The new regulatory framework for D & I is coming to Financial services organisations. Are you ready for it?

Financial services organisations are being held to task by investors and the FCA. A common opinion is that Financial services are significantly behind on Diversity, Equality, Inclusion & Belonging (DEIB), and some have even gone as far as saying that a lot of what has been done so far in may organisations, has just been lip service.

What we commonly see is organisations publicly committing to Gender equality and creating targets to include gender diversity within senior leadership and management roles. This is fantastic, don’t get me wrong but what about everyone else?

Policies and initiatives that focus on gender equality, traditionally exclude anyone that doesn’t identify as being a white woman. Which is why my work is all about supporting organisations to understand Intersectionality and how they can create strategies, policies and initiatives that support the development and progression of people that identify as having Intersecting identities.

There’s a real need to think bigger and more inclusively with DEIB initiatives, so I wanted to offer some guidance to Financial services organisations thinking about how they do more in this area. Here are some of the strategies I recommend you think about implementing:

1.     Leadership Commitment

I’ve lost count of the number of times that I’ve heard members of the C-Suite say, " We’re really diverse; 50% of our Executive is female,” but then, when I’ve looked, they are traditionally all the same race. The FCA holds the Board responsible for maintaining and overseeing D & I strategies, so leading from the front is crucial.

• Senior Leadership need to set the tone for Inclusion in Financial Services, and that starts by understanding what we mean by diversity and why it’s important to set your goals further than simply gender.

• This may require committing resources to access training to understand DEIB in greater depth and seeking consultancy support to understand your organisation’s starting point and where it should aspire to be.

 2.     Diverse Recruitment and Hiring

Diverse recruitment and hiring is a requirement across the board. The view is still that less than 1 in 10 management roles in the Financial Services sector are held be people from the Global majority (a.k.a Underrepresented groups). Representation is important at all levels of an organisation’s hierarchy, and this figure isn’t something we can afford to ignore much longer. I believe in Positive action, which involves:

• Establishing Targets: Set diversity goals for recruitment and track progress regularly. Engage organisations to review your sourcing methods and update approaches to attract diverse candidates. The candidates are out there, you just need to look in the right places.

• Implement Bias-Free Processes: So you’ve attracted diverse employees. Brilliant. Now you need to make sure that you keep their attention and interest. This is where bias-free processes help. Reviewing your recruitment collateral, including recruitment advertisements, interview questions, blind CVs, and diverse hiring panels are extremely powerful tools to eliminate bias and attract and recruit diverse talent into your organisation.

3.     Inclusive Workplace Policies

Are your policies outdated and limiting? Post COVID, the world has changed significantly and in the new world of AI, there is no longer any excuse not to understand how to make your workplace inclusive and to create policies that reflect that commitment.

• Review and Update Policies: Outdated policies need to be shown the door. Financial services organisations need to ensure their policies support inclusivity. Despite the move to encourage people to come back to the office, the world and its workforce still demand and need flexible work arrangements and anti-discrimination measures to protect those who need protection.

• Promoting work-life balance: Sleep and rest are for the living and we have so much evidence for the benefits of mental and physical health on employee and organisational performance. Appreciation of diverse needs is something that is being missed in some organisations though unfortunately, so it’s important to have sight of these and encourage policies that accommodate diverse needs, like parental leave and wellness programs that meet the needs of all. *If you haven’t done so, check out this podcast episode on the link between wellness and inclusion 

4.     Training and Education

Training for the sake of training won’t cut it anymore. The FCA are demanding organisations evidence D & I strategies that include measures of success and incorporate targets and strategies for achievement. Training and education, if used correctly; should form part of any organisations Inclusion strategy. They should be part of your arsenal for achieving your DEIB goals.

• Diversity Training: Provide ongoing training on Inclusion issues that impact employees, customers, and society. Seek out tailored training for lasting change.  

• Employee Resource Groups (ERGs): Establishing and supporting employee resource groups (ERGs) focused on diversity, fostering community and providing feedback are extremely important, but I’d like to emphasise ‘supporting’. Have you considered having C-Suite sponsors for each of your ERGs? Trust me, the impact will be significant.

5.     Career Development and Mentorship

Assuming that everyone is taking up mentorship on offer, or career development opportunities, makes an ass out of you and your team. There are many capable people within your organisation that just won’t put themselves forward for these opportunities, out of fear of rejection or feeling like they need to be put forward by someone else. It’s therefore a Leadership responbsibility to understand this and encourage and support people to step up and be counted.

• Equal Opportunity: All employees should have equal access to career advancement and mentorship programs, while acknowledging that some may need additional support.

• Sponsorship Programs: People from underrepresented groups often miss out on career-boosting opportunities due to lack of awareness or confidence. To promote diversity, equity, and inclusion beyond gender equality, it's crucial to develop sponsorship programs to support these groups.

 6.     Performance Metrics and Accountability

As I’ve mentioned a few times, the FCA are in the process of finalising a new regulatory framework for D & I, that they expect Financial services organisations to adhere to. It demands Inclusion strategies that evidence targets and progress. It’s therefore important that organisations look to how they can get ahead by:

• Measuring Progress: Set metrics to track Diversity and Inclusion efforts. Link these metrics to performance evaluations and compensation. Data is available, so lets park that excuse and collect it accurately. If unsure how, seek help from organisations that know how.

• Hold Leaders Accountable: DEIB is everyone's responsibility, with leaders holding ultimate accountability. It’s important to make sure they have the tools they need to achieve success though, so consider Inclusive leadership training and coaching as a must have.

At Aquaintz Consulting, we help organisations create spaces where people from all backgrounds can reach for the stars, surpassing the sky. The Intersectional experience is often overlooked, so we make it our job to help organisations create Inclusive initiatives and strategies that are measured, impactful and considerate of everyone’s needs and sense of belonging.