The case for diversity, equality and inclusion has been made in various studies, and as a result, corporate diversity policies are commonplace. But do these policies actually hit the mark or are they just being done to tick a box?

Businesses are quick to make public that they support inclusivity – from adopting corporate diversity policies, promoting them on their external channels and generally making noise – but how many actually stand up behind their policies and share data on the difference they make, as well as an honest appraisal of what they still need to do and how they’ll do it? Not nearly enough.

Many businesses only report on inclusivity if it is mandated. In 2021, just 13 FTSE 100 companies reported their ethnicity pay gap, leading to calls to make it mandatory; something that the government confirmed would not be happening earlier this year.

If you really want diversity, you don’t just want it to make your organisation look good; you want to enable inclusivity, in a real way.

And to achieve that means not just having the policies, but reporting on whether they are actually working and then implementing change where they are not. If you make a public commitment, you need to be equally transparent about reporting against it. Otherwise, it’s just words. 

Reporting won’t always paint the perfect picture you wish to share; not honest reporting anyway. For example, we have been publishing our ethnicity pay gap data since 2021, alongside our gender pay gap data.

Although the data shows we are not in the position we’d like to be, we are on the journey and we believe that publishing it demonstrates our commitment to this area, keeping the focus on improving internally and championing change.

We’ve also set out plans to tackle these pay gaps, including capturing more data at various recruitment stages, introducing name blind recruitment and developing an action plan to support recruitment and progression of ethnic minority staff to more senior grades.

Reporting increases transparency and accountability. It allows a business to track and communicate its progress in creating a diverse and equitable workplace.

This transparency not only builds trust with employees but also with customers, the sector as a whole and the next generation, who increasingly value social responsibility and ethical business practices.

It also helps attract ideas. There’s a whole community around us and we welcome ideas on where we could be better, just as much as we are open to sharing ours; an approach all businesses could benefit from. It is not just other people’s ideas that can benefit a businesses’ inclusivity; it is tech too.

Tech to remove unconscious bias

Some recruitment tech systems do not capture diversity data, which completely reduces any unconscious bias as businesses are unaware of the diversity of the candidates they are attracting.

Tech systems can also provide information on which recruitment stage is causing an imbalance in candidates; we’ve recently invested in a system to support us with this. If the data shows that 90% of raw applicants come from one demographic, you can drill down and understand if it is your brand, your job adverts, or a later stage in the process.

Imbalances can also be addressed through decoding job adverts. For example, if you’re not attracting many women, you can decode the advert and see if that makes a difference. It’s something I tried in a previous role and AAT already do this.

It does not mean that a woman will definitely get the role, but at least as a business you are appealing to them, and they are coming forward and applying.

You want your business to be attractive to the widest population possible – so you can find the person who is the best of their crop in every recruitment that you do.

Quantifying the value of inclusivity

There also needs to be more boardroom discussions about how inclusivity makes absolute business sense that directly benefits the bottom line. It has become bogged down in being ‘the right thing to do’ – which, of course, it is – but that detracts away from the real value it brings.

A report from McKinsey showed that companies in the top quartile for gender diversity on executive teams were 25% more likely to be above-average profitability than companies in the fourth quartile.

Recruiting the widest span of people, including neurodiversity, brings diversity of thought, perceptions and ideas that may not have been tabled before. It also brings new ways of talking to your customers; ways that could increase membership, customer numbers or loyalty, or help you open the door to areas of business that were previously closed to you.

It also helps operationally to attract the next generation of talent, which is increasingly important for a sector like accounting, that still struggles with a traditionally ‘stuffy’ reputation.

The next generation want to make an impact

The accounting sector has certainly moved on in recent years in terms of inclusivity. Take me for example – I’m a woman in a senior position – something that was more rare years ago. It has not just affected the accountancy sector; it is something seen across UK businesses. And there are other diversity challenges remaining.

Businesses now need to prepare for the next generation – Gen-Z – who will account for more than a quarter of the workforce by 2025 according to the World Economic Forum.

For them, it’s much more about the impact they can make – whether that is an impact on the environment, an important social cause or financial consideration. I think it is fabulous that this sort of thing excites and interests people more and more now.

The accounting industry is still steeped in the standards, legislation, and acronyms. While there will always be a place for this, it does not have to be the narrative we lead with.

We need to stop talking about the function of what we do and start talking about the impact of what we do – the difference our profession can, and does, make in the world.

I was recently in Botswana where we do a lot of work. The very basic core of what we do is assess and award qualifications for accountancy which enables access to professional membership.

But this is just the tactic, not the overall picture of what we do. It’s so much more than that if we play our role; it’s about being part of a movement to superpower an entire economy and the families within it.

We’re giving people access to skills and training that not only changes their individual prospects but those of everyone around them, and the generations following. The ripple effect is huge.

It’s talking about what the accounting industry does on this broader scale, as well as the fact that it gives people skills that can be used throughout their career, that will help to attract Gen Z.

Still a box-ticking exercise?

Are corporate diversity policies just a box-ticking exercise? Probably, in some cases, yes. But in others, it’s being done with a genuine desire to make a difference because they want to – not because they feel they have to.

Inclusivity has been a buzzword for so long. But we need to start giving it the respect it deserves. It’s not just the right thing to do; it’s a business imperative that drives long-term success and business results.

About the author

Sarah Beale is CEO at the Association of Accounting Technicians (AAT)