The new workplace: How COVID-19 transformed DEI strategies

The COVID-19 pandemic has changed the workplace as we know it, and lenders have had to shift to more intentional practices related to diversity, equity and inclusion (DEI). The pandemic has put an end, at least for now, to full office buildings, water cooler conversations and packed cubicles. As employees learn to interact instead through computer and phone screens, managers are learning to support their teams from a distance. The rise of remote work means that businesses must be intentional regarding professional development, hiring practices and building an inclusive culture, Marsha Jones , executive vice president and chief diversity officer for PNC Financial Services , told Auto Finance News . Yet, there’s no real playbook for how this “new workplace” looks, Jones said. It is “being described as the ‘great experiment,’ because nobody knows what's going to work or how it's going to work.” Embracing a remote workforce At the start of the pandemic last year, institutions across the financial services industry moved employees to work-from-home setups. Those operational pivots were expected to be temporary, yet more than a year later those same changes have become an integral part of business today. For years, the main case against widespread remote employment was the question of productivity as team members were expected to be more productive in an office setting. In auto finance, however, many lenders — such as Ally Financial and GM Financial — discovered that productivity increased when employees were forced to work remotely, paving the way for hybrid setups that will likely become the norm for the next few years. By the end of 2021, remote workers will account for an estimated 32% of all employees worldwide, up from 17% in 2019, according to a June study by Gartner , a global research and advisory firm. When it comes to knowledge workers, such as writers, accountants or engineers, that number jumps to 51%. With this change comes a need for new approaches, Jones said, noting that managers will need to develop new skills to oversee and assist employees who are not in the same office as them. “This whole experience has necessitated our managers to broaden their approach towards remote work. I don’t think that we’re going to go back to work the way it was,” Jones said, explaining that PNC is analyzing each of the bank’s roles to see which jobs need to be in the office full-time, hybrid or remote. One benefit from embracing a new workplace mindset is tied to improving DEI practices. As managers become more flexible, businesses can improve talent mobility across the organization, Jones said. This is especially true at PNC following the June acquisition of BBVA USA , which contributed to an 8.6% year-over-year increase in PNC’s auto book in the second quarter to $17.6 billion, and expanded PNC’s indirect footprint. “We’re now in markets in the Southwest and have a greater presence on the west coast that enables us to be informed around who those employees are, what their professional growth opportunities are, and how we develop them,” Jones said. “It will enable us to utilize many of the processes we currently have in place — for example, job profiles — to be able to tap into this talent mobility across the organization.” While improving talent mobility was an initiative at PNC pre-pandemic, the bank has begun to take a stronger focus, Jones said, noting that when she retires in March 2022 her replacement will be based in Detroit rather than near the headquarters in Pittsburgh. Still, the movement of diverse candidates through organizations has to be intentional, Jones said. “It can’t be haphazard. You can't just throw numbers or bodies at it and think that it actually is going to take place,” she said. “This, too, is a consideration for the future work environment — there is the potential, if we are not intentional, of distance or proximity bias filtering into the decision making of managers.” Distance or proximity bias is the idea the employees who work in close proximity to their team and leaders are perceived as better workers and have a higher rate of success than remote employees. A large majority of managers still believes that in-office team members exhibit higher productivity, despite evidence that full-time remote workers are 5% more likely to be high performers than those who work in the office full-time. In fact, 64% of managers believe in-office workers perform better than their remote counterparts, according to Gartner. This bias could contribute to managers rewarding in-office employees over others. “The challenge that every organization has is getting to the middle managers in the corporation so that they have the ability to recognize the talent that is in front of them, and to be able to utilize and develop that talent,” Jones said. “The need for them in the new work environment of being able to develop remote workers is going to be huge. That adds an additional complexity to the challenges that have been in existence for several decades of being able to move individuals up” the corporate ladder. Organizations can overcome these challenges by having an intentional focus and awareness of existing biases, Jones noted, adding that PNC is held accountable for these efforts by its board of directors, equity and inclusion committee members, stakeholders and shareholders. “But all of those components need to be focused, in terms of continuing to