Seven Ways to Attract and Hire Diverse Talent

Research shows that a diverse workforce leads to better financial performance. Despite these bottom-line benefits, women and people of color still comprise only a small percentage of all financial advisors. Research from financial services consulting firm Cerulli Associates shows that women represent less than 20% of all financial advisors, and only 2.9% of advisors identify as Black or African American, 5.1% as Hispanic or Latino, and 4.3% as Asian.¹

This lack of representation persists even though two-thirds of advisors agree that their firm’s leaders are committed to diversity, equity, and inclusion.¹

To increase diversity in your practice, it’s important to: 

• Make inclusivity a priority.
• Create a game plan to recruit and retain talent that looks and thinks differently than you.
• Provide ample support and career pathways to diverse hires.

A workplace culture that values DEI drives a practice’s success in myriad ways. Organizations that embrace diversity tend to attract more diverse candidates, perform better financially, and benefit from increased innovation.

Despite the growing body of data that show that a diverse workforce can improve performance, many practices still rely on traditional networks to find new talent. This fixed mindset fails to attract a broader talent pool. Here are some ways to connect with diverse talent when recruiting for open roles.

1. Assess the diverse makeup of your practice, evaluate gaps in representation, and build an action plan to address shortcomings.

2. Prepare your hiring team. Highlight inclusive hiring practices and provide training sessions addressing unconscious biases that could impede the recruitment process. Biases to be mindful of include:

• Affinity bias: having a more favorable opinion of someone like yourself.
• Gender bias: assuming one gender is better for the job.

3. Cultivate relationships with local colleges and target recruiting efforts at industry organizations where members can provide you access to a deeper pool of diverse candidates. 

4. Pay close attention to job descriptions. Make sure the language emphasizes inclusion and isn’t discouraging certain individuals from joining your practice.

5. Look for candidates from different backgrounds who will bring new perspectives to your firm, challenge groupthink, and shake up the status quo. Moving from a “culture fit” to a “culture add” will position you to grow your team with intention.

6. Use blind evaluations to eliminate bias in screening.

• Hide an applicant’s name and any details that may highlight race/ethnicity, gender, and other characteristics on incoming resumes-ensuring the evaluator’s focus is on the job seeker’s experience and skills.
• Reduce peer influence by assessing a job candidate before viewing coworkers’ feedback.

7. Strengthen your onboarding experience. Allow diverse hires to contribute to decision-making, and drive change through fresh perspectives.

Promote your adoption of DEI by:

• Including diverse individuals within the recruitment process
• Citing inclusion commitments on your website, external job listings, and other marketing materials
• Sharing your diversity action plan with all your employees
• Highlighting your entire staff on your website—including photos and short bios that showcase the diversity of your practice

A full lineup of financial professionals who more accurately reflect our world—and the clients you serve—will give your firm a competitive edge, allowing your practice to innovate, grow, and stand out in a crowded marketplace.