To Create an Inclusive Candidate Pool, You’ve Got to Go Deeper
How often have you wondered how someone landed in the position they hold? I know that’s a loaded question, but it’s an honest one. I’ve asked it, and I’m sure you’ve wondered the same. Sometimes you look at a person in power, and you think - what were the qualifications for this role and how did they demonstrate they met them? How did this person behave during the hiring process that convinced a committee they were a good fit? And did they think they were qualified when they applied? There are so many examples of this phenomenon in action.
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That’s why statements like the one made by Wells Fargo CEO Charles Scharf are especially baffling. Recently, Scharf offered an odd explanation for the lack of diverse executive candidates in an internal June memo sent to staff in response to George Floyd’s death at the hands of police. According to Reuters, Scharf is quoted as saying, “We need more diverse representation on our operating committee. While it might sound like an excuse, the unfortunate reality is that there is a very limited pool of Black talent to recruit from." He reportedly made similar statements in a virtual meeting this summer as well.
What?
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Scharf was quickly rebuked, and eventually apologized for his remarks. His statements provide a great example of the blind spots that exist in places where leadership systems and practices are created by and for the powerful. And a quick glance at Scharf’s background demonstrates this fact clearly.
Scharf has more than two decades experience in banking, which was appealing to Wells Fargo’s board of directors when he replaced his predecessor. After some public controversies surrounding unethical practices, the bank needed someone who was known to lawmakers and regulators, and Scharf had been a banking industry insider for years. Scharf started his career as a college senior, working part-time at Commercial Credit Corp. How did he get this position? He reached out to Jamie Diman, current CEO of JP Morgan Chase, through “family connections.” At the time, Diman was the CFO of Commercial Credit Corp. In short, Scharf’s career has benefitted from family connections and the ability to rise through the ranks of an industry that was built for people like him to excel.
A similar scenario unfolds time and time again in nonprofit organizations when it comes to hiring diverse leaders. Candidates are identified and hired based on their connections and network, leaving little room for a more inclusive candidate pool. In its 2019 survey on Nonprofit Diversity Practices, Nonprofit HR surveyed leaders in human-resources or talent-management roles at 566 nonprofits. They found that only 31% of organizations surveyed had a diversity strategy for hiring. I found it especially interesting to see that as nonprofit budgets increased, the likelihood of having an inclusion strategy decreased (see report page 13). 20% of those that did have a specific strategy did so because they recognized a lack of diversity at leadership levels. When asked what their greatest diversity challenges were, 42% said they felt racial diversity remained their biggest challenge (as opposed to gender, age, and other identity areas). Finally, while 51% of organizations offered general diversity training, the next-largest group (31%) have not offered any training.
In addition to the data, I know from experience what’s it’s like to be in hiring discussions where the inability to find diverse candidates is mentioned. “We advertised the position in all the typical places.” “We sent it to our network, and these are the only candidates that applied.” “I know diversity is important, but we can’t hold up the process until we find a diverse set of applicants.”
I’d like to offer another perspective – perhaps the issue is not the inability to diversify the pool. Maybe, just maybe, the issue is that you are continuing to float along in the same end of the candidate pool. To create a process that attracts (and retains and supports the growth of) diverse talent, you must go a bit deeper. Here are some concrete actions you can take:
Commit Internally: Senior leaders, hiring teams, and boards of directors can commit to creating a diverse and inclusive team. This means creating metrics that hold your organization accountable, processes that will help widen your typical applicant pool, and hiring practices that encourage input from staff across levels.
Commit Externally: Share job opportunities outside of your typical network. Consider sharing with local HBCU career centers and with diverse affinity groups in your industry. Create an inclusion and equity policy for hiring, and include it in all of your job postings. Including your commitment publicly can help keep your organization accountable.
Commit Sincerely: Remember when I mentioned metrics? It’s said that what you measure, counts. Commit to diversity and inclusion benchmarks at all levels of staffing. Share those commitments with your staff and board and track your progress. As you make progress (or fail to hit your benchmarks), share with your team and make adjustments to ensure your success.
With all of the people who have been offered everything from guidance and mentorship to hook-ups and hand-outs, nonprofit organizations should do their part to make sure they reflect the communities they serve. And with all the mediocre leaders who got ahead based on who they know, surely we can put to bed the idea that there are too few qualified diverse candidates. There may just be too few committed leaders willing to do the hard work of real change.