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Mentoring: The Key to Retention of Diverse Hires

The business case for diversity has been a topic of conversation since the 1980s. And it feels like only recently the financial planning profession in particular is ready to take some action.

One of the many takeaways from CFP Board’s inaugural Diversity Summit held last October, is that we can start advancing the profession today by mentoring.

“Mentoring is crucial if we are going to get minorities up to speed in our profession,” said Louis Barajas, EA, CFP®. “Mentors help speed up the success process for financial planners. Especially those also servicing underserved clients.”

Charles C. Adi, CFP®, said his mentoring relationships accelerated his learning curve.

“It enhanced my textbook education with the practical/emotional side of the business,” Adi said. “My mentor definitely prevented me from making mistakes while delivering advice and challenged me to be my best daily.”

Mike Alves, CFP®, CLU®, CRPC®, said mentoring is the reason he even chose financial planning as a profession.

He went into finance through the investments route at Merrill Lynch, but he found something was missing—helping people.

Alves met a colleague who was a CFP® professional who suggested the CFP® designation.

“He said if you want to help people, you have to get your CFP®, and he was right,” Alves said. “If it weren’t for him, I would not have been a CFP®. I might have been out of the industry altogether.”

Adi’s mentor motivated him to get his CFP® certification.

“If it were not for her, I probably would not have pursued the CFP® designation when I did,” Adi explained. “I would have pushed it off for a few more years. Especially since none of my clients asked about it.”

Informal Mentorships Better

For years companies have implemented formal mentoring programs for women and people of color, but the most impactful mentoring relationships are informal.

Studies show that informal mentoring programs are responsible for deeper relationships that last longer than those forged from formal mentoring programs, according to research cited in the book Diversity at Work. The book also reported that mentees in informal mentoring relationships reported higher job satisfaction, higher salaries and more advancement opportunities.

Alves’ story indicates that’s true.

“For some reason I felt a connection,” with the people he chose as mentors. As a result of these relationships, he was able to learn more skills quickly.

Studies show that women and people of color face a harder time finding a mentor. Alves says look for people you have a connection with. It doesn’t have to be somebody from your same cultural background. None of his mentors were Latino, it just has to be somebody who cares about you and who you connect with.

FPA Latino (3)What Makes for Successful Mentoring Relationships?

Barajas mentored numerous people over the years—not all financial planners—and he says it takes both sides to make the relationship work.

“Mentoring is about a give and take. Both sides have to offer something. Both sides have to be engaged. Both sides need to be vulnerable and share what’s worked, what hasn’t and stories about their lives,” Barajas said.

In addition to effort on both sides, showing appreciation is also key, Alves said.

“Make sure you appreciate the time and advice that a mentor gives you,” Alves said. “If someone is trying to help you, you should show appreciation.”

Barajas will give a talk on mentoring for FPA’s new community, FPA Latino on Feb. 28, at 2 p.m., EST.

“I’m hoping that we attract mentors who are willing to share their stories and mentees who are hungry for advice to help grow as individuals as much as financial planners,” Barajas said.

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Ana Trujillo Limón is senior editor of the Journal of Financial Planning and the editor of the FPA Practice Management Blog. Email her at alimon@onefpa.org. Follow her on Twitter at @AnaT_Edits.


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Increasing Retention of Diverse Individuals in the Profession  

2050 TB 1.31.19A black female millennial stood up at the CFP Board’s Diversity Summit in the fall of 2018 and asked the question, “Diversity at what cost?” to a panel of industry leaders including FPA Chair Frank Paré, Lazetta Rainey Braxton of Financial Fountains, Catalina Camoscio of Prudential and Dr. Frank Dobbin of Harvard University.

She went on to explain that she’d started her interview process earlier in 2018 and experienced firsthand the findings from CFP Board’s diversity research. It was traumatic, she said.

“You’re exhausted, you get home every day and you’re like, ‘Why am I doing this to myself?’” she said, voice quivering. She went on to ask, “How are we being mindful of sending young people of color into these spaces—to help reverse mentor and help folks come along” when it comes to genuine inclusion?

This question and the woman who posed it stay with the 2050 TrailBlazers podcast host Rianka R. Dorsainvil, she said in a recent episode with Katie Augsburger and Andrew Greenia.

