By Ray Birch
MADISON, Wis.—New research from Filene has found a correlation between credit unions that implement strong internal DEI practices and their bottom line results.
According to findings from the Filene Research Institute’s 2nd annual DEI Practices and Policies Survey, when the proper steps are taken DEI programs do contribute to credit union growth and prosperity, which is why metrics are so important to the future of DEI efforts.
“Nobody is doing this work,” said Paul Dionne, Filene research director, pointing to the research conducted by the organization’s Center for Diversity, Equity and Inclusion. “Filene thought that it was time for the movement to start to understand what's happening when it comes to DEI across the industry, and really start to see the growth of the implementation of DEI policies and practices across credit unions. We also wanted to deepen our understanding of the DEI practices and approaches, and explore the design and implementation of specific DEI initiatives within the credit union system. We really want to be able to baseline and benchmark the industry, and we will continue to measure and track credit union system adoption of DEI policies and practices.”
During a webinar on the subject hosted by Filene Dionne said one key goal has been to extract data and insights from the research to illustrate and confirm the value that diversity, equity and inclusion practices bring to credit unions, including providing strategic guidance on the policies and practices that are most likely to drive financial performance.
“Again, no research has really been taking place in this space,” he said. “And we are offering the first real specific look into what policies and practices related to DEI actually make a difference for credit unions—ones that actually drive performance. Now we're able to begin to answer those questions with two years’ worth of survey data.”
Seeking Answers
Dionne said the latest research sought answers from credit unions on the DEI practices that are in place within their organizations.
“We asked when they were implemented and then had some very straightforward questions,” he said. “We're looking for internal and market-facing written policies, plans, goals, metrics and benefits, and the development opportunities relating to DEI in the credit union. We're looking for whether or not there's the presence of a senior level official or a council to oversee DEI programs and initiatives, and the presence of data tracking and collection that's related to DEI, and then whether the credit union is actually measuring here.”
Paul Dionne
Dionne said the study included questions on the perceived effectiveness of DEI in driving organizational change and delivering on the business case.
“We had questions in the survey that ask if DEI policies are working. Does the credit union think it's making a difference?” said Dionne. “We also included more open-ended questions to encourage folks to share more detail on their DEI statements, goals, tracking and training. So, not just saying yes or no.”
The Topline Results
During the webinar, Filene Research Fellow Dr. Quinetta Roberson shared topline results from the latest research, emphasizing that credit unions that followed some specific practices not only have an effective DEI program for employees, but also a program that moves the business forward.
Roberson said the data show three “bundles” of DEI practices are needed to have an effective DEI program (see image below), and she emphasized those CUs that have implemented the bundles are the same ones seeing improved 5300s.
“These credit unions actually have higher performance,” Roberson said. “The most impact was on return on assets and income. So, you can take away from the research there is also a business benefit from a strong DEI program.”
What NCUA has Found
Miguel Polanco, director of NCUA’s Office of Minority and Women Inclusion, echoed the comments, noting the agency has found similar performance data in its own analyses.
“What (Filene’s) findings suggest to me first is that—by my experience and certainly from Filene’s findings—DEI is a multifaceted, strategic imperative, and it needs to be thought out and it needs to be intentional for it to deliver on its benefits,” stated Polanco.
Filene will share more results from its latest round of DEI research during its big.bright.minds. event that will be held in Denver Oct. 24-26.