Diversity why is it so important to big banks - Viewpoint - careers advice blog Viewpoint careers advice blog

Diversity â€" why is it so important to big banks - Viewpoint - careers advice blog Strong diversity policies can make a tangible bottom-line impact by helping financial markets firms win the war for talent, boost innovation and gain access to lucrative new markets. That’s why some of the world’s largest banks, such as HSBC, Barclays, Bank of America and Santander, have put diversity at the forefront of their strategy. Legislation and policies On top of the existing anti-discriminatory legislation that many countries already have in place, such as the Equality Act 2010 in the UK, financial companies also run programmes to improve diversity within their organisations. According to Hays’ Global Gender Diversity Survey, 36% of financial services firms have a gender diversity policy in place. However, diversity does not only cover gender equality. It also includes other important aspects of diversity including: ethnic diversity, disability, sexual orientation, age, religion and belief, maternity and paternity and work life balance.   36% of financial services firms have a gender diversity policy “These policies aim to provide a better level playing field for certain groups who are under-represented and do not have much opportunity either to access to jobs or to progress in the world of work. Businesses are very keen for all sorts of good reasons to rebalance that situation,” explains my colleague Yvonne Smyth, head of Diversity at Hays. Winning the war for talent Yvonne highlights that those reasons have both ethical and business bases: “The ethical case is that, if they are talented, all people regardless of background should have the same opportunities. This is because if they can get a job and perform in their job, it can improve their lives and therefore improve society as a result.” At a time where a global skills’ shortage is spurring a war for talent, enlarging the pool of potential candidates is indeed an imperative for financial services companies, and so diversity has a compelling business case. Furthermore, a diverse workforce with varying backgrounds and perspectives can help foster innovation and generate new developments. The multiple voices within an organisation can contribute to more ‘out-of-the-box’ thinking, and avoid ‘group think’. This can be helpful at a time where companies need to adapt to change quickly. “If you have a more diverse group of people forming, shaping and taking decisions, you tend to get a richer output, better decision-making and better outcomes,” adds Yvonne. Multiple voices within an organisation can contribute to more out-of-the-box thinking The business case of diversity policies Having a diverse workforce can make a real impact on a company’s revenues. Research by McKinsey showed gender diverse companies were 15% more likely to outperform, while ethnically diverse companies were 35% more likely to outperform. “More diverse companies, we believe, are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns,” says McKinsey “This in turn suggests that other kinds of diversityâ€"for example, in age, sexual orientation, and experience (such as a global mind-set and cultural fluency)â€"are also likely to bring some level of competitive advantage for companies that can attract and retain such diverse talent.” Diversity can help to strengthen companies from within, but it can also have additional benefits. Our world is increasingly more diverse and financial services firms have a presence across several continents, many countries and target hundreds of different markets. Companies must mirror the diversity of their customers in their own workforce As a result, companies must mirror the diversity of their customers in their own workforce in order to understand and meet their needs. “Banks are very keen to ensure that they also reflect their customer base. There are various statistics showing that 90% of consumer spending is in the hands of women, while lesbian, gay, bisexual and transgender (LGBT) communities also hold a large buying power,” continues Yvonne. Indeed research by Witek Communications has shown that the buying power of the LGBT adult population in the USA for 2013 alone was projected to be US$830 billion. For financial services firms, such markets simply cannot be ignored. This means talented candidates from under-represented groups will be welcomed with open arms. To share your thoughts on this article and to stay up to date with the latest business, employment and recruitment news in the financial markets sector, please join our LinkedIn group, Financial Markets Industry Insights with Hays. Join the conversation