Helping Clients Build Welcoming Workplaces: Benefits That Better Support Black Employees
Quick look: As Black History Month marks its 100th anniversary, brokers have an opportunity to consider how they can help clients support Black employees’ overall well-being and career growth. Through a PEO partnership, brokers can connect small and midsized businesses (SMBs) with benefits plans and workplace policies designed to support diverse teams and promote fair access for all.
February is Black History Month, a time to honor and celebrate the accomplishments, culture, history, and lived experiences of Black Americans. In 2026, the observance reaches a significant milestone: its 100th anniversary.
For brokers, Black History Month also offers space to reflect on how they can help clients more intentionally support Black employees. While disparities persist across the healthcare system, wealth, and income, you can help close these gaps by connecting employers with benefits and programs designed to improve the well-being and opportunities of historically marginalized staff.
An unequal healthcare experience
Before exploring how brokers can help clients advocate for Black employees, it’s crucial to address the racial bias and inequalities in the healthcare system today.
Discrimination
According to recent findings in the Journal of General Internal Medicine, disparities in healthcare experiences remain a significant concern:
- 49% of Black/African American adults reported experiencing discrimination in healthcare
- 39% of Hispanic/Latino adults reported similar experiences
- 49% of multiracial individuals reported discrimination
Meanwhile, other data shows the positive impact brokers can have by offering clients health insurance plans with broader provider networks. According to KFF, when Black patients and their physicians share racial or cultural backgrounds, there is an increase in preventive visits, better adherence to treatment, improved life expectancy, and reduced emergency department use.
Misdiagnosis
Research has also shown that Black patients, including children, are misdiagnosed more frequently than white patients, especially for mental health conditions. Similarly, despite Black people being 20% more likely to experience mental health challenges, only 25% receive related care (compared to 40% of white patients).
These gaps stem from multiple factors. Implicit biases, for example, can influence how some physicians interact with Black patients. Stigma can also play a role, as Black patients may feel less comfortable seeking care if they feel their provider may not understand or relate to their background.
Another cause of frequent misdiagnosis is rooted in the diagnosis tools themselves. For example, the algorithm for assessing lung health refers to centuries-old information suggesting Black people have a lower lung capacity than white people. This bias has resulted in Black patients being undiagnosed and underdiagnosed with respiratory complications, perpetuating disparities in care.
Medical debt
Medical costs also disproportionately impact Black households. Data shows 56% of Black adults carry medical or dental debt, compared to 37% of white adults. Additionally, 13% of Black Americans report carrying significant outstanding balances, versus 8% of white Americans.
This financial strain can cause individuals and families to skip medical appointments, affecting their current and future health. Brokers can ease this burden by offering small businesses health insurance plans at more affordable rates than if they were to purchase them on their own. Additionally, access to flexible savings accounts (FSAs) and health savings accounts (HSAs) can make medical expenses more manageable.
Addressing the broader wealth gap
Beyond healthcare, Black Americans continue to face disparities related to earnings, retirement savings, and asset accumulation.
Pay disparities
According to the U.S. Department of Labor, Black employees earned a median weekly wage of $986 in 2025, compared to $1,231 for white workers.
While pay differences can result from a variety of factors, brokers can encourage equity by suggesting clients partner with a professional employer organization (PEO) that offers data-driven insights into a company’s pay, promotion, and turnover data, helping employers identify and address gaps over time.
Retirement readiness and asset building
Further discrepancies exist when it comes to retirement planning. The Employee Benefit Research Institute (EBRI)’s 2025 Retirement Confidence Survey found that 33% of Black Americans report having at least $250,000 in total savings and investments, compared to 63% of non-Black respondents at the same income level.
Another factor affecting Black Americans’ retirement income is Social Security. Because benefits are calculated based on lifetime earnings, Black retirees often receive less than their white peers. This can have a significant impact, especially considering that 39% of men and 44% of women aged 65 and older rely on Social Security for more than half of their income.
Homes can also be one of the most valuable assets for people during retirement, and home ownership rates highlight another barrier Black Americans face to long-term financial security: December 2025 Census data shows that around 46% of Black adults own homes, compared with 74% of White adults.
Creating pathways for upward mobility
In addition to equitable pay and offering benefits aligned with today’s diverse workforce, it’s also crucial that employers provide opportunities for professional growth.
Besides improving retention rates and institutional knowledge, research shows that learning and development programs are highly valued: 80% of Black employees who don’t have access to company-paid skill training would be very likely to take advantage of it if it were offered.
Through a PEO partnership, brokers can help clients implement professional development initiatives, including:
- Mentorship programs: Pair staff with mentors who can offer guidance and career development advice.
- Training and upskilling: Offer accessible educational opportunities that help employees expand in their current role or prepare for future ones.
- Clear career progression plans: Outline and communicate what’s required for advancement.
- Tuition and external learning support: Provide reimbursement for continuing education, conference attendance, or access to professional networks.
Better together: how brokers and PEOs can support welcoming workplaces
With the right guidance and resources, small and medium-sized business (SMB) leaders can make a significant difference in the careers, finances, and health of their Black employees. Brokers play a critical role by helping employers understand disparities and select benefits and policies that support all members of their teams.
A PEO like ExtensisHR equips brokers with the tools and services to help companies create welcoming, people-first cultures, including:
- Health insurance plans with diverse provider networks, telehealth options, preventive care, mental health support, and more
- Medical plans with health savings account (HSA) options that cover health expenses and serve as long-term investment tools
- 401(k) retirement and 529 education savings accounts, along with financial training on investing, budgeting, etc.
- Access to an intuitive DEI Dashboard showing real-time information on pay equity, salary trends, employee turnover, promotions, and more across race and gender demographics
- A dedicated, SHRM-certified team to help develop inclusive learning and development programs
By working together, brokers, employers, and PEOs can intentionally design equitable benefits packages and workplace policies that empower and uplift every employee.
Contact the experts at ExtensisHR today to see how we can help you craft a robust and inclusive benefits portfolio that levels the playing field for employees.
