Creating Equitable Pathways to Leadership

As a Black woman working in organizations where no one in leadership looked like her, Phaedra H. faced challenges such as biases, lack of visibility and limited access to key opportunities.

"It was hard to navigate, isolating, and honestly disheartening," said Phaedra, who worked for five years as an individual contributor at BECU before becoming senior manager of Systems Engineering.

Phaedra's experience highlights how individual professional development and organizational career development practices can combine to create more equitable workplaces and create space and support for Black employees in leadership roles, particularly in the financial services sector.

The Big Picture

The U.S. Bureau of Labor Statistics collects labor statistics across categories. The agency found that Black or African American people made up 13% of all employed workers but overrepresented in job categories such as nursing assistants (38%), security guards (36%) and bus drivers (33%). Overall, Black labor contributes heavily in fields such as education and health care.

While these occupations offer critical contributions to society, fewer Black employees work in the highest-paying major occupational category, including management, professional and related occupations, compared with some counterparts. Only 36% of Black or African American workers were employed in these occupations compared with 59% of Asian workers, 44% of white workers and 26% of Hispanic or Latino workers.

"Black labor has been at the heart of shaping culture, wealth and the economy for generations, even if it's not always recognized or celebrated the way it should be," Phaedra said. "From the unpaid labor of enslaved Africans that built the economic foundation of this country to the countless innovations and cultural contributions we see today; Black people have always been driving forces behind progress. The wealth of nations didn't appear out of nowhere. Much of it was built on the backs of Black labor."

Phaedra also pointed out that Black people have made advancements in business, technology, medicine and more despite facing systemic barriers.

"Their contributions are undeniable," Phaedra said, "even if they're not always given the credit they deserve."

According to the BLS data, Black employees are not as well represented in financial occupations. The most recent statistics from the Government Accountability Office in 2022 found that among financial services industry executives and senior-level management, 85% were white. Only 3% were Black, the second-lowest percentage among all groups surveyed.

The GAO noted that financial services representatives described challenges in recruiting and retaining people of color and women, which suggests a need for businesses to adjust hiring and retention practices.

Practices that could help diversify financial services included conducting targeted outreach, developing and communicating organizational equity and inclusion priorities , recruiting students from a broader group of schools and academic disciplines, and establishing management-level accountability for equitable hiring and retention practices.

An Innovative Approach to Developing Diversity in Leadership

At BECU, as elsewhere, a gap was noted regarding senior leader representation, specifically at the director level and above positions, says Bodhi S., a diversity, equity and inclusion talent development consultant at BECU. This presented an opportunity to drive meaningful change and strengthen leadership diversity.

In 2022, BECU initiated the Multicultural Emerging Leaders program — a six-month program open to all BECU employees with leadership experience that's designed to provide a development opportunity to help close this representation gap. Up to 10 employees are eligible each year.

"Historically, Black people in this country have had fewer opportunities to gain experience through traditional schooling and networking, and that benefits the status quo," Bodhi said. "The MEL program starts to address these issues of access through an equity lens by providing opportunities for career advancement."

The first year's pilot program featured a cohort of leaders from employee resource groups — employee-led communities designed to foster connection, amplify shared interests, and address key concerns. These groups play a vital role in helping BECU enhance the employee experience and better serve its members and the communities we operate in. The second cohort was based on an open application process. Now in its third year, anyone with past leadership experience can participate, even if they are not current managers.

To invite different backgrounds and identities to participate, MEL nominees provide a resume and write a letter about what multiculturalism means to them. The applicant's gender, name and department are hidden during the review process. MEL alumni and BECU's Office of Equity and Inclusion review applications against a rubric for consistency to remove bias in the selection process and ensure applicants are not discriminated against.

"There are a lot of powerful letters of intent discussing multiculturalism, and our esteemed reviewers choose the cohort participants," Bodhi said.

This year, BECU senior vice presidents and vice presidents nominated MEL participants, submitting a questionnaire about their nominee's level of leadership readiness along with the nominee's resume and letter of interest.

"This aligned with our career readiness ask for the folks to step into a role, if available, in the next one to two years," Bodhi said.

The nominator then acts as a mentor, meeting with the nominee once a month.

The cohort meets once a week to discuss leadership topics. Participants also meet with recruiters to improve their resumes and gain interview tips for director-level positions and higher. Human resources professionals coach participants on director-level skills and help them design a development plan.

Arnessa B., BECU Contact Center's program manager, found the program "transformative, both professionally and personally." Her experiences included collaborating with and learning from different business units as the cohort identified and proposed solutions to enhance the organization.

