The Financial Conduct Authority's consultation on a new regulatory framework for diversity and inclusion, announced in January, is welcome recognition of the purposeful action required if the UK’s financial services sector is to meet the needs of our communities and maintain its global competitiveness.
This has long been an important topic for me. As the regulator identifies, diverse teams create better outcomes for consumers, by "reducing groupthink, unlocking talent and improving understanding of diverse...needs". But teams don’t become diverse by themselves, and simple goodwill is not enough.
In my own firm, our efforts on this front mean we now have 45 per cent women and non-binary colleagues. Team members speak 27 different languages, and 43 per cent are non-white, while 10 per cent are LGBTQ+ and 21 per cent identify as neurodivergent.
We have worked steadily and consciously to get to this point, tracking progress as we go – and we continue to focus on the gaps. Along the way, we have identified some key learnings.
First, diversity and inclusion is a supply and demand issue, and needs to be tackled on both fronts.
On the supply side, the continued challenge is that too few people from diverse backgrounds see financial services as a career path for them.
On the demand side, it’s much easier to recruit within your existing networks, and many firms and hiring managers continue to choose the path of least resistance.
Bridging the gap
Fortunately there are organisations such as the charity Urban Synergy, who I have worked with, that help to bridge the gap.
On one hand, the charity empowers young people to see the possibilities by connecting them with role models and mentors, and providing work experience, apprenticeships and placements at industry-leading firms. On the other, it connects those firms with a pipeline of work-ready talent to support more diverse hiring.
To date, it has helped more than 20,000 young people to achieve their potential.
For financial services firms themselves, the supply element can feel harder to address, but there is more everyone can do to encourage a wider range of people to see themselves in the industry.
Think about the photos on your website or in your adverts, or who you send to represent your company at recruitment events.
And can you get involved in mentoring, either as a firm or as an individual? If you have ever thought about it, I urge you to give it a go. The difference you can make is enormous, and it is hugely rewarding for mentor as well as mentee.
On the demand side, look at every aspect of your hiring practice. Where are you advertising? Who is making the decisions? Are there biases you need to address? Set targets, make people accountable and track progress, because it has to be done with conscious effort.
If you are working with recruiters, challenge them on the candidates they are sending you. They might believe you want to see more of the same, so if you are looking to build more diverse teams, let them know.
