diversity & inclusion from aspiration to execution...retail banking & consumer services...
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Diversity & Inclusion
From aspiration to execution
Insights from the Financial Services Global Diversity & Inclusion Pulse Survey
Segment deep dives ɳ Global Banking & Markets ɳ Insurance ɳ Investment Management ɳ Consumer & Commercial Financial Services
2
Introduction
Firms are struggling to move their D&I agenda from aspiration to execution
Globally, the vast majority of executives see Diversity & Inclusion (D&I) as a strategic differentiator.
According to our global D&I Pulse Survey, 79% of respondents were clear on how D&I would improve the performance of their organization, and 77% highlighted it as critical to the success of their organization.
Studies support this sentiment – a recent McKinsey1 white paper found that companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians, and for gender diversity 15% more likely.
Despite the prospective benefits, financial services organizations o�en find it a struggle to move the needle on D&I.
Fewer than half of our survey respondents agree that their leaders set and communicate D&I goals.
Similarly, a majority of executives note that their leaders are failing to approach D&I as an organizational- level priority, and rather deal with it as an HR-level issue.
IT IS CLEAR TO ME HOW DIVERSITY AND INCLUSIONWILL IMPROVE THE PERFORMANCE OF MYORGANIZATION
LEADERS IN MY ORGANIZATION SET ANDCOMMUNICATE D&I GOALS
FinancialServices
Asset & WealthManagement
Global Banking& Markets
Insurance
Retail Banking &Consumer Services
All-SectorAverage
75%
82%
83%
81%
79%
81%
Disagree Agree
FinancialServices
Asset & WealthManagement
Global Banking& Markets
Insurance
Retail Banking &Consumer Services
All-SectorAverage
34%
39%
36%
44%
37%
37%
Disagree Agree
1 “Why Diversity Matters,” by Vivian Hunt, Dennis Layton & Sara Prince, 2015
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Financial Services
An effective D&I agenda must take into account sector-specific factors
To explore where financial services firms are performing well, and where they are performing poorly, we have benchmarked responses across the survey’s 35 questions with an All-Sector Average. This allows us to understand:1. Areas of outperformance, that may be strategic differentiators to capitalize on, and 2. Areas of underperformance that may be sources of potential risk to be aware of.
There is a feeling that financial services leaders do not foster an environment that encourages the voicing of different opinions and perspectives. There is also a greater perceived lack of diversity at senior leadership levels.
WHERE DO FINANCIAL SERVICES FIRMS UNDERPERFORM THE ALL-SECTOR AVERAGE?% lower than All-Sector Average
My organization’s senior leadership is sufficiently diverse-7%
Leaders create collaborative opportunities and leveragedifferent perspectives-7%
Leaders ensure an environment in which others can safelyvoice different opinions-6%
My organization believes diversity and inclusion are theright thing to do-5%
Leaders make D&I an organization level, rather thanHR-level, priority-3%
Responses suggest that compared to other sectors, financial services organizations tend to emphasize inclusion more in business strategies, and have a stronger focus on diverse talent development and retention.
WHERE DO FINANCIAL SERVICES FIRMS OUTPERFORM THE ALL-SECTOR AVERAGE?% higher than All-Sector Average
+6%My organization emphasizes “inclusion” in its business strategy
My organization places a priority on developing diverse talent +3%
My organization sets diversity goalswith regard to the demographics of its employee base +3%
It is clear to me how diversity and inclusion willimprove the performance of my organization +2%
My organization places a priority on retaining diverse talent. +2%
Methodology1,857 Executives were surveyed in the Diversity & Inclusion Pulse Survey, of which 339 defined their sector as ‘Financial Services’. 9% of respondents were CEO; 54% CxO, Board or Other Executive; 24% Director or VP; 12% Individual Contributor or Manager. By geography: 45% EMEA, 43% Americas, 11% Asia. By gender: 66% male, 32% female, 1% preferred not to respond.
