likely to be aware of what diversity in the workplace is – it’s the demographic makeup of an organisation. A diverse company will have people from different backgrounds represented throughout. These different backgrounds can include anything from race, gender and nationality, to sexual orientation, socioeconomic background, disability, age and much more.[2]
On the other hand, inclusion is more focused on the actions that an organisation takes to enable everyone to succeed (no matter who they are or what their background is). “Inclusion has to do with all of the conditions that make people willing and able to bring their best to the organization to achieve a goal,” says Dr Jaye Goosby Smith.[3]
Simply put, if you provide an inclusive workplace, diversity should improve as you are creating an environment that enables it to.
There’s also equity to consider. More often than not, we now hear DE&I (diversity, equity and inclusion) mentioned.
Equity can be seen as “giving people what they need, in order to make things fair.”[6]
Different to equality, equity is about treating people differently depending on what they need to reach equality.[4]
Like inclusion, equity is about creating a level playing field, but could be considered going one step further to provide more for those that need it.
Although all elements of DE&I are important, it could be argued that it all starts with inclusion. If an employer aims to be inclusive, which is perhaps a more controllable factor, diversity should rise and an equitable workplace can be created. That’s what we are going to focus on in this article.
We will look at the role benefits can play in helping multinationals create an inclusive, equitable workplace for a diverse employee population.
"Although all elements of DE&I are important, it could be argued that it all starts with inclusion."
But first, it’s important to look at the context of where we are today and why inclusion is something that cannot be ignored.
Where are we now?
The subject of DE&I is one that has been spoken about, in various forms, at length over the past decade. The benefits of championing DE&I in building a successful business are now well recognised and it’s hard to deny that it’s no longer a “nice to have” or “the right thing to do” – it has true business benefits.
Arguably, getting this right is more important now than ever before. We are (in most countries) coming out the other side of a two-year pandemic that has changed people’s focus and perspective. Consequently, workers are increasingly re-evaluating where and how they work.
"The benefits of championing DE&I in building a successful business are now well recognised and it’s hard to deny that it’s no longer a “nice to have” or “the right thing to do” – it has true business benefits."
By creating an inclusive workplace, multinationals can ensure they’re competing in the war for talent, whether that is by championing flexible and hybrid working to attract talented workers who don’t want the traditional Monday to Friday, nine to five, in an office work pattern, or by offering flexible benefits that support people no matter their life stage or personal needs.
And when you add a shortage of workers and an extremely competitive job market to the equation too, it’s never been more important to focus on DE&I.
Offering holistic employee benefits
When we’ve discussed creating inclusive employee benefits in the past , we’ve looked at offering a mix of traditional employee benefits (insured benefits like medical, life and disability, and savings plans like a company pension), lifestyle benefits (where an employee can part-fund a benefit that enhances their own lifestyle, like childcare vouchers) and workplace perks (policies and incentives available to all employees).
While this mix of benefit types is still valid, it could be argued that it isn’t holistic. Employers should be looking at creating a plan that focuses on different aspects of peoples’ lives.
There are a number of different factors that determine today’s employee’s wellness. Physical, mental and social health determinants can all impact an employee’s wellness.
In the context of inclusion, it makes sense to talk about how benefits reflect and answer to each of these areas, as well as a person’s financial wellbeing.
Physical health
Perhaps the most obvious benefit – in the most obvious area – is to support your people’s physical health through private medical insurance. With long-term delays expected in most areas of healthcare due to the pandemic, this might be the most important benefit you can offer your people right now, particularly in markets where public health sectors are fighting to clear backlogs.
Critical illness and disability cover are also important should the worst happen and are arguably more important for inclusion. These plans can help pay for treatments for the most serious conditions and ensure those with chronic conditions are cared for and able to work, providing return to work plans and accessible workplaces.
However, it’s equally (if not more) important to try and ensure that the need for costly medical interventions does not arise, through proactive and preventative measures such as screening, vaccinations, health education campaigns, discounted gym memberships, healthy food in workplaces and other physical wellness programmes.
“Employers can eliminate health inequity by ensuring that every employee has access to inclusive products and services that provide the same high-quality healthcare regardless of race, ethnicity, gender or geography."