“I sit on a couple of diversity advisory group boards and that is something that is always going to stick in my mind,” Dorsainvil said.

Attracting people of color to professions is not the issue, it is retention. Oftentimes people will be attracted to the financial planning profession but feel like this young woman felt and leave.

The following are helpful tips on how to increase retention through genuine inclusion.

Leaders Need to Believe and Examine

Oftentimes people from diverse backgrounds will feel uncomfortable or discriminated against and will leave a firm or organization.

Katie Augsburger, who has a long career in human resources and now is a partner at Future Work Design, said oftentimes companies bring in diverse people and think they are inclusive.

“They will say, ‘Yay, we’re diversified. We’re so excited,’” but once this employee brings up issues of racial tension, microaggressions or discrimination, they are labeled as a complainer who makes everything about race. That employee will either leave of their own accord or get fired.

“That is common amongst organizations—even organizations who say they are really focused on equity, diversity and inclusion,” Augsburger said.

But when these employees speak out on these things, they need to be heard.

“We need to believe people,” said Andrew Greenia, consultant with Promise54, an agency that helps organizations develop diverse and inclusive teams and cultures. Oftentimes when these employees cite racial discrimination or other issues when they leave, it goes to the wayside and leaders simply replace them and ignore why they left.

This is probably because “believing them requires you do something,” Augsburger added. But companies need to do something.

Companies are not going to fix these issues within their culture until they examine and address the reasons why diverse people have left. If it takes hiring a diversity and inclusion consulting company, then do that.  

“We usually think about new employees coming in and what can sometimes be forgotten is all the employees who have left,” Augsburger said. “What were they yelling and screaming for, mentally, when they were leaving? We often place the blame for lack of retention on the people and not the policies, procedures that pushed them out.”

Understand the Barriers to True Inclusion

Augsburger said that diversity is inviting somebody to the party, but inclusion is asking them to dance. In your organization, are you asking your diverse hires to dance? Do you genuinely value the opinions of your employees from diverse backgrounds? Do you invite them to the table when it comes to decision-making? Are you supporting them and listening to them? Are you ensuring they have equal access to advancement, good pay and resources? Augsberger said these are all areas to examine that lead to better inclusion, which in turn leads to better retention.

There are several barriers to true inclusion in companies today, including:

  1. Oftentimes people think that creating a more diverse and equitable culture in the profession means that there will be less work or rights for white males.
  2. Many professional practices, including a heavy focus on one set definition of “professionalism” are deeply rooted in dominant, white culture.
  3. Companies expect people of color to “fix” the diversity problem. “We are expecting people from marginalized communities to just show up and thus the problem will be solved,” Augsburger said.

Examining and altering your perspective when it comes to these things can lead to more inclusive and equitable outcomes.

“Inclusion is really the process of naming and making room for multiple ways of being and seeing them as valid,” Greenia said. “Those require learning what is equity, what is inclusion, what is diversity, and also unlearning what have been the barriers and normalized practices.”

But none of this will be accomplishable without the participation of leaders, said Catalina Camoscio, vice president of recruiting and development at Prudential, at the CFP Board Diversity Summit in October.

“We can talk about it,” Camoscio said, “but until we as leaders in positions of influence act on it and demonstrate it, we will not move the needle for people like” the young woman who posed the question of the cost of diversity.

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Ana Trujillo Limón is senior editor of the Journal of Financial Planning and the editor of the FPA Practice Management Blog. Email her at alimon@onefpa.org. Follow her on Twitter at @AnaT_Edits.


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Creating Intentional Career Paths for Diverse Individuals

Lazetta Rainey Braxton.pngPeople seem to come into the financial planning profession by some other route, said Rianka R. Dorsainvil, CFP®.

Lazetta Rainey Braxton, CFP®, was one of those people.

“To be honest, I stumbled across [the profession],” Rainey Braxton told Dorsainvil in an April 2018 episode of 2050 TrailBlazers where she discussed how current planners can help nurture younger planners or future planners to make a more intentional effort to enter the profession.

There was not a financial planning track at the University of Virginia, where Rainey Braxton got her bachelor’s, nor was there one at Wake Forest University, where she got her MBA. She had a mentor who was a CFP® professional and introduced her to the profession and the rest was history.

