Emotional Tax On Black Professionals In The US Workforce

Human resource professionals have been rooting for diversity, equity, and inclusion (DE&I) initiatives for over a decade. While many US companies made DEI commitments after the 2020 racial protests, the 2022 Workplace DEI Report by Culture Amp shows that few have kept them. Only 34% of the respondents reported having adequate resources to support their DEI initiatives.  

However, diversity is just one end of the spectrum. Inclusion, a behavior that helps employees feel welcome at the workplace, is an equally important consideration. Inclusion not only expands the talent pool but is also integral to the competitiveness and growth of a business.

A 2022 survey by JUST Capital and SSRS revealed that 92% of Americans believe racial equity should be encouraged in the workplace. 68% of the respondents felt that companies should do more to achieve racial equity, an increase from 64% in 2021. A substantial majority of the respondents agreed that implementing various racial equity policies, such as equal advancement opportunities and board diversity, would positively impact a company's bottom line.

For persons of color, handling discrimination in the workplace creates an "emotional tax" that they must deal with. Emotional tax is the experience of being treated differently from one's peers due to differences in race or ethnicity. It adversely impacts the well-being of workers who increasingly feel isolated and lonely, thus creating a challenging work environment.

McKinsey Research found that Black professionals usually face higher unemployment rates, work for lower wages, and have lower growth prospects than other workers. There are only six Black CEOs on Fortune 500 companies list, and Black workers rarely find a place in the senior leadership of any organization.

When employees do not feel welcome at the workplace and find it difficult to operate, the revenue and profitability of a firm take a hit.

Source: McKinsey 

Black Tax

While most Black professionals face discrimination, Black and Hispanic workers are still underrepresented in the STEM workforce compared to their share of all workers, including IT jobs. Black workers constitute 11% of all employed adults, compared to 9% of Black STEM professionals. Some STEM job clusters, such as engineering and architecture, have an even lower share, where the figure stands at an abysmal 5%.

‍

Also, the racial and ethnic earnings gap between STEM workers is significant. The median salaries of Black STEM full-time, year-round professionals aged 25 and above ($61,100) are 78% of the median wages of White STEM professionals ($78,000).

Black workers often resort to code-switching, a technique used to alternate between appearance, self-expression, and workplace behavior to downplay racial differences and "fit in." However, it results in a loss of authenticity and self-confidence and decreases the sense of belonging for Black workers in an office.

At the same time, the discrimination faced by Black workers can also force them to be "hypervisible" at the workplace, which is a feeling of being too visible for one's race or identity while one's personality and skills are not noticed. 

 At the Crossroads of Multiple Challenges

Black women have a more challenging work environment due to the overlapping pressures of gender bias and race. They deal with being asked to do more office housework or interrupted while communicating with colleagues. Other situations charged with racial prejudice, like someone touching their hair without consent or being told that one is not like others in the community, also affect Black women adversely.

Women are advised to handle such discrimination by being more assertive in their approach or "leaning in." However, articulate Black women are often labeled as "angry" or subject to racially motivated reprisals when they speak up for themselves.

The focus on staying aware of such bias takes a toll on the self-confidence of employees, retention rates in companies, and growth potential. It is not surprising that workers face financial and professional setbacks. The constant vigilance becomes an added task and an energy-draining distraction. Black employees in non-inclusive and non-diverse workplaces may lack access to senior leadership, resulting in a slowdown in career growth.

Paying Black professionals less for the same amount of work and the limited availability of mentorship impacts their earning potential throughout their careers.

 The Black tax, being widespread, prevents Black families from building wealth to last generations. When Black employees consistently make less money compared to their White colleagues, they have limited opportunities to earn, save, invest, and pass on wealth to the next generation. Several Black professionals are the first in their families to have a college degree and a white-collar job. Thus they end up supporting their extended families throughout their earning years. As a result, the Black tax can cast a far-reaching shadow on the economic health of Black communities.

