Diversity Is Good for Business
Two firms that have made minority recruitment a priority tell how it has helped them. Positive reinforcement is the name of the game, and corporate America is finding compelling business reasons to strengthen the nation's workforce diversity. Beyond the obvious need to comply with directives of the Equal Economic Opportunity Commission and the laws it enforces, many companies are discovering that staff from different ethnic backgrounds bring valuable perspectives to the table that are effective in working with a wide spectrum of customers. At the same time, businesses are recognizing that to achieve and maintain diversity is a complex and demanding ethic. Qualified minority candidates are in limited supply. As recently as 1998, Fortune magazine reported that African-Americans received only 7.5% of the bachelor's degrees, 6% of the master's degrees and 3.8% of the doctorates awarded in the United States in 1995. With nationwide unemployment under 2% for all college graduates, competition for top degree holders from African-American, Hispanic, Native American and other minority backgrounds is fierce. The pool of candidates is even smaller in accounting (see "Still Seeking the Ideal," page 75). To provide perspective on the benefits and challenges CPA firms face in diversifying their professional staffs, the JofA asked two managing partners to share their experiences and strategies on the subject of recruiting and retaining minority employees. Cultural Convergence in the Desert SEEKING COMMON GROUND New Mexico's largest privately owned CPA firm, Rogoff Erickson Diamond & Walker, LLP (www.redw.com), was formed in 1997 through the merger of Rogoff Diamond & Walker and Erickson Allen. The Albuquerque-based firm employs 73 accountants, including 16 Hispanics, 3 African-Americans and 4 Native Americans. Two of the nine partners are Hispanic. According to Steve Erickson, managing partner, the merged firms contributed to diversity more by evolution than conscious decision. "We're in a rather unique area," Erickson observes. "Almost half of New Mexico's population are members of minority groups--largely Hispanic and Native American. In trying to hire the most qualified individuals and be as fair as we can, we end up with a work group that reflects our area. Our firm might be a little more diverse than others here, but I imagine the larger firms are fairly diverse." The evolution has been circular: The area's mixed population offers a client base that includes many minority-owned businesses and Native American tribes. Serving these clients effectively requires a diverse workforce, which then brings in new clients of similarly varied backgrounds. Tax and audit each currently account for roughly 40% of REDW's business, but consulting services are growing. Tribal work--audits, consulting and training--is a specialty. "When we started doing tribal work, I found big differences in cultural and world views," Erickson says. "Our auditors frequently get invited to Native American feasts and ceremonies. Matching traditional cultures with the practices of the business world requires understanding and patience. You have to be willing to look for common ground on which to communicate effectively. Individuals who stay in this firm share an interest in people and an appreciation of cultural differences." PRACTICING A DIFFERENT WAY Last year the firm recruited Scan McCabe, a Navajo who had just received an undergraduate degree in accounting. To win someone like McCabe, now a staff accountant working on his CPA, the firm must compete not only with other CPA firms doing tribal work--some of them Native American owned--but also with industry and the tribes themselves. The 1975 Indian Self-Determination and Education Assistance Act allows tribes to give preference to Native Americans in filling jobs, bidding contracts and selecting contractors. …