Banks and credit unions deal with a lot of abbreviations. But DEI, for diversity, equity and inclusion, is one of the most important. “In an ideal state, DEI initiatives create sustainable, diverse and inclusive workplaces where employees share unique perspectives, respect one another’s individual needs and reach their full potential without barriers,” said Preetha Pulusani, CEO and founder of DeepTarget.
Pulusani speaks from experience and considers the results both tangible and impactful. “Bringing together individuals with diverse backgrounds and experiences has fostered creativity and fresh perspectives. This has impacted both our solution and customer interaction,” she said. “It also has resulted in a positive company culture with all employees feeling safe, respected and more connected—leading to a stronger sense of community and increased productivity.”
Pulusani isn’t alone. “Having diverse perspectives helps us increase our empathy and broadens our mindset. It also creates an environment where it deepens employee engagement and employees feel empowered,” said Hannah Jones, a human resource and training specialist with Hiway Credit Union. “Having a diverse workforce also enables be organizations empathize and better understand and address challenges, not only within the organization but also outside the organization.”
Much of the DEI conversation revolves around strengthening a company’s results, but a commitment to diversity, equity and inclusion also helps drive innovation and outcomes, said Martha Bartlett Piland, president of Banktastic, a financial brands marketing agency. Bartlett Piland says she regularly hears marketing and HR professionals say their goal is to be an employer of choice. But she believes it’s impossible to have a winning employer brand without the voices and contributions of diverse teammates.
Here are 10 things that smart banks and credit unions should be doing for DEI success:
1. Start high and run deep: “DEI initiatives must start at the top, preferably with the CEO being the sponsoring executive,” Pulusani said. “Focus on evaluating where the organization stands with DEI before implementing a plan, then ensure that there is clear communication throughout and a practical plan to meet achievable milestones.”
2. Make it ingrained: The work also has to be ingrained in the company culture. “It is not enough to have a DEI statement or director of DEI. It must be a part of the DNA of an organization,” said Richard Dedor, vice president of marketing at Premier America Credit Union. “Only those who are deeply invested in the diversity and equity of their internal and external publics will stand the test of time in a growing diverse marketplace.”
3. Consider the “why”: DEI strategies begin and end with “why,” Dedor said. Why is the organization doing this? “DEI efforts should only be initiated if it is truly and honestly a part of the mission of the organization. If it is just because it is en vogue, it is not authentic and will only seek to create even more gaps in the understanding and equity that you are seeking to merge,” he said.
4. Keep it going: Avoid treating DEI as a one-time initiative. “It’s an ongoing journey and requires continuous commitment to have a lasting impact. The training and education opportunities should be ongoing to raise awareness and support the organization’s commitment to championing DEI efforts,” said Kaitlin Trunell, people services manager at Georgia United Credit Union.
5. Customize: Trunell also urges avoiding a one-size-fits-all approach. “Consider the diverse identities and perspectives in your workforce. Recognize that different groups within your organization have different needs and experiences,” she said. “Forming a DEI advisory team and employee resource groups will provide opportunities to engage team members from across the organization to lead, participate in and advocate for your underrepresented groups and create a sense of belonging.”
6. Tackle the measurement: Like anything else, DEI needs statistics to show its worth. But that is no easy feat. “Measuring our impact is a combination of qualitative and quantitative measures,” said Jennifer Cryder, CEO of PICPA. “The quantitative measures are familiar to most organizations; things like hiring outcomes, equal pay scales and watching attrition trends with a focus on demographic patterns.
The qualitative is more difficult, but a goal is to have different people from different backgrounds working together to make the profession and organization better for all.” Trunell suggests measuring increased representation of underrepresented groups within the organization at all levels, improved employee engagement and retention and turnover rates, the impact of diverse perspectives and experiences on innovation and decreases in discriminatory practices.
7. Avoid faking it: But measure carefully. “Avoid setting diversity goals and quotas that prioritize quantity over quality, and that do not align with the business strategy,” Trunell said. “Although it’s important to strive for diverse representation, placing an emphasis on meeting numerical goals rather than achieving strategic goals could undermine the value of equity and inclusion for the organization.”
Also, “avoid performative diversity measurements— those that are used to shore up the brand, such as a rainbow flag on social media during Pride week, but that are superficial, doing nothing in real actions across the organization to make a meaningful difference,” Pulusani said. “This hollowness is often evident internally and has the potential to create negative employer perceptions with employees.”
8. Don’t check the box: DEI efforts have to be genuine. “Millennials and Gen Z expect this from their employers. They read the reviews. They’re watching to see how people in the company are treated,” Bartlett Piland said. “They want to know their employer is making a difference in the world. If they don’t see purpose and fairness, they’ll look elsewhere.”
9. Consider “belonging”: DEI does not stand still. The landscape evolves almost daily, so be prepared for an ongoing process that continues to yield different needs. “DEI is a broad term that has different meanings to different people, and I expect that description to expand as we understand more about what’s needed,” Bartlett Piland said. “Including someone is not the same as people having a sense of belonging. But belonging is important. It’s harder to execute, but I think it relates to the point about talent retention. A business can attract talent, but if people don’t feel like they belong, they won’t stay.”
10. Have an internal dialogue: Finally, don’t forget to keep your most important resource—employees—in the loop. “To have a successful implementation and a sustainable effort, convey to employees why your DEI initiatives are important and celebrate successes periodically,” Pulusani said.
There are many benefits to focusing on DEI. “A comprehensive DEIB communication strategy is essential at all levels of an organization to inform and ensure that employees are aware of DEIB as a business objective,” said Diane Ashley, CEO of DTA Diversity Counts. “Companies recognized for best practices in DEIB foster inclusivity through communication.”
Dawn Wotapka is a BAI contributing writer.
