Keeping employees, particularly employees of color, supported, happy and engaged in the workplace

To understand workplace culture, employee satisfaction, and which factors retain employees in their positions, we must consider more than just the wages offered by a job. However, what employers choose to offer their employees to reach these outcomes may resonate differently depending on the identities and lived experiences of employees. So how do we know what job elements to prioritize to create good jobs for employees of color?  

Prosperity Now has investigated how employees of color experience the different elements that contribute to job quality, such as economic stability, economic mobility, and having equity, respect, and a voice in the workplace. Our new study looks at how the satisfaction, retention, and engagement of employees from different racial and ethnic groups are impacted by these different job elements. You can read the full report here.  

Small businesses often lack the resources held by large businesses and may be limited in what they can offer employees. As this limitation leads to trade-offs for small business owners, employees can also face their own difficult choices in response. For example, if an employer offers increased wages over opportunities for career advancement employees may have to choose between career growth and support for basic needs. To help navigate these choices, our research focuses specifically on small businesses. 

But how do employees of color weigh the value of job elements differently than white employees? There are many similarities across racial and ethnic groups regarding what job elements support employee satisfaction. For both Black and White employees, having a voice, equity, and respect in the workplace has the greatest impact on job satisfaction. In fact, out of all job elements studied, this accounts for half of job satisfaction for employees of small businesses. However, Hispanic employees’ satisfaction is more contingent on economic stability, especially when it comes to benefits, and varies even more depending on the employee’s occupational sector. 

For both Black and White employees, having a voice, equity, and respect in the workplace has the greatest impact on job satisfaction.

But the job elements that support employee satisfaction don’t necessarily keep them in their job. Contrary to findings on worker satisfaction, retention is highly contingent on pay level, benefits, and career advancement across all racial and ethnic groups. Having control over your schedule is of particular importance to Hispanic employees, while Black and White employees, for example, are more likely to be retained by pay level and employee benefits. White employees are also more likely to be retained if they believe there are opportunities for economic mobility.  

While employee engagement can be impacted by feelings of economic stability, employees need to feel valued in the workplace to feel engaged. In particular, Hispanic and Black employees, are more likely to be engaged if they feel they have a voice, equity, and respect. Black employees also place particular emphasis on having the ability to enjoy their work, while Hispanic employees’ engagement more often relies on having the power to change things and having a sense of purpose and dignity. 

So what can employers do to provide “good jobs” to their employees?  

Focusing on the job elements valued by employees can create a more equitable and inclusive workplace for everyone. This report encourages small business owners to engage with employees on what they are seeking in the workplace and to help build the workplace satisfaction, retention, and engagement that small business owners and employees alike want to experience.