17 May 2021

How to use financial wellbeing to close the global wealth gap

At nudge, we believe employers are in the best position to be financial inclusion change makers. This article aims to highlight and emphasise where financial inequalities exist to help HR leaders, prioritise brighter financial futures for everyone, everywhere. With a recovering economy on the horizon, employers have an opportunity to level the financial wellbeing playing field for all.

Let’s begin by assessing the damage. Over the past year, we have seen certain demographics and communities bear the brunt of the economic fallout driven by Covid:

People with disabilities: have suffered a greater financial loss because of employment and financial security. The University of Sydney found that 7% of those with disabilities had to use a food bank in 2020, compared with 1.7% of those without disabilities.
Women: represent 39% of global employment but account for 54% of overall job losses. In addition, nearly one in four women are considering putting their careers on hold or leaving the workforce entirely because of the impact of the pandemic.
Some ethnicities: have been hardest hit with more job losses or salary reductions, exacerbating existing wealth gaps in many countries. In the US, 86% of Latino households are reporting severe financial deficits because of the pandemic.
Gen Z: is the worst financially hit generation, 63% say they saw a reduction in their incomes. Conversely, only 42% of Baby Boomers said their incomes were affected, on average across the globe.

The pandemic has amplified the financial wellbeing inequalities that were already in existence. Not to mention, the billions of people worldwide who are just not prepared financially for any type of economic emergency.

But this can be fixed.

The good news is the global economy is strengthening and with it there is a unique opportunity to address financial inequalities. It's you as employers who are in the best position to break down global barriers and drive change with financial inclusion.

How can you help your people?

There are three steps you can take today for your people across the globe:

Identify groups within your global workforce who have been hardest hit.
Find out from these groups the support they require and the cultural implications you’ll need to take into account. For example, debt is a criminal matter in the UAE and there is no concept of a credit score in Japan.
Look for a financial wellbeing tech solution that can be personalised to the different needs of your people. Then design a globally consistent employee benefit experience that allows for local adaptation, to cater to cultural sensitivities and market differences.

What to know more?

Join nudge’s event: ‘How can employers drive financial inclusion?’ on Thursday 10 June 2021 at 4pm [BST], 11am [CT].

This webinar will unpack the global emergency evidence and pinpoint exactly what employers can do to help. Joining us to explore this topic is a line-up of ground-breaking speakers:

David Whitfield, CEO and founder, HR Data Hub.
Tori Berry, global diversity and inclusion lead, HSBC.
Shani Dhanda, multi-award-winning disability specialist & speaker.
Hashi Mohamed, barrister, broadcaster, commentator and thought leader on social mobility and inclusion.

This article is provided by nudge.