Diversity and inclusion hiring: A complete guide and best practices

 

If you aren’t yet engaging with diversity hiring, you may be missing out on attracting top talent and driving long-term success as an employer. Some mortgage broker businesses are still making the mistake of limiting diversity and inclusion progress, so we’re here to address how you can best do this and the benefits you stand to gain.

 

What is diversity hiring?

 

Hiring for diversity and inclusion refers to an employer actively recruiting and valuing those from diverse backgrounds. In the UK, employers are not permitted to discriminate against a prospective employee for a protected characteristic such as:

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• Age
• Gender
• Race
• Religion
• Disability
• Sexual orientation
• Pregnancy

 

Inclusion expands on this, aiming to value these listed differences and allowing each and every employee to work comfortably and perform to their fullest ability. Employees in an inclusive workplace can be themselves and feel that they belong there.

The typical objectives of inclusive hiring include ensuring all employees feel respected and supported within the organisation, as well as fostering a diverse environment that broadens the number of perspectives and ideas.

 

What is the challenge of employing a diverse workforce?

 

One of the main challenges of diversity hiring is avoiding unconscious biases. Indeed, the pipeline is fragile in the mortgage broker industry, raising the need for more effective recruitment strategies.

In a survey conducted by the Association of Mortgage Intermediaries (AMI), Aldermore and Virgin Money, a total of 1,178 people gave their views on diversity, inclusion and equality within the mortgage industry.

There is widespread recognition that the mortgage industry needs to become attractive to diverse talent. While many survey respondents note recent progress on gender diversity and point to the success of initiatives such as Women in Finance, fewer than half of all respondents (43%) agree that the mortgage industry attracts a workforce that is representative of the whole community. Women and people who belong to various minority groups (LGBTQ+, ethnic minority) all have more negative perceptions of the diversity of the workforce than colleagues without protected characteristics.

Lack of diversity is itself a barrier to attracting talent. When women and people from minority groups do not see people like them progressing to the top of organisations, they are less tempted to join.

One participant of the survey said, “It needs to start with encouraging diverse people to get involved in the mortgage industry. A lot of people just tend to fall into the industry. I don’t really see the industry going out there, showing people how they can become a mortgage broker, a mortgage adviser, whatever it might be. We need a structured approach to recruiting more diverse talent.”

 

Another session hosted by the Diversity and Inclusivity Finance Forum (DIFF) focused on social mobility and the impact that it has on diversity in the industry. Richard Rowntree, CEO of specialist lender Together, said:

“Those that are not from a professional background progress 25%slower than their peers, and that’s not related to performance.”

He added: “And this is that bit about fit and polish and conforming to that sort of cultural norm prevalent in the firm. It doesn’t matter if you’re working for a small family business or a multinational bank. You adapt your way and your style to fit what you think works in that organisation, because that’s how you get on, right?”

“But just think about how much energy that takes to potentially hide your background and try and fit into what you think of these cultural norms are, when that could be invested into your job, into your career, or yourself. So, there’s a lot of wasted effort that we think you could tap into and just forget the business case for this,”.

 

By following our diversity and inclusion recruitment best practices below, your mortgage advice firm can get one step closer to avoiding these challenges and setting up your team for success.

 

Diversity and inclusion recruitment best practices

 

So, how would you recruit a diverse workforce? There are many ways you can go about doing this, but if you’re struggling to come up with ideas, you can check out our 15 top strategies below.

 

1.Set goals for your diversity hiring process

Before jumping in head first, you may want to consider your objectives during the hiring process. Consider what types of candidates you want to hire and what actions you can execute to make this happen. Laying out a plan can also help you identify and overcome any issues you may face in the recruitment stage.

For example, TSB Bank aimed to increase its black, Asian and minority ethnic (BAME) representation to 14% by 2025. As of September 2024, TSB exceeded this goal, hitting 18%.

 

2.Use inclusive language in your job description

Writing a job description in the right way is perhaps more important than you first may think. Be sure to avoid biased language that may discourage some candidates from applying to your role – keep things inclusive and neutral to attract as many potential mortgage broker employees as possible.

 

3.Focus the role on skills and experience

Avoid writing about character traits – you’ll want to instead concentrate on the skills and experience required for the job, whether this is technical expertise, relevant mortgage industry knowledge, or problem-solving abilities. By doing this, applicants can explore how their own talents and skills align with the job requirements rather than feeling pressured to fit a particular personality profile.

 

4.State the salary

Don’t forget to add a salary or salary range to your job description. This can increase transparency, making it less likely that a certain group will be paid less than another. If the role’s pay is negotiable, ensure this is mentioned within the job advert and closely monitor negotiation results.

 

5.Make company policies known

Though top talent is competing for your company, your company is also competing for top talent. Therefore, it’s crucial that you celebrate your mortgage brokerage’s benefits in the job advert, such as remote working and admin support. Additionally, mention any policies that promote inclusivity. For example, this could include sick leave, parental leave, and pension contributions.

 

6.Double-check your website accessibility

While the job description is important, your website is equally important – it’s most likely where your candidates will visit before deciding to apply. With this in mind, ensure the following:

• Your website’s page copy is inclusive, clearly describing how your business stands on diversity and inclusion.
• Images are varied and authentic, including alternative texts
• Videos have transcripts and close captions

 

7.Spread the word

Some mortgage brokerages simply post their job advert in one place. While this is the easiest way to go about things, it isn’t necessarily the best – and may not attract all the different groups you’re looking for.

