Are you a firm leader looking to drive profits, foster collaboration and build a future-ready team? If so, diversity isn’t an option—it’s a necessity. The numbers speak for themselves. According to Great Place to Work, companies with diverse workforces experience higher revenue growth, greater readiness to innovate, increased ability to attract talent and higher employee retention.
Yet the conversation around diversity, equity and inclusion (DEI) has grown more complex due to a divisive political climate and the introduction of anti-DEI legislation in some states. Despite this, I believe firms should continue focusing on an equity-minded approach to talent management.
Measure what matters
The foundation of any successful initiative lies in the metrics. As Peter Drucker pointed out, what gets measured gets managed. In the same way we track financial metrics to ensure profitability, we can track people metrics to improve our firms.
According to McKinsey, companies with greater gender diversity on executive teams were 25% more likely to have above-average profitability. Other research backs up the benefits of diversity, linking it to increased innovation.
Remember, diversity isn’t just about gender or race. While these forms of diversity are necessary, a genuinely diverse team includes people from different socioeconomic backgrounds, sexual orientations, abilities, religions, ethnicities, ages, veteran statuses, and more.
The question is, what metrics should firm leaders focus on? Here are a few good places to start.
Employee engagement. Are employees feeling included, valued, and heard? Engaged employees are more productive and likely to stay.
Employee satisfaction. Are your diverse hires happy? Do they feel a sense of belonging within your firm?
Retention rates. Who’s staying and who’s leaving? A high turnover rate among diverse talent could signal deeper issues.
Leadership demographics. What does the makeup of your leadership look like? You might not think you have a diversity problem, but if someone looks at the leadership page on your firm’s website and sees all partners and executives are white men, you have a perception problem—internally and externally. Employees and clients increasingly expect leadership to reflect the diversity of the workforce.
By tracking these metrics, you can identify blind spots, create better strategies and build stronger teams.
Expanding opportunities
Another advantage of the evolving workplace is the increased flexibility in hiring. Remote work opens up new possibilities for firms to hire diverse talent nationwide or globally.
And as the accounting profession itself evolves, firms no longer need to limit their talent pool to CPAs. We have an opportunity to bring in professionals with varied skill sets—technology experts, data analysts, business consultants, etc.—whose diverse perspectives can help firms serve clients holistically, innovate and grow.
Avoid the pitfalls
Too often, firms think simply forming a DEI committee will solve the issue. But a committee is just the beginning. It’s not enough to meet quarterly and draft policies without ongoing action.
To make lasting change, you need to integrate equity and inclusion into the fabric of your firm. This includes leadership holding themselves accountable, creating clear goals and regularly measuring progress.
The danger of going backwards
If we take our eyes off the ball, we risk losing the progress we’ve made. When you stop talking about diversity, equity and inclusion or assume you’ve solved the issue, you risk backsliding.
We’ve made some progress but still have a long way to go. Firm leaders must foster environments that encourage difficult conversations rather than dismiss them. Conversations around equity and inclusion may involve some disagreement, but ignoring an entire initiative because of a minor difference of opinion is counterproductive.
Ultimately, it’s every firm leader’s responsibility to build diverse, equitable and inclusive teams. It’s not just about doing what’s right—it’s about ensuring your firm’s future profitability and relevance. We can’t afford to stop taking an equity-minded approach to talent, nor can we afford to narrowly define diversity.
As we move forward, remember to measure what matters, think bigger and, most importantly, stay committed. The future of your firm depends on it.
Could your firm’s HR and talent leaders benefit from a peer network?
The Boomer Talent Circle is a community of talent leaders from forward-thinking firms who are committed to aligning human resources and firm strategy at the highest levels. Apply now to start shaping your firm for the future.
Sandra Wiley, Shareholder, President of Boomer Consulting, Inc., is a leader in the accounting profession with a passion for helping firms grow, adapt and thrive. She is regularly recognized by Accounting Today as one of the 100 Most Influential People in Accounting as a result of her expertise in leadership, management, collaboration, culture building, talent and training.
Sandra’s role at Boomer Consulting, Inc. includes serving as co-director of the Boomer Leadership Academy as well as the Boomer Managing Partner Circle, the Boomer Talent Circle and the Boomer Learning & Development Circle. Her years of experience and influence as a management and strategic planning consultant make her a sought-after resource among the best and brightest firms in the country.