“How, as an industry, do we relate to participants if our tapestry’s fabric is monolithically focused?” asked day two’s “Leading Indicators: The Chicken or the Egg: Growing a Diverse Network for Our Industry” panel at the NAPA 401(k) Summit.
As the retirement industry increases its concerted efforts in DEI [diversity, equity and inclusion] and DIB [diversity, inclusion and belonging] strategies, panelists reflected on the strides made for more inclusive practices in the past years, and the road ahead.
Whereas diversity efforts were once an annual meeting and a slideshow, now it’s an everyday conversation that encompasses different factors of the retirement industry, from conversion rates, board diversity, and products. A large driver of that growth has been demand from plan sponsor clients and participants, said Jay Washington, AVP, Diverse Market Segment at Voya Financial. “Clients demand it and want to see action,” he explained. “They want to see change year-over-year. It matters to them because they see their workforce is changing. As it changes, they want a partner that reflects that.”
As the industry grows its practices in diversity and inclusion, key considerations will be vital in seeing its success. “Cultural competence,” or the ability to empathize with groups outside of an advisor’s own demographic, should be considered as well. Just hiring a diverse candidate isn’t enough—advisory firms need to consider the entire ecosystem of their practice, as well.
“People want to have people who look like them to serve them, but they also want people who don’t to lead with empathy,” said panelist Kristi Rodriguez, a senior vice president of Nationwide Retirement Institute. “We all have to understand that DEI is not monolithic. How are we recruiting, investing in terms of development, and how are we sustaining them?”
Washington added, “We think, if I hire someone from a competitor, I’m increasing the diversity. But you’re not increasing it from across the industry.”
He continued, “Don’t hire just for the sake of diversity. You hire someone and that “b” [belonging] is missing. If that participant doesn’t have the product knowledge or fully prepared, invest in it, don’t hire them and sign them up for failure.”
The panelists suggested for advisors to look within their own practices and consider if its inclusive enough for other communities, including those with special needs, caregivers, and LGBTQ+ communities. “Look at your own practice and look at the gaps,” said panelist Raymone Jackson, global head of diversity, equity and inclusion with T. Rowe Price. “Look at that data and enable it with people.”
Editor’s Note: A previous version of the article misstated Jay Washington, AVP, Diverse Market Segment at Voya Financial as Devyn Duex, principal and financial advisor at CAPTRUST. This has been corrected and 401(k) Specialist apologizes for the confusion.
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