In addition, the career progression curve for non-white candidates of both genders differs significantly to that of white professionals. Despite the increased number of graduates coming in from different backgrounds, CPA firms are still slow to embrace diverse hiring practices. Our own findings suggest that even in richly diverse areas, there are no shortage of diversity at entry-level, but few non-white CPAs progress up the ranks, with less than 10% promoted above the mid-level positions. In addition, structural reasons such as systemic barriers to education and access to opportunities can explain the lower rate of diverse candidates entering the industry.

While the supply of candidates from diverse backgrounds to the industry has steadily increased since the start of the 21st century, the demographic split within CPA firms is still strongly focused on white males as both our internal and external research suggests. Our profession has been too slow in acknowledging the importance of diversity and inclusion in the workforce, as recognised by 55% of HLB Managing Partners. Yet it’s widely agreed that moving the needle towards more equal power distribution isn’t just a social priority; it’s a key driver for the future viability of the industry.

The lack of diversity in leadership positions comes as a direct result of practices and unconscious bias which exists on the grassroots level within the industry. With a compromised career curve, fewer female and non-white candidates manage to make their way to leadership positions, with many giving up on either their professional growth or the industry. This has a direct impact on the attractiveness of the profession, with 67% of HLB managing partners agreeing that prospective employees look at the demographic make-up of the firm and leadership team when assessing an employer brand. Ultimately, homogeneous leadership structures are holding firms back from realising their full potential and driving outcomes for their clients.

Unconscious biases are small bricks that support our mental ‘mortars’ and stand at the foundations of many organisational practices. Removing all of them at once is neither feasible nor sustainable. However, gradual minor adjustments made both on the grassroots and leadership levels can yield a substantial impact for the professional services industry. Addressing biased behaviours at the leadership level is a priority as such targeted action can facilitate with further dissemination of the practices to the lower levels. The Maintaining the ‘status quo’ on the matters of diversity isn’t an option either as inaction will further heighten the issues of inequality and drive new talent to other industries.