New diversity tools arriving just in time to win the war for talent

This article is one in a series of midyear outlooks for 2022 by the InvestmentNews team.

It’s a great time to find a new job in the investment sector, where hiring is strong. A June 1 report from the Bureau of Labor Statistics showed a 28% increase in job openings in financial services and insurance from April 2021 to April 2022, nearly matched by an increase — 26% — in hiring, to 271,000 positions, over the same period.

Numbers like that stoke Americans’ confidence in job-hunting: 71% of American workers believe that this is a good time to find a new job, and 20% of Americans said they were willing to move for a job within the next year, according to a Gallup report released in June.  

Employers in all categories face escalating accountability for pay equity transparency and accountability, according to law firm Perkins Coie, Bloomberg reported. In November, employers in New York state will be required to list pay ranges in job listings, a proactive disclosure that’s already law in Colorado, Washington and New York City. Recruiting in the context of an established pay range for a position focuses on the compensation for that job and helps neutralize offers based on a candidate’s salary history, which can perpetuate prior inequities.

In recent months, new diversity tools have been introduced for investment employers. A diversity, equity and inclusion certification program designed specifically for the profession by NAPFA graduated its first class. And in March, the CFP Board released a collection of diversity best practices.

The business imperative for accelerating diversity in the profession is escalating.

According to the latest data from the Certified Financial Planner Board of Standards Inc. the number of CFPs rose 3.8% from 2020 to 2021, to 92,055. Though women and Black or Hispanic CFPs are increasing more rapidly than the overall number of CFPs — at 4.2% and 13.8% respectively — they are still woefully under-represented. Women currently comprise 23.4% of CFP members; Blacks,1.8%; Hispanics, 2.7%; and Asians and Pacific Islanders, 4%. 

More articles in this series:

• Response to inflation is likely to dominate economic policies
• Agenda-driven SEC determined to prevail despite critics’ pushback
• SECURE 2.0 occupies rare common ground, tees up progress
• Escalating economic drama dampens appetite for adviser moves
• Champions, critics drive ESG debate, disclosures
• Are tools smart enough for tough times? Market volatility to test advisers’ tech
• New ways of recruiting diverse talent intersect with demand

Related Topics: Certified Financial Planner Board Of Standards Inc. (CFP Board), National Association Of Personal Financial Advisors (NAPFA)