PLANADVISER - November/December 2021 - 28

practice management / diversity
What You
Can Do Now
FlexShares, in its 2019 " Diversity Is
Good Business for Advisory Firms, "
recommends the following tactics to
achieve a more diverse firm:
Make the pursuit of diversity a core
principle for your firm. Include diversity
in your firm's strategic goals and planning,
and put measurable metrics behind it-e.g.,
mandate that your firm consider at least one
diverse candidate for each opening.
Consider conducting unconscious bias
training. Identify ways to move beyond
ingrained stereotypes.
Bring key firm stakeholders together to
design a diversity initiative. Success is
most likely when everyone is a stakeholder
and has a role.
Set measurable goals and hold each
person accountable. One employment
goal could be including a diverse candidate
in the final interviews for every new hire.
Implement ongoing diversity, equity and
inclusion training for the entire firm.
Leadership should own the diversity
mindset and speak of it often. Share
insights about the ways diverse firms are
succeeding.
When recruiting, think outside of your own
personal and business networks. Consider
job fairs, trade shows and other forums where
you may find a more diverse candidate pool.
Consider candidates who lack a financial
background but are in the business of
helping people.
Review your personnel policies, and be
aware of diverse employees' varying
needs. Acknowledge and allow flexibility for
different cultural holidays. Offer flexibility in
work locations and hours when possible.
For firms that hire traditionally, another large talent pool has also
been overlooked: women who left a career, maybe to raise a family,
and want to return to work, says Gregg. " If your [ad] says you require
three to five years of financial services or advisory experience, a careerchanger
will likely not apply. " Instead, lead with the soft skills advisers
need for success. " Say you're open to motivated career-changers with a
growth mindset, strong work ethic or the ability to build strong client
relationships through excellent listening skills and compassion. "
And do not penalize such candidates for résumé gaps, says Jennifer
Norr, president of WIPN [WE Inspire. Promote. Network] and head of
enterprise data governance with CUNA, in Madison, Wisconsin. For
example, firms should " hire for general skills such as retirement sales
but not require DCIO [defined contribution investment only] sales
skills. "
Revisiting compensation structures to ensure equity is also vital,
Norr says. " People living paycheck to paycheck can't afford a comp
structure that pays out a lot at the end of the year or after sales. It's right
to reward pay for performance-just make sure everyone can afford to
do that; you can offer a signing bonus, incentive bridge loans, etc. "
These concessions would apply to hiring for diversity in general,
she says. " And hire a few so they are not 'the one.' "
More Than a Round of Golf
Retaining employees whose background differs from the established
staff's will take work, sources say. Gregg recalls discussing inclusion
with a friend who runs a small private equity shop. " He was frustrated
that his firm couldn't retain its diverse talent. 'I always invite them
out, like us directors, for a round of golf,' he said. While that's a nice
gesture, it isn't inclusivity. Nobody wants to feel they were hired so the
employer could check a diversity box, " she adds.
Leadership would want to " recognize and celebrate the cultural
and personal differences among your team, understand that there
are different cultural holidays, want to get to know what's unique and
different about each of your team, " Gregg says.
J.P. Morgan has created a leadership forum for each diverse community,
says Thompson. These enable " employees to provide feedback on
their experience as a diverse employee and also to help us shape our
overall strategic initiatives. "
If inequity is apparent, determine why and act. At Northwestern
Mutual (NM), also profiled in " Diversity in Action, " leadership wanted to
advance women into adviser and executive roles, but this was happening
slowly. So it held a gender caucus, to uncover the cause. It found that
women were absent at one level of decisionmaking, so it launched the
Women's Field Association at that level to give women a voice.
The company also incentivizes inclusivity. Offices making a visible
difference receive Diversity and Inclusion Champion Awards. These
awards include cash, to further the office's DE&I work.
An additional way to support DE&I is by creating employee
resource groups (ERGs). NM and Schwab each pointed to the success of
their ERGs-essentially micro cultures, each based on a commonality
such as ethnicity, gender, veteran status, etc. Members enjoy mutual
support but also job benefits such as leadership development opportunities.
At Schwab, around 33% of employees belong to at least one ERG.
Developing a culture without bias is key, Gregg says, summing up
what a practice should work for: " Culture is about what makes employees
feel good about going to work. It's being listened to. It's understanding
that you're appreciated and you have a voice, " she says. -Karen Wittwer
28 | planadviser.com November-December 2021
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PLANADVISER - November/December 2021

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