How Diversity and Inclusion Drives Innovation, Retains Employees, and Attracts Top-Tier Talent

"It is good to be uncomfortable for the right reason. You can't make change if you're comfortable."

—Natalie Brown, Director of Corporate Citizenship at Ally

A lack of diversity has real costs. A recent study has shown that businesses with gender, ethnic, and racial diversity at the executive level are more likely to have above-average profitability and outperform the competition.

But diversity on its own is not enough. Inclusion is just as—if not more—important. 

Research shows that employees who work with managers who foster an inclusive environment are 17% more likely to report that they are high-performing and 29% more likely to report behaving collaboratively.

Put simply, diverse and inclusive businesses drive more innovation, retain employees, attract top-tier talent, and hit many other metrics that lead to long-term, sustainable growth. But to be successful, diversity and inclusion has to be a top-to-bottom business strategy, not just an HR program.

At our recent Social Good Summit, Charli Penn, the lifestyle director at ESSENCE, hosted a thoughtful conversation on the topic with Natalie Brown, the Director of Corporate Citizenship at Ally, who has nearly a decade of experience in developing diverse recruiting strategies, implementing diversity-related executive programs, and putting D&I learning solutions into action. 

On cultivating a truly inclusive company… 

“Being an inclusive company means that you're celebrating the differences of all your employees and helping them to feel like they belong and have a stake in the company's mission and vision.”

“When you're really trying to be a truly inclusive company, you really have to walk the walk—and it's a marathon, not a sprint—on helping employees feel like they belong and feel like they have a stake in the game with you.”

On creating a sense of belonging… 

“When employees feel like they belong, when there's inclusivity, and when there's diversity in thought and differences in experiences, employees become more productive because they have a stake in what you're doing.”

On having diversity in every room… 

“When you have those voices in the room—at the top, in the middle, and at the bottom—you have diversity in the room that's coming from various perspectives.”

On listening to your employees… 

“It's important for all companies to take a stake and listen to their employees to hear what they have to say. Let them be your consumer so that you are driving results according to the mission that you outlined for your company.”

On driving a culture of inclusion… 

"When you think about the strength that comes into a company from the experiences—personal and professional—that your employees bring, that's really how you can drive a culture of inclusion and really start embarking on how you can make your company better.”

On including employees in the conversation… 

"The first step is bringing in your employees, having conversations with them, figuring out how you can build this inclusive environment and what they're looking for as employees from you as an employer. What's important to them?"

On checking unconscious bias…

“We have to make sure our managers are trained on how to build an inclusive team and trained on implicit bias to make sure that they’re checking their biases.”

“We all have a bias. If you have a brain you have a bias. The thing I say all the time is, 'If you don't think you have a bias, then let me know if you like Popeyes or Chick-Fil-A.'"

On tapping into your diverse employees’ networks…

"You have to leverage the power of your diverse employees to help bring more diverse employees into your organization."

On being transparent with your employees about your progress… 

"You really have to communicate your goals and measure your progress and let employees know where you are on that journey.”

“The more transparent you are about diversity and inclusion and where you are on that journey, then the more you can gain the trust of your employees."

On fostering a company culture that values inclusion… 

"When people are socializing at events through the company, they get to know each other on a more personal level. Then inclusiveness starts to happen organically because people don't see you for the position that you hold. They see for the person that you are in that position."

On being okay with being uncomfortable… 

"It is good to be uncomfortable for the right reason. You can't make change if you're comfortable."

To learn more about Ally, visit ally.com

Psst… If you’re having serious FOMO, join Create & Cultivate Insiders to get unlimited access to all of our Social Good Summit content, including video recordings of every panel and workshop download in C&C history.

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We Answer All Your Money Questions Like “Where Should I Put My Dollars Now?”

We know first hand when women set their mind to something, they can truly achieve anything. That also applies to confidence around money.  When you have the right money mindset and you experience the role it plays in living your best life, you’ll become a formidable force. 

So it’s time to ditch all fear, obligation, and guilt that block your healthy views on money to achieve the life you’ve always wanted.

Financial educator, Catherine Alford helped us get to that place with her Morning Money Talk presented by Ally at the recent Future of Work digital conference. She shared tips for getting your finances organized at home and supercharging your savings (because we’d all like a little extra financial padding right about now!). She started her business from scratch with a $10 domain name and grew it to six figures so she knows a thing or two about managing money. 

She explained that it’s hard to focus on your job, your side business, or your incredible start up idea if you don’t have your personal finances in order. Additionally, she says the more you save in your personal life, the more freedom you have to pursue your professional goals. Read on to learn about Alford’s three-step savings strategy.

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Whenever I'm having those moments where I really don't feel like saving, I think of my three main reasons to save to remind myself why it’s important. Here they are: 

Reason #1: Personal Freedom

Personal freedom is a massive deal to me. It's why I became an entrepreneur. I like doing what I want, when I want. I like choosing who I work with and what I spend my time on. I like having a job and still being able to pick up my kids from school. When you save your money and you're smart about how you manage it, the more personal freedom you have. Personal freedom with your finances allows you to walk away from jobs and situations that don't serve you and allows you to have fun too.

