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The term “cultural sensitivity” is a relatively new one, but the ideas that it represents should be a standard practice at every organization. Being culturally sensitive means being aware and appreciative of other cultures, ethnicities, races, and other groups in terms of their values, norms, and beliefs — as well as being willing to adjust or change behavior to better accommodate and support other cultures.
Culture and background have a significant impact on the effectiveness of financial wellness programs, financial literacy coaching, and other initiatives that can help individuals take better control of their money and budgets. The Consumer Financial Protection Bureau (CFPB) has targeted financial literacy recommendations for different age groups, including young adults and older consumers, as well as military service members and veterans. Primary language, race, religion, and country of origin are also important variables that can affect how individuals think about money, savings, and other critical financial concerns.
To build a financial wellness program that serves the needs of all employees, it’s essential to incorporate elements of cultural sensitivity in order to gain a deeper understanding of how different groups approach their finances and where they might need the most support. These are a few of the most central considerations for crafting a culturally sensitive financial wellness plan.
American culture prioritizes independence, self-sufficiency, and personal responsibility, but these cultural “defaults” are not widely applicable to all individuals. Many non-Western cultures place more emphasis on family and community, encouraging members of these groups to pool their resources and make financial decisions as a group. There can also be different cultural expectations around supporting aging parents and adult children that can have a profound influence on how individuals in these cultures prioritize both spending and saving.
One example is Tongan culture, in which it can be conventional practice to give money to other community members once an individual’s basic financial needs have been met. In China, children are often given money in lieu of gifts for birthdays, and it’s expected that they will save most of what they receive.
In some cultures, instead of banks, groups use community savings groups, village savings and loans associations, or savings and credit cooperative societies. Individuals deposit a certain amount of their earnings into a group account, which is then loaned out based on demand to other group members. These loans are expected to be repaid (typically within one year) and are alternatives to the bank-based loan systems that are more commonplace in the United States.
These different options lead to a wide range of financial preferences and habits. People who are accustomed to community savings models might prefer to invest in these types of groups instead of saving money in a personal account for an emergency. And in cultures where it’s common for younger citizens to support the older generation, there isn’t as much emphasis placed on saving for retirement.
What are the benefits of constructing a culturally sensitive financial wellness program? For both participants and the organizations offering the programs , incorporating cultural sensitivity can be a win-win initiative.
A culturally sensitive program will likely have higher employee participation and greater engagement. In the case of a workplace financial wellness program, the focus and purpose of the program is usually to decrease employees’ stress levels around their finances, which can distract them from work and even inspire them to start job-seeking. Increasing participation and engagement can help these workplaces reach their goals.
Culturally sensitive financial wellness programs are also more effective in terms of overall financial outcomes. Showing respect and understanding of different types of employees and their cultural backgrounds empowers those employees to make better financial decisions, whether that’s saving more money or keeping better track of their spending.
Lastly, cultural sensitivity is a concrete way to show employees you see who they are, and that you care about their challenges and want to help them in whatever ways work best for them. It can increase employee loyalty and job satisfaction because the financial wellness program participants feel included, enhancing their feelings of belonging.
Understanding the need for cultural sensitivity in a financial wellness program is the first step. What else should organizations be doing in order to create and maintain these initiatives for their employees?
A cultural audit is a way to measure diversity and inclusion in an organization. These should be implemented at regular intervals (annually, or biannually if possible) to accurately keep tabs on how the organization is growing and changing.
Cultural audits should measure different employee demographics, such as age, gender, sexual orientation, race, ethnicity, country of origin, and potentially religion. Beyond those basics, employers can assess the number of languages spoken by employees, the proportion of employees with disabilities in the organization, and the salaries or pay scales being offered.
An employee survey can be a good way to understand the financial needs of different employees and whether they consider their workplace diverse. The results of these surveys should be included in the cultural audit.
A cultural audit is a good jumping-off point for program design. Organizations with significant Islamic representation might consider incorporating halal investment options into their financial wellness programs and 401(k) plans, for example. These are investment options that conform to Islamic law, which has rules about interest, assets or commodities such as alcohol or military equipment, or transactions that are not transparent, to name a few.
Providing information about how to create community-based savings programs (using platforms like Braid.co, for example) can be another way to design inclusive financial wellness education. Incorporating workplace program components that help support multigenerational households, people with disabilities, and other different demographic groups is another way to bake inclusivity into the program.
One straightforward way to approach financial education and communication with cultural sensitivity is to offer educational materials and resources in different languages. The cultural audit can help provide a sense of which languages are most widely spoken at the organization, and can inform how to build and shape employee-focused education about the financial wellness program. This information should also shape foundational education, such as the importance of saving for retirement, saving for an emergency, or creating a custom budget that fits individual lifestyles and requirements.
Asking employees what they think about the financial wellness program can provide valuable information about how to tailor it for a specific workforce. It’s wise to seek feedback from all employees, even those who have opted not to enroll in the financial wellness program. When employees who opt out share why they aren’t interested in the program, it offers deeper insight into how to expand the program’s cross-cultural appeal, or how it might be adjusted to accommodate more workers. When requesting feedback from employees, work to ensure that any surveys or feedback forms are also available in all languages used at the workplace.
The biggest challenge to overcome when building culturally sensitive programs is bias. For example, gender bias might lead an employer to believe that saving money is more important for male employees and less important for female employees — or vice versa. Age bias might cause employers to assume that the older members of their workforce are not as interested in saving for an emergency and should prioritize saving for retirement.
One of the most insidious forms of bias is confirmation bias, a type of bias that causes people to seek out information (or prioritize information) that confirms what they already think they know. To help combat bias of all types, it’s important to gather data and feedback from a wide range of sources, standardize any questions asked to ensure everyone is given an equal chance to respond, and use survey tools to aggregate information.
Uniform programs are easier to implement and track than customized programs, but it’s important to have elements of both standardization and flexibility in order to create a truly culturally sensitive financial wellness program. While every employee can likely benefit from both short-term and long-term savings plans, or from financial education and coaching, the types of savings plans or education offered should have enough variety to appeal to every employee.
In her article on culturally relevant education (published on LinkedIn), Tiana B. had this to say: “Progressive financial institutions have acknowledged that financial knowledge is not one-size-fits-all, and the intricacies of money management can vary widely across different cultures and communities. By tailoring financial education to reflect the unique backgrounds, beliefs, and values of individuals, these institutions help bridge the gap and ensure that everyone has access to relevant and applicable financial insights.”
And Eustaquio Martinez noted in another LinkedIn article that financial literacy is critical for addressing inequities by combatting wealth inequality, improving access to opportunities, and breaking cycles of poverty. “To dispel inequities, we need targeted and culturally responsive financial literacy programs,” that reach vulnerable communities, promote inclusion, and empower youth, he added.
A culturally sensitive financial wellness program can be more effective and more engaging than a one-size-fits-all approach because it’s designed to meet employees where they are financially, offer a variety of options that fit with different lifestyles and priorities, and foster loyalty and goodwill between employees and employers. Considering cultural sensitivity when crafting a financial wellness program can require more work, such as cultural audits and built-in plan inclusivity, but the reward is a more financially literate workforce.
Franchise owners, managers, HR professionals, and others attempting to build attractive benefits plans that retain their top talent and help recruit the best new employees need to be considering cultural diversity and inclusion in their efforts. When employees feel supported and heard, they’re more likely to participate in these programs, which ultimately enhance their well-being, their productivity, and their success in the workplace — and beyond.