Up-to-date data is needed if firms want to see how they are progressing on diversity, equity and inclusion actions, according to Joel Hempel, managing director of Lockwood Managed 360, am advisory consultant that is a BNY Mellon/Pershing firm.

Firms need to find a partner that will collect the data needed to measure diversity policies of any firm, he said. In that way better policy decisions can be made, Hempel said during a panel discussion on the issue at the BNY Mellon/Pershing Insite 2021 conference.

“If a firm does not collect the data, progress cannot be measured,” he said. “Collecting the data has to be an ongoing event.”

Promoting diversity is not a “check the box” activity, he added. The activity also has to be an ongoing process. BNY Mellon/Pershing recently hired five managers of diverse backgrounds to join five others already on the team. “We want to provide a platform for these managers,” Hempel said during the panel discussion, “Beyond the Data: Focusing on Diversity, Equity and Inclusion to Drive Success.”

Firms need to review their staffs for diversity on a regular basis and make an intentional effort to hire diverse team members, he added.

Whether firms exhibit a diverse workforce is becoming more important to clients, according to Lee Stephens, executive vice president of BNY Mellon. “[Diversity issues are] increasingly becoming an aspect of investing. A growing body of research shows that adding diversity adds agility, focus and outside-the-box thinking to a firm,” Stephens said.

In addition to its own staff, Stephens said BNY Mellon looks at the ownership and makeup of the third-party companies it works with.

Having a diverse staff that brings different ideas and perspectives to the table reduces risks for the firm and its clients, said Jasmine Yu, head of manager research at BNY Mellon/Pershing. A firm needs to be able to articulate what it is doing to consider diversity, equity and inclusion issues, she added.

BNY Mellon/Pershing has established policies to promote diversity on the firm level, the investment team level and the boardroom level, she said.