demand intentional movement forward, in order for us to really see that kind of progress that we're looking for,” she said. The elimination of both conscious and unconscious biases can begin with the recruiting process. At subprime lender Exeter Finance , for one, DEI efforts are discussed from the start of the application process and continued through hiring at the director level. Through the use of blind resume review, directors can select the best candidates based solely on their qualifications, especially for top positions, Exeter Vice President of Leadership Development Charita Henderson told AFN . “We have really focused on being very intentional in our hiring process, particularly in this remote environment,” Henderson said. With intention at the forefront, Exeter requires diversity and inclusion training to support its four-pillar focus on empowerment, structure, environment and accountability for all company employees. The year of inclusion During the past 18 months, there has been a sharp focus nationwide on social justice and inclusive practices. “COVID has forced us to become more agile relative to our interactions with our employees and our ability to be able to continue to keep them engaged,” PNC’s Jones said. “2021 has absolutely been the year of inclusion.” Companies can improve inclusivity by prioritizing internal communication and engagement efforts, especially as more employees work from home. Exeter Finance, for example, has six internal networking groups designed to give the organization the opportunity to learn about team members outside of everyday workplace socializing, Exeter’s Henderson said. They organize happy hours, book clubs, philanthropic activities and other social events that allow employees to gather on a more personal basis, said John Hoffman , director of communication strategy. The groups work together to cross-post events, share announcements across the company and increase outreach. Meanwhile, with its acquisition of BBVA, PNC added more representation coast to coast and increased the diversity of its workforce, requiring the bank to be “that much more intentional about creating an inclusive environment,” Jones noted. The bank has employee business resource groups in multiple markets that create unique action plans for their specific region tied to the bank’s main pillars — workforce, marketplace and workplace, Jones said. PNC also has seen an increase in the number of employees participating in its mentorship program to more than 3,000 from 2,200 about a year ago. Those efforts, combined with regional diversity and inclusion councils, provides a network that allows PNC employees to connect with one another no matter where they work, Jones said. “When we're looking at the pre- versus post-pandemic numbers of members in our employee business resource groups, the fact that that those numbers are steady helps us be able to recognize the fact that the solid programming of these initiatives is helping us retain employees and make them feel that they actually belong to the organization,” she said. “As a result of that, the remoteness has not necessarily been as much of a factor [in communication and inclusion efforts] because there have been so many different kinds of activities that these folks can actually plug into.” Still, many employees yearn for the day when face-to-face interaction will again be part of the normal routine, Jones said. “Folks that are younger, in terms of their length of service with the organization, are probably most anxious to be able to get together and continue to network,” she said. “But overall, we have been able to maintain this culture of [employees] being engaged.” Embracing DEI initiatives also means providing opportunities for employees to celebrate their unique cultures. Exeter this year launched a companywide culture week that included opportunities for employees to learn about the cultures and backgrounds of their fellow co-workers, Henderson said. Culture week is preceded by a series of monthly planned educational events for the staff to learn about a variety of cultures. Exeter further expanded its DEI efforts this year through the company’s first-ever celebration of Martin Luther King Day, Henderson added. “I’m elated with the way our leaders have supported the initiative and given each employee time that they could dedicate to get involved with the initiatives around diversity, inclusion and personal and professional development,” she said. The shift to hybrid work, and the related changes to recruiting efforts, hiring practices and day-to-day operations, will likely remain as employees push against a return to commuting. Auto lenders and OEMs, including General Motors , have in turn embraced their employees’ desire for more flexible working conditions. “We know the future of work is not a one-size-fits-all approach, and our values and behaviors will help guide us,” GM Chief Executive Mary Barra said in a recent company statement. “This means that where the work permits, employees have the flexibility to work where they can have the greatest impact on achieving our goals.” Auto Finance Summit, the premier industry event, returns October 27-29 in Las Vegas. The Summit continues to bring together the best and brightest in the industry year after year for unparalleled networking and professional education. To learn more about the 2021 event and register, visit www.AutoFinanceSummit.com .

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