Reason #2: Leaving a Legacy

How cool would it be if your great-grandkids said, “Because of Grandma Cat or Grandma Sarah or Grandma Melody, all of us went to college debt-free?” What if, because of the lessons you taught and the discipline you established in your family, it changes the way your family behaves, perceives money, and donates?”

Reason #3: Extreme Generosity

Having savings also allows you to be generous with a friend who really needs help at a certain moment. I love the idea of extreme generosity, and I like practicing with micro generous moments. Remember, the more money you make, the more you can give away and make the world a better place.

How Much to Save and Where to Stash It

I like to have a three-step strategy when it comes to saving.

1. Get one month ahead.

2. Establish a solid emergency fund.

3. Set up sinking funds. 

Get into the mindset of believing you're a warrior when it comes to savings and you are going to slash through these goals, however long it takes. If you want personal freedom, to leave a legacy, and to be extremely generous, these steps can help you get there.

Get One Month Ahead

There's a concept called mental load that's been gaining popularity over the past couple of years. It's this idea that women have to do thousands of invisible tasks, things people don't see, things we naturally take on ourselves like emailing our kids teachers or getting a birthday gift for our mother in law. No one assigns us these tasks. It's just that culturally women have taken up all of these tasks, and it is a heavy load on many days.

I don't want money to be one of those things for you, but money takes a lot of time to manage unless you get one month ahead. For me, getting one month ahead is stress-free budgeting, and here's why. When you're one month ahead, you start the month with all the money you need for the month. 

The goal is to use your paychecks from this month to pay your bills next month. And if you're thinking, “That would be nice, but that's not possible,” you have to go back to your mindset. Remember, you are a savings warrior and you absolutely can accomplish that.

For some people, they can get one month ahead today by transferring money from their savings accounts and getting started on the first of next month. For other people, it might take a few months to get there, and that’s okay. What’s important is that you start.

Establish a Solid Emergency Fund

For ten years, I've been telling just about everybody to have a three to six-month emergency fund. And this year has completely changed my view on that because now, I am a fan of having six-plus months of an emergency fund.

If you have high-interest debt, like credit card debt, start with a one-month emergency fund. Then, pay off your high-interest debt as quickly as possible and go back and build your savings to six-plus months after that.

If you have low-interest debt, like a car loan or student loans, build your savings up to six-plus months now before aggressively paying those down.

I like to keep my emergency fund separate from my regular checking accounts and my investment accounts. I keep this money liquid. That means I can access it and have it today if I need it.

Set Up Sinking Funds

Sinking funds are little baby savings accounts for all of the big events and unexpected events that might happen in your life. Three examples are car repairs, holiday savings, and vacations. 

One of the first sinking funds I ever created for myself was when I started my business, and I really wanted to get a MacBook Pro. I was in my 20s at the time, and it was the most money I'd ever saved. I would save a little bit at a time in an online savings account until I reached my goal. 

That was my first experience, and I was hooked because it feels so good to go into a store with cash that you've already saved. There's no guilt, there's no stress, and there's no regret. 

It’s the same thing with vacations. Have you ever taken a vacation that’s completely paid for up front? If so, you're not worried about getting home and looking at your credit card statement. If you save for vacations ahead of time and you have all that extra padding, you're actually able to relax. You can also use sinking funds for things like your kid's birthday party or holiday shopping. 

To make this easy, Ally Bank’s Online Savings Account offers buckets. So, instead of having five or six savings accounts for various sinking funds, now you can consolidate them into one savings account with buckets inside of it named for your savings goals. This helps you to stay organized and in control of your money. 

Bonus Tip: Automate Everything

I know a lot of people aren't fans of automation but for me, automating is everything. I automate my savings and paying my bills because it saves me a lot of brain space. It’s the easiest way to build up a savings account without thinking about it, and that is what I credit the most to being able to build up my emergency fund to what I have today. 

If you've never tried automating or it makes you nervous, just try it for a month or so and see how you feel about it. Start by scheduling a small amount of money to automatically transfer to your savings account after you get paid. I know people worry about too much money being withdrawn from their accounts. However, after many years of automating, I have only had a problem two or three times, and it was quickly fixed with a phone call. 

I hope with this three-step strategy, you can get started on your path towards financial freedom. Not only will having an emergency fund and sinking funds provide a great financial cushion but having them will also give you incredible peace of mind.

To learn more about Ally, visit ally.com

Ally Bank, Member FDIC

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The Top 3 Questions From Our Money Moves Slack Channel—Answered

Photo: Vlada Karpovich from Pexels

What is your relationship with money? Do you budget and plan ahead or do you live in the moment and spend more than you save? Either way, we need to get better at talking about it if we ever want to be better at managing it (and eventually having more of it)—especially when you consider that globally, women drive 70 to 80% of all consumer purchasing.