The country’s shifting demographics are such that planners from different backgrounds and more women will likely enter the profession in the coming years and the women and planners of color who have paved the way can lend a hand in helping to welcome them.

Here are some key takeaways to make the profession a space people of color and women will want to intentionally enter:

Mentor. Mentors are necessary if you want to be innovative and inclusive. Mentoring is a mutually beneficial arrangement, Rainey Braxton said, especially if you’re an entrepreneur who oftentimes gets burnt out from constantly giving and working.

“Mentors, they hold you accountable, but they also pour back into you,” Rainey Braxton said. “Mentors have a way of giving you life back as you give your life to others.”

Dorsainvil herself admitted that she would have been applying for jobs outside the profession a few years ago had it not been for the mentorship of several women, including Rainey Braxton.

“There’s this quote saying you may not remember what the person said, but you will always remember how they made you feel,” Dorsainvil said. “I still, three years later, have that feeling of feeling so empowered and feeling a sense of belonging in this profession by seeing so many other people that look like me.”

Be welcoming and supportive. There was a time when Dorsainvil was going to start applying for jobs outside of the profession because she felt like she didn’t fit in. But then at an FPA Residency event,  Elizabeth Jetton, CFP®,  told her she needed to meet Rainey Braxton. She did. Then she attended the first-ever Quad A conference and suddenly felt like she belonged.

“Belonging does matter,” Rainey Braxton said. “We all want to feel as though we belong and are appreciated and valued for our contributions.”

Reach out to others who may feel peripheral and make them know that they are valued and welcome.

Create opportunities. Rainey Braxton has worked with partners like FPA, TD Ameritrade, CFP Board, and InvestmentNews, among others to create opportunities for stellar planners of color to come together, network, or showcase their knowledge.

The first of which is the Quad A conference, which launched in 2015 as a pre-conference to the FPA Annual Conference. This year will mark the organization’s fourth annual conference.

She was also instrumental in creating a the LeCount R. and Jewel W. Davis Scholarship, named in honor of the founder of Quad A, LeCount R. Davis and his wife. (In 1978 LeCount R. Davis became the first African American to earn the Certified Financial Planner designation.) The scholarship is for African American financial planning undergraduate students who have demonstrated success at a Historically Black College and University (HBCU).

Be an example and see students through. Student programs at universities and membership organizations continue to attract female and diverse students. Volunteering with these programs—especially women and planners of color—will help show them that the profession is becoming welcoming and diverse.

Plus, these programs are a great place to engage in recruitment. As the number of students intentionally choosing to become a financial planner continues to grow, it is imperative to continue to engage in all the above tips.

“We can’t lose those who we bring on board as students,” Rainey Braxton said. “We need to see them through.”

The Heart of Financial Planning

Rainey Braxton, along with Elizabeth Jetton, CFP®, and Janet Stanzak, CFP®, will be presented with a Heart of Financial Planning Award for her work in the realm of diversity and inclusion at the FPA Annual Conference in October. Rainey Braxton has been in the profession for 20 years and this year is celebrating 10 years of operating her own successful firm Financial Fountains.

“Congratulations to Lazetta, Elizabeth and Janet who have each made significant strides to transform the lives of others and move the financial planning profession forward,” FPA President Frank Paré, CFP®, said in a recent news release. “The noble profession we know today, and the advancement of it, can be attributed to these leaders, and others, who have demonstrated their ‘heart’ by sharing the benefits of financial planning with others and giving back to our community.”

Register for the conference today. Registration closes September 21.

About the 2050 TrailBlazers Podcast

Dorsainvil began streaming episodes of 2050 TrailBlazers in March 2018. FPA is one of the sponsors of the podcast that is sparking conversation on diversity and inclusion in the financial planning profession and attempting to address issues of recruitment and retention of professionals of color.

This podcast highlights ways to increase diversity in the financial planning profession. Listen to the podcasts by a previous FPA Diversity Scholarship winner during your commute and check out the show notes for more information about the people and topics covered. Subscribe on iTunes and Google Play or visit the website. Interested in the FPA Diversity Scholarship? Apply today to be considered.

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Ana Trujillo Limón is associate editor of the Journal of Financial Planning and the editor of the FPA Practice Management Blog. Email her at alimon@onefpa.org. Follow her on Twitter at @AnaT_Edits.