Commitment to DEI is a leadership imperative

The research is clear: Diverse teams and inclusive work environments produce better results. 

A 2018 report from Big Four firm Deloitte revealed that diverse teams are twice as likely to meet or exceed financial targets, three times as likely to be high-performing, six times as likely to be innovative and agile, and eight times more likely to achieve better business outcomes than monochromatic teams. Research from CNBC also shows that 78% of the workforce says it's important to work for an organization that prioritizes diversity and inclusion, leaving employers with happier workers and better retention. 

Yet, despite all the well-researched positive attributes that a demonstrated commitment to diversity, equity and inclusion can bring to the workplace, the economy and to a person's overall well-being, DEI progress is stalling. In fact, leadership consulting firm DDI noted, "Many companies are taking steps backward, to the brink of a DEI backslide."

This comes at a time when accounting is grappling with a critical challenge: finding talent. Demographic trends and financial hurdles have led to fewer people entering the profession, resulting in over 135,000 anticipated job openings through 2031, according to the U.S. Bureau of Labor Statistics. However, research from the Institute of Management Accountants reveals a concerning statistic: One in 10 accounting professionals has left the profession due to a lack of inclusion and equity. With talent retention being paramount, neglecting DEI initiatives poses a significant risk that our profession cannot afford to overlook.

We must prioritize DEI to combat the talent shortage. A new report by the Massachusetts Society of CPAs offers valuable insights and best practices to help firms and organizations maintain their commitment to DEI. Here are five:

1. Drive meaningful change by establishing DEI as a business strategy and embedding it in all parts of the business. This approach tells employees their leaders are committed. It establishes momentum and drives sustainability. 
2. Establish a DEI philosophy that is both human-centered and systems-oriented. The human element emphasizes the power of personal connection and equips individuals with greater awareness of bias and tools for interventions, while the systems approach ensures that biases in processes like recruitment, hiring and promotion get addressed.
3. Identify problems and solutions that are unique to our profession and your organization. The accounting field must address systemic barriers that inhibit access to internships for students from underrepresented communities.
4. Nurture an authentically inclusive workplace culture. We interviewed numerous young career entrants for the report. They consistently emphasized the importance of work cultures that make them feel valued, offer mentoring, maintain active employee resource groups, and make space for honest conversations about the differences.
5. Hold everyone accountable. Organization-wide accountability, starting at the top, drives responsibility and ensures action. Measures can be as varied as manager performance objectives linked to DEI, transparency about setbacks, and all-employee celebrations of success.

In every industry, and especially in accounting, leaders have an inclusion mandate. As we work to leverage DEI strategies that support workers and enhance performance, let's start by communicating shared values that most people can agree on: Diversity means we cast a wide talent net to hire a representative group of qualified candidates. Equity means we craft systems and processes that enable everyone to do their best. And inclusion reminds us to create cultures of belonging where all employees can thrive.