How Advisories Can Build Better, More Inclusive Cultures

Retirement plan advisories continue to struggle to achieve representation of all kinds—from ethnicity to age to gender—according to panelists running a session on building more diverse and inclusive cultures at the PLANADVISER 360 Conference in Scottsdale, Arizona, on November 13.

Liz Aidoo, director of DEI and servicios en español at Francis LLC, said creating an inclusive workplace is essential to a successful business and team, especially among younger employees who expect that from their workplaces.

“Those three little letters—DEI—are somehow so triggering nowadays, and they really shouldn’t be,” Aidoo, also a financial planner, said. “What we’re really trying to do here is being inclusive of all people, to make sure that everyone feels seen, heard, included and valued as their authentic self. Because that is when they can bring their whole self to work and really be able to contribute.”

Aidoo said that, to help create that culture, her firm created a diversity, equity and inclusion committee that meets quarterly.

That committee, Aidoo said, will consider the employee wellness program, discuss whether workplace benefits are meeting everyone’s needs and look at job postings, both to ensure inclusive language and consider barriers that may limit the applicant pool. From there, any ideas or suggestions will be brought to senior leadership for consideration.

Aidoo also noted that the committee goes through its own education, sometimes bringing in outside speakers to advise members on best practices and innovations in diversity and inclusion in the workplace.

Multi-Pronged Approach

Gerald Wernette, a principal in and director of retirement plan consulting and retirement plan solutions at Rehmann Financial, has helped lead inclusion initiatives at his firm, which has more than 1,000 employees spread across 18 offices in Michigan, Ohio and Florida.

Rehmann ended up creating multiple committees to address different areas of inclusion and equality. Those include a communication committee to educate and answer employee questions, an organizational process committee focused on recruiting and retention efforts, and a committee to track and monitor progress.

“We want to be able to dig down in the weeds in terms of how we are doing and where we need to tweak our efforts,” he said.

Wernette noted that Rehmann hired an external consultancy to help guide its process, a very valuable way to figure out what the organization needed and to help set up programs. However, Wernette noted, it is important not to lose the culture and values already in place at the firm, but to create a program that works within it.

“You can’t lose sight of your own culture in the process,” Wernette said. “We’re a firm that’s been around 80-plus years, and our the culture of our firm has been very strong, and that continues to be that that fabric that holds us together.”

When it comes to recruiting new employees, Aidoo said Francis LLC is guided by the philosophy of looking for adding value to the firm, not just someone who “fits.”

“The reason why [we emphasize value over fit] is because, oftentimes, when we are interviewing or we’re looking at candidates, we’re thinking, ‘Do they fit in with our team?’” she said. “I really want to challenge that, because if you are looking for someone to just fit in with your team, chances are you’re not getting someone that offers a different perspective.”

Aidoo said that, when people bring a different perspective, they can add value such as innovation, creativity and practice improvements that someone who simply “fits” may not provide.

Aidoo also noted that, to find such candidates, an employer may need to expand both where it looks for candidates and the licensing or educational requirements for the role, assuming they can help train the person.

Beneficial for All

Wernette noted that Rehmann Financial worked on its benefits program to ensure it can accommodate people with diverse needs. For example, its parental leave program accounts for births, adoptions, guardianships, foster care and any other parenting needs. It also provides resources for “challenges of health, whether physical or mental, that can come at any stage of life.”

He said these programs stem from surveying and listening to employees about their needs, then acting on them.

“You’re not going to change things if you’re taking a survey of your employees, and people respond to that survey, and then you don’t make changes and they don’t see those differences being made,” Wernette said.

Aidoo added that diversity at an advisory is particularly important because employees work with people of different backgrounds, races, genders and identities.

“I’m giving financial planning to different people throughout the same day, switching from English to Spanish,” she said. “I have to be aware of some of these differences in order to provide the best financial advice and planning. The external goal, then, is to make sure we are all aware of these differences so that we can best serve our clients and participants.”