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How Can the Accountancy Industry Address Diversity?
12 Nov, 20241-2 minutes
In this blog, you will learn:
- What diversity within the workplace is
- Why diversity within the accountancy industry is important
- The different ways the accountancy industry can address diversity
The accountancy industry is an essential part of the business world, helping companies to manage their finances, comply with regulations, and make informed decisions.
However, the industry's diversity has been a subject of debate for a while, with concerns raised about its lack of representation of certain groups.
While better practices are developing on the whole, the change of pace has been slow and the profession still has a long way to go to become more diverse.
In our latest blog post, we explore diversity in the accountancy industry, the structural and cultural barriers to career progression for minority groups, and consider strategies on how it can be improved.
What is diversity within the workplace?
Diversity in the workplace refers to the variety of differences between people in an organisation, including differences in race, ethnicity, gender, age, religion, sexual orientation, disability, education, socioeconomic background, and more.
A diverse workforce is one where people with different backgrounds and experiences work together to achieve common goals. This includes promoting inclusion, equity, and fairness for all employees, regardless of their differences.
It’s vital that all workplaces, including practices within the accountancy industry, strive for diversity. According to research from Druthers Search the employment rate for ethnic minorities within the UK is only 62.8%, so it’s clear that there is room for improvement.
The same research has also discovered that nearly 68% of LGBTQ+ employees have reported hearing negative slurs, jokes or comments about LGBTQ+ people.
Why is diversity within the accountancy industry important?
Diversity within the accountancy industry is important because it fosters a more inclusive and welcoming environment, promotes innovation and creativity, helps a business better understand and cater to a diverse customer base, promotes social justice, and ensures legal compliance.
When people from different backgrounds work together, they bring different perspectives and ideas, which can lead to better decision-making, more innovative solutions and increased profitability.
Findings from a FRC study found that FTSE 350 organisations with at least one woman on their board enjoyed higher levels of EBITDA margin after three years, witnessed higher stock returns and were less likely to experience shareholder dissent.
Promoting diversity and inclusion helps to redress imbalances and create more opportunities for underrepresented groups within the accountancy industry. However, to be effective, ‘buy in’ must come from the top and be a core part of the firm's business strategy.
Strengthening diversity and inclusion within a business is an ongoing task and it’s not something which can just be ‘done on the side.’
The different ways the accountancy industry can address diversity
Gender diversity in the accountancy industry
Historically, accountancy has been a male-dominated profession, with women facing significant barriers to entry and progression - the so called ‘glass ceiling.’
In recent years, there has been progress in addressing gender imbalances, with more women entering the industry at all levels. However, the change has been slow and there is still work to be done.
According to research by the ICAEW, the percentage of female members in the profession rose from 29% in 2005 to 35% in 2016; however, it still remains low.
One area of concern is the gender imbalance at partner level with an Accountancy Age 50+50 firm survey finding that only 12.9% of leaders are female. Another survey found that only 19% of accountancy firms had no female partners.
To address any continuing imbalances, the accountancy industry must continue to promote gender diversity in recruitment, training, and career development, while also tackling unconscious bias and discrimination.
To ensure that policies are followed and training is put into practice through day-to-day behaviour, it requires a collaborative approach from everybody involved, particularly from management.
Ethnic diversity in the accountancy industry
Another area of concern is the lack of ethnic diversity in the accountancy industry.
Research by the IMA found that just 11% of Management Accountants globally identify as non-white, with the majority being Asian or South Asian.
This lack of diversity is a significant issue, not just from a social justice perspective but also from a business perspective.
Studies have shown that diverse teams are more innovative, creative, and better equipped to understand and meet the needs of a diverse customer base.
To address this issue, the accountancy industry must take steps to promote diversity in recruitment, training, and career development and continue to improve the opportunities for black and ethnic minority talent in accountancy.
This may include actively seeking out and supporting candidates from underrepresented groups, providing training and mentoring programs, and implementing policies that promote inclusivity and equality.
LGBTQ+ diversity in the accountancy industry
There is still a need to address the underrepresentation of the LGBTQ+ community within the accountancy industry.
Fostering a workplace culture that is inclusive of all sexual orientations and gender identities requires a concerted effort from leadership and staff alike and we've compiled 7 ways to create a LGBTQ+ inclusive workplace.
To start, the accountancy industry should introduce policies that explicitly prohibit discrimination based on sexual orientation or gender identity, and provide diversity training for all employees.
They can also create affinity groups or employee resource groups for LGBTQ+ staff to offer support and foster a sense of community.
Ultimately, embracing LGBTQ+ diversity in the workplace will benefit not only employees, but also the industry as a whole.
Disability diversity in accountancy
According to a survey by the IMA, just 4% of management Accountants globally identify as having a disability.
However, a growing number of organisations are implementing policies and programs to support individuals with disabilities, such as flexible working arrangements, assistive technology, and disability awareness training.
To further improve disability diversity in the accountancy industry, organisations and accountancy practices must continue to provide support and resources for individuals with disabilities, as well as tackling the stigma and discrimination that often surrounds disability.
In conclusion, addressing diversity in the UK accountancy industry is crucial for creating an inclusive and welcoming workplace.
By implementing policies and practices that promote equality, diversity, and inclusion, companies can attract and retain top talent, enhance productivity, and improve their reputation.
It’s important for leaders and employees to actively challenge discrimination and stereotyping, and celebrate diversity in all its forms.
Ultimately, the UK accountancy industry must continue to work towards creating an environment where everyone feels valued and respected, regardless of their ethnicity, physical ability, sexual orientation or gender identity.
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As specialist accountancy recruiters, we support practices nationwide with their permanent recruitment needs.
Whether you’re searching for a tax, audit or payroll specialist, we will help you to find whoever you need to make your practice thrive.
If you’re struggling to fill a vacancy, why not get in touch with Management Consultant Lauren Bailey on 01772 954200 to see how we can help?
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If you’re searching for your next accountancy job, why not take a look at the latest vacancies, or simply upload your CV to be notified when a relevant position becomes available.
Who is Spencer Clarke Group?
Since 2017, we've been changing the face of recruitment. From our employees, to the way we do business, to the culture within our office, we're determined to make a difference and create a positive impact on everyone around us.
Recruitment to us isn't just about matching candidates and clients; we’re passionate about finding candidates the perfect job which has the ability to boost their salary and standard of living, better their work life balance and improve their mental health.
Similarly, we understand the impact which an experienced and skilled employee can make to a business and we love seeing clients thrive through the hard work of candidates which we have placed with them.
We operate in two sectors:
In eleven specialisms:
Healthcare, Social Care & Nursing
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If you’re searching for a new role, why not visit our job page to take a look at the latest opportunities? Alternatively, upload your CV and one of our experienced consultants will contact you when a relevant opportunity becomes available.
If you’re struggling to fill a role, why don’t you give us a call on 01772 954200 to see how we can help? One of our consultants will be happy to listen to the challenges which you are facing and advise on the best possible solution for you.
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