Corporate America is full of pledges to improve diversity, equity, and inclusion (DEI). But many financial advisors say financial planning firms could do a lot better.

“Most companies have historically focused on the diversity part of DEI. What they’re missing are the equity and inclusion parts,” said Kevin Keller, CEO of the CFP Board, the industry organization for financial planners in the U.S., in an interview following the CFP Board’s Diversity Summit in Washington, D.C., earlier this fall.

Focusing on equity, he said, means providing the right support for each team member, whether through mentoring, training or providing business-development opportunities. Focusing on inclusion means empowering women and minority personnel by giving them “a seat at the table,” he said.

The CFP Board is dedicated to setting industry standards, in part by certifying some 93,000 certified financial planners across the U.S., according to its website. The Diversity Summit was under the auspices of its Center for Financial Planning, which has a mission to advance diversity and equity in the profession.

“By fully focusing on all three aspects of DEI—diversity, equity and inclusion—an organization can increase its diverse talent pipeline and retain those talented individuals,” Keller added.

Kamila Elliot, founder and CEO of Atlanta-based Collective Wealth Partners, a majority women- and Black-owned wealth management firm that, according to its website, supports the creation of wealth for Black and other minority communities, said that few firms that talk about DEI actually have a plan for implementation.

“The key is treating diversity, equity and inclusion goals the same as all other business goals,” said Elliot, who is also the CFP Board’s first Black female chairperson. “DEI goals are imperative to long-term business goals and should have the same level of intention and accountability, with a results-driven approach.”

She explained that DEI should transition from an idealistic vision to a “business imperative.” She would like to see RIAs, asset managers and all other financial firms share their organization-wide diversity statistics, goals, benchmarks and time horizons for meeting those benchmarks.

“Organizations often are not transparent,” she said, about how well their recruitment, hiring and promotion practices "reflect the communities in which they operate.”

Improving representation among women and minorities must happen at every step and level of the organization—from trainees to team leaders to the C-suite.

“To encourage one to seek a career, not just a job, you must show the possibility to progress within the industry,” said LeCount R. Davis Sr., an independent advisor in Potomac, Md. “You must demonstrate how the role you will play will contribute to future success in addition to the possible compensation—in other words, its contribution and impact on society and communities.”

According to the Association of African American Financial Advisors, Davis was the first Black person to earn the CFP designation, back in 1978.

Asked what he thinks should be the top priorities for DEI going forward, Davis said he’d like to see more paid internships for minority candidates. He also advocates for more minority involvement in advertising and company presentations, and in the decision-making about how to improve opportunities. This kind of “face time for ethnic minorities,” he said, will “help eliminate the myth that a diverse workforce would impede and not help corporate success.”

Kate Healy, managing director of the CFP Board’s Center for Financial Planning, explained that her organization is working to expand the diversity of the talent pipeline in part by collaborating with other institutions that champion diversity, including Historically Black Colleges and Universities (HBCUs); Hispanic Serving Institutions (HSIs), which are accredited, degree-granting higher-education institutions with 25% or more Hispanic or Latinx students; and other minority-oriented institutions.

“What we’d like to see is organizations devoting more resources to equity and inclusion,” she said. “Diversity is actually the end result of having talent that feels empowered by being part of the decision-making process.”

Diverse team members must be supported within the organization, she noted, with appropriate mentors and training. Organizations must make efforts to make those team members “feel valued … through pay equity, promotions and opportunities,” she said.

Part of the problem, she continued, is that simply counting the number of senior team members who are women or from communities of color is measuring “lagging indicators.”

Instead, she urges financial firms to focus on “hard-to-measure initiatives,” such as women and minority-employee retention. “Really looking into retention metrics can help you see how inclusive your firm is. Studying the data can show if diverse populations are leaving at higher rates than the rest of your associates,” she said, adding that if you see that happening, “you need to investigate why.”

It’s equally important to examine how well these employees are rewarded for their work and their loyalty. “Are associates treated equitably? Do women consistently score lower on performance ratings, leading to lower raises and bonuses?” she said. Again, if so, why?

Finally, Healy recommended assessing the return on investment from DEI practices. “It’s hard to measure, but consider how a diverse team has helped your firm reach new markets,” she said. “Has your product or service offering changed because of diverse leadership championing changes?”