The War on Poverty is Fought in the Workforce

Recently someone asked how I got my start in HR after I was featured on an HR Podcast and told a little of my start story. I shared a story about how I was accepted for an entry level position but almost turned it down because I could not afford the dress code requirements. The only reason I started this career was because my sisters scrounged up $500 of their own money to help me start a professional wardrobe.

The person’s response was, “Wow that’s really nice of your sisters.”

And then they continued on with a different topic.

That response didn’t sit well with me.

Responses like, “I bet there are people struggling in my own workforce with that exact same problem,” or, “I don’t want anyone else to have to go through something like that,” or “How can we make sure top tier talent can get their foot in the door without a financial barrier” are the responses I’m looking for.

Human response is really what I’m looking for.

I wrote a blog post last year about creating dress code policies with socioeconomic diversity in mind, however the idea that employers have an impact on people’s financial status in society is something we rarely discuss.

If we take a step back from the politics of poverty, it’s blatantly clear - the war on poverty is fought on the workforce battleground.

This isn’t meant to take away from the impacts of education, government assistance, pay equality and racial barriers; it is simply a statement to provoke employers to consider themselves front line soldiers in this life or death war on poverty.

There was a time in my life where I only ate dinner because I worked at a bar that also served food. There were times when I was first in HR where I picked up extra bar shifts for two months just to buy Christmas presents for people in my department because that’s what the department norm was; times where I got to work two hours early just to use the bathroom to get ready because I hadn’t paid the light bill yet.

There was a time when I was told to wear nylons to an HR event and I was unable to purchase them that night because it was two days before pay day so I had to borrow a pair from a friend in order to attend the event.

The most painful time was when I was asked to travel two hours to a remote site and I had to tell my boss I couldn’t afford the travel up front. The shame was almost unbearable.

Moments like these and countless others in my career aren’t just my story, they’re the story of millions of employees filling our workforces. And although education would have helped (years down the road with crippling debt), and government assistance was available (but socially shunned, culturally looked down upon and required me to take time away from work to stand in line and apply), and although being white instead of bi-racial would have statistically put me at better odds to get out of poverty, it was a career with room to grow financially that pulled me out of my life and death battle.

It’s easy to believe a rags to riches story is beautiful because someone worked hard, beat all the odds and came out on top; but wouldn’t it be easier to believe that success actually comes from changing the odds instead of forcing employees to beat them?

Let’s look at some of the ways we can start changing the odds -

Policies with perspective

As your teams are reviewing policies in 2020, what financial perspectives are being considered? Most policy writing is geared towards legal compliance and risk mitigation, however if we’re willing to be employers that change the odds in 2020 then we must put an additional lens of financial impact to these policy writes. When was the last time your Travel Policy was combed through with your employees’ financial struggles in mind? Do your policies about working hours work within the confines of public transportation? How quickly do reimbursements hit an employee’s bank account?

All of these any more are thought processes that will inevitably help to turn the tides of this war on poverty. Our workforce policies alone can pull employees out of their life or death financial situations.

Pay structures that mean something

For the first two years of my HR career I concentrated solely on compensation. I did market studies, presented data to Board members and offered recommendations on salary structures. As one of the lowest people on that structure it never phased me how high up the structures went - just how low they dipped.

Could you live off the salary of your lowest paid employee? If the answer is no, then your salary structure has failed. We are no longer in the era where “pay for performance” is competitive or even humane. Human beings cannot perform to optimum levels if they are hungry, excessively stressed about finances and unable to purchase basic necessities.

Dan Price, CEO and Founder of Gravity Payments made national news when he bumped the minimal salary for all 120 of his employees to $70k. Dan was called a socialist and a psycho by CEOs of massive businesses, however the story of how Dan chose this salary bump is worth a read:

It was late 2011. Haley was a 32-year-old phone tech earning about $35,000 a year, and he was in a sour mood. Price had noticed it, and when he spotted Haley outside on a smoking break, he approached. "Seems like something's bothering you," he said. "What's on your mind?"

"You're ripping me off," Haley told him.

Price was taken aback. Haley is shy, not prone to outbursts. "Your pay is based on market rates," Price said. "If you have different data, please let me know. I have no intention of ripping you off." The data doesn't matter, Haley responded: "I know your intentions are bad. You brag about how financially disciplined you are, but that just translates into me not making enough money to lead a decent life." - Here’s What Really Happened

The best part of this decision? Dan cut his own $1.1 million salary to $70k to make this happen. The positive impact and growth Dan’s business received after this salary structure change is nothing short of remarkable - and nothing short of heroic. (Check out the above linked article for the stats on Dan’s success following his salary structure change).

I am not saying that each and every company is able to bump minimum pay to $70k, but I am saying that each and every company can wage a war on poverty by increasing pay across the board.

As employers we directly decide the socioeconomic levels of our teams. Are we willing to move our budgets around to move our employees up?

Your opinions aren’t welcomed here

It’s pretty amazing, especially in America, how judgmental people get about money. We look down on those that we assume are bad with money. We decide what is a livable wage without researching it. We think our receptionists fresh out of college should already know how to budget, how to save, how to have retirement funds, how to manage a professional wardrobe.

Our opinions, and our assumptions, are making asses out of us.

Regardless of someone’s salary structure, spending habits or home life situations we have to stop believing our personal opinions on finances are foundations for anything revolving around an employers impact on the socioeconomic levels of their staff. Our opinions aren’t welcome in this war on poverty - our innovation to change the battle is.

Unconscious bias is a nasty beast that most of us can tame in interviews, in meetings and even in conflict. Unconscious bias towards people’s money and their money habits is almost never up for discussion. It’s time that we as professionals make 2020 the first year where we recognize our bias towards finances and address them as we do with all other bias.

Each morning I wake up in a beautiful home, with gorgeous furniture, a full refrigerator and all my electricity on. I put on work appropriate clothes, give my animals a quick pet and get into my Nissan 2020 Rogue to head to work. I pay my bills on time, save, and donate. Sometimes I splurge. I travel, experience events that cost money in my own city and add guac to my Chipotle bowl. All these and so much more aren’t lost on this poor girl from bad neighborhoods and a broken home. My basic needs and my not-so-basic wants are made possible because of my desperate climb out of poverty up through the HR ladder.

Each day I walk into work knowing I’m walking into a war - a war on poverty that I’m a commander in. Each of you are commanders in this war too, and are capable of changing the lives of your workforce and their families every single day.

Suit up, team.