Mental health
A UK study found that mental health benefits are now crucial, with 35% of employees rating mental health counselling as one of the most valuable benefits.[8] And since the pandemic hit us, 76% of companies surveyed said they offer employee assistance programmes (EAPs) to help support the mental health of their people.
And as seeking treatment for mental health problems becomes less taboo – as we found in our global medical landscape report – the importance of providing these benefits will only grow. By encouraging an environment that supports mental health as openly as physical health, employers are creating an inclusive culture, one that helps actively break the taboo and allows people who need mental health support to thrive. Can you be truly inclusive without providing mental health benefits?
Financial wellness
Financial wellness fits neatly next to mental health, as money problems will often manifest as mental health conditions due to stress. According to Mercer “employee financial wellness focuses on engaging employees throughout their lives, with a focus on guiding employees towards action. The objective is to help employees reach their goals for every stage of their “financial lives,” whether it’s saving for a house, a car, college, or retirement.”[9]
An inclusive approach to financial wellness means thinking about different employee groups. For example, in the US, MetLife offers PlanSmart to help build financial literacy for its customers’ employees. It has a specific service to offer tailored insights for the LGBTQ+ community and for people of colour.[10] These groups are traditionally underserved in financial services and same-sex partners may face different regulations or challenges when planning for a family or the future.
Social health
As we’ve discussed, truly inclusive benefits need to cater for all and allow everyone to thrive in every aspect of their lives. Arguably, benefits catered towards social health are the most important way of doing this.
What do we mean when we talk about social health? This could be anything from policies and benefits that help families such as fertility treatments/support, maternity/paternity leave, adoption leave and childcare vouchers, to benefits that support LGBTQ+ employees, such as coverage for same sex partners and gender dysphoria coverage, to name but a few.
Of course, social benefits can be applicable to all, too. The last few years of COVID-19 lockdowns and confinements may have been forced on all of us but have made employers and employees alike appreciate the benefits of work-life balance. Everyone’s personal circumstances are different and allowing people a degree of flexibility in their location and work schedule can help them to balance what is important for them. Whether caring for an elderly relative, picking up children from school or exercising, flexibility can help create an inclusive culture where people work around their personal commitments.
Also, offering things like volunteering days is a good way allow people to give back to a cause that is important to them – it enables employees to be socially committed and creates good will.
Location-proof benefits
While employers are off to a good start by offering benefits that aid physical and mental health, financial wellness and social health, the path to inclusion doesn’t end with choosing the type of benefits their people should receive.
It’s also vital to consider how an employee’s location affects the benefits they can actually take advantage of. In some markets employees will be able to access all of the benefits their employer is willing to provide, in others this is simply not the case due to legal and cultural norms or differences in standard practice.
For example – a front line primary care service is not available in many countries – people go straight to a specialist with any health issue. Or it may be available, but they live a long away from modern facilities. In both cases, a telemedicine service could be the answer and yet, it might not be available from local service providers. This is where employers can look to technology and global providers to help plug the gap and ensure all workers have access to the same benefits.
And then there are policy exclusions. Let’s give you another example. In 2020, many employers were faced with the challenge of epidemic and pandemic exclusions on their local insurance policies, meaning their people were not covered for COVID-19 related claims. Employers looking to be truly inclusive can check local policies at renewal to ensure any exclusions in place are not stopping them providing benefits they wish to offer their people, wherever they are. Or those writing their EB business through a captive, as the ultimate risk bearer, could remove the local exclusions and choose to pay claims.
"...Employers can look to technology and global providers to help plug the gap and ensure all workers have access to the same benefits."
Designing an inclusive benefits programme
There are so many different routes for employers to take that it can be overwhelming to even think about how to offer benefits that are truly inclusive and are right for your people, while still being affordable. To help you, here are some things you could consider.
Review your benefits offering and find out what your employees value
Are you offering the benefits that your people truly value? One way to find out is to speak to them!
Rose O’Donovan from Further Group says you can “… foster a culture of inclusion by engaging with your employees through surveys and seeking feedback on what they value in their benefits packages. For example, is family protection important and should it run beyond traditional life insurance and pension; or is there choice, access and equitable benefits for all? Reward strategies that are born from circular engagement with both employee and employer create structures and frameworks that are aligned to local and cultural differences.”