Impact on Company Bottom Line

 A lack of diversity and inclusiveness at work can make it challenging for internal workers to enter the managerial track or attract talented professionals from outside. Due to the unwritten rule that Black workers have to be more qualified, more hard-working, and more professional than their peers, a culture where growth and productivity prosper cannot take root. Thus, organizations face reduced productivity and high attrition rates among talented people.

 "The COVID-19 pandemic exposed and exacerbated existing inequalities in our economies and societies. An equal, diverse, and inclusive workplace is a key driver of resilience and recovery," says Manuela Tomei, Director of the ILO Conditions of Work and Equality Department

 Companies that enable a wide variety of people to put in their best work tend to perform better than those that don't. Exposure to diverse colleagues helps the entire organization adopt diverse practices. Benefits include better employee engagement, increased retention, improved brand reputation, and the ability to attract better talent.

 To attract the best talent and connect deeply with one's customer base, companies must acknowledge that women of color are an integral part of the available talent pool. Women and people of color account for almost 63% of the population in the United States. However, when it comes to decision-making at senior levels in the business, there is only 30% representation from this group.

What does an Inclusive Workplace Look Like?

An inclusive workplace understands, welcomes, and values the differences between people. These differences can be related to race, ethnicity, sexual orientation, age, or disability. It can also be about skills or identities. An organization with an inclusive culture and approach helps create a collaborative and respectful experience for its workforce. 

 It is easier to see diversity than measure inclusivity. However, the two are interconnected. The ILO defines "inclusivity" as "the experience people have in the workplace and the extent to which they feel valued for who they are, their skills and experience, and the extent to which they have a strong sense of belonging with others at work." Inclusivity is usually found in decisions about business growth or recruitment. In other words, inclusion can only be felt in how an organization conducts its day-to-day tasks.

A business needs to build a seamless chain across internal processes, cultural change, and educational initiatives to create organizational transformation.

Here are some ways to begin

Internal processes

 Start by understanding the organization's current state when it comes to inclusion and diversity and develop a plan of action for meaningful change. Embedding inclusivity and diversity requires more than ticking off the boxes in an HR checklist. Inclusion is in all critical business decisions—from recruitment to strategy.

Organizations could look at maintaining a fine balance between the business's goals and its employees' most pressing needs. Organizations need to listen closely during internal polls, respond to concerns, and formulate a plan to measure progress.

Culture

Build pillars of diversity and inclusion in the organization to establish best practices for communicating and managing employees. These touchpoints should be visible in the organizational culture, in the empowered employee communities, and within inclusive and effective internal communication.

 Allyship

 The burden of educating people about racial inequity should not be limited to people of color but should extend to the entire workforce. Each employee should pledge to become an ally to reduce the emotional burden faced by their Black peers. Everyone is expected to develop innovative ways to support their Black colleagues and understand the day-to-day challenges they face at the workplace. Everyone should promote a culture of active allyship.

Education

 An organization should build an effective chain of communication and set up employee support initiatives to begin investigating areas for improvement.

• Check if all the corporate communication and other materials have inclusive language.
• Research ways for employee benefits to provide options that promote diverse perspectives and identities, such as floating holidays for religious festivals and cultural events, good-quality and affordable daycare, etc.

Organizations should make it a point to comprehensively and mandatorily train their workforce on various topics, including promoting inclusive language, boosting allyship, and eliminating unconscious bias.

Conclusion

 Ensuring that people from all backgrounds are part of the workforce gives an organization a better chance of registering sustainable growth. High levels of diversity and inclusivity at the workplace are associated with increased productivity, higher employee well-being, and greater levels of innovation.

When the entire workforce has a better chance to grow and contribute, the organization can gain a competitive edge and outcompete the market.

 Cogent Staffing help businesses build a diverse, inclusive, and advanced workforce to meet their evolving requirements. Click here to read more about how Cogent Staffing can help with training needs to enable a commitment to DEI initiatives.

‍