8 Diversity Strategies that Improve Productivity and Profits
July 13, 2015 2:40 PM
Companies that emphasize a diverse and inclusive workforce not only create a better work environment for employees, they also perform better financially. Financial services companies that rank in the top quartile for gender diversity are 15% more likely to outperform peer institutions, according to a recent McKinsey & Co. study, while those in the top quartile for ethnic and racial diversity are 35% more likely to outperform. What's more, the study found companies without a strategy to promote diversity lag behind those that actively work toward promoting it. Here are eight ways that mortgage companies can establish and maintain a priority on diversity.
Set Goals
To start out, define the organization's diversity mission and set goals. One of the easiest metrics is people. For example, since hiring a chief diversity officer 22 years ago, Fannie Mae has evolved into a workforce that is 51% ethnically diverse and 49% gender diverse, Kristy Fercho, senior vice president of customer engagement and chair of Fannie's diversity council, said during a panel at a recent industry conference.
Cultivate Friendships
Partnerships with key affiliate organizations and community groups can help build trust and cultural competence, particularly when it comes to demographic groups that business lenders are unfamiliar with. It can also serve as fertile ground for recruiting talent and new customers.
Accountability
Diversity and inclusion can't just be an imperative for the C-suite. Everyone in the business has to understand and embrace the mission and key stakeholders must be held accountable for their piece of its success. Remember: diversity isn't quotas, it's a journey.
Find the "Little Interventions"
Simple strategies, like taking time to recruit at historically black colleges and universities instead of staying within your own region or looking within the Ivies are what McKinsey Associate Principal Andrea Alexander calls "little interventions," small acts that can have big impact on employee rosters.
Talk It Out
Accommodating the needs of a diverse workforce goes beyond policies for parental leave or persons with disabilities. Have conversations with other employee groups about what their needs are and brainstorm workable solutions.
Get Comfortable with Being Uncomfortable
Learning and changing requires honest conversations about delicate topics. Embrace the squeamishness. Fercho from Fannie Mae calls it "leaning in to discomfort." It's the only way to grow.
Live Your Truth
Encouraging authenticity and vulnerability from individuals on every level of a business helps forge relationships between workers and makes for stronger teams. That openness can also be a draw for potential customers.
Make Diversity a Priority
Creating and maintaining an environment that promotes inclusion helps attract and retain top talent. Plus, diversity efforts benefit more than gender and ethnic minorities: a 2013 Harvard study found that the combination of diverse backgrounds and experiences helps promote enterprisewide innovation.
