Diversity, equity and inclusion in the workplace of insurance firms

Diversity, equity and inclusion in the workplace of insurance firms | Insurance Business New Zealand

Guides

Diversity, equity and inclusion in the workplace of insurance firms

More insurance companies are recognising the importance of diversity, equity, and inclusion in the workplace. Find out how you can reap the benefits

Studies have shown how diversity, equity, and inclusion in the workplace plays a vital role in helping individuals and organisations achieve their full potential. That’s why for an increasing number of New Zealand businesses, DE&I initiatives have evolved from just being a “tick-box exercise” to becoming a core component of their business strategies.

In this article, Insurance Business explores the importance of having a sound DE&I programme for an organisation’s success. We also spoke to some of the leaders of this year’s winners of our Five-Star Diversity, Equity & Inclusion awards to get their views on the benefits and challenges of building a diverse and inclusive workplace. Read on and find out what it takes to become among the Most Diverse Insurance Companies in New Zealand.

DE&I initiatives can help pave the way for a high-performance and innovative work environment, but these need to be well managed and understood by all staff.

According to Heather Price, co-founder and chief executive of Syndey-based diversity and inclusion consultancy Symmetra, a sound DE&I programme possesses several key elements.

“One of the critical success factors for embracing a diverse and inclusive culture is that you have a very clear vision as to why you’re doing this, and it’s clearly connected to optimising business performance,” she told the Insurance Business Research Team in an interview. “You must also have complete executive commitment and buy into this, coupled with meaningful measurement and inclusive leadership capability.”

The table below lists the requirements for a successful DE&I programme according to Price.

But what does diversity, equity, and inclusion in the workplace really mean? Auckland-based talent acquisition firm Hays provided a distinction but stressed that each one is closely linked and needs the other to function effectively.

The company defined equity as “fair treatment for everyone, regardless of their background.” This includes gender, age, education, ethnicity, religion, sexual orientation, and disability.

Equity in the workplace is in full display if everyone has an equal opportunity to contribute to the organisation’s success, progress in their careers, and receive the same rewards and benefits.

But to achieve equality, a workplace needs to embrace diversity. This means “recognising, respecting, and valuing the differences in people,” according to Hays. The firm added that “diversity aims to understand, value, and celebrate those differences.”

Inclusion, meanwhile, is how well each employee “feels accepted, included, and valued in the workplace.” This entails creating a sense of belonging and connection for each staff member.

Inclusion should be felt in the regular work environment, as well as in the way meetings are run and how success and achievements are celebrated.

Diversity, equity, and inclusion in the workplace provide several benefits to an organisation.

For Liberty Newlands (pictured below), New Zealand marketing manager for insurance giant Zurich, among these benefits are having the opportunity to bring meaningful changes to the community and the sense of fulfilment that comes with it.

“Equity and general equality are actually really important for everyone, and it doesn’t just elevate women or one particular group – it actually elevates everyone,” she explained.

“When we look at our investment in charities, we don’t just provide investment to charities in the countries we work in. We actually do it in countries that we don’t have a footprint in. So, it’s not a marketing exercise for us. It truly is to elevate the community as a whole – not just our business and not just our employees.”

Zurich, which is among the five-star awardees in the “1 to 99 employees” category, has stood out for crafting innovative DE&I policies. These include:

Offering four weeks of leave for gender-affirming care
Maintaining a competitive parental leave policy
Establishing the same rights for primary and secondary caregivers
Providing 12 months of unpaid leave
Volunteering with a mental health advocacy group

Newlands added that having a diverse and inclusive workplace allows employees to be the best versions of themselves.

“We concentrate on doing the right thing and making sure every employee comes to work feeling safe to be the person that they are,” she said. “But we’re just taking people on the journey, and we’re educating them in the space where a lot of the rest of us are.

“Plus, in New Zealand, we have a very interesting relationship with our native people. When we engage with our native counterparts, we want to do it in the most respectful manner possible.”

Deb Gibson (pictured below), client director at Aon, said that the firm’s DE&I initiatives play a crucial role in boosting employee engagement.

“It’s not uncommon for our whole team to have the day off to volunteer in a particular area,” she said. “We have such breadth of partners in our charitable foundation that we can work with whatever desire we have to make a difference.

“You can work at Aon and find a group of people who are like-minded, and you can go work your best to affect change.”

Ensuring that the organisation’s top leaders are aware of what’s happening at the local level
Offering employees competitive workplace benefits
Maintaining a commitment to solidarity throughout the organisation globally
Engaging in charity work

The path to diversity, equity, and inclusion in the workplace, however, is not without obstacles.

