New Report Highlights How Black Women’s Financial Burdens Affect Their Mental Health and Career Progress

More than half of American women twenty-five and older report that they do not feel financially secure and are anxious and worried about retirement. Financial stress due to the gender pay gap, motherhood penalty, and systemic bias over time can cause additional stress and affect mental health. In fact, women, Gen Xers and low-income earners are more likely to report that lack of money has a negative impact on their mental health. The result is a low level of self-esteem that affects productivity, career decisions, life satisfaction, and income.

A new study by Paradigm for Parity takes a closer look at how these financial burdens affect Black women in the workplace. The Paradigm for Parity® coalition supports companies around the world to achieve their commitment to racial balance by including racial equity in corporate leadership. The report, funded by a Black Women Impact grant through the Goldman Sachs One Million Black Women Initiative, is the first report on the impact of personal financial stress on Black women (ages 18-65) in the workplace. It shows the broader issue of the financial burden facing Black women today, not only in their daily lives and mental health, but in their long-term career plans and well-being. finances.

Studies show that low wages increase financial stress that prevents Black women from focusing on work, affects their overall performance and opportunities that limit opportunities for professional development and career advancement, thus it keeps them in low-paying jobs, perpetuating the cycle of financial stress.

According to Sandra Quince, co-chair and current board member and former CEO of Paradigm for Parity, “for the American economy as a whole, the biggest wage gap facing women in Blacks compared to their White counterparts present a significant loss of income for a large portion of the workforce, reducing overall economic growth and contributing to wealth inequality continued, “From a public perspective, it demonstrates a deep bias that continues to undermine widespread efforts to address gender and racial barriers.”

How financial stress hinders career development

The women who participated in this study showed themselves to be active and hard-working people, eager for progress. However, many said “that their financial pressure is an obstacle to promotion and advancement opportunities.”

According to the report, respondents are frustrated by lack of mobility and feel stuck in their jobs, undervalued, underdeveloped and unequally compensated. An overwhelming number of women cited financial pressure as a motivation for seeking a new job.

Racial bias in promotion limits Black women’s employment growth and access to high-paying jobs. Quince adds, “This compounds the financial burden faced by Black women, including student loan debt, maintenance, and the responsibility not only of managing their finances, but of their families as well. .It affects their ability to concentrate and perform fully at work, reducing their chances of being considered for promotion.Financial stress affects their self-esteem and clears their thoughts about themselves.

There is a relationship between self-esteem and job success. “People with high self-esteem engage in knowledge-related activities, thereby resulting in higher work productivity, higher career decision-making, life satisfaction and better psychological outcomes.” Self-doubt and self-doubt prevent people from seeking career advancement, positioning themselves for promotion, and making the right career decisions.

Respondents also reported experiencing physical and mental health problems as a result of financial stress, including migraines, anxiety, depression, high blood pressure, and even the hospital. Some respondents said they had to go on medical leave because of financial stress.

What can companies do?

To maintain this large talent pool, companies must tailor the support provided to their Black Women employees to their unique challenges.

Quince offers recommendations, guided by the strategies available at Paradigm for Parity consortium members:

• Address the pay gap by creating transparent and equitable pay policies, so that this issue is taken seriously.

• Create an inclusive culture where employees feel comfortable having critical conversations that inspire trust and allow for transparency. Eighty-three percent of respondents said their employer was unaware of their financial problems. It is important for employers to engage with employees to ensure they are fully aware of their concerns.

· Create programs, including resources on student loan repayment and financial planning, that support employee financial well-being. More than half of respondents (51%) said they wanted support in building wealth to prepare for retirement and leave a solid financial legacy for their children. This action not only addresses the financial problems facing workers but increases the overall economy for generations to come.

· Provide ongoing training for all employees to increase understanding of the unique financial challenges of Black women.

Another recommendation in the report is for employers to implement a number of policies and access to EAPs (Employee Assistance Programs) that provide counseling and support for personal and work-related issues, including financial stress to help reduce the financial stress of Black women in the workforce.

Quince shares that “Despite widespread efforts from various organizations to achieve gender equality in the workplace, there is a persistent and strong need to shed light on how these unique challenges How does it affect Black women.” Quince continues, “By recognizing these factors and carefully looking at steps to address them, employers can help combat the systemic barriers that prevent Black women from gaining financial security and professional development.”

Bonnie Marcus, M.EDis the author of It’s Not Done Yet! How Women Over 50 Continue to Trust and Claim Workplace Power and The Politics of Inspiration: Successful Women Get Ahead and Stay Ahead. A master trainer and speaker, Bonnie also hosts a podcast, Badass Women At Any Age.