Diversity and inclusion in actuarial recruitment is an essential issue that requires attention in the actuarial profession. According to the Financial Conduct Authority (FCA), there is a significant under-representation of women and Black, Asian, and minority ethnic (BAME) individuals in senior roles within financial services. Similarly, the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) have reported a lack of diversity in the actuarial profession.
The low percentage of diverse candidates entering the field suggests that there are barriers that prevent underrepresented groups from accessing opportunities in actuarial recruitment. This blog post will explore the current state of actuarial recruitment, the barriers to diversity and inclusion, and strategies to overcome them. Join me as we delve deeper into this topic and explore ways to break down these barriers!
The Current State Of Actuarial Recruitment:
Despite efforts to promote diversity and inclusion in the actuarial profession, the industry continues to endure a lack of diversity in its workforce. According to the Society of Actuaries (SOA), only 22% of new actuarial associates hired in North America in 2020 were women, and only 11% were Black, Indigenous, or People of Color (BIPOC). This lack of diversity is not unique to the actuarial profession, as it is also common in other industries that require strong quantitative skills.
The actuarial profession in India also faces a significant lack of diversity in its workforce. Despite efforts to promote diversity and inclusion, the industry struggles to attract and retain underrepresented groups. According to the Actuarial Society of India, only a limited percentage of its members come from diverse backgrounds, with women and BIPOC individuals being particularly underrepresented.
This lack of diversity has implications for the industry’s ability to address emerging risks and challenges, limit inequalities, and effectively serve a diverse customer base. To address this issue, India’s actuarial sector must prioritize diversity and inclusion in its recruitment efforts. It includes creating targeted initiatives to attract and retain underrepresented groups, providing mentorship and networking opportunities, and fostering a culture of inclusion. By doing so, the industry can better serve its customers and remain a competitive and relevant field for years to come in India.
The Barriers to Diversity and Inclusion in Actuarial Recruitment:
There are many barriers to diversity and inclusion in actuarial recruitment, contributing to the lack of representation of women, BIPOC individuals, and other underrepresented groups in the industry. Let’s look at some of the barriers.
#1 Lack Of Awareness & Understanding: Many individuals from underrepresented groups may not be aware of the actuarial profession, its career prospects, or the skills required for success in the field. Additionally, this profession may not be well-known or understood in some communities, which limits interest and participation.
#2 Limited Recruitment Efforts: Actuarial firms and organizations may not actively recruit from diverse pools of candidates or may rely on traditional recruitment methods that are ineffective in reaching underrepresented groups.
#3 Bias In The Selection Process: Unconscious bias in recruitment and hiring can limit opportunities for underrepresented candidates. It includes assumptions about a candidate’s qualifications or fit for the role based on factors like gender, race, ethnicity, or socio-economic background.
#4 Lack Of Diversity In Leadership & Mentorship: A lack of diversity in leadership and mentorship can limit opportunities for underrepresented groups and contribute to a lack of diversity in the industry. Without role models and mentors who can offer guidance and support, individuals from underrepresented groups may not feel supported or encouraged to pursue careers in actuarial science.
#5 Limited Access To Resources: Underrepresented groups may face additional barriers, such as limited access to educational resources or financial support for exam fees and professional development.
Breaking The Barrier- The Strategies To Promote Diversity and Inclusion In Actuarial Recruitment
To promote diversity and inclusion in actuarial recruitment, organizations and firms can implement several strategies:
- Targeted Recruitment: Actuarial organizations and firms can partner with universities and organizations that serve underrepresented communities to identify and recruit diverse candidates. It can include participating in career fairs, sponsoring scholarships or internships, and creating mentorship programs.
- Inclusive Hiring Practices: Organizations can review their hiring practices and ensure they are inclusive and equitable. It can include using diverse hiring panels, implementing blind resume reviews, and providing unconscious bias training for hiring managers.
- Leadership Development: Organizations can prioritize leadership development for diverse candidates by creating leadership programs focusing on building skills, providing mentorship opportunities, and creating networking events.
- Employee Resource Groups: Employee resource groups (ERGs) can create a supportive environment for underrepresented groups within an organization. ERGs can provide networking opportunities, mentorship, and advocacy for their members.
- Diverse Role Models: Organizations can promote diversified role models within their industry to inspire underrepresented candidates and showcase the possibilities of a career in actuarial science.
- Accessibility: Actuarial organizations and firms can ensure their recruitment and hiring processes are accessible to all candidates, including those with disabilities. It can include providing alternative interview formats, accessible websites, and accommodating exam and testing arrangements.
- Financial Support: To remove financial barriers to entry, organizations can provide financial support for exam fees and professional development for underrepresented candidates.
EliteRecruitements – How We Can Help Organizations Promote Diversity & Inclusion?
To promote diversity and inclusion, organizations must rely on an experienced actuarial recruitment firm. In this context, EliteRecruitements can help organizations source the finest actuarial talents while maintaining a diversified and inclusive actuarial portfolio. As a recruitment firm, we understand that a diverse and inclusive workforce is essential for any organization’s success, and therefore, we actively work towards sourcing candidates from different backgrounds and experiences. EliteRecruitments recognizes that the actuarial profession has historically been dominated by a specific demographic, and as such, we are committed to breaking down these barriers by promoting diversity and inclusion.
We work closely with our clients to understand their needs and provide customized recruitment solutions that align with their diversity and inclusion goals. Our recruiters help companies create an inclusive workplace by avoiding bias in the recruitment process. In addition, EliteRecruitments ensures quality sourcing by utilizing a rigorous selection process to identify top talent from diverse backgrounds. Our commitment to sourcing candidates from diverse backgrounds and advising our clients on best practices for diversity and inclusion has helped to break down barriers and create a more inclusive profession.
Diversity and inclusion in actuarial recruitment are crucial for creating a more representative and equitable profession. As we’ve seen, under-representation of women and minority groups in the actuarial field persists. However, with the right strategies, such as sourcing from diverse communities, promoting inclusive work environments, and eliminating bias in the recruitment process, we can create an actuarial profession that values diversity and inclusion.
EliteRecruitments is committed to this cause, and we actively work to source diverse talent and advise their clients on diversity and inclusion best practices. If you’re looking to partner with a recruitment firm that values diversity and inclusion, contact EliteRecruitments today to learn more about our services and how we can help you find the top talent you need. Don’t let barriers to diversity and inclusion stand in your way – partner with EliteRecruitments to build a more diverse and inclusive team today!