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Global Banking & Markets
Outperformance against All-Sector Average
Highest items by % above All-Sector Average
The Global Banking & Markets peer group sees diversity and inclusion as a high priority – incorporating it in to business strategy, se�ing diversity goals, rewarding ‘inclusive’ behaviours, and holding itself accountable to these measures.
56 sector respondents
+14%
+11%
+9%
My organization sets diversity goals with regardto the demographics of its employee base
My organization emphasizes “inclusion” in itsbusiness strategy
Leadership considers inclusive behaviors aspromotion criteria for leaders
Diversity and inclusion are one of the toppriorities of my organization
My organization holds itself accountable tomeeting diversity goals with regard
to demographics of the employee base
My organization sets diversity goals with regardto the demographics of its senior leadership
It is clear to me how diversity and inclusionwill improve the performance of my
organization
My organization places a priority on retainingdiverse talent
Leaders in my organization set andcommunicate D&I goals
My organization’s employee demographicssufficiently represent the customers and
markets we serve
+7%
+6%
+6%
+3%
+3%
+3%
+3%
Best
5
Underperformance against All-Sector Average
The peer group sees very poor results as they relate to individuals feeling they can voice different views and opinions, and fostering an inclusive environment. It also sees itself as lacking diversity at leadership level, and struggling to a�ract diverse talent.
-5% My organization’s Board is sufficientlydiverse
My organization believes diversity andinclusion are the right thing to do
Leaders in my organization make D&I anorganization level, rather than HR-level,priority
Leadership in my organization is heldaccountable towards fostering an inclusiveculture
My organization places a priority ona�racting diverse talent
My organization is effective at a�ractingdiverse talent
My organization is effective at fostering aninclusive culture
My organization’s senior leadership issufficiently diverse
Leaders in my organization ensure anenvironment in which others can safelyvoice different opinions
Leaders in my organization createcollaborative opportunities and leveragedifferent perspectives
-6%
-7%
-8%
-9%
-10%
-11%
-15%
-17%
-17%Worst
Lowest items by % below All-Sector Average
6
Insurance
Outperformance against All-Sector Average
The Insurance peer group outperforms in listening to and communicating with its employees around diversity and inclusion as compared to the All-Sector benchmark. It also ensures inclusion is reflected in the business strategy.
My organization utilizes surveys or other forms of employee feedback to measure an inclusive
culture
My organization emphasizes “inclusion” in itsbusiness strategy
It is clear to me how diversity and inclusionwill improve the performance of my
organization
Leaders in my organization communicatethe importance of D&I to my organization
Diversity and inclusion are critical to thesuccess of my organization
+10%
+7%
+5%
+4%
+3%
104 sector respondents
Best
Highest items by % above All-Sector Average
7
Underperformance against All-Sector Average
The peer group underperforms in a�racting and developing diverse talent, particularly at leadership level. Fewer employees feel they can voice their opinions, and inclusive behaviours are not seen as being rewarded.
-4%Leaders in my organization createcollaborative opportunities and leveragedifferent perspectives
My organization is effective at retainingdiverse talent
My organization is effective at fostering aninclusive culture
My organization believes diversity andinclusion are the right thing to do
My organization’s employee base issufficiently diverse
My organization is effective at developingdiverse talent
Leaders in my organization recognize andreward inclusive leaders
Leaders in my organization ensure anenvironment in which others can safelyvoice different opinions
My organization is effective at a�ractingdiverse talent
My organization’s senior leadership issufficiently diverse
-6%
-7%
-8%
-8%
-9%
-9%
-9%
-11%
-12%Worst
Lowest items by % below All-Sector Average
8
Investment Management
Outperformance against All-Sector Average
The Investment Management peer group is seen as placing a priority on aracting and developing diverse talent, as compared to other sectors. It makes efforts to create and sustain an inclusive culture, and brings ‘inclusion’ in to business strategy.
