Diversity Inc. ran a post this week highlighting Ernst & Young’s recruiting efforts with regards to increasing its diversity numbers. Specifically touching on EY’s Discover Tax Program, the essence behind Diversity’s article revolved around how EY (like its competitors) have established programs in place to both actively recruit Black and Latino students as well as break the stigma oftentimes placed on accountants by the media and society (i.e. nerdy white guys). What it ignored was the money these programs are costing firms.
It’s no secret that the Big 4 are out to recruit the best and brightest. Caleb has hit home the fact that the same firms are ranking whores as well. But why do the firms have separate programs aimed directly at minority-represented societal cross sections?
Because the numbers are abysmal.
Latino in America cut through recent U.S. Census data to realize that, although roughly one in three Americans is a minority, only 8% of the CPA profession is represented by minorities:
• 4% Asian/Pacific Islander
• 3% Latino
• 1% African American
Increasing diversity from the campus level is an uphill battle. Internal programs and recruitment efforts can can only reach so far (and they’re expensive). For the sake of not sacrificing quality workmanship, the reality is there are simply not enough minority accounting students in the market. Supply and demand, people.
In steps INROADS.
INROADS is, for all intents and purposes, a global internship placement company for minority students. Companies pay a premium for an opportunity to hire the candidates that the INROADS organization hand selects. Their website states the following:
There are three keys to success for INROADS students: Selection, Education & Training, and Performance. For over three decades, INROADS has helped businesses gain greater access to diverse talent through continuous leadership development of outstanding ethnically diverse students and placement of those students in internships at many of North America’s top corporations, firms and organizations.
A quick glance at their top ten client listing and four very familiar names will jump out to you. According to the website, the Big 4 are the current employers of more than 375 INROADS interns. These are not staggering numbers by any means, but it is clear that the firms are in fact shelling out money to make the workplace more diverse.
You might even be asking yourself, “What’s a few thousand dollars to recruit two additional minority students to my office?” Well, after an increase in an office’s diversity percentage, it most likely results in someone’s personal payday come performance review season. Oh, and the firm looks great on paper.