Over the past year, Diversity, Equity, and Inclusion has been discussed at an increasing rate. During both of our webinars this year (so far) “Survival of the Financially Fit: TAP-ping into Gen Z” and “Little Giants: Have a BIG community impact at any size”, our guests highlighted how important DEI is to younger demographics (aka potential CU members). Gen Z is the most diverse generation in the United States to date.
The message is clear — DEI is affecting businesses across the board — but it can also have a large, positive impact on your credit union if it is embraced as a priority.
Some of the benefits of a strong emphasis on DEI include: increased profits, employee recruitment and retention, member satisfaction, and innovation.
No fear – I’ve got some numbers for you.
In a study from McKinsey, they found that companies who ranked on the top tier for gender diversity on executive teams were 25% more likely to have above-average profitability than companies on the bottom tier. A greater gender representation on the executive board led to a higher likelihood of outperformance.
In the same study, they found that with ethnic and cultural diversity, companies on the top tier of diversity outperformed those on the bottom tier by 36%. Therefore, the likelihood of outperformance continues to be higher for diversity in ethnicity versus gender.
McKinsey’s Women in the Workplace Survey highlighted the financial services industry in particular, noting that women and men begin their careers in the industry in similar numbers but higher up the ladder, women account for 19% of positions in the C-suite versus the US national average of 22% for women overall.
After the past year, I’m fairly certain that increased profits will be a welcome result.
Recruitment and Retention
By now, it’s no secret that millennials tend to be more transient with employers. However, there are ways to help increase employee retention with diversity and inclusion.
When surveying millennials, Deloitte found that 80% of respondents noted that inclusion was important when choosing an employer.
Over half of the respondents reported that they would leave their current organization for a more inclusive one and nearly one-third indicated that they had already left an organization for a more inclusive one.
“The turnover rate in financial services is one of the highest at 10.98%. On average, losing an entry-level employee costs employers 50% of that person’s annual salary, and losing a technical or senior-level employee costs employers 50% to 250% of that employee’s annual salary.” (cumanagement.com)
These are some great insights to assist with both employee retention and cost savings!
According to CUNA, inclusive work environments are closely related with enhanced job performance and work engagement. When inclusion allows employees to feel like they belong, are valued, are listened to, and are safe, they are then able to fully contribute to the organization.
This employee satisfaction is then translated to members. They found that customer satisfaction is higher when the level of staff diversity reflects that of their customer base. It signals that the organization does not discriminate in hiring and that they will receive equitable service.
Who wouldn’t want increased employee satisfaction and higher net promoter score?
Finally, McKinsey found that diverse teams are more innovative, which increases their ability to anticipate shifts in consumer needs and consumption patterns, making new products and services possible. This can help their organization maintain a competitive edge.
In one study, performed over two years, they discovered that companies with more women [EA1] were more likely to introduce radical innovations to the market.
In another, they found that organizations with culturally diverse leadership teams were more likely to develop new products than those with little diversity.
If youre interested in learning how to make DEI a priority within your credit union or strengthen your current diversity and inclusion initiatives, you’ve come to the right place.
On Wednesday, June 16 at 1:00pm Eastern, CUInsight and CRMNEXT will be hosting a free webinar titled “Unlock unconscious bias to improve your culture & member relationships”. Tauri Laws-Phillips — DEI facilitator and improv theatre owner will provide some foundational information around unconscious bias to help start (or continue) your organization’s DEI journey.