76 sector respondents
+11% My organization places a priority on developingdiverse talent
My organization places a priority ona�racting diverse talent
My organization is effective at fosteringan inclusive culture
My organization emphasizes “inclusion” inits business strategy
My organization places a priority on fosteringan inclusive culture
My organization is effective at a�ractingdiverse talent
My organization places a priority on retainingdiverse talent
+10%
+5%
+4%
+4%
+3%
+3%
Best
Highest items by % above All-Sector Average
9
Underperformance against All-Sector Average
The peer group rarely leverages surveys and feedback to measure inclusivity. It lags in terms of communication and recognition & reward around the subject. It also sees itself as lacking in diversity at employee and leadership levels.
Worst
-4% Leadership considers inclusive behaviors as promotion criteria for leaders
Leaders in my organization ensure anenvironment in which others can safelyvoice different opinions
Leaders in my organization make a visiblecommitment to D&I
My organization’s senior leadership issufficiently diverse
My organization’s employee base issufficiently diverse
Leaders in my organization createcollaborative opportunities and leveragedifferent perspectives
Leaders in my organization communicatethe importance of D&I to my organization
Leaders in my organization recognize andreward inclusive leaders
My organization utilizes surveys or otherforms of employee feedback to measure aninclusive culture
-5%
-5%
-6%
-6%
-6%
-6%
-7%
-7%
Lowest items by % below All-Sector Average
10
Consumer & Commercial Financial Services (CCFS)
Outperformance against All-Sector Average
The CCFS peer group performs strongly across many measures. It sees itself as having a diverse employee base, aligned to its customer base. It also performs well in a�racting and developing diverse talent at both employee and leadership level.
73 sector respondents
+16%
+15%
+13%
My organization’s employee base is sufficientlydiverse
Leaders in my organization recognize andreward inclusive leaders
My organization’s employee demographicssufficiently represent the customers and
markets we serve
My organization places a priority on retainingdiverse talent
My organization places a priority on developingdiverse talent
My organization is effective at developingdiverse talent
My organization is effective at a�ractingdiverse talent
Leaders in my organization make a visiblecommitment to D&I
My organization’s leadership demographicssufficiently represent the customers and
markets we serve
My organization’s Board is sufficiently diverse
+11%
+10%
+10%
+9%
+8%
+8%
+8%
Best
Highest items by % above All-Sector Average
11
Underperformance against All-Sector Average
Lowest items by % below All-Sector Average
The peer group feels that diversity and inclusion is not seen as a business priority, and that leaders fail to stress the importance of D&I in internal communications.
Worst
-2% Leaders in my organization communicatethe importance of D&I to my organization
Diversity and inclusion are critical to thesuccess of my organization
My organization places a priority onfostering an inclusive culture
-2%
-2%
Diversity and inclusion are one of the toppriorities of my organization-4%
RussellReynolds.com
© Copyright 2019, Russell Reynolds Associates. All rights reserved.
If you wish to discuss these findings further, or assess your own company’s performance against the benchmark, please contact:
FINANCIAL SERVICES
AMANDA FOSTERGlobal Sector Co-LeaderE: [email protected]: +44 20 7830 8033London
MARY CAROLINE TILLMANGlobal Sector Co-LeaderE: [email protected]: +1 212 351-2085New York
INVESTMENT MANAGEMENT
HANNAH BRAZIERGlobal Practice LeaderE: [email protected]: +1 212 351 2556New York
GLOBAL BANKING & MARKETS
MARY CAROLINE TILLMANGlobal Practice LeaderE: [email protected]: +1 212 351-2085New York
INSURANCELIMORE ZILBERMANGlobal Practice LeaderE: [email protected]: +1 312 993 0746Chicago
CONSUMER & COMMERCIAL FINANCIAL SERVICES
JANE BIRDGlobal Practice Co-LeaderE: [email protected]: +44 20 7198 1807London
ROBERT VOTHGlobal Practice Co-LeaderE: [email protected]: +1 312 993 0748Chicago
RESEARCH & INSIGHTS
MARK TEMPLEGlobal Knowledge LeaderE: [email protected]: +44 207 198 811London