Diverse and inclusive boards are essential for effective decision-making, governance and good member outcomes. However, research from Cardano suggests that pension trustee boards are still overwhelmingly white, male and over age 45. While this doesn’t make diversity—or diversity of thought—impossible, it does make achieving it more challenging.

Research from Barnett Waddingham highlights that many pension scheme trustees struggle with implementing equality, diversity and inclusion (EDI) processes due to time constraints; despite believing they are well-trained on The Pension Regulator’s EDI guidance. 71% of trustees said they find themselves constrained by time stating that they are too busy to research and learn about best practices, leading to 77% per cent of them seeking support from external advisers.

So, what does this mean?

There is clearly willingness from many trustees to improve EDI on their board. Additionally, The Pensions Regulator and the wider pensions industry have published great guidance to help trustees and employers review if they are doing enough on EDI for their pension arrangements.

With trustees under an increasing amount of time pressure, it can be difficult for them to review this guidance and know how to materially approach EDI. If EDI hasn’t previously been integrated into day-to-day operations, it can feel like an intimidating governance burden. With this in mind, here are our top tips on how to boost board equity, diversity, and inclusion:

1. Conduct an EDI review: Establish what is currently being done and identify areas for improvement. This review must have a clear remit and support for making changes. Participants should be open and honest, acknowledging that the process may be uncomfortable at times. Additionally, it’s essential to include EDI on the risk register to ensure it remains a focus for the board.
2. Provide training and facilitate EDI conversations: Training teams in equity, diversity, and inclusion can help facilitate constructive conversations to drive change.
3. Address unconscious bias: Ensuring unconscious bias doesn’t influence recruitment and communications is key to improving board diversity. It is vital to address diversity in terms of age and ethnicity, not just gender, in recruitment processes.
4. Set clear EDI principles and expected behaviours: Boards should establish and agree on their EDI principles, making them clear in policies or statements of intent. These principles should be visible in job descriptions and the selection process for new board members.
5. Promote representation: Ensure that processes support wider representation, fostering diverse thinking.
6. Communicate effectively: Review the imagery and language used on websites and other literature that potential candidates might see. Communications should be inclusive and considerate of the audience.
7. Expand recruitment channels: Broaden the search for board members beyond traditional networks by using diverse job boards, partnering with minority-focused professional associations, and engaging executive search firms that specialise in diverse placements.
8. Include EDI as a standing agenda item: To ensure continuous focus, make EDI a regular discussion point at meetings, helping embed it in day-to-day governance.

Getting started can be the hardest part. But National Inclusion Week provides an ideal opportunity to conduct a review, set goals and take action. By developing comprehensive diversity policies, setting measurable goals, promoting inclusive recruitment practices, and fostering an inclusive culture, organisations can build more effective boards that find the best outcomes for pension scheme members.

We can help you understand EDI and put proportionate, sensible actions into practice. If you’d like to learn more about improving equity diversity and inclusion on your trustee board you can get in touch with Cherilyn Lamonby or our EDI team here.

You can read Sarah’s thoughts on National Inclusion Week here.