Now, more than ever, we need to help women plan ahead, to take ownership of their money, and to become masters of their own financial futures. To do that, we teamed up with during our recent Money Moves digital summit for a live discussion on how we can plan it forward and have confidence in our financial well-being. 

After the chat with our CEO and founder, Jaclyn Johnson, we opened it up to a live Q&A so attendees could ask our panelists, Lindsey Bell, Chief Investment Strategist of Ally Invest and Emily Shallal, Sr. Director for Consumer Strategy and Innovation of Ally Bank all of their burning money questions—and you didn’t hold back. In fact, the questions kept coming even after the live discussion had ended in our dedicated Ally slack channel.  

So, we decided to compile a list of some relevant questions we received and asked both Bell and Shallal answer them for you. Read on to learn more about how you can plan it forward and be sure to let us know what money topics you want to learn more about in the comments below.

1. What about social impact investing? Do you have recommendations on resources for this? How I might educate myself? I want to be able to dictate where my money goes and what types of businesses I’m supporting through my investments. Where do I start?

LINDSEY: This has become an important factor for many people as they invest. For sources of education, I like this guide CNBC put out (includes examples of different funds that focus on ESG investing). If you really want to really dig into the trend, check out The Forum For Sustainable & Responsible Investment, they have a ton of research and information you can dig through.

 Just keep in mind that those resources are for informational and educational purposes only, and the information provided does not represent an investment recommendation or investment advice by Ally Invest.  

“Reviewing your current situation as well as the risk of losing current income is the first step in making any decision. — Lindsey Bell, Chief Investment Strategist, Ally Invest”

2. Would you suggest re-adjusting your financial goals for the year or just figure out other ways to make your original goals?           

LINDSEY: This is tough because it is a personal question. Reviewing your current situation as well as the risk of losing current income is the first step in making any decision. Instead of changing your goals or changing your life to meet those goals, it might make more sense to push those goals out while you weather the current storm. Writing out what your goals are and the options you have to reach those goals could be helpful in making the decision.

EMILY: If things haven’t changed for you and your income and expenses are still relatively the same, then keep your original goals. If your income has taken a hit and you think it’s likely to have long term consequences then you may want to readjust your goals. Sometimes with all of this uncertainty, working with shorter-term goals can be more manageable. Take your longer-term goal and break it down into monthly goals—what can you do in the next 30-days? This can be motivating and give you some emotional happiness that you’re still working on (and hitting) your financial goals.

“Paying off high-interest debt is usually always the right choice. But the right choice today has to factor in your job stability and your emergency fund. — Emily Shallal, Sr. Director for Consumer Strategy and Innovation, Ally Bank”

3. During these crazy times, do you think it's wiser to pay down your credit card debt or stick with the minimums and put money in savings? 

EMILY: In these uncertain times, standard financial advice isn't always the best choice. Paying off high-interest debt is usually always the right choice. But the right choice today has to factor in your job stability and your emergency fund. If you have a large emergency fund, you probably want to pay down your debt.  But if you don’t, you may want cash if you’re worried about job stability or are really uncertain about the future.  The good thing is that if you don’t need those savings when we emerge from this crisis, you can use that money to pay down your credit card debt. 

MISSED THE MONEY MOVES SUMMIT? WE GOT YOU!
READ THE TOP QUOTES FROM ALLY x MONEY MOVES FINANCIAL WORKSHOP BELOW:

On prioritizing yourself…

“If you don't pay yourself first, you're always going to feel like you’re a step behind.” — Emily Shallal

On having an emergency fund…

“You never want less than three months of income sitting in your savings account.” — Emily Shallal

On investing in the stock market…

“Research shows investing in the market may be a good way to get a return on your money.”

“Start small. You don’t have to put your life savings into the stock market on day one. Start with something that you know. You have to do your homework on the company.”

“You want to get used to what the market feels like, the daily ups and downs, and the volatility of the market.” — Lindsey Bell

On putting money into a 401k…

“Once you start small, you’re going to see this momentum, you’re going to see that balance start to grow and you’re going to get excited about it.” — Emily Shallal

On adapting during COVID-19...

“Innovation and iteration are part of the business process and it will take you places you never thought you were going to go.” — Emily Shallal

On finding the right financial advisor...

“Working with a financial advisor is like working with a therapist because you really need to get along with your financial advisor.” — Lindsey Bell 

On finance resources to read...

“If you’re looking for just solid information, anything by Warren Buffett. The Wall Street Journal is also a great resource for building your financial acumen.” — Emily Shallal

“The Intelligent Investor by Benjamin Graham will give you a great perspective about the market.”

— Lindsey Bell 

On the meaning of success...

“Success doesn’t have to be a destination. It’s about being a better version of yourself every day.”

— Emily Shallal

To see what Ally has to offer, visit Ally.com

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