Offer choice
The age of “one-size-fits-all” is long gone and employees value choice. To be truly inclusive, offer your people the option to spend their EB budget in a way that suits them, empowering them to select the benefits that are most relevant and valuable for them at their specific life stage and in their individual circumstances. Of course, to be able to do this you will need to invest an EB platform to help administer those benefits and ensure real flexibility.
Be flexible and act quickly
The world is always changing and what your employees need can change with it. The last few years have taught us that the best employers have been quick to act and have made necessary changes to ensure their people have the support and benefits they need, when they need them. Flexibility and adaptability are key in today’s world.
As millennials and generation Z become the dominant part of workforce, DE&I in the workplace, and particularly in employee benefits, is only becoming more and more necessary. These workers value employers that promote DE&I in everything that they do. Employers that embrace inclusion in both their benefits plans and workplace policies are more likely to win the war for talent and attract the diverse workforce that will help them succeed.
Like this piece? Read our other related stories...
Gender equality in the workplace
We look at how multinationals can continue to support true gender parity in the workplace
Corporate social responsibility and employee benefits
Are the two linked? Can employee benefits help demonstrate CSR values?
[1] Paolo Gaudiano, Forbes https://www.forbes.com/sites/paologaudiano/2019/01/22/eight-reasons-why-we-need-to-focus-on-inclusion/?sh=68681bef148d (sourced August 22)
[2] Allaya Cooks-Campbell, BetterUp https://www.betterup.com/blog/diversity-vs-inclusion (sourced August 22)
[3] https://medium.com/the-establishment/why-striving-for-inclusion-is-more-necessary-than-diversity-4faaa6315061 (sourced August 22)
[4] Shae Collins, The Establishment
https://social-change.co.uk/blog/2019-03-29-equality-and-equity (sourced August 22)
[5] Anon, Equity Tool https://www.equitytool.org/equity/ (sourced August 22)
[6] Susan Caminiti, CNBC https://www.cnbc.com/2021/04/30/diversity-equity-and-inclusion-are-important-to-workers-survey-shows.html (sourced August 22)
[7] Anon, Glassdoor https://www.glassdoor.com/employers/blog/diversity/ (sourced August 22)
[8] Anon, HR News https://hrnews.co.uk/mental-health-employee-benefits-are-now-the-more-important-than-any-others/ (sourced August 22)
[9] Anon, Mercer https://www.mercer.com/what-we-do/wealth-and-investments/employee-financial-wellness.html (sourced August 22)
[10] Anon, MetLife https://www.metlife.com/sustainability/MetLife-sustainability/customers/financial-wellness/ (sourced August 22)
This document has been prepared by MAXIS GBN and is for informational purposes only – it does not constitute advice. MAXIS GBN has made every effort to ensure that the information contained in this document has been obtained from reliable sources but cannot guarantee accuracy or completeness. The information contained in this document may be subject to change at any time without notice. Any reliance you place on this information is therefore strictly at your own risk.
The MAXIS Global Benefits Network (“Network”) is a network of locally licensed MAXIS member insurance companies (“Members”) founded by AXA France Vie, Paris, France (“AXA”) and Metropolitan Life Insurance Company, New York, NY (“MLIC”). MAXIS GBN, a Private Limited Company with a share capital of €4,650,000, registered with ORIAS under number 16000513, and with its registered office at 313, Terrasses de l’Arche – 92727 Nanterre Cedex, France, is an insurance and reinsurance intermediary that promotes the Network. MAXIS GBN is jointly owned by affiliates of AXA and MLIC and does not issue policies or provide insurance; such activities are carried out by the Members. MAXIS GBN operates in the UK through its UK establishment with its registered address at 1st Floor, The Monument Building, 11 Monument Street, London EC3R 8AF, Establishment Number BR018216 and in other European countries on a services basis. MAXIS GBN operates in the U.S. through MAXIS Insurance Brokerage Services, Inc., with its registered office located at c/o Katten Muchin Rosenman LLP, 50 Rockefeller Plaza, New York, NY, 10020-1605, a NY licensed insurance broker. MLIC is the only Member licensed to transact insurance business in NY. The other Members are not licensed or authorised to do business in NY and the policies and contracts they issue have not been approved by the NY Superintendent of Financial Services, are not protected by the NY state guaranty fund, and are not subject to all of the laws of NY. MAR01084/0722
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