Celebrating Differences: 10 Ways How CPA Firms Can Foster A Culture Of DEI

As we celebrate Black History Month, reflecting on the current state of diversity, equity, and inclusion (DEI) in the workplace is important. Shockingly, the Lever State of DEI Report (2021) found a major disconnect between employer and employee perceptions of DEI. Nearly all employers believe they have introduced new DEI measures in the past year, but 24% of employees do not think any new measures have been introduced. Additionally, only a third of employees feel comfortable voicing their concerns to their HR teams or managers, and just 9% feel at ease approaching senior management with their issues. These statistics are concerning, as many organizations fail to create a safe and inclusive environment for all employees.

Diversity, Equity, and Inclusion (DEI) is a growing priority

In recent years, organizations have become increasingly aware of the benefits of a diverse workforce and the negative consequences of discrimination, bias, and exclusion. DEI is no longer just a buzzword or a checkbox exercise for companies to show that they are socially responsible; it has become a fundamental requirement for sustainable business growth and success.

DEI encompasses a range of factors, including race, gender, age, disability, religion, sexual orientation, and socio-economic background. A diverse workforce can bring various perspectives, experiences, and skills to the table, leading to better decision-making, innovation, and creativity. Studies have shown that diverse teams are more productive, generate better ideas, and are better equipped to tackle complex problems than homogenous teams.

Innovation Through Diversity

The accounting industry is starting to recognize the significance of diversity, equity, and inclusion (DEI) in the workplace. Recent surveys by PwC and KPMG show that more firms prioritize DEI initiatives. The 2021 D&I survey by PwC found that 75 percent of accountancy firms consider DEI a top priority. Similarly, the KPMG survey indicated that 80 percent of firms had increased their DEI budgets in 2022. These statistics suggest a growing awareness of the need for a more inclusive work environment in the accounting industry.

DEI is particularly important in the accounting world. The accounting profession has historically seen a lack of diversity at all levels of the domain. However, as the world becomes more diverse, it is increasingly important for accounting firms to reflect on the communities they serve. Having a diverse workforce can help accounting firms better understand the needs of their clients and provide more effective solutions. For example, a diverse team can help an accounting firm better understand the cultural nuances of a particular community and provide tailored advice to clients.

A diverse workforce can help CPA firms attract and retain top talent. Younger generations of accounting professionals, such as millennials and Gen Z, prioritize workplace diversity and inclusion when considering job opportunities. By creating a culture of DEI, accounting firms can attract a wider pool of talent and improve employee retention.

Also, there is a growing demand for accounting firms to provide more diverse services to their clients. For example, with the rise of environmental, social, and governance (ESG) investing, clients are increasingly looking for accounting firms to provide sustainability reporting and assurance services. Accounting firms need a diverse workforce with various perspectives and experiences to deliver these services effectively.

Accounting firms also have a responsibility to ensure that they are providing equitable opportunities for all employees. That includes addressing systemic barriers and providing equal training and development opportunities.

Accounting firms prioritizing DEI are likelier to have a positive reputation and be socially responsible. Those prioritizing DEI can benefit from improved decision-making, increased innovation, and improved financial performance. This can increase customer loyalty and brand equity, a competitive advantage in today’s business landscape. By creating a culture of DEI, accounting firms can attract and retain top talent, better understand the needs of their clients, and provide more diverse services. Accounting firms are also socially responsible and responsible for ensuring equitable opportunities for all employees.

DEI Is Not Just A Moral Obligation; It Also Makes Good Business Sense.

DEI is no longer a nice-to-have but a must-have for organizations that want to remain competitive in today’s business landscape. A diverse and inclusive workplace can lead to better decision-making, increased innovation, and improved financial performance. By prioritizing DEI, CPA firms can attract and retain top talent, improve their reputation, and build a more sustainable business for the future.

As a CPA, fostering a culture of Diversity, Equity, and Inclusion (DEI) within your firm is crucial to its success. By implementing DEI initiatives, you can create a more welcoming and supportive work environment for all employees, regardless of their backgrounds or experiences. Here are ten effective strategies to help your CPA firm foster a culture of DEI. Continue reading to learn how to cultivate a DEI culture in your firm.