John Elliott (pictured below), founder and owner of Elliott Insurance Brokers, bared that one of these challenges lies in the implementation of new practices.

“It’s just ensuring that we get buy-in across all levels of the company, from the most junior to the most senior,” said Elliott, who also served as the company’s chief executive. “For a small organisation like Elliott, there’s no place to hide. You get real reactions from every single staff member on a daily basis.”

To address this, the brokerage firm, which also won in the “1 to 99 employees” category, conducted training sessions to educate staff on DE&I concepts and boost engagement. It also had anonymous conversations with employees to promote these concepts.

“We’re trying to ensure that the messages that we’re putting out there sunk in on all levels throughout the company,” he said. “These are the first few steps we’re making and probably among the most challenging.”

Gibson, meanwhile, said unconscious bias has remained the biggest obstacle that Aon has been focusing on.

“Collectively, it is our unconscious bias and how we educate ourselves and how we keep reminding ourselves about it that is important,” she explained. “Unfortunately, how we’ve been brought up and what we’ve seen in our early lives is our natural starting position for interaction with people different from us.”

Newlands added that another barrier to diversity, equity, and inclusion in the workplace that the industry should focus on is gender pay gap.

“A lot of people think Australia and New Zealand are really progressive in this space, but it’s just not the case. What we have done is create a leadership guide to dispel some of those misconceptions.”

In its latest survey, Diversity Works NZ, the national body for workplace diversity, equity, and inclusion, revealed the most pressing diversity issues for New Zealand businesses. The table below ranks what organisations consider the biggest DE&I issues, along with the percentage of respondents who believe these issues are important.

Price noted that it is imperative for all businesses, not just in New Zealand and Australia but also globally, to implement DE&I programs.

“DE&I has become the ‘S’ in the ESG, and this is innovative and important, and many of the organisations now are stepping up because of this upsurge in expectations,” she explained. “So overall, the industry will show progress because there’s pressure on those who haven’t had their own initiative.

“They’re now getting questions from stakeholders of every kind – this is investors and employees, boards, and society at large. And because they’re getting pressure from stakeholders in all directions, you will see every industry across the globe paying more attention to DE&I and the insurance industry is not an exception.”

Hays, meanwhile, laid down several practical tips that businesses can follow to improve diversity, equity, and inclusion in the workplace. These are:

Have an open conversation with your staff: Organisations need to start an open and sincere conversation about what could be done to achieve greater diversity. This is especially important now that employees are looking at what their companies are doing to initiate meaningful changes in the workplace.
Use data to identify priority areas: Anonymous surveys can be useful in gathering DE&I data to determine how your organisation is faring. These polls can also provide an honest assessment from your employees to help identify which issues you need to prioritise your time, energy, and resources on.
Establish a culture that supports DE&I: It’s normal for humans to have unconscious bias. That’s why it’s important to take employees along your company’s DE&I journey to help educate them of the benefits.
Publicly commit to DE&I: Your organisation must be able to communicate policies, promote initiatives, and share the social, personal, and commercial successes of its DE&I programmes. Doing so can help boost your employees’ confidence that leadership understands the importance of diversity, equity, and inclusion in the workplace.
Create a sense of belonging for every employee: You must be able to recognise your employees’ good work and communicate why you value their skills and contribution. This shows that your organisation understands and supports your staff’s personal and professional needs.
Give employees a voice: You must be able to foster an environment where staff can be open and honest about their opinions, ideas, and concerns. Your employees should also have a say in key decisions that impact their work.
Encourage diversity of thought: Companies should create a work environment where employees feel they can challenge the status quo and their voice is respected and valued. Your staff should also be able to bring new ideas to the table without fear of repercussions.
Ensure employees have access to career development: Your employees should be provided with regular upskilling, learning, and development opportunities. They should also be given the time to develop these skills and apply them to their jobs.
Create inclusive talent acquisition processes: The language you use in job advertisements shouldn’t dissuade particular demographic groups from applying.

Every year, Insurance Business identifies insurance companies across New Zealand and Australia with the most effective DE&I programmes. The IB Research Team invites firms to share the initiatives they implemented in the past year to improve diversity, equity, and inclusion in the workplace. These companies then undergo months-long assessments, which include interviews with their employees.

This year’s batch of winners for the Five-Star Diversity, Equity & Inclusion awards consists of 19 insurers and brokerages across Australasia. You can view the complete list of awardees for the Most Diverse Insurance Companies, along with the full report and methodology.

How can insurance companies boost diversity, equity, and inclusion in the workplace? Do you think New Zealand businesses are ahead of their global counterparts when it comes to DE&I? Share your thoughts below.