The Strategic Imperative of Diversity and Inclusion in Fintech: Fostering a Culture of Welcome, Respect, and Inclusivity
My
first and second posts spoke of the importance of clear communication and the
importance of work-life balance. These are two key aspects to developing
employee relations and creating an 'engaged' work environment. Another key requirement in enabling a successful and engaged environment is inclusion and diversity. In
the fast-paced and innovation-driven world of fintech, cultivating a diverse
and inclusive workplace is not just an ethical consideration but a strategic
imperative.
The dynamic nature of the fintech industry, marked by constant
technological advancements and global interconnectedness, demands a workforce
that reflects diverse perspectives and experiences. Fostering an environment
where all employees feel welcome, respected, and heard is not only a testament
to the principles of equality but also a catalyst for innovation,
collaboration, and sustained success.
In
the video below, Apple Inc, speaks about how the word ‘open’ is not just a word
but it’s their culture. The world today is moving towards a progressive thinking
era, an open-minded thinking era, wherein many companies have inbuilt diversity and inclusion into their employee
relations. Embracing varied ideologies and accepting difference while
celebrating them is the accepted way forward to progression.
https://www.youtube.com/watch?v=cvb49-Csq1o
Globally recognized fortune 500 fintech’s like the below mentioned business, incorporate Diversity and Inclusion into their communication and claim true
innovation is best delivered with all perspectives reflected.
Global Payments is committed and focused on creating a better tomorrow in our workplaces and communities. Empowering commerce for all means and we're always working towards a more diverse, equitable and inclusive culture than the day before. Because true innovation is best delivered with all perspectives reflected.
The Role of Diversity in Fintech: Diversity in fintech is not merely about meeting quotas or ticking boxes; it's about harnessing the power of varied perspectives to drive innovation. The industry thrives on creativity and problem-solving, and a diverse team brings a wealth of ideas and approaches to the table. In fintech, where the ability to navigate complexities and anticipate the needs of a diverse user base is crucial, diversity in the workforce becomes a competitive advantage.
Creating a Culture of Inclusivity: While diversity focuses on representation, inclusion is about creating an environment where everyone feels a sense of belonging and is empowered to contribute fully. In fintech, where collaboration is key to developing cutting-edge solutions, an inclusive culture is essential. It ensures that every voice is heard, valued, and actively engaged in the collaborative process of driving technological advancements.
As Collins highlighted, Employers
must also consider processes and factors that lead people of difference to
become fully accepted and equally productive and rewarded at work. This state
is called inclusion, without which newcomers, especially if from
underrepresented groups, may feel like the outsider within (Collins, 1986).
Utilizing social context
theory (Ferris et al., 1998), national level factors such as culture, climate,
political system, economic system, and labour market considerations might be
explored to understand better the linkages between diversity and inclusion
practices and organisation effectiveness.
The Importance of Feeling Welcome: In a fintech workplace that champions diversity and
inclusion, the concept of feeling welcome extends beyond the physical
environment. It involves creating a culture that embraces individual
differences, where employees are encouraged to bring their authentic selves to
work. When individuals feel genuinely welcome, it sets the stage for a positive
and collaborative atmosphere that fosters innovation and creativity.
The biggest challenge affecting the goal to creating
an included environment, is our unconscious bias towards individuals and
situations. While most may not even understand that they are biased, an unconscious bias can have a significant influence on
our attitudes and behaviours, especially towards other people. It
can influence key decisions in the workplace and can contribute to inequality,
for example in selection and recruitment, appraisals, or promotion. Biases are rooted in stereotypes
and prejudices. A stereotype is a simplistic image or distorted truth about a
person or group based on a prejudgment of habits, traits, abilities, or
expectations (Weinstein and Mellen 1997).
Respect as a Foundation: Respect is the foundation upon which a diverse and inclusive fintech workplace is built. It involves acknowledging and appreciating the unique qualities, backgrounds, and perspectives of each team member. A culture of respect ensures that individuals are treated fairly, their contributions are recognized, and biases are actively addressed. In fintech, where precision and accuracy are paramount, a culture of mutual respect contributes to a positive and productive work environment.
Culture is always a common achievement (Smircich, 1983; Schein, 1985); and a culture of inclusion depends on the level of mutual recognition and respect.
The Impact on Employee Engagement and Well-being: A diverse and inclusive workplace in the fintech industry directly influences employee engagement and well-being. When individuals feel that their contributions are valued and their voices are heard, they are more likely to be engaged in their work. This engagement, in turn, contributes to job satisfaction, reduces stress, and enhances overall well-being.
Employee engagement, happens when ‘people are committed to their work and to the organization’ (Armstrong, 2017). Where people are motivated to achieve high levels of performance.
- Innovative Solutions: A diverse team brings a variety of perspectives to problem-solving, leading to innovative and robust solutions that cater to a broader user base.
- Global Market Relevance: Fintech operates in a global context. A diverse workforce ensures that products and services are designed with an understanding of diverse cultural, economic, and social nuances, making them more relevant in a global market.
- Talent Attraction and Retention: A commitment to diversity and inclusion attracts top talent. Fintech professionals are increasingly drawn to organizations that prioritize these values, contributing to talent acquisition and retention.
- Enhanced Decision-Making: Diverse teams make better decisions. In fintech, where strategic decisions impact the trajectory of the industry, diverse perspectives lead to more comprehensive and effective decision-making.
- Positive Corporate Image: Fintech companies that champion diversity and inclusion build a positive corporate image. This resonates not only with employees but also with clients, investors, and the broader community.
- Diverse Hiring Practices: Implement inclusive hiring practices that actively seek candidates from diverse backgrounds. Ensure that job descriptions are free from bias and that the recruitment process promotes equal opportunities.
- Training and Education: Provide diversity and inclusion training to all employees. Foster ongoing education about different cultures, perspectives, and experiences to enhance awareness and understanding.
- Inclusive Policies and Benefits: Review and adapt policies to ensure they are inclusive. Offer benefits and accommodations that cater to diverse needs, promoting an environment where every employee feels supported.
- Open Communication Channels: Establish open communication channels where employees can express their thoughts and concerns freely. Act on feedback to demonstrate a commitment to continuous improvement.
- Leadership Commitment: Leadership plays a pivotal role in setting the tone for a diverse and inclusive fintech workplace. Leaders should champion these values, actively participating in initiatives and fostering an inclusive culture from the top down.
Globally recognized fortune 500 fintech’s like the above
incorporate Diversity and Inclusion into their communication and claim true
innovation is best delivered with all perspectives reflected.
The intersection of Diversity,
Inclusion and Maslow’s Theory of Employee Engagement.
In Conclusion:
In
the fintech industry, where agility, innovation, and global relevance are
paramount, the cultivation of a diverse and inclusive workplace is not just an
option; it is a necessity. By prioritizing diversity, embracing inclusivity,
and fostering an environment where all employees feel welcome, respected, and
heard, fintech organizations can harness the full potential of their workforce.
The fintech world is welcoming the Gen-Z population to its workforce and their
expectations and values surround largely on diversity and inclusion.
Solomon mentions that, the ‘‘wholeness’’ of a
person is essentially determined by the quality of relationships a person has;
to herself as well as to other people or to organizations. (Solomon, 1999, p.
38). Diversity and Inclusion are key players in Employee Relations and these
can trigger a ripple effect, if done right in a positive manner or if done
wrong then in a negative manner. As the world moves towards more progressive
thinking and fintech’s standing tall as innovation drivers, it can be
understood and concluded that Diversity and Inclusion, play a pivotal role in
the company’s growth and in its’ future.
Let me know what you think of my take above.
References
- Armstrong, M., & Taylor, S. (2017). Armstrong‘s handbook of human resource management practice. (14th ed.). London: Kogan Page.
- Collins, P. H. (1986). Learning from the Outsider Within: The sociological significance of black feminist thought. Social Problems, 33, S14–S32.
- Ferris, G. R., Arthur, M. M., Berkson, H. M., Kaplan, D. M., Harrell-Cook, G., and Frink, D. D. (1998). Toward a social context theory of the human resource management—organization effectiveness relationship. Human Resource Management Review, 8(3), pp. 235-264.
- Schein, E 1984 'Coming to a new awareness of organizational culture', Sloan Management Review, vol. 25, no. 2. pp. 37-50.
- Smircich, L 1983 'Concepts of culture and organizational analysis', Administrative Science Quarterly, vol. 28, no. 3, pp. 339-358.
- Weinstein, Gerald, and Donna Mellen,. “Anti-Semitism. Curriculum Design.” In Teaching for Diversity and Social Justice, ed. Maurine Adams, Lee Anne Bell, and Pat Griffin. New York: Routledge, 1997.
The article about diversity and inclusion in the fintech sector is well-written and covers a lot of ground. It shows how important it is to create a culture of respect and diversity. It uses examples from real life from Global Payments and other Fortune 500 businesses. There is room for improvement, though, in the specific plans given for taking these plans into action. For example, more research could be done on inclusive hiring practices, training, and leadership support. The article should also talk about problems and misunderstandings that come up when trying to implement diversity and inclusion programs in the fintech industry.
ReplyDeleteIdeally if an employee has performed well at their job and have gone on to exceed expectation they should be rewarded for that and not on their appearance. Companies when hiring as well, if they see the individual has met the requirements then they should hire instead going further to see what race or color the person is.
ReplyDeleteDiversity and inclusion is important. Diversity creates various differences and challenges that come with managing a team. However, when there is two-way communication, or exchange of ideas and disagreements it fosters creativity which results in innovation. It subsequently builds a good relationship through mutual respect and support which helps the organization to be competitive. And diversity is seen as a strategic strength for the company. It also builds a good reputation and brand image for the company.
ReplyDeleteCurrently there are so many challenges for financial services. Transparency in all transactions is important for development of strong culture in FinTech. Provide flexibility, flexible scheduling in the workplace is also important. Work with employees to accommodate changing schedule requirements to show your understanding. These are the main key elements to creating a cultural environment.
ReplyDeleteCreating a diverse and inclusive workplace should be among the top priorities of a company. And it should apply to everyone including clients, partners, and suppliers. Diversity is something organizations should actively seek out and strive to be in harmony with, rather than just incorporating. Some organizations have identified Diversity & Inclusion as a part of their winning mix. (Tata, 2022)
ReplyDeleteThis comprehensive exploration of diversity and inclusion in fintech is both timely and insightful. The article aptly highlights the strategic imperative of fostering a workplace where all voices are heard, valued, and respected. The question posed about the practical steps for cultivating diversity and inclusion invites reflection on actionable strategies. How do you envision fintech leaders further championing these values to ensure a truly inclusive culture that resonates not only with employees but also with clients and investors?
ReplyDelete