Diversity & Inclusion Are Matters of Business Success or Failure
People discuss diversity and inclusion efforts as if they're checklist items. But underneath that, there's still a huge problem.
A few weeks ago, I attended a panel discussion on diversity and inclusion at the $1.3 billion Unitus Community Credit Union in Portland, Ore. With those two words seemingly on the tips of everyone’s tongues these days, the event was unsurprisingly well-attended. Audience members listened intently as panelists from three different Portland area credit unions –Rivermark Community Credit Union, Point West Credit Union and First Tech Federal Credit Union – calmly discussed their strategies for making employees and members of all races, ethnicities, lifestyles, physical abilities, gender orientations and religions feel welcome and included.
The mood in the room shifted during the event’s Q&A portion, when an audience member, who said they use the pronouns “they/them” to identify themselves, stood up to passionately – and somewhat angrily – ask the panel how they manage to get 100% buy-in on their diversity and inclusion initiatives throughout their credit unions, when the current political climate suggests that isn’t possible.
It felt like the elephant in the room had finally trumpeted. Throughout many industries, including credit unions, people talk about what they’re doing to improve diversity and inclusion like they’re checking boxes off their to-do list. But underneath that, there is still a huge problem. Looking at the big picture of diversity and inclusion in the U.S., most people can agree that while we are further along than ever before (We have Muslim women in Congress! Tons of interracial and gay couples on TV!), we are still listening to blatantly racist comments and watching people die as a result of acts of violence against “the other.”
In response to the audience member’s question, panelist Jason Russell, vice president of organizational development and HR for Rivermark Community, explained that during the interview process, candidates are told how important it is for employees to be on board with the credit union’s stance on diversity and inclusion. In order words, it’s not possible to get 100% buy-in from everyone who walks through the credit union’s doors, and those who don’t want to buy into it can choose to work somewhere else.
As institutions founded to serve people who did not have access to traditional financial services, credit unions have always gone hand-in-hand with diversity and inclusion. And while they’ve made progress on the issue, with boards looking more diverse and more women in CEO positions (albeit mostly at small credit unions), they still have a long way to go (for evidence of that, just scan the crowd at any major credit union conference).
It’s a fact that no, not everyone is going to get on board with diversity and inclusion. But it’s also a fact that doing something to become more diverse and inclusive is much better than doing nothing. Here are some tips from the panelists for taking action on the issue at your credit union:
Back yourself up with data. Panelist Vishall Kaistha, product manager at First Tech, emphasized the power of research-backed numbers when selling diversity and inclusion initiatives to leaders throughout an organization. Research is available from Deloitte, for example, that suggests companies that do not embrace diversity and inclusion will face negative business repercussions down the line.
Look beyond gender, race, religion and sexual orientation. The culture that Russell described at Rivermark Community allows people to truly be themselves without feeling like they need to change in any way to fit in. He noted inclusion should extend to people with differences like a unique style/appearance or their preference to work remotely, and that inclusive workplace policies include installing gender-neutral bathrooms and allowing time off for holidays celebrated by a variety of religions.
Cater to a diverse group of members. Panelist and Point West Community Advocate Mary Vasquez explained that her credit union welcomes local immigrants and Hispanics in need of financial services with open arms by hiring employees who speak both English and Spanish (and offering a bilingual website), and making Individual Tax Identification Number loans to immigrants without a Social Security number. It also ensures diverse models are featured in marketing materials and offers interest-free loans for members whose Islamic faith forbids them to pay interest.
When hiring, consider life experience over degrees and work experience. Vasquez said job candidates are asked life situation-related questions at Point West, and Russell added department managers should be involved in the hiring process early on, not just the HR team. Also, if a credit union wants to hire diverse candidates, the hiring team should be diverse themselves, he said.
Beware of forming groups based on race or identity. Russell warned that employee groups within a credit union must be well-managed, because sometimes when such groups are formed, employees will want to see more and more groups created to represent every identity imaginable. Kaistha said these kinds of groups are unnecessary, stating, “If you create an environment of belonging, you won’t need sub-groups.”
Is it possible to please everyone by implementing policies and initiatives in favor of diversity and inclusion at your credit union? No. There will be members who feel uncomfortable when they enter credit union branches and see gender-neutral bathrooms, or hear conversations taking place in multiple languages, or realize that nobody around them looks like them. One could argue that inclusivity alienates a segment of the population that isn’t ready for it.
But when deciding whether to embrace diversity and inclusion at your credit union, and to what degree, it’s important to consider that the population you are serving – the people you rely on to stay in business – is a population where the number of minorities is growing more rapidly. One where younger generations would consider not doing business with an organization that turns its back on inclusivity. Then, embracing diversity and inclusion no longer becomes a question of where you stand on the issue, but rather a question of whether you want your business to succeed or fail down the road.
Natasha Chilingerian is executive editor for CU Times. She can be reached at nchilingerian@cutimes.com.