Measuring progress in promoting diversity, equity and inclusion in a workforce is crucial if a firm is serious about actually creating change, according to Andrés Tapia, senior client partner and global diversity and inclusion strategist at Korn Ferry, a publicly traded management consulting firm based in Los Angeles.
Managers not only have to actively support DE&I programs within a financial advisory firm or other type of business, they also have to establish metrics to measure the progress and find the areas that need added attention, Tapia said during a workshop at the CFP Board Center for Financial Planning DE&I Summit Wednesday.
In order for there to be more advisors from minority communities, including people with disabilities, the leadership of a firm has to make an honest assessment of where the firm is starting and then set realistic goals for where the firm wants to get to in a specified amount of time, Tapia said. Progress in the advisory arena also will help achieve progress in drawing in more clients who are part of diverse communities. Procedures must be established to work toward the goals.
“A firm should allow a practice year to implement new procedures through communication to the workforce, monitoring and reporting,” Tapia said. Consideration also should be given to other activities a firm might be involved in, and those time constraints should be included in measuring achievements. If the firm is in a merger or acquisition or has a large new product launch, the time required has to be figured in to firmwide diversity goals.
The mantra for meeting the diversity and inclusion goals after they have been set should be “hire, promote and retain,” he added. Just hiring a diverse workforce is not enough. Goals need to be set for members of minority communities to reach middle and top management positions. Some firms may have good diversity in recruiting new hires, but the employees may then get stuck in lower rung jobs, without the means of moving up the ladder.
“For instance, some firms require lateral moves before an employee can move up to the next level. In some cases, more lateral moves can be unintentionally required of minority member employees than for white males before the next level can be attained, Tapia said. Those types of biases need to be uncovered and addressed, he said.