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- W3033462 abstract "A diverse workforce can improve your bank's bottom line, reduce turnover, and promote cooperation among staff and within the community. Now, you maybe thinking at this point, is an article written for senior bank executives concerned with compliance issues. Isn't diversity one of those necessary evils (also known as 'regulatory burden') required by the Equal Employment Opportunity Commission, Community Reinvestment Act, and other laws that plague financial institutions ? Our thesis is that diversity is necessary for sure, but not an evil. In fact, quite the opposite. Diversity's other face Diversity is important to your bank as an employer to meet the requirement of Equal Employment Opportunity Act, to be sure, but a diverse workforce will also have a positive economic impact on your business. Diversity among your employees reflects a welcoming environment to a diverse customer base. When they approach your teller line, do your customers see someone with whom they identify? They tend to feel invited or encouraged when they see someone like themselves. Do your customers--or your prospective customers--feel intimidated by the bank's formal setting or do they feel welcomed? This often happens when a person sees no one like himself or herself among your workforce. You may ask, How do I know how my customers feel? While you can't know what a customer feels, you can take a few steps to look around and take notice about what is in your lobby and who and what might make it more customer friendly. When a customer comes in and only sees one type of individual, be it all white females or all black males, will the customer automatically make assumptions about how comfortable they will be conducting business? It is human nature to do so. Again, while you can't know how your customers feel, you can take steps to decrease barriers. This is particularly true in areas where the customer base might speak various languages other than English. If your bank office is in an area where there is a significant Hispanic population, it only makes sense that several people at that office should speak Spanish. This not only helps the customers feel welcome but makes the transactions move more smoothly for the bank and the customer. When transaction time is reduced, generally customer service is increased and costs of the transaction are lower for the bank. Analyzing your marketplace To do any analysis of your market, you need to begin by knowing who your customers are, and who resides in your market who is not already one of your customers. You need to ask if there is a disconnect between the current customer base and the market's makeup. If one does exist, one strategy for increasing business should be to make the workforce in the lobby more consistent with the demographics of the neighborhood. Will this immediately increase business? Only trying it will tell for sure. Additionally, if your market is made up of individuals who speak diverse languages, signs in these languages telling the customer with whom they may speak to get services in their respective language would increase comfort and therefore service as well as the reduced time to conduct the transactions as noted above. Examining market demographics Demographic analysis is one of the keys to understanding the market, meeting regulatory disclosure and reporting requirements and generally understanding the community. While comparing 1990 census data with 2000 is sometimes difficult, the data available from the 2000 census gives significant insight into the current potential economic impact of minorities. Nationally the United States is 75% white, 12.3% black, and 12.5% are Hispanic. (Remember, many of the Hispanics may also be reported as white.) More significant than the simple demographic percentage of minorities is the economic impact that they have on the economy. …" @default.
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- W3033462 date "2004-12-01" @default.
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- W3033462 title "Can Diversity Be a Strategy" @default.
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