The Role of Signaling When Promoting Diversity and Inclusion at the Firm Level: A Financial Advisory Professional Case Study
Keywords:
Diversity, Inclusion, Signaling, Perception, Hiring, Black, Women, Financial PlanningAbstract
Based on signaling theory and visual perception theory, this study evaluated how financial advisory firms depict diversity through online platforms. Signals sent by firms may impact outsiders’ understanding of race and gender inclusion at the firm level, which may explain why some struggle to recruit and retain a diverse workforce. To evaluate, 1,379 advisor biographies on 73 firm websites were analyzed. In this study, 29% of all client-facing advisors with known gender were women; only 0.5% of those with known race were Black. This is much lower than what other studies, based on different industrial codes, have reported. The fact that White males featured predominantly in depictions of employees on firm websites may influence who applies for positions in financial advisory firms. This signaling pattern may also indicate hiring preferences among firm owners and managers. Results have implications for firms that wish to recruit and retain a diverse workforce.References
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