Part 1 of a 2 Part Series
By: Mary L Bennett, CEC, CIA, MBA
The accounting profession, and other financial services organizations, have been working on diversity and inclusion (D&I) challenges and opportunities for decades. Many organizations led the way beginning with a focus on improving gender diversity. Increasingly organizations have moved or are moving to a broader definition of diversity and inclusion defined by gender, ethnicity, age, generation, religion, sexual orientation and many more aspects of our differences and similarities as human beings. The business focus on inclusion is driven by the perfect storm of increased demand for professionals which is outpacing the supply. Some reasons for the perfect storm gap in the supply of accountants and other professionals:
1-Unprecedented retirement numbers of baby boomers
2-Changing demographics in the US not mirrored in the profession ( for example increasingly minority and women owned businesses are dominating the new business ranks but not keeping pace in the accounting profession)
3-Unsustainable turnover rates (among accountants over 25%)
4-Ambiguity or outright lack of attractiveness of traditional long term career paths in the profession
What are the firms of the future doing to prepare for this storm through their diversity and inclusion strategies?
1- Effective firms deeply understand, document and communicate their firm's customized business case for investing resources in the attraction, retention and advancement of those who bring elements of diversity to the firm. All levels of the firm should be considered especially the leadership ranks. A more inclusive culture includes diversity of thought at the leadership level in order to accomplish an effective return on investment. in D&I
2-Successful firms use their customized business case as a starting point to accurately diagnose their firm and its evolution toward building a more diverse and inclusive organization. Diversity is a reflection of the actual ranks of the organization along the dimensions of diversity such as gender, ethnicity, age, etc. Inclusiveness is the degree to which the organization successfully maximizes the benefits of the diversity. Understanding where the organization is in terms of maturity, and therefore readiness for strategy implementation, is essential to avoid common pitfalls. A common example of such a pitfall is implementation of programming before the business case and strategic context is solidly in place. In this situation it is very difficult to obtain buy in from the leadership level and down through the entire organization.
3-Firms effective in building greater diversity and inclusion have a defined and targeted set of strategies that align with the evolutionary readiness of their organization. These always begin with effective business case formation, communication plans and tangible diagnostic preparedness.
Stay tuned for part 2 of this article series to learn more about specific strategies organizations use