Diversity Equity & Inclusion (DEI)

Diversity Equity & Inclusion (DEI)One-stop-shop for all aspects of your DEI journey

ContentsWhat is DEI and why is it important?01Benefits to both the Business and Employee03How we can support you04Why Deloitte?07Our DEI enablers08Our experience10

What is DEI and why is it important?Financial services leaders are grappling with unprecedented challenges brought on by the COVID-19outbreak—taking care of clients, employees, and intermediaries while maintaining business continuity. Atthe same time, many may still be addressing organisational challenges that arose well before the outbreak.One such issue is how to create greaterDiversity Equity and Inclusion (DEI) at alllevels. Leading organisations recognise the needto integrate DEI as a comprehensive componentof business strategy, woven into all aspects ofthe talent lifecycle in order to achieve success.Viewing DEI as a strategic priority is of criticalimportance.Despite the increasing awareness of inclusion’simportance to business success and concertedefforts around fostering it, a number of areasof concern exist within the Finance Servicesindustry.The Central Bank of Ireland (CBI) has publisheda range of reports that focus on DEI; ‘A ThematicAssessment of Diversity & Inclusion in InsuranceFirms’, published on 29 July 2020, highlightedevidence of a lack of DEI in a sample of 11insurance firms, including some of the largestinsurers operating in Ireland.‘Behaviour and Culture of the Irish Retail Banks’,published in July 2018, revealed that the fivebanks assessed have more work to do to ensuretheir organisations are sufficiently diverse andinclusive. While all have commenced initiativesto improve DEI, findings concluded that mostof the sampled firms are not sufficientlyprioritising DEI.01The Regulator’s perspective of key risksassociated with a lack of DEI included: Groupthink Resistance to change and an excessiveresistance to external challenge Lack of internal challenge Ineffective decision making Inadequate skills mix Elevated behaviour and culture risksThe CBI has indicated that it is clear that muchmore needs to be done to enhance DEI, in alltheir forms, and this needs to be done withcommitment, ambition and a sense of urgency.

01Diversity is thevariety of peopleand ideas withinan organisationEquity is about eliminatingsystemic barriers andprivileges, and ensuringall people have fair access,opportunity, resources,and power to thriveInclusion is aboutcreating an environmentin which all individualsfeel valued and connected0506

Benefits to both the Business and EmployeeResearch has linked improvements in diversityand inclusion to better business performance,responsiveness to customer needs, and teamcollaboration. Diversity on its own will notnecessarily deliver positive results. The keyingredient which transforms the theoreticalbusiness case for diversity into bottom lineresults is inclusion.DiversityOrganisations with inclusive cultures are: 2x as likely to meet or exceed financial targets 3x as likely to be high performing 6x as likely to be innovative and agile 8x more likely to achieve better businessoutcomesEquityInclusionReference: The diversity and inclusion revolution: Eight powerful truths, Deloitte Review, issue 22.03While there is growing recognition of howcritical diversity and inclusion is to businessperformance, the importance of equity cannotbe ignored. The challenge lies in translating therecognition of the value of diversity and inclusion,into impactful actions and equitable outcomes.Better business outcomes

How we cansupport you1Human CapitalThrough our unique offerings and range ofsolutions, Deloitte supports organisations ontheir entire DEI Journey. Our Human CapitalPractice assists organisations in developingand implementing a DEI vision, strategy andimplementation plan and our immigration, rewardand risk practices provide additional services toadvise and support organisations to ensure allaspects of DEI are taken into consideration.Progressing from compliance-focused diversityto programmatic DEI involves shifting from acompliance mind-set to one in which DEI is valuedenough that organisations will invest in DEIprogrammes and policies. In Human Capital wehave a three step approach that can help:Assess2Design3EmbedSupported by Immigration, Reward and RiskOur service is driven by Human Capital and supported by Deloitte experts in theareas of Immigration, Reward and Risk.ImmigrationReward04Risk

Human Capital 1. AssessHuman Capital 2. DesignHuman Capital 3. EmbedDeloitte’s experience in leading DEI projectsand our significant thought leadershipmakes us well positioned to complete acomprehensive DEI assessment of yourorganisation.Examples of activities include:Once the DEI current assessment is completeDeloitte can assist your organisation in thedevelopment of a bespoke DEI strategy androadmap linked to overall business strategy.Examples of activities include:Once the strategy and roadmap are defined,Deloitte can work with your organisationto successfully implement the agreed DEIimplementation plan.Examples of activities include: Recommending governance structuresand DEI accountability. Working closely with your organisation toimplement your DEI strategy. Defining a DEI roadmap with short,medium and long term initiatives torealise the strategy. Defining the DEI communications strategy(internal and external).Building an inclusive leadership capabilityusing Deloitte’s scientifically validated inclusiveleadership assessment the ‘Six signature traitsof leadership’. Identifying DEI metrics critical tounderstanding DEI in the organisation.Delivering bespoke DEI Employee, Executiveand/or Board training. Implementing the DEI communicationsplan to engage and increase employeesunderstanding and commitment. Redefining HR/ Talent processes and policesto reflect DEI requirements. Developing dashboards and tools that willenable leaders to access data in real-time.Tracking against agreed DEI targets andimplementing reporting capabilities on ‘makeup’ of your workforce. Completing a strategic context reviewusing our in-depth knowledge ofregulatory developments in the financialservices industry/insurance sector,and an understanding of the CBI’sexpectations in relation to DEI.Gaining an understanding of yourorganisations DEI landscape, identifyingareas of strength and areas that requiredevelopment.Completing a DEI Maturity assessmentusing Deloitte’s unique DEI methodologyfor current state assessments. Reviewing all DEI talent practices andidentifying specific actions to integrateDEI concepts into talent acquisition,capability development and leadershipdevelopment.05

