Diversity Benefits Besides being the right thing to do , diversity has several key benefits .
First , clients prefer to work with advisors who look like them — and the number of clients who are women or people of color is growing . The CFP Board projects that people of color will make up more than half the U . S . population by the year 2045 .
“ It comes down to how relatable you are ,” says Ellis Liddell , CEO of ELE Wealth Advisors in Southfield , Mich ., who identifies as Black American . Most of his clients are Black , too . “ Clients want to know that you truly understand their situations .”
Second , diversity breeds “ a greater level of engagement , higher levels of trust , and a greater degree of innovation ,” says Shundrawn Thomas , president of Northern Trust Asset Management , which has $ 1 trillion under management .
Thomas , who identifies as an African- American man , heads a company that is well above average in its diversity . Its U . S . workforce is 37 % women and 27 % people of color . More than 60 % of its executive committee is made up of minorities and women .
“ That translates into many things that are important to our business ,” he says , citing high levels of job satisfaction and loyalty , more inventive product development and improved financial returns for the business . “ Being part of an organization that embraces diversity makes me a better professional , and it also makes me a better person ,” says Thomas .
Recruitment And Mentorship
Northern Trust Asset Management has made a point of recruiting from historically Black colleges and universities — tapping a talent pool that many other firms overlook .
“ It ’ s common for the current generation in my community to be the first that ’ s going to college ,” says Antonio Tovar , a wealth manager at Stone Wealth Management in Austin , Texas . Tovar is a Hispanic professional in his mid-20s . “ Many of those who might be well-suited to join the financial services industry are unaware of the opportunities available to them .”
Erica Wright , an advisor in the Bell & Wright Financial Group of Northwestern Mutual in Milwaukee , says people from underprivileged backgrounds “ would benefit from formal mentorship programs .” Wright , a Black woman , adds that apprenticeships would “ allow advisors to be compensated while they develop skills .”
Kimberly Foss , founder and president of Empyrion Wealth Management in Roseville , Calif ., concurs . “ More and better educational outreach , especially to women of color , should be a consistent goal for all of us in the CFP space ,” says Foss , a white woman .
“ Being part of an organization that embraces diversity makes me a better professional , and it also makes me a better person .”
Shundrawn Thomas
Never Too Young To Start
That outreach can ’ t start too young . “ Our primary and high schools need to do a better job of exposing girls to various areas of finance ,” says Fouz at Azzad Asset Management .
Kayla Holland , a wealth planner at Crestwood Advisors in Boston , who identifies as a white woman , says it ’ s crucial to “ increase awareness and education about what we do as financial planners and how we help families achieve their goals .”
To Laura Barry , a managing director at Wealthspire Advisors in Milwaukee , and a white woman , it ’ s about teaching kids “ the power of understanding personal finance in their own lives as well as how cool it is as a career choice .”
Beyond Lip Service
Of course , it ’ s easy to say you value differences . But you also have to maintain policies that “ enable you to actual- ize your good intentions ,” says Thomas . He suggests starting at the top . Having women and minorities in the executive suite encourages others to join . It also makes it easier to incorporate diversity policies throughout the business . For example , Northern Trust Asset Management had at last count invested more than $ 5 billion with 22 different minority-owned investment-management firms . It also recently increased its target for equity-trading commissions paid to minority brokers in its collective investment trusts from 10 % to 15 %.
Amy Webber , president and CEO of Cambridge Investment Research in Fairfield , Iowa , recommends starting with a thorough self-assessment . “ What you discover can be eye-opening ,” says Webber , a white woman .
Doing The Hard Work
Megan Carpenter , CEO and cofounder of FiComm Partners , an Irvine , Calif . -based financial communications company , says it ’ s important not to put the burden of inclusiveness on the shoulders of the excluded .
“ We ’ re expecting these marginalized populations to accept our job offers , agree to speak at conferences , or help us spend the money we ’ ve set aside for DEI initiatives ,” says Carpenter , who is white , referring to budgets for diversity , equity and inclusion . Instead , she says , leaders must actually do the hard work .
Think of it as “ culture add ” instead of “ culture fit ,” says Barry at Wealthspire Advisors — i . e ., valuing differences that add to the culture . “ It ’ s learning to have conversations we ’ re uncomfortable with … and that requires time and patience with ourselves ,” she says .
Brooke Kelley , president of the Kelley Group , a Los Angeles-based financial-services consultancy that she , a white woman , cofounded with her husband , Sarano Kelley , who is Black , points out that the tide may be turning . “ The industry needs millennials ,” she says , “ and millennials … want to see more color , gender , etc .”
Firms can either “ lead this change ,” she says , “ or chase it .”
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