The current lack of diversity in internal audit
Whichever region you decide to work in, you’ll quickly realise that we live in a melting pot of different religions, cultures and backgrounds. To truly deliver an excellent service, it’s important that internal auditors reflect their diverse organizations. Increasing the number of professionals that represent all walks of life in internal audit will help the professionevolve, while also delivering better results. Here’s why there needs to be greater diversity in internal audit roles and how employers can best achieve this.
It’s no secret that internal audit roles have historically been dominated by men, and by individuals from similar backgrounds. According to a study from the chartered institute of internal auditors (iia) titled “women in internal audit: perspectives around the world,” females represent a smaller percentage of the workforce in every single region except north america. In fact, just 42% of chartered iia members are women and of ftse 350 chief audit executives it’s believed that only 30% are women.
However, the gender imbalance that exists in the sector is not the only area where the industry is struggling to create a truly inclusive environment. Today, diversity in business requires an approach that encompasses true cognitive diversity -differences in lifestyle, culture, political beliefs and thinking.
Why is creating a diverse profession so important?
Building a diverse and inclusive workforce is now a business priority for a growing number of organizations around the world. This is perhaps unsurprising given the numerous data available now on the impact diversity has on profits.
Over the last few years there have been numerous reports published that detail the correlation between a workforce’s make up and bottom line results. For example, mckinsey’s “why diversity matters report,” reveals thatcompanies in the top quartile for ethnic diversity at the executive level are 33% more likely to have above-average profitability than those in the bottom quartile. The same goes for gender diversity, with firms in the top quartile for gender diversity being 21% more likely to have above-average profitability than companies in the bottom quartile.
How employers can achieve greater diversity
Despite the increasing awareness of its benefits, many employers are still unaware of how to develop a culture rich in diversity and inclusion. Luckily, there are several steps that businesses can take and practices that they can implement to attract and retain individuals from underrepresented groups.
Address unconscious bias
Overcoming unconscious bias in the workplace, and particularly during recruitment, is crucial to ensure that internal auditing roles are fairly represented. Experiments have shown that the brain categorises people by race in less than one-tenth of a second, which is about 50 milliseconds before determining sex. Being aware of this, and understanding how this can influence decisions when it comes to recruitment, promotion or performance management, will ensure that managers are making choices based on skills rather than societal judgements.
Flexible working practices
By leveraging the collaborative software now available, businesses can allow their internal auditors to work outside of the office with ease. This enables firms to access more diverse talent pools as they can now offer people with disabilities, caring responsibilities and those who are unable to commute the opportunity to work remotely. Flexible practices such as part-time or the option to work outside of the typical nine-to-five office hours where feasible also allows individuals to have the work-life balance needed, which may be more important to certain groups than others.
Returnships
Back to work schemes which are also known as ‘returnships’ are another excellent way to ensure that internal auditors from all walks of life have the opportunity to find meaningful roles, and the chance to climb the ladder. Many people, like mothers and those who had to take on caring responsibilities, are forced to take a break. These individuals may need assistance and support to get back into the corporate world, making returnshipsthe perfect bridge.
An inclusive employer brand
Creating and nurturing an inclusive employer brand will help your business attract more interest from varied candidates. You can promote this by sharing your company’s values and diversity focussed stories on social media channels, your firm’s website and through the engagement you have with employees and potential workers.
Creating a diverse and inclusive workforce is not only the ‘right’ thing to do, but also the best thing to do for business. Having a team which encompasses a range of skills, capabilities and ways of thinking will allow companies to have a more creative and well-rounded approach to solve problems.