Supporting DEI through your talentpipeline: Reporting functions of thenationality ranges in the workforce.Obtaining work permissions forNon-EEA nationals recruited intoIrish businesses.Revolutionising your global mobilityprogrammes to attract and hirenon-EEA talent to support yourbusiness Reporting on ‘make-up’ ofemployee population.RiskRewardImmigrationReadiness for Gender Pay Gap (GPG) mandatoryreporting and building your approach todeveloping DEI strategies: Aligning with client on current data availableand systems to support. Providing an automated process to calculatecompany GPG and a user friendly dashboard to undertake additional analysis.Define the right objectives to close theidentified the GPG gaps. Identifying what systems and indicatorsneed to be in place to measure businessimprovement and DEI Culture. Defining the narrative that will accompanythe GPG analysis.06Our specialist Risk and Regulatory Subject MatterExperts are experienced in advising clients onthe regulatory risk gaps in order to align withregulatory expectations with respect to culture,behaviour, diversity and inclusion. Our team inDeloitte Risk Advisory can support with: Conducting a review of governance, boardresponsibilities and board effectiveness toidentify an action plan which can informreshaping the board agenda, reporting/MI andsuccession planning. Conducting an organisation wide culturereview incorporating risk culture. Re-aligning overall strategy and riskmanagement with DEI objectives and vision forthe future. Developing a DEI framework and KPIs whichaligns to the risk management framework andrisk appetite. Targets and implementing reportingcapabilities on ‘make-up’ of your workforce.

Why Deloitte?Our team includes experienced and knowledgeable advisers from acrossthe breadth of the Deloitte organisation to help on your DEI Journey.12Our integrated DEI team bringsextensive experience in conductingDEI current state assessments,strategy and implementation.Leading industry expertise to providean “outside-in” view, bringing your DEIvision and strategy to life.34Extensive knowledge of talent/people,risk, remuneration and regulatorydevelopments in the financial servicesindustry and an understanding of theCBI’s expectations in relation to DEI.Proven DEI methodology andglobal thought leadership.0756Co-create with you; one sizedoesn’t fit all.Lead from behind, transferring insightand skills to enable your team tobe self-sustaining in the longer term.

Our DEI enablersThe six signature traits of aninclusive leaderOur research presents six attributesof leaders who display the abilityto embrace individual differences,and potentially leverage them forcompetitive advantage. Our uniquetool has supported the developmentof inclusive leaders within our clientorganisations.CBCognisanceBecause bias is aleader’s Achilles’heelDCuriosityBecause differentideas andexperiencesenable growthCourageBecause talkingabout imperfectionsinvolves personalrisk-takingAAThe sixsignaturetraitsCommitmentBecause stayingthe course ishardECulturalintelligenceBecause noteveryone sees theworld through thesame cultural frameCollaborationBecause adiverse-thinkingteam is greaterthan the sum ofits parts08FF

MandateDiversity & inclusionmaturity modelOur tool helpsorganisations identifyour where they areacross four levels ofmaturity (1.Compliance,2.programmatic,3.leader-led and4.integrated), and whatlevel they aspire toachieve.* Influences such as ourbackground, experiencesand environmentalconditions can allplay a part in shapingour choices whetherwe realise it or not.Unconscious bias is whenwe favour or discriminateagainst people becauseof these influenceswithout even realising it.Transition pointMovementLevel 1:Compliance FocusedLevel 2:ProgrammaticLevel 3:Leader-LedLevel 4:Integrated Focus on compliance withdiversity-related laws andregulations. Focus is on programmes& policies that supportD&I, especially mentoringprograms unconsciousbias* learning initiatives,& Employer ResourceGroups (ERGs)/BusinessResource Groups (BRGs). Focuses on invisiblediversity, overall goals/mission of D&I, and theneed for ownership. D&I is seen as integralto business strategy andnon inclusive behavioursare not tolerated. Leaders step up,challenge the status quoand address barriers toinclusion. By role modellinginclusive behaviours,they create the conditionthat influence employeebehaviours andmind-sets. D&I is fully integratedinto employee and otherbusiness processessuch as innovation,customer experienceand workplace design. Any additional focusis primarily on talentacquisition & establishingan external talent brandas adverse employer. This level is oftencharacterised bygrassroots initiatives, acalendar of events, &other HR-led activities.Centre of gravityLegal/HR/D&I TeamHR/D&I Team Led09Business LeadersWhole Organisation