The need for CPA firms to improve their diversity and inclusion has never been more than today.
Minorities are predicted to be the new majority by 2042. It is also projected that African-Americans, Asians and Hispanics will contribute 44-70% of the total U.S. purchasing power over the next 25 years. The number of women and minority accounting graduates has grown significantly over the past two decades, but minority hiring remained inexcusably low.
Moreover, American sociologist Cedric Herring suggested that even a one percent increase in diversity to lead to up to nine percent performance boost. His study confirmed that gender and racial diversity improve sales revenue, profitability and market share. Another study found that diverse firms are 35% likely to outperform their peers. Diverse companies also attract a wider talent pool and grow their client network.
To help accounting firms, The CPA Journal has identified the key characteristics of effective diversity programs. Diversity policies should encourage defining diversity goals, promoting social accountability and the practice of transparent and inclusive communication. Effective diversity strategies should include: targeted college recruitment, transparent hiring, objective interviews and promotions, carefully structured interviews and job ads, meritocratic performance awards, diverse self-managed teams and diversity task forces.