We recently marked the start of a new financial year with our annual summer gathering. Over the course of the two days, I felt really proud of one achievement in particular.
Last year, we had a huge requirement to grow the size of our team, and we reached our target in a particularly challenging recruitment environment. Not only did we manage it but, importantly, we continued to deliver on our commitment to diversity, equity and inclusion.
National statistics show women make up only 28% of fintech employees – but with 51% of our new hires female, we’re up to 46% across our organisation. Our colleagues are 43% non-white, and together know 27 languages.
Once everyone is accountable, progress is much faster
There’s always more work to be done, but I think these are stats to feel good about, because diversity and inclusion in the workplace helps to create both growing businesses and a fairer society.
For financial planning firms, too, this is an important journey. To reach a broader client base, the industry needs to become more representative of the broader population – and that means looking at how staff are hired, promoted and retained, and the working culture they experience every day.
Diversity starts at the top, with senior leadership who want to make a difference, and needs to be embedded in every decision. A simple step is to start tracking diversity metrics and setting clear goals for improvement – for all hiring managers, not only for one diversity champion in HR. Once everyone is accountable, progress is much faster.
Quilter Financial Adviser School has an intake around a third female – well ahead of representation in the industry as a whole
Build an authentic culture that lets people pursue their own tastes and talents. A small example: at our annual offsite, we used to hold a black-tie dinner. A couple of years ago we dropped the dress code in favour of asking people to wear whatever they feel comfortable in, whether that’s a cocktail dress or a grungy number and Dr Martens.
We found people bringing their authentic selves, which makes for a much better party and contributes to a more open and welcoming culture that not only improves retention but encourages people to contribute more positively and share ideas more freely.
Don’t be afraid to be different – in how you work and who you hire.
A more diverse and inclusive profession won’t happen if it isn’t addressed intentionally. Advisers often recruit within their own families and networks, resulting in firms composed of people from similar backgrounds.
The proportion of families in which women are the breadwinners is rising
Of course, there are other paths. Quilter Financial Adviser School has an intake that’s around a third female – well ahead of representation in the industry as a whole. Both Quilter and the St James’s Place Academy target people from a broad range of backgrounds, from those leaving the military to women returning from a career break. But traditional routes into the industry tend to maintain the status quo.
Why does it matter? Addressing the advice gap and expanding the range of clients served might not be top of mind in a challenging economic environment – and with a significant regulatory shift underway. Demand for advice is such that firms can pick and choose their clients, so the imperative to broaden your scope can feel absent.
But distribution of wealth is changing. The proportion of families in which women are the breadwinners is rising steadily. Black and Asian communities are anecdotally underserved and reluctant to seek advice.
It makes sense many people feel advice – still overwhelmingly white and male – is not for them
While many financial planning professionals today do a great job of working with clients from a wide range of backgrounds, it makes sense many people feel advice – still overwhelmingly white and male – is not for them, or would find it easier to deal with advisers with more shared experience. Leaving all those potential clients on the table is simply bad business.
And with technology providing a huge boost to productivity, enabling firms to streamline their processes and serve more clients, the time is ripe. To close the advice gap, support a fairer society and build stronger firms for the future, make diversity a priority.
Yasmina Siadatan is chief revenue officer at Dynamic Planner
