Diversity, Equity, and Inclusion in the Financial Services Industry
Christina Rehnberg, Senior Associate
Summary
In parallel to the “how to define the new way of working?” discussion, there has been continued momentum around Diversity, Equity, and Inclusion (DEI) in the financial services industry, with calls for more diverse leadership teams and removing discriminatory barriers for individuals to succeed. Specifically, there have been extensive brainstorming sessions on how to improve inclusion and create more equitable work environments. A lot of this discussion has been based on studies claiming financial outperformance of more diverse teams, which we discuss in more detail, nevertheless, we all have the responsibility to create non-discriminatory and optimal ways of working.What are we solving for?
Creating work environments that work for everyone. Here, DEI is a core component, but also concepts such as employee wellbeing, human capital development, and employee engagement are foundational. Addressing these in a meaningful way is by no means a small task given the systemic nature of the challenge at hand and time lag for evidencing results. More so because the financial services industry participants are also known for their intensive work cultures, low levels of diversity, crazy hours, and burnouts.We structure this paper by answering common questions and providing actionable guidance on how to improve. We aim to answer the following:How can we bring more structure to the Social side within financial services firms?Why are work environments in the financial services industry fundamentally not inclusive, equitable, or diverse?Why do we need to change the way of working?How might the actions differ depending on company characteristics?How do we realistically bring about lasting change?
