Promoting diversity and ensuring an inclusive workplace culture is good people management for organisations of all types, in all industries. When it comes to organisations operating in the defined contribution (DC) pensions sector, the importance of a strong diversity and inclusion strategy is even greater. This is because in DC pensions the benefits of embracing diversity and inclusion are material on three levels – extending beyond the impact on individuals working within organisations, to the outcomes experienced by scheme members and customers, and even to the performance of the investments held within schemes’ funds.
Corporate Adviser deputy editor Emma Simon says: “The moral case for diversity and inclusion within organisations is compelling – giving equal access to opportunities to all and creating workplace that promotes dignity and respect of all employees is the right thing to do. Reflecting the views and beliefs of employees, scheme members and customers increases engagement, promotes trust in financial services providers and products and can reduce corporate risk. It promotes creativity and the free flow of ideas, and reduces the risk of groupthink.
“Not supporting diversity and inclusion can foster discrimination and marginalisation of certain members of staff, diminishing their wellbeing and potentially increasing the risk of bullying or sexual harassment, with consequent risk to corporate reputation. It exposes organisations to shareholder activism. Diversity and inclusion is also a material ESG factor. Put simply, diversity and inclusion is something the DC pensions sector ignores at its peril.
“This guide aims to give an overview of the many ways that diversity and inclusion issues impact the DC sector and highlight best practice strategies and resources to support making pensions more diverse and inclusive.”
