Beyond Diversity Hiring: Here’s How Corporations Can Economically Support Black Employees
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Diversity Hiring is Just Step One
Over the last few years, corporations have endeavored to become more diverse and inclusive in their hiring practices and company culture. However, now is the time for employers to think beyond diversity hiring and also consider how their economic compensation practices can do more to support black employees and by default, black communities.
Here are some ways corporations can provide economic support to black communities across America.
Assist Employees with Relocation
The majority of the Black workforce lives in the South. Often, many black employees are given great job offers located out of state but end up turning them down because they can’t afford the fees associated with a tremendous move. Unfortunately, very few companies are willing to provide financial assistance to a new employee who needs to relocate to another state. To reduce the financial stress of a new employee that needs to move for a job offer, corporations can provide a relocation assistance program for qualified applicants.
Help Employees Purchase Homes
Despite the increase in black homeowners in America, potential black homebuyers often face many hurdles, some rooted in racism, when trying to buy a home. As of March 2021, the approximate homeownership rate for African Americans was between 42%-45%, which hasn’t changed much since the 1960s (NCRC). A significant aspect of Black generational wealth is encompassed in investments in assets such as homes, so these rates must be increased over the next few years.
To assist employees looking to purchase a home, some companies have job benefits that include a home-buying program. Employer Assisted Housing (EAH) programs are state and community-based efforts that partner with companies, government agencies, and corporations to increase homeownership rates in certain areas. As reported by Bob Vila, EAH programs “serve as recruitment and retention tools for employers, employees by assisting with down payments or closing costs, reduced mortgage interest rates, and subsidized second mortgages.”
Provide Paid Internships
An ongoing debate about internships is whether they should be paid or unpaid. Some believe that the amount of time and work an intern puts into the internship deserves some type of pay, while others believe that the experience they gain is as valuable as a paycheck. For underrepresented populations, a paid internship can provide them financial support needed to pay for their necessities such as food, rent, gas, and possibly their tuition. Often times, low-income students may forgo unpaid internships because it simply cannot fit within their work and school schedule. Corporations should set aside funding to support the financial needs of interns who may be struggling to meet ends while attending school, working a job to pay their way through school and also participating in an unpaid internship. Unpaid internships put students who can not afford to take them at a disadvantage.
Offer a Student Loan Assistance Program
Many are still celebrating the recent announcement made by President Joe Biden about student loan repayments being deferred until May. However, once loan repayments are due again, many will face challenges paying them back. African Americans often have the highest student loan debt compared to any other race or ethnicity. As reported by Education Data, Black and African American college graduates have an average of $52,000 in student loan debt.
Employees who work for government agencies or organizations like AmeriCorps and Peace Corps are eligible for the Public Service Loan Forgiveness (PSLF) Programs. With these programs, an employer will directly deposit a certain amount of funds each month to a student loan servicer’s account on behalf of their employee. Aside from government jobs, many corporations will have student loan assistance programs that their employees can utilize.
Purchase Stock Shares for Employees
A significant way corporations can give back to the black community economically is to encourage their employees to invest in stock by buying them their first stock share. Finance is an overlooked topic in schools, sometimes even in college, which leaves a lot of new graduates unaware of the different ways they can invest in their future. Being educated about stock and then purchasing shares can help provide generational wealth to the black community.
One great example is the initiative “One Stock. One Future” created by Chairman and Co-Founder of Vista Equity Partners, Robert F. Smith, and Goalsetter, a financial platform. The initiative aims to provide financial freedom to the next generation of Black and Latinx Americans. According to Black Enterprise, a total of 1,000 shares in stock will be distributed to Black and Latinx children across America and provide them with financial education.
It’s fantastic that corporations are taking the initiative to become more diverse and inclusive in the workforce. However, the black community needs economic support to create more generational wealth. These methods are just a few ways corporations can support the black community economically.