If you want to engage in diversity and inclusion recruitment best practices, get your job advertisement out there – on your user-friendly website, job-seeker platforms like Indeed and Reed, social media such as LinkedIn, and even bus shelter signs. The more varied you can make your advertising, the more talent will spot your offering.

 

8.Partner with organisations

If you want to go one step further in the diversity hiring process, try partnering with organisations that support diversity, including universities and community centres. By building relationships with more organisations, you may be exposed to new talent in underrepresented minorities.

Furthermore, junior mortgage brokers can be supported by mentorship schemes such as Working in Mortgages. This scheme places a strong focus on diversity and inclusion, and can help your younger employees flourish to their full potential.

 

9.Encourage referrals

You could get involved with a referral program encouraging your current employees to refer prospects from diverse backgrounds, incentivising this through cash bonuses or other rewards.

 

10.Go in blind

If you are currently scrutinising the personal information on a large pile of CVs, it’s time to stop. When hiring a diverse workforce in the fairest way possible, you should read CVs blindly, focusing only on the experience and skills each applicant shares. This will mean you won’t make an unconsciously biased decision when choosing to hire or not hire someone.

 

11.Create inclusive interviews

Each interview should use the same script with inclusive questions about the role. Think about how you word your questions and what might discourage candidates from accepting a job at your company. Don’t forget to avoid asking about your applicant’s previous salary history, which can feed into unconscious bias.

 

12.Select the right interview panel

Having a panel of diverse interviewers can offer a broader perspective of each interviewee. Additionally, interviewers should be trained specifically on recognising and avoiding bias.

 

13.Create an inclusive workplace culture

To attract diverse employees, you must show that your mortgage brokerage is already trying to foster an inclusive workplace culture. For example, you could try a mentorship program to help employees of all kinds progress in their careers, regardless of their background. Incorporating a prayer room or wheelchair accessibility into your building can also be a great way to create an inclusive workplace culture.

 

14.Show off inclusion in your brand’s marketing

Make your company’s benefits and inclusive culture known through consistent marketing. Support for diversity and inclusion can be woven into your brand’s voice, from in social media posts to the phrasing of advertisement scripts.

Shout out that your brokerage supports diversity, equity, and inclusion. Being outspoken is the best way to ensure candidates are aware of your stance.

 

15.Measure your recruitment success

Diverse and inclusive hiring doesn’t stop at one effort or strategy. Sometimes, it takes time to reap the rewards, so you’ll want to keep track of your hiring history, how your employees are progressing in your workplace, and what you can do to improve. Consider metrics like employee retention rates or conduct an employee feedback or exit survey to discover their view of inclusiveness in your business.

 

16.Awareness

It can be difficult to build a diverse team if you manage a small firm in the mortgage space, but this doesn’t mean that diversity and inclusion should take a back seat. You can still adopt an awareness of different cultures and implement inclusive values into your business through messaging, marketing, and client-facing practices.

For example, this could come in the form of gender-neutral titles on client forms or considering permissions or partnerships around Sharia-compliant finance and Heter Iska structures. Simply being aware of when these alternatives are relevant and where to refer clients is a fantastic way to demonstrate cultural competence and care. So, inclusivity isn’t just about who’s present in your office—it’s about how clients feel when they collaborate with you.

 

Why is it important to hire a diverse workforce?

 

Hiring a diverse workforce isn’t just for show; it can give your business many fantastic benefits. By engaging in diversity hiring, you can enjoy:

 

A better brand reputation

Following our diversity and inclusion recruitment best practices can give your business a better reputation with current employees, new prospects, and clients, demonstrating that you support giving everyone equal opportunities.

 

Better retention rates

Companies that follow diversity hiring programs may embrace better retention rates, with a more welcoming and inclusive atmosphere making employees happier and, therefore, more likely to stick around. Plus, holding onto your employees can save you money on recruitment, advertising, and training.

 

A stronger team

Diverse and inclusive hiring practices may help your business attract mortgage broker applicants with unique skills and motivation to succeed. From better problem-solving skills to more creative perspectives, a more diverse workforce can contribute to a stronger team.

 

The best talent

Making your company’s job role more well-known across the web and beyond will help increase your brokerage’s visibility and broaden its talent pool, increasing the chances of finding the most qualified person for the job out there.

 

Higher productivity

With a better-qualified, more innovative, and happier workforce, your firm may enjoy higher productivity levels, leading to a growth in profits. This can be backed up by McKinsey’s research, which argues a strong business case for ethnic diversity, with findings showing a 39% increased likelihood of outperformance for those in the top quartile of ethnic representation compared to those in the bottom quartile.

Additionally, McKinsey’s third analysis shows that the most diverse organisations are likelier to outperform less diverse teams, showing that in 2019, top-quartile companies outperformed those in the fourth one by 36% in profitability.

 

Long-term growth

In today’s world, it’s more vital than ever to think about recruitment on a global scale, especially with remote working capabilities and big companies exercising large efforts to compete for the best employees.

Diversity and inclusion practices offer just one way your brokerage can stand out and sustain growth in the future. Don’t fall behind.

Learn more about becoming a member of the Diversity and Inclusivity Finance Forum (DIFF).

 

Ready to engage with inclusive hiring practices?

 

Now that you know more about diversity hiring, you’ll hopefully see why building pipelines of talent is vital for success.

It’s time to step up to the mark and make your workforce stronger today. If you want any more guidance on hiring diverse top talent, don’t hesitate to check out the rest of our news section. We’ll help your business stay updated with the handiest tips and insightful market trends.