04.10.24

Transforming Culture Through Employee Communities — BISA Annual Convention DE&I Workshop Wrap-up

by: BISA Staff

At the 2024 BISA Annual Convention, attendees had the opportunity to participate in a workshop focused on diversity, equity, inclusion and belonging: “Transform Your Culture Through Authentic and Purpose-Driven Employee Communities,” led by Nationwide Financial’s Cynthia Hoes, MBA (above), and presented in part by the Financial Alliance for Racial Equity (the FARE Coalition). 

FARE’s mission is to increase racial diversity, drive greater equity and foster inclusion within the financial services industry and communities served. One way they do so is by aiding Black professionals in the financial sector in obtaining their Certified Financial Planner (CFP) credentials. Their offerings additionally include internship programs, diversity scholarships and mentorship initiatives with Historically Black Colleges and Universities (HBCUs).

Hoes commenced the workshop by underlining the tangible benefits of DE&I efforts, citing a 2017 research study from Bersin by Deloitte that states inclusive cultures are six times more likely to be innovative, six times more likely to anticipate change and respond effectively and twice as likely to meet or exceed financial targets.
She emphasized the importance of Employee Resource Groups (ERGs) — which bring together employees with similar backgrounds and/or goals — in enacting change at an organization. She also noted that historically, these groups have run on their own without executive guidance and buy-in. Ensuring executive buy-in for these groups and aligning them with the company’s goals and business objectives can increase their impact and ability to create change. 

Whether an organization is initiating ERGs or restructuring existing ones, it's vital to establish a clear purpose, value proposition and goals. Hoes suggested starting by creating a charter with documented strategies and objectives to ensure transparency throughout the organization regarding the ERG's intentions. Governance is also key — leveraging an executive sponsor will help maintain a strong link to the company. This sponsor could be a member of the represented affinity group or someone supportive of its goals. Additionally, ensuring representation from various organizational levels can significantly drive meaningful change. Hoes also stressed the importance of aligning ERG goals with the organization's DE&I council for strategic coherence.

Workshop participants expressed different perspectives on how to structure ERGs. Some advocated for focusing on specific identity groups to create a safe space for members to convene and share without needing to engage in code-switching — the practice of altering language or behavior to fit different cultural contexts. Others believed that including allies and advocates from outside these groups could be advantageous. Attendee Newman Rochester, Jr. of Prudential shared his organization's success in broadening the scope of their Black ERG to include allies, enhancing its impact and relevance. His organization also has metrics for choosing their executive sponsor to ensure this person is not simply checking a box.

Brett Carmichael, a BISA DE&I Committee member, outlined key principles for effective allyship, emphasizing active listening, advocacy and the willingness to engage in uncomfortable conversations — all which could help someone become an effective ERG member. 

Serina Shores, also a BISA DE&I Committee member, raised a common challenge she has seen with ERGs: often, these groups compete for the same resources. She noted that disparities in executive sponsorship could exacerbate this issue, potentially favoring certain ERGs over others.

Hoes acknowledged these challenges, but emphasized that achieving strategic alignment across the organization could mitigate competition among ERGs. Ideally, each group would contribute to the organization's broader goals, reducing reliance on individual executive sponsors. She noted that while some worry that formalizing ERG structures might stifle their natural dynamics, clear structures promote accountability and facilitate progress.

Hoes reiterated that creating mutual benefit for both ERG members and the company at large should be a goal of these groups. An organization can leverage the participant voices to advance business objectives and address challenges, such as retention, entering new market segments, researching different consumer segments and launching new products. In addition, ERG members can find a company-supported place to take action on concerns important to them. For example, Hoes shared that one company leveraged its women’s network to improve their benefits package and inform their parental leave policy. Another unique strategy emerging at organizations thanks to ERGs is reverse mentoring, where executives are paired with younger, diverse individuals or groups to facilitate upward feedback to the C-Suite.  

The workshop then transitioned to collaborative problem-solving sessions, which allowed group participants to address real-world challenges. One challenge involved a company struggling to maintain market share, particularly among Gen X and millennials. The company also needed translation services, mainly for Spanish. Attendees pointed out the challenge in the industry of outsourcing translation services due to regulatory concerns, and suggested solutions such as paying for employees to learn Spanish — similar to paying for someone to receive a credential — and hiring people from the communities they wish to reach. Reaching people who are “technologically challenged” was similar concern raised through the conversation, where BISA DE&I Committee member Serina Shores of Huntington shared her unique approach: meeting people at churches.

Another challenge involved a company struggling with mid-level manager retention, particularly among those with diverse backgrounds. After conducting a company-wide survey, the company discovered perceived gaps in development opportunities and a sense of belonging. Workshop attendees discussed solutions such as regular manager check-ins which focus on career growth, implementing mid-level manager development programs with C-Suite mentorship and acknowledging disparate career goals ranging from financial advancement to work-life balance. 

Overall, BISA members enjoyed the opportunity to discuss this important subject alongside fellow members experiencing similar challenges and opportunities. BISA is eager to continue leveraging its partnership with the FARE Coalition as the association aims to expand education and inspiration on diversity, equity, inclusion and belonging topics for our members and the industry.