1. ESTABLISH DEI AS A CORE VALUE

To foster a culture of DEI, it is essential to establish it as a core value of your firm. Incorporate DEI principles into your firm’s mission, vision, and strategic goals. This will ensure that all employees know the importance of DEI and understand its significance in the firm’s success.

2. CREATE A DIVERSE HIRING PROCESS

Creating a diverse hiring process is crucial to increasing the diversity of your team. Ensure your job postings are widely advertised to reach a broader pool of candidates. Implement a standardized interview process to remove any bias and increase objectivity. A diverse hiring panel should be assembled to make the final hiring decisions.

3. INVEST IN DIVERSITY TRAINING

Invest in diversity training to ensure that all employees understand the value of diversity and inclusion. This training should educate employees about unconscious bias, stereotypes, and microaggressions. It should also give them the skills to promote an inclusive and respectful work environment.

4. ESTABLISH DIVERSITY METRICS

To track your progress in achieving your DEI goals, establish diversity metrics you can measure and monitor over time. This could include metrics such as the diversity of your workforce, including age, gender, race, and ethnicity. Use this information to make informed hiring, promotions, and retention decisions.

5. BUILD A STRONG EMPLOYEE RESOURCE GROUP (ERG)

Establishing an Employee Resource Group (ERG) effectively supports underrepresented groups and promotes a more inclusive workplace. These groups can provide support, advocacy, and networking opportunities for members. Encourage employees to join or start an ERG that aligns with their interests and identity.

6. FOSTER INCLUSIVE COMMUNICATION

Effective communication is essential to building an inclusive workplace culture. Encourage employees to communicate openly and respectfully, create channels for feedback and suggestions, and establish guidelines for sharing with colleagues. Ensure all employees understand the importance of inclusive language and promote a respectful and welcoming environment.

7. PROVIDE OPPORTUNITIES FOR PROFESSIONAL DEVELOPMENT

Providing opportunities for professional development can help underrepresented employees advance in their careers. CPA firms can offer mentorship, coaching, and leadership development programs to ensure all employees have equal access to growth opportunities.

8. CELEBRATE DIVERSITY

Celebrating diversity can help to create an inclusive and supportive workplace culture. Highlight the accomplishments of underrepresented employees and create opportunities for all employees to learn about different cultures and perspectives. Celebrate diverse holidays and traditions and support community events and causes that promote diversity and inclusion.

9. CREATE AN INCLUSIVE WORKPLACE ENVIRONMENT

Creating an inclusive work environment is essential to building a diverse and supportive workplace culture. Ensure that your policies support work-life balance, offer flexible schedules and remote work options, and provide support for employees with disabilities. Creating an environment where all employees feel valued and included can increase productivity, employee satisfaction, and retention.

10. HOLD LEADERSHIP ACCOUNTABLE

Leadership must take responsibility for fostering a culture of DEI. Ensure that all leaders model inclusive behavior, hold themselves and others accountable for bias and discrimination, and prioritize DEI initiatives in their decision-making. Hold regular DEI training for leadership and conduct regular check-ins to assess the effectiveness of DEI initiatives in your firm.

QXAS CELEBRATES INCLUSIVE, GROWTH-FOCUSED CPA FIRMS

QX is committed to celebrating Diversity, Equity, and Inclusion (DEI) at all levels of our organization. We believe that a diverse and inclusive workplace is essential for our success, and we are proud to be taking steps to prioritize DEI. We celebrate DEI by actively recruiting and retaining a diverse workforce, providing equal access to opportunities, and promoting a culture of respect, equity, and inclusion. We are also committed to listening to and amplifying the voices of underrepresented groups.

At QXAS, we believe that DEI is not just a checkbox exercise but an ongoing process that requires commitment and continuous improvement. We regularly review our policies and practices to ensure that we are promoting a culture of equity and inclusion.