7 ways companies can win women back

When a large section of your workforce is struggling, it’s time to act. And that’s exactly where we are today, as female unemployment grows at a breakneck speed. What can companies do to help?

In the work I do, I’ve seen organizations and benefits providers rising to this challenge by taking a more holistic approach in supporting women. Financially empowering women to overcome the unique challenges they face can help organizations safeguard both their talent and their bottom line—not to mention their reputation and productivity.

Women at work

Women want employers to help them with their financial challenges: Our research shows that 81% of female employees think employers should do more to help them get through specific financial troubles, and 93% of employers agree. 

This need for support has become more urgent: While women represented almost half of the US labor force in 2019, today, more women have left the workforce than at any other time in the last 33 years—largely to take care of loved ones. 

Leaving work can unfortunately exacerbate the financial challenges women already face—and also deeply affect their workplaces:

• Opportunity gaps. In 2020, women comprised just 38% of middle management, 22% of C-suite, and 5% of CEO roles. Today’s “she-cession” costs both women and their companies in terms of lost potential for growth, leadership development, and future earnings.
• Earnings misses. Women still aren’t compensated equally, earning an average of $0.82 to the dollar compared to men in 2021—or $0.98 to the dollar when comparing the same jobs and the same qualifications. Even this 2% difference in salary compounds over a lifetime for significant losses in income, retirement savings, and investment opportunities. And pay gaps can also contribute to a woman’s decision to remain in or return to a job.

• Family matters. Since women often step up to the plate to care for their loved ones, life occurrences like caretaking, divorce, or losing a partner can have an outsized impact on their financial and career trajectories. Evidence even suggests that having a child—or simply the potential to bear children—may also contribute to the wage gap. 

• Living longer on less. Women live an average of 5 years longer than men, which means they should save more for retirement. However, many save less. Only 39% of women are confident they’ll have enough resources to last into retirement, and the poverty rate for women over 65 is nearly double that of their male peers. 

The good news is that the workplace can make a real difference by meeting women where they are today. How? According to an InHerSight survey, most women want their employers to prioritize paid time off, respectful work environments, flexible work hours, and salary satisfaction and equality. 

As you assess ways to better support, recruit, and retain your female employees, your benefits offerings and plan participation can play an essential role. Here are some action items to consider:

1. Track the data. We’ve found that only 45% of companies track financial wellness by gender, but missing this data can lead to blind spots in your benefit packages. Make an effort to connect with women through targeted surveys and in your organization’s Employee Resource or other affinity groups to measure their benefits engagement and perceptions.
2. Start the conversation. Women seem to have a hard time talking about finances: 56% feel it’s too personal, and 47% are hesitant to talk even with a financial professional. Workplace 401(k) plan advisors are an immense resource to help your employees demystify complex financial topics by guiding conversations and educational seminars, but many women (and wider plan participants) may not be aware of or tapping into their workplace advisor.
3. Address barriers to entry. Women are less likely to say they understand workplace financial wellness benefits and more likely to say they want clearer explanations of their benefits, easy access, and simplified enrollment. Focus communications on meeting women’s concerns, answering their questions, and helping them utilize their workplace benefits. 
4. Expand the support team. Female employees are less likely to have a financial advisor or to feel comfortable receiving financial advice at work. Help them build confidence through education around the importance of a holistic financial strategy and commitment-free access to financial coaching or advice through workplace benefits. 
5. Offer flexibility. Since caregiving needs are top of mind for many employees right now, make sure to spotlight any flexible work policies, extended parental leave, childcare and eldercare subsidies, or backup care options your organization offers—and encourage employees to ask for help when they need it. 
6. Help with debt. Although women make up just more than half of US college students, they carry two-thirds of the $1.6 trillion owed in student debt. That’s why emerging financial wellness benefits that help address student loan debt can be particularly helpful for women working to overcome any outstanding loan balances.
7. Make equity more equal. Equity compensation supports higher employee retention, including for women. It can also help build wealth, but our research shows that women make up just 40% of the total equity compensation pool across US companies. Review your hiring, promotion, and compensation practices to assess and address any gender gaps, and make sure eligible women are aware of how to engage with their awards.

With so many women weighing difficult career and life decisions, an inclusive, accessible, and broad-based benefits program is more important than ever. It’s a powerful tool to help improve women’s financial wellness—and benefit your company’s long-term bottom line.

Kate Winget is Head of Client and Participant Engagement, Morgan Stanley at Work.

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