What is your favourite month? For me, Spring is always a winner. Everyone has a spring in their step as the sun starts to take on an extra glow.
However, with young kids, Autumn is always fun. Although sometimes Halloween means too many sweets for the little ones … and the big ones!
This year October includes an extra treat, The City dinner at Mansion House.
It is an annual occasion where the regulators speak with senior leaders across financial services. Last Year the then Lord Mayor of London Vincent Keaveny was clear in his message that “rather than being a barrier, regulation is a key enabler of growth. The UK gains competitive advantage by having high standards…” The Lord Mayor then went on to share news about Progress Together and its role in levelling up the UK’s financial services sector.
Twice as likley
Although set up by a Government-commissioned taskforce, Progress Together is led and funded by the financial services sector. Its membership now represents over 30% of the UK financial services workforce, all working towards levelling the playing field. In the last week, I was proud to invite senior leaders across the sector to our first CEO and Exec Sponsor roundtable, joined by HM Treasury’s Baroness Penn and former Bank of England Chief Economist Andy Haldane.
‘Shaping our Economy’ is the largest study into socio-economic diversity and progression in financial services in the world. Just under 150,000 people took part in the study, conducted by the Bridge Group, which examined socio-economic background and how it impacts career progression in the sector. It found that:
- People from higher socio-economic backgrounds are more than twice as likely to be found in senior roles compared with those from lower socio-economic backgrounds
- Women from working class backgrounds have a significant ‘double disadvantage’, progressing 21% more slowly than their peers from more advantaged families, compared to 13% of men
- 75% of senior roles are filled by people applying from outside the organisation, yet only 25% of these individuals are from working class backgrounds.
CEO of the Bridge Group Nik Miller says “This research also highlights important relationships between socio-economic background and gender. Women typically experience the negative effects of being from a lower socio-economic background more significantly than men – who are more often able to use their working-class roots as an asset in the workplace.”
Leading the way
Those already involved in Progress Together are leading the way, but to level the playing field across the whole of the sector, the regulators need to play a role.
I’m pleased to see, that after a two-year wait, the regulators have released their diversity and inclusion consultation. I know many of the Progress Together members have been eagerly awaiting its arrival. It makes for interesting reading.
These paragraphs stood out in particular”
“The PRA also proposes to collect information on socio-economic background on a voluntary basis. The City of London Bridge Group report recommends collecting and analysing data on socio-economic background, pointing out the benefits of this for firms, the financial system, and society….”
“Over time, the PRA anticipates that increasing numbers of firms may choose to report data against the voluntary metrics.”
“To that end, the PRA may consider moving to mandatory reporting against these demographic characteristics at a later date. However, the PRA recognises that good quality data also depends on firms having well-developed systems in place, and on employees feeling comfortable providing this data. The PRA’s proposed approach seeks to address those concerns by giving firms the necessary time and flexibility to improve their data collection processes.”
Change is needed
It’s becoming easier to measure, and Progress Together can help companies drive this agenda forward.
I’m delighted to see that HR systems are now playing ball and realising there’s an increasing interest in collecting socio-economic data. It’s great to see Workday, for example, adding socio-economic background to the list. Other HR platforms are available and hopefully following suit!
The more workforce data that firms have on socio-economic background, the faster we make the change needed within the sector. And let there be no mistake: change is needed.
One of our Founding Partners, Paragon Bank, went from 0% data to 65% response rate in one month. It can be done and this is the time to act. Jump now before being pushed by the regulators.
