What to consider when rebuilding an effective D&I strategy

In the face of ongoing talent shortages and evolving workplace dynamics, smaller and regional accountancy firms must prioritise diversity and inclusion (D&I) to attract and retain top talent. 

The ACCA’s 2024 Global Talent Trends Survey has revealed that 73% of accountants view a strong D&I culture as crucial when choosing an employer. However, 41% feel their organisations focus unevenly on different diversity aspects. 

To tackle this, accountancy practices – no matter how small and regional or how big – must conduct regular D&I assessments to understand the specific needs and perceptions of their workforce. These assessments should be thorough and inclusive, gathering input from employees at all levels to identify areas where the firm can improve. Developing comprehensive D&I strategies that encompass all diversity dimensions, including gender, ethnicity, age, disability, and LGBTQ+ representation, will ensure that no aspect is overlooked. 

Creating clear D&I policies with measurable goals is another critical step; formalising these policies ensures accountability and progress. Firms should articulate their commitment to fostering an inclusive workplace in clear, unambiguous terms – and it should be reflected in every aspect of the operations, from recruitment to daily interactions. 

Setting specific diversity targets and establishing timelines for achieving them is also crucial, and they should be ambitious yet realistic. This will provide a roadmap for a firm’s D&I journey. Additionally, firms should include actionable steps such as employing diverse hiring panels and crafting inclusive job descriptions that attract a wide range of candidates. Once in place, regular reviews and updates should be made to these policies to help keep the firm on track and responsive to changing dynamics.

Enhancing recruitment and retention strategies is unmeasurably important when it comes to retaining the best talent, especially as over half of accountants consider external opportunities for career advancement. To address this, firms should develop diverse talent pipelines by partnering with educational institutions and professional organisations that serve underrepresented groups, as they can open up new avenues for finding talented individuals who might otherwise be overlooked. 

Moreover, offering career development programmes and mentorship opportunities will support the growth of diverse employees within the organisation. Mentorship, in particular, can be a powerful tool for professional development, helping employees navigate their career paths and build strong professional networks. Additionally, regularly reviewing compensation structures to ensure equitable pay will address concerns, highlighted by the ACCA survey, that 50% of accountants might leave to get a raise. Transparency in compensation practices can build trust and demonstrate the firm’s commitment to fairness.

Promoting inclusive leadership to foster an inclusive culture is also something to consider. Smaller firms can achieve this by providing D&I training for all levels of management, sensitising them to unconscious biases and inclusive leadership practices. This training should be ongoing, with regular refreshers to ensure that leaders remain aware of the latest best practices in D&I. Leaders should be encouraged to actively sponsor and advocate for diverse talent within the organisation, setting a tone of inclusion from the top. This involves not just passive support but active engagement in initiatives that promote diversity. 

Leveraging technology for inclusivity can also play a significant role. While 78% of employers are excited about AI’s potential, concerns remain about its impact. ACCA’s survey has shown that firms should use AI and other technologies to minimise bias in recruitment and performance evaluations. For instance, AI can help by anonymising resumes during the initial screening process, ensuring that candidates are judged solely on their qualifications. 

However, it’s crucial to use these technologies thoughtfully, with an awareness of their limitations and potential biases. Transparent communication about how technology will be used and involving employees in discussions about its implementation can help alleviate concerns and build trust. Employees should feel that these tools are there to assist rather than replace them, fostering a collaborative environment.

Supporting mental health and wellbeing is crucial, with 57% of accountants experiencing work-related mental health issues. Firms can create a supportive environment by offering mental health resources and employee assistance programmes. These resources should be easily accessible and widely publicised, so employees know where to turn when they need help. It is also important to foster a culture where employees feel safe to discuss mental health issues without fear of stigma. This can be achieved through regular mental health awareness campaigns and by encouraging open conversations about mental health. 

Implementing flexible working arrangements is another important consideration. The survey indicates a strong preference for hybrid working, with 76% of employees favouring this arrangement. Firms should develop flexible working policies that balance the needs of the organisation with employees’ preferences. This might involve allowing employees to choose their own schedules within certain parameters or providing options for remote work. Providing the necessary tools and support to enable effective remote work can help meet this demand. This includes not only technical tools but also training on best practices for remote work and maintaining work-life balance. 

A commitment to D&I is not just a moral imperative but a strategic necessity in today’s competitive job market. Firms that prioritise diversity and inclusion will be better positioned to navigate the challenges of the modern workplace, foster innovation, and achieve sustainable growth.