The pressure has never been greater on company executives to demonstrate their commitment to diversity, equity and inclusion (DEI), and many are realizing that boosting the numbers starts with a different kind of hiring, a panel of advisor industry CEOs said yesterday.
People tend to hang around in circles with people who are like them, “so you already do not have much diversity coming from that equation,” said Chris Perry, president of Broadridge Financial Solution Inc.
Perry, who spoke at the Next Chapter—ReThinking Retirement virtual conference hosted by Financial Advisor, said Broadridge has widened its outlook on its candidate pool process. He and Cheryl Nash, CEO, InvestCloud Financial Supermarket Division, shared a panel titled, "CEOs on the Future of Diversity and Inclusion."
Investors and advocacy groups have stepped up their call for disclosures of workplace diversity, as has been illustrated by many recent shareholder resolutions. Advocacy group As You Sow has cited the George Floyd killing and the protests for social justice that followed as having brought about a cultural shift and awareness that has increased investors’ understanding of the importance of the topic.
Perry said Broadridge, within the past six months, has added an African-American chief financial officer, and if they had gone through the same networking process they depended on years ago, that probably would not have been the outcome. “You have to make sure that there is accountability in creating diverse slates, and that means that managers are held accountable,” he said.
The company also has formed a diverse team that participates in the selection process for prospective candidates, Perry said. “I might not see in a candidate what somebody else sees,” he said, adding that the panel ensures that all aspects of diversity are covered across the organization, “and that has driven great outcomes.”
The Covid crisis has proven the viability of remote work, and that has made it easier to cast a wider net to find talent, Nash said. “We are finding it easier today because you don’t necessarily need to find people that are in the same city as you,” she said. More top candidates also are making DEI a top consideration when choosing who they want to work for, and the option of hiring from all over is a plus, she said.
The CEOs agreed that metrics also are key in keeping tabs on DEI. Nash noted that she sits on many different committees that focus on DEI, and it’s important to measure progress. “I think that’s paramount for making sure you are doing the right things,” she said.
Perry added that metrics are a symptom of past activities. He explained that it is like looking at your financials, and if they are not so good, you look at what you did last year that created the dynamics you are in, and what you will do differently going forward.
In terms of attracting young people to the industry, Nash said she has been involved in helping college students, especially women, understand more about the industry and what it has to offer. But she said more needs to be done to educate people, even at the grade school level, to get them more interested in the profession. She noted that the advisory industry is made up of 18% women, 2.9% African American, 5.1% Hispanics and 4.3% Asians.
Perry said Broadridge supports SIFMA’s stock market games, which goes into schools in underserved areas to get the kids interested in the stock financial markets. The company also has a summer intern program of about 75 college students, he said.
Broadridge also is involved in other efforts, such as reverse mentoring program and a leadership development program, which focuses on educating and widening what it is to have a diverse thinking, Perry said.