How firm leaders can rejuvenate DEI efforts

How firm leaders can rejuvenate DEI efforts
The panelist referenced the popular musical 'Hamilton' by Lin-Manuel Miranda, saying that diversity needs to be in 'the room where it happens.'
SEP 23, 2021

In an InvestmentNews Diversity, Equity & Inclusion Awards panel Tuesday on rejuvenating DEI efforts, participants described the most effective methods that attract new employees and boost retention. 

Businesses need to have diverse leadership that is fully invested in DEI efforts at every level from business strategy to product development. That  was the upshot of the panel discussion featuring Lule Demmissie, CEO of  eToro USA; Kristi Rodriguez, senior vice president of Retirement Institute at Nationwide Financial Services Inc.; and Leo Tucker, managing partner at Northwestern Mutual Co. 

“Tone at the top has been the most effective,” said Tucker. “Make sure every leader in your organization is bought into this.” If the leaders of a business are not involved, it’s going to be a huge roadblock to the success of a firm, he said. 

The panelist referenced the popular musical "Hamilton" by Lin-Manuel Miranda, saying that diversity needs to be in “the room where it happens,” meaning the C-suite, the boardrooms or the room where top decisions are being made. 

The reality is that businesses cannot create diversity without diversity,” Demmissie said. “Without diversity, there is no innovation and without innovation there is no relevance. Period.” 

Leaders can get started by ensuring their networks  are filled with diverse individuals — from skin color to diversity of thought. 

“How diverse is your LinkedIn network?” Demmissie said. “If your rolodexes are not diverse, I promise you you’re not hiring diverse. It’s not just institutional metrics, but personal metrics that we can put upon ourselves.” 

Firms need to ensure the individuals interviewing candidates are diverse, too. “[DEI] needs to be a component in the recruitment process, not just an aspiration,” Demmissie said. 

Rodriguez suggests leaders think about what they are doing internally to transcend DEI efforts into the communities they serve. For example, Nationwide created a concerted effort in its recruitment to sustain women and women of color in technology roles since there is a huge gap of women working in tech. 

Nationwide created groups within the firm like its Social Justice Task Force to create financial apprentice programs for underserved communities and its Financial Alliance of Racial Equity initiative. 

“We surveyed college students who are at historically black colleges as well as professionals, and one data point stood out that I always say still gives me goosebumps, because on both sides 90% said they would face discrimination because of their skin color,” she said. “It's also important to talk about metrics on how we're going to change that.”

Leaders need to think about how they will make an impact to change the trajectory of having diverse employees a part of the full ecosystem of the firm, Rodriguez said. “The natural byproduct will be creating opportunities in underserved communities to change the wealth gap,” she said. 

Latest News

‘No detractor’ to using direct indexing as an investment strategy
‘No detractor’ to using direct indexing as an investment strategy

Thirty four percent of advisors surveyed by InvestmentNews say they use direct indexing strategies but 39 percent don’t.

After watching advisors bolt, B. Riley now losing investment bankers
After watching advisors bolt, B. Riley now losing investment bankers

“This is on the B. Riley Securities side of the business, the dealmaking side,” one senior industry executive said.

Does sell and stay really work?
Does sell and stay really work?

There are three essential elements you must bring to the table to increase the chances of a successful post-sale career.

Retirement savings rise with two account types posting record highs
Retirement savings rise with two account types posting record highs

Across generations, how are savers doing with their 401(k) contributions?

What's making America's billionaires richer, faster?
What's making America's billionaires richer, faster?

New report shines some light on today's billionaires' investments.

SPONSORED How MRP’s Synthetic Equity is balancing growth and protection for advisors

"Synth Equity has been such a tailwind for these advisors who really understand the story," Measured Risk Portfolios’ head of distribution said.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions