Inclusive Search Firms Yield Inclusive Placements
An organization’s leadership team is critical to its success. The business case for diversity, equity, and inclusion (DEI) is strong, and has been strong for decades. DEI is not new: we have been in business for 19 years! McKinsey’s study, Diversity wins: How inclusion matters, noted that companies in the top quartile for ethnic and cultural diversity consistently outperformed companies with less diversity by 36%. But is the walk reflecting the talk?
Decades ago, Harvard Business Review researchers made a case for a new diversity paradigm, one that would build a positive, inclusive culture, enhance access to new markets, and improve productivity. The idea was that DEI would enrich organizations with the varied perspectives and approaches that members of different identity groups, with different personal and professional experiences, bring to the workplace. This would then more accurately reflect society as well as the demographics served by organizations.
The problem was one of speed. Twenty five years later, as noted by the same researchers in a new piece, organizations have largely failed to adopt a learning orientation toward diversity. The McKinsey study also notes that (surprise!) progress for women and communities of color has been slow.
As of 2021, the Fortune 500 could boast only four Black CEOs. The S&P 500 makeup is not much better; 29.6% of those companies do not have even one Black board member. Female representation at the executive level rose from only 15% to only 20% in the U.S. and U.K. from 2014 to 2019 (McKinsey).
Although gender and ethnic/racial diversity in the CXO ranks has been lacking historically, hope is on the horizon.
Globally, the share of women in senior management is improving more steadily, with the nonprofit organization Catalyst reporting a 31% increase in 2021 and that 90% of companies worldwide have at least one woman in senior management. That’s something, I guess.
There has been an 11% uptick in minorities holding chief financial officer positions. And 83% of organizations surveyed by WorldatWork reported that they took action on DEI initiatives in 2021. Time will tell what that last statistic means in terms of concrete results.
Recruiting: Shake Things Up
These numbers are starting to look more positive, but it’s not enough. For decades, organizations across the U.S. have talked about diversifying their executive teams, but measurable action has been slow. That is partly due to an outdated and exclusive recruiting process.
Traditional “diversity recruiting” methods that might include a small subset of alumni networks and narrowly defined corporate experience will not increase the pool of minority talent.
If talent teams continue to draw from familiar, tried, and tested pools of candidates, and are not seeing progress on inclusivity, then doesn’t it make sense to rethink this process?
Why not turn to recruiters who themselves have ties and networks into traditionally overlooked populations? Perhaps consider retaining recruiters who are Black, Asian, and LGBTQ+ themselves? Recruiters who went to HBCUs or hail from non-traditional professional paths?
What to look for in a diversity and inclusion-focused executive search firm
In my last post, I asked this question: if talent teams continue to draw from familiar, tried, and tested pools of candidates and are not seeing progress on inclusivity, then doesn’t it make sense to rethink this process? The plain answer would be – yes!
When determining an executive recruiting partner, look for diversity in that partnership team. Overall, the world of executive search is not very inclusive: 63.3% of executive recruiters are white. That naturally impacts the professional circles from which candidates are identified. Even when the network includes BIPOC and female executives, the relationship might not be as deep, which could impact the level of trust between the executive candidate and the recruiter, as well as the ability to bring those candidates to the table.
Below are questions to ask when considering an inclusive executive search partner for your organization:
Who will be telling your story? Get to know the firm’s team, and understand their own levels of diversity and approach to inclusivity. What percentage of their employees and leadership are BIPOC? How do they approach gender inclusivity?
Executive search is most successful when recruiters and candidates share a high level of trust. Look for a firm that is committed to building strong and long-term relationships, specifically with people from diverse backgrounds.
What is their commitment to DEI? As you evaluate a firm’s successes, consider how long they’ve been focused on DEI. You will be more successful if you choose a firm that is not simply reacting to external pressures with a bolted-on DEI team. Consider their most recent placements. In the last 10 searches, who did they bring to the table? Were their finalists BIPOC candidates? Women?
At Bridge Partners, our track record speaks for itself. Year over year, for nearly two decades, we have a 70%+ placement rate for executives of color.
Where is their network? Your search for the right diversity partner would be more robust if you were to drill down with some revealing questions. For example, on which nonprofit boards do they serve? Who are the associations they partner with? Have they earned any honors or recognition for their work to further DEI? Which organizations are they involved with?
How do they demonstrate their commitment to inclusion? Every company expresses their commitment differently. In addition to posting our searches on our website, Bridge Partners ensures inclusivity by having two partners on each search. We do that because we all come from different backgrounds, are exposed to different experiences, and have developed individual preferences/biases. Recognizing that there is more than one way to assess a candidate, we are better able to balance impressions with two partners leading every search.
Be authentic and commit to change
The growing demand for increased diversity and greater inclusion at the executive and board levels, is coming from many directions. We talked in our last post about the business case and some of the statistics. For example, NASDAQ passed a rule that companies whose stock is traded on the exchange must have diverse board members or disclose why their board is not diverse. In addition, DEI is a significant retention lever – in one study, 80% of workers say they want to work for a company that values DEI.
Setting diversity goals is a good thing, but it’s equally important to understand why your organization is seeking inclusion on your executive team and how you will measure your success. At Bridge Partners, our mission is to diversify the executive suite in organizations across the country. We understand what it takes for minority executives to thrive throughout their careers and we help organizations set them up for success.
Be thoughtful, purposeful, and action-oriented in your approach. Candidates will know if you are authentically pursuing diversity or if you are reading a script designed by HR.
Companies that take diverse executive recruiting seriously should look for a search partner with a similar mission. If you keep using the same search methods internally and turn to the same search firms, you’ll end up with the same results: a lack of diversity in your candidate shortlists and a lack of impact at the leadership level.
Bridge Partners is a minority-owned executive search that has been focused on executive-level inclusive search for nearly two decades – with very positive results.
If you are serious about diversity, do something different. Connect with Bridge Partners and find out how our network can open up yours. Let’s connect on LinkedIn, or feel free to drop a question or comment at the end of this article.