The number of people working in senior roles in UK financial services from a lower socio-economic background has risen but there is still some way to go, new research from Progress Together has revealed.
The organisation, which represents 55 firms from the UK financial services sector, said the proportion of those working in senior roles in UK financial services from a lower socio-economic background has marginally increased from 26% in 2023 to 28% today. However, levels of socio-economic diversity reduce as seniority increases, with 58% of those at senior levels from a higher socio-economic background, compared with 45% at junior levels.
The proportion who attended an independent school is also higher among those in senior positions; 21% against the national percentage of 6.5%.
Sophie Hulm, CEO of Progress Together, said: “Senior leaders in this critical sector create organisational cultures that shape societal standards about the ownership of capital and guide the investment of personal and business assets. Appointments to these roles should be based wholly on competence and efficacy rather than on factors related to background.”
The 2024 Progress Together study is the largest of its kind globally, examining the link between socio-economic background and progression to the most senior and influential positions in UK financial services.
The study found that white men from higher socio-economic backgrounds are 33 times more likely to be found in senior roles in financial services compared with women with an ethnic minority background who are also from a lower socio-economic background.
Progress Together said the pipeline of talent for senior financial services roles also lacks diversity, especially at the middle level of seniority, where more than half (51%) of employees are from a higher socio-economic background. People from a higher socio-economic background are promoted on average six months faster than those from a lower socio-economic background from junior to mid-level roles, while the gap for mid to senior roles is slightly smaller at three months.
Hulm said: “We strongly believe the FCA and PRA should mandate the collection and reporting of socio-economic background data, as the Solicitors Regulation Authority has successfully done for several years.”
Progress Together is urging its members to set goals and be accountable for change, working towards parity and developing talent and leadership programmes targeted at those from a lower socio-economic background. In addition, the organisation said firms should explore the experiences and perspectives of employees to help inform action and explore the relationship between socio-economic background and performance.
Hulm added: “Achieving lasting change in this important area is a marathon not a sprint. We are grateful to our members for submitting their data and for their continued efforts to improve access and opportunities for everyone in one of the UK’s most strategically important sectors. However, there is still a huge amount of work to do to ensure that people from lower socio-economic backgrounds are not excluded from progressing to the highest levels of the UK financial services sector.”
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