Two thirds (66%) of ethnic minority respondents in financial services survey have experienced discrimination at their organisation as a result of their background, new research reveals
Employees from ethnic minority backgrounds still face barriers to career progression within financial services companies relative to their white colleagues, new research shows. The findings from reboot., a think tank and network of senior professionals working together to maintain the dialogue on race and racial inequality in the UK workplace and society, show that a significant proportion (41%) of ethnic minority employees in the financial services sector are not satisfied with their current roles and feel their organisations are failing to demonstrate a full commitment to enhancing diversity and creating true inclusive environments.
The report, ‘Race to Equality: UK Financial Services’ conducted in partnership with research house Coleman Parkes, surveyed 800 employees from 440 UK financial services firms, ranging from blue chip firms to boutiques. In a call to action on the back of the findings, reboot. has proposed a five-point plan for businesses looking to support their ethnic minority employees and provide a more inclusive workplace environment.
Key findings include:
- Are firms practising what they preach? While executive teams have been taking a public stand about the importance of diversity, only a third (36%) of financial services employees believe their companies are ‘fully committed’ to enhancing diversity and inclusion. Lack of senior commitment in particular is leading to disillusionment among ethnic minority staff, with only half (51%) trusting that their leadership teams truly believe diversity is critical to the future success of the business. This has contributed to less than six in ten (59%) ethnic minority employees being ‘satisfied’ in their current role, compared to over three quarters (76%) of their white colleagues who are ‘satisfied’ in their jobs.
- A lack of commitment throughout businesses has led to a failure to create inclusive environments. Two thirds (66%) of ethnic minority employees have experienced discrimination at their organisation as a result of their background, with a quarter of (28%) believing that discrimination is currently holding back their career.
- A disconnect between the experiences of ethnic minority and white employees. Around half (48%) of ethnic minority employees believe their career progression is slower than that of their white peers, compared to only 12% of white employees believing theirs is slower than their ethnic minority colleagues.
Joerg Ambrosius, reboot. ambassador and CEO for State Street EMEA commented: “As we continue our efforts for equality across our industry, the reboot. report illustrates the gap that remains between verbal commitments and ambitions versus actions taking place in the workplace. There is more work for all of us, and the problems and challenges that remain will only be solved if we address them collectively. This must have everyone’s attention.”
Hannah Grove, reboot. board member and diversity advocate commented: “The financial services industry has made great strides in advancing more diverse and inclusive workplaces, developing progressive initiatives, and putting more emphasis on the benefits that diverse teams and cognitive diversity can bring to organisations. While these are positive changes, the reboot. survey findings clearly illustrate that there is still a long way to go to achieve real inclusion. This is not just a societal imperative; firms will find themselves at a competitive disadvantage if they do not address. Now is the time and opportunity for employers to prioritise how they can move the needle and create truly inclusive environments within their companies for their own success and that of society at large.”
Sachin Bhatia, Head of Core Institutional and Consultants at Invesco and co-chair to Diversity Project’s ethnicity stream, commented: “While there are definitely positive and commendable initiatives being implemented at a firm and industry level to improve racial diversity, more needs to be done to move the dial. In particular, what we really need to see is clear direction and action from senior leadership, coupled with a culture shift that empowers middle management, introduces accountability within companies themselves, and ultimately encourages people in the industry to acknowledge there’s an issue and embrace the benefits that racial and ethnic diversity can bring. There’s encouraging signs of progress, and the momentum we’ve gained with standard-setters like the FCA is great, but it’s imperative that the financial services industry now gets to work on achieving tangible change.”
A senior manager working in financial regulation – a black man – had this to say: “It’s been really encouraging to see the commitment, time, energy and – yes – funding that financial services firms have put into their recruitment, retention and learning and development practices for racially and ethnically diverse colleagues in recent times. However, the figures in this latest report are sobering. They indicate that we’re still only just starting down a very long road and that much has to be done by senior leaders – and I include myself in that – to build trust and define what a healthy, inclusive culture truly looks like. With all the current talk of a ‘Great Resignation’, the competition for talent has never been stronger. Financial services firms have much to gain from getting things right in these areas, and everything to lose if they don’t.”
