CHAIRMAN’S C O LU M N
Improving DE&I is Good for Talent Retention and Growth Jim Cargill
|
Chairman
|
Arkansas Bankers Association
T
oday, more than ever before, many of our customers and associates want to know they are doing business with or working for companies that “get it.” They want to know that we’re
actively working to make changes that improve our organizations not just for the sake of the bottom line, but for the betterment of the communities we serve as well as the people relied upon to provide the service. One way to demonstrate that we “get it” is through the work we do to improve diversity, equity, and inclusion (DE&I). Those aren’t just buzzwords or a vague moral concept. Research shows that improving DE&I helps companies retain and recruit talented staff. Additionally, there’s a benefit to the bottom line from better understanding the needs of a wildly diverse audience of potential customers so we’re prepared to offer products and services that meet those needs. A U.S. House Committee on Financial Services report on diversity in banking noted that “companies in the top-quartile for gender diversity on executive teams were 21% more likely to outperform on profitability. Companies in the top-quartile for ethnic/ cultural diversity on executive teams were 33% more likely to have industry-leading profitability. That this relationship continues to be strong suggests that inclusion of highly diverse individuals – and the myriad ways in which diversity exists beyond gender.”
For example, a National Public Radio report on workplace diversity noted that while diversity has historically referred to categories like race and gender, companies and diversity experts continue to broaden the pool and audience to which diversity applies by adding categories such as age, sexual identity, and disabilities. The House report also found that only 29% of senior executives are women and only 19% are in a racial or ethnic minority. The Committee for Better Banks report Advancing Racial Justice for Frontline Bank Works released in March 2021 found that Black and Latino employees at 13 major U.S. banks have a less than 25% chance of being promoted or hired for a senior management or executive position in comparison to their white colleagues. Those workers also have a very high likelihood of holding entry-level positions with limited mobility, such as bank teller and call center employees in comparison to their white colleagues, the report found. We need to be reviewing promotion practices to ensure that every staffer is given the same opportunities to advance. However, we know that promoting from within is not a panacea. We must also ensure we are hiring a diverse workforce. I know this will lead many of you to the question: How can we hire a diverse staff if we aren’t seeing a diverse pool of applicants? One approach is for us to become gardeners, cultivating talent through innovative
“Companies in the top-quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability.” 4
•
SPRING 2022
programming and partnerships that target the issue from different stages. For example, we need to be sure we’re accessible and mentoring the staff we have as well as partnering with higher education institutions – especially historically black colleges and universities and others with diverse demographics. We also need programs that focus on attracting youth to the industry from similarly diverse schools for young students. At Arvest Bank, we are working intentionally to increase our generational diversity by sponsoring the Academies of Central Arkansas. Through this public-private partnership, 10 high schools in four districts across Central Arkansas have created career-themed academies that prepare students to graduate ready for college, careers, lifelong learning, and leadership. The teachers deliver relevant learning with real-world experiences provided by the designated industry. Whether students graduate and go directly into a career or into post-secondary education, the partnerships with businesses ensure that students are exposed to the talent and skills needed for the future workforce. This exposure, coupled with coursework, educates students on future careers – such as banking – in the professional world. It is my hope that many of these students will attend colleges and universities right here in Arkansas and remain here, deepening the talent pool that we will all have access to for hiring and serving as examples for young people in their orbits. I encourage every C-suite leader to take a long hard look at current practices and implement necessary adjustments to make the banking industry in Arkansas as diverse, equitable and inclusive as possible.
