Of all the channels in the financial services industry, deposit-taking institutions stand out as the most progressive when it comes to diversity in the workplace. And the firms’ efforts at achieving a more balanced workforce, in terms of welcoming gender and ethnic diversity, appear to be paying off as financial advisors gave their firms some of the highest ratings in the Report Card on Banks and Credit Unions in the “firm’s diversity and inclusion strategy” category.
One of the many reasons advisors are enamoured with these efforts is because of the business opportunities they generate. As a female advisor in Ontario with Toronto-based Royal Bank of Canada puts it: “Diversity is one of the values of this company, [and it] brings business opportunities.”
Similar sentiments were echoed among the vast majority of advisors surveyed for this Report Card. Thus, it’s no surprise that performance ratings in the category ranged from 8.4 to 9.8, resulting in an overall average of 9.1.
When comparing the results for banks and credit unions with those from the Report Cards surveying advisors with brokerages and dealers, banks and credit unions are further ahead when it comes to gender diversity in their workforces. Women comprised almost half, or 45% of the 275 respondents in this year’s survey of banks and credit unions; in contrast, women accounted for only 18% of the 629 respondents for this year’s Brokerage Report Card and 23% of the 517 respondents for the 2011 Dealers’ Report Card.
But the deposit-taking institutions that led the pack in the diversity and inclusion category were those that not only had policies in place to promote it, they also had a fair representation of women and ethnicities in the upper echelons of management.
For example, advisors with Vancouver-based Vancouver City Savings Credit Union were most pleased with the fact their firm has a female president and CEO — Tamara Vrooman — a rarity in the financial services industry. That was one of the reasons they gave their credit union the highest diversity rating in the survey, at 9.8.
To ensure Vancity stays on track with its diversity targets, the firm reports its diversity numbers in its annual reports, says Michael Atkinson, Vancity’s director of investment solutions: “It’s something we take seriously and measure.”
Toronto-based TD Canada Trust and RBC also stood out as firms that were progressive on the diversity and inclusion front, with performance ratings of 9.7 and 9.6, respectively.
In TD’s case, it has built out its diversity leadership council to ensure that diversity programs get rolled out effectively across the bank’s business lines. The council’s current focus is on increasing aboriginal representation within the bank’s workforce — as well as reaching out to people with disabilities and the lesbian, gay and transgendered community.
TD’s spotlight on diversity has been noticed by its advisors; many could name the firm’s various diversity programs and committees at both the regional and national levels. Says a male advisor in Ontario with TD: “You’re rewarded internally and externally for diversity and culture. There is a [commitment] to make sure all voices are heard, such as minorities.”
RBC builds diversity in its organization via its hiring process. Through an internal referral program and partnerships with various ethnic organizations, the bank strives to hire people of ethnic background that reflects the locations of RBC’s branches. The bank also tries to include more female representation through its hiring practices, says Michael Walker, vice president and head of branch investments with RBC: “Today, women represent approximately 50% of the Canadian population … and we strive to reflect that in our workforce.”
Meanwhile, Montreal-based National Bank of Canada has one of the most comprehensive diversity strategies among the firms surveyed in the Report Card. That bank aims to increase diversity both within the firm and in the financial services industry as a whole.
It’s three-year diversity plan includes a bursary program for women who want to study finance. The bank also offers a bursary and summer employment program for students with functional limitations. Since the latter program was launched in 1989, 61 student bursaries and summer jobs have been offered.
National Bank also has partnered with the Montreal branch of a Canada-wide project called Assisting Local Leaders with Immigrant Employment Strategies, which helps integrate Canadian immigrants into the workplace.
“The way I see it, ‘diversity’ isn’t just a buzzword,” says Louis Vachon, president and CEO of National Bank. “It’s a fundamental value that is becoming increasingly important in our interactions, operations and the way we perceive problems and solutions.” IE