"An upcoming session will focus on navigating the dominant culture in corporate America, which is historically not diverse in terms of leadership in general," Bodhi said. "How does a person of color or different identity than the majority navigate that, challenge the status quo, and advocate for themself and others?"

Expanding Leadership Access

Phaedra said organizations need to treat hiring, retention and advancement as connected.

"You can't just focus on bringing people in if you're not going to support them once they're there," she said. "And you can't expect retention efforts to work if people don't see a future for themselves. It takes effort across the board to create a truly inclusive workplace, and, as a leader, I'm committed to making that happen."

Arnessa has enjoyed the changes she's seen at BECU over the years. "This is not the same organization I joined 14 years ago, and that speaks to our decision to not rest on what we've always done," she said. "We still have a lot of work to do but taking a stand and being committed to being inclusive and equitable gives me hope for what the next 14 years will look like."

An increasingly diverse workforce helps reflect a more diverse membership, too.

"According to the U.S. Census Bureau, people of color will make up most of the population by 2050," Bodhi said. "We are responsible for representing our members and communities through our employee base as we enter into a shift of demographics. It is the right thing to do if our workforce looks like the communities we serve."

In addition, he said social scientists have proven that more thought, representation and identity diversity lead to greater innovation and collaboration.

"Without diverse perspectives and experiences, we don't know what we don't know," Bodhi said.

Phaedra agreed: "Having diverse voices at the table empowers individuals, strengthens inclusivity, and enriches decision-making processes," she said. "It's a marker of progress and a beacon of hope, lighting the path toward a more equitable and innovative future."

The GAO noted that the financial services industry helps families "build wealth and is essential to the continued economic growth of the country." It also pointed out that a more diverse workforce helps managers understand and address demographically diverse customers' needs.

"We have a social responsibility to create equity for all members of our communities in every aspect in which we do business," Bodhi said. "It leans in on our core values of doing the right thing and our cooperative model of people helping people."

"Achieving equity in the workplace isn't about choosing between mentoring employees or fixing company culture," Phaedra said. "It's about doing both."

Additional Ways of Expanding Equity

Mentoring and skill-building are impactful things an organization can do by providing confidence, tools and connections for success, Phaedra said.

"When employees feel prepared and supported, they're more likely to excel in their roles and reach their full potential," she said. "Over the years, I've been fortunate to have mentors at BECU who have helped shape my career and guide me through challenges. I wouldn't be where I am today without the encouragement and insights of one of my mentors, who is also an advocate. I can't recommend seeking a mentor who advocates for you enough — it can make all the difference."

ERGs have been another source of workplace support, Phaedra said, including the Black Alliance Cooperative: "It's a place where I feel safe sharing my thoughts and concerns, and I've gained so much from hearing the perspectives of others who have had similar experiences."

"But let's be real: Focusing only on individual development won't move the needle if the bigger picture stays the same," Phaedra said.

A study published in 2023 by a Harvard Business School professor examined one million employee reviews at large and medium-sized U.S. firms. Professor Letian Zhang found that firms with more Black employees score lower among employees for managerial quality, firm culture and work-life balance. He found that Black employees' disadvantage is strongest in areas with less inclusive racial attitudes and more prevalent workplace racial discrimination.

"Organizations need to take a hard look at their culture, policies and practices to make sure they're fair and inclusive," Phaedra said. "This means addressing biases, creating equal opportunities and building an environment where everyone has a shot at success."

Arnessa agreed that while mentoring and enhancing one's skill set are critical to development and self-awareness, they are not enough to achieve equity. Organizations also need to see the value in their employees.

"Having an equitable lens is choosing to see the value of your talent; it's an intentional decision employers must make," Arnessa said. "No one can force you to see something you don't want to."

An organization can hire and retain diverse talent, but if leadership growth opportunities aren't available, "it sends the wrong message," Phaedra said. "Advancement is where things get real."

And representation can create a self-reinforcing pattern that encourages more diversity in management.

"Having representation allows you to dream, and a lack of representation lowers your expectations for what is realistic," Arnessa said. For years, she only considered roles that she'd seen other Black women working in.

"I have some regrets about that," she said. "Now I'm blissfully delusional about what I can be and the future roles I can have because I see myself represented. And if I must be the first in a specific role, I will do so gladly, so someone else can see me and dream for themselves."

For Phaedra, acknowledging a historic legacy while acting on change is important — including pushing for fair pay, better access to opportunities and investment in Black communities.

"It means making sure that the incredible work and creativity of Black people are valued and rewarded in real, tangible ways," Phaedra said.

"The history of Black labor is one of both struggle and triumph. It's a testament to strength, resilience and creativity in the face of adversity. As we celebrate their contributions, we must also commit to building a future where everyone is valued and rewarded for all they bring to the world."

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