Diversity in action: How to sustain the financial planning profession
This paper contains case studies from select firms, outlining their actions towards diversifying their workforce and delivering scalable insights for replicating their successes. A key resource for increasing diversity and inclusion in the financial planning profession.
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OVERVIEW
This paper talks about diversity, equity, and inclusion (DEI) initiatives aimed at addressing the lack of diversity in the financial planning profession. The report highlights two key findings:
- The importance of diversifying the ranks of financial planning professionals to meet the needs of increasingly diverse consumers, especially during the COVID-19 pandemic.
- The barriers keeping the financial planning profession from reaching its maximum potential, including the underrepresentation of women and people of colour.
The report presents a series of case studies from a select number of firms that have made notable strides in increasing racial and ethnic diversity in their workforces. Each case study offers strategic recommendations for other firms looking to replicate those successes. Among the recommendations:
- Establish an organisational journey to develop an effective DEI strategy, including creating a DEI mission and vision statement, ensuring leadership commitment, developing a strategy with goals and tactics, and tracking metrics.
- Foster inclusion and equity competencies in employees, providing incentives like awards and offering continuous training and learning opportunities.
- Tailor recruitment strategies to help target outreach and recruitment efforts based on diverse demographics.
- Form employee resource groups (ERGs) that promote diversity and inclusivity in the workplace.
The report also suggests integrating Environmental, Social, and Governance (ESG) considerations into investment management processes, which can positively impact financial performance. Wetherby Asset Management, a case study in the report, integrates ESG and DE&I considerations into its investment policies and procedures, asking managers questions on the accountability mechanisms in place for adhering to DE&I commitments and on processes for addressing implicit bias. Wetherby also conducts an annual survey of all investment managers in its portfolios to better understand their ESG policies and practices and gauge their progress toward fostering greater diversity.