Dr. Vic Baker Dr. Vic Baker

The finance industry has recently faced increasing scrutiny over its commitment to Diversity, Equity and Inclusion. Despite vocal commitments to DEI principles, many large banks and Registered Investment Advisors need more meaningful implementation. According to a 2020 study by McKinsey & Company, while 87 percent of companies say that DEI is a priority, only 42 percent of employees see their companies as effective at delivering on these promises.

Evidence of inconsistent DEI implementation

A major issue in the finance sector is the gap between stated DEI goals and actual practices. Research by the Harvard Business Review highlights that DEI initiatives often remain superficial, focusing on symbolic gestures rather than systemic change. For instance, communications professionals are often charged with touting the financial institution’s commitment to DEI during culturally significant moments like Martin Luther King Jr. Day and Juneteenth, but this rarely translates into sustained efforts or structural changes within the organizations.

Hiring and promotion practices

Financial institutions need to overhaul their hiring and promotion practices to move beyond lip service. This puts communication professionals within financial institutions in a disingenuous position. Evidence suggests that traditional recruitment methods often perpetuate homogeneity. A 2020 study in the Journal of Business Ethics found that diverse hiring practices, such as blind recruitment processes and inclusive job descriptions, significantly increase the likelihood of hiring women and BIPOC candidates.

EquitiFy, with its team of expert strategists, has worked with various organizations to enhance its DEI initiatives. EquitiFy has recommended and helped implement strategies beyond surface-level changes by assessing an organization’s DEI growth curve, ensuring meaningful progress. For instance, implementing mentorship and sponsorship programs—all of which are extremely positive for public relations professionals to promote—has proven effective in retaining and promoting diverse talent. These programs provide ongoing support and clear pathways for advancement, crucial for creating an inclusive workplace.

This article is featured in O'Dwyer's Aug. Financial PR/IR & Professional Servcies PR Magazine

Diverse board roles

The composition of board directors is another area where financial institutions can demonstrate genuine commitment to DEI. According to a 2021 report by Deloitte, companies with diverse boards are more likely to outperform their peers financially and operationally. However, achieving this requires more than token appointments; it necessitates a strategic approach to board diversity, including setting measurable goals, actively seeking diverse candidates and ensuring all board members have equal opportunities to influence decision-making. This also includes making these diverse board members outwardly visible via the marketing communications team.

EquitiFy has seen great results in organizations that genuinely wish to make a difference. By focusing on top-down implementation, EquitiFy ensures that leadership commitment sets the tone for the entire organization, embedding DEI values in every aspect of corporate culture.

Communicating DEI commitment

Financial organizations that genuinely practice what they preach regarding DEI need to communicate their efforts transparently and authentically. This involves:

Public reporting. Regularly publishing detailed reports on DEI metrics, including hiring, retention, promotion rates and pay equity. This transparency holds organizations accountable and builds trust with stakeholders.

Authentic storytelling. Sharing real stories of diverse employees and leaders within the company, highlighting their journeys and contributions. This can be more impactful than broad statements and humanize the company’s DEI efforts.

Engaging in thought leadership. Actively participating in and contributing to industry-wide conversations on DEI. This includes sponsoring DEI research, hosting conferences and collaborating with nonprofits and advocacy groups like All Raise.

Community involvement. Demonstrating commitment through community engagement and partnerships with organizations that promote DEI. This shows that the company is invested in broader societal change, not just internal metrics.

Importance of accountability through KPIs

Communications professionals can be empowered to emphasize the importance of accountability through Key Performance Indicators with leadership to ensure the DEI message they are sharing with various stakeholders and members of the media is authentic. KPIs provide measurable benchmarks that ensure DEI initiatives are implemented and effective. By setting and tracking KPIs related to diversity hiring, promotion rates, pay equity and employee satisfaction, organizations can tangibly demonstrate their progress and commitment to DEI.

Elevating thought leadership

To elevate thought leadership on DEI publicly, financial institutions can:

Publish research and insights. Regularly release white papers and case studies that showcase successful DEI initiatives and their impact.

Speak at industry events. Ensure that diverse voices within the company are represented at major conferences and forums.

Leverage social media strategically. Use social media not just for promotional posts but to engage in meaningful dialogues on DEI issues, share insights and respond to current events promptly and thoughtfully.

Financial institutions must move beyond performative DEI gestures and embed diversity, equity and inclusion into their core operations and culture. With professional strategic guidance, these institutions can adopt transparent practices, authentic communication and active community engagement to demonstrate genuine commitment and lead the industry toward meaningful change.

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Dr. Vic Baker is the CEO and Founder of EquitiFy, providing strategic planning, training and implementation in leadership, organizational development, performance, diversity, equity and inclusion.