Financial services employees feel there is growing pressure to remain silent on racial and ethnic diversity issues, according to a new study by Reboot.
The independent working group of cross-industry ethnic minority communications and marketing specialists and their allies, found a lack of progress in diversity across financial services in its Race to Equality: UK Financial Services 2024 report.
The Reboot research was conducted by Coleman Parkes between August and September 2024, surveying 800 respondents of various ethnicities (700 ethnic minorities and 100 white employees) who have been working in the financial services sector for at least 10 years.
Some 70% of respondents indicated that little to no real change or progress has occurred since the Black Lives Matter movement ignited global sentiment four years ago.
Employees are feeling a heightened pressure to remain silent on issues of racial and ethnic diversity, with many fearing implications related to job security.
The report shows that racial and ethnic diversity isn’t just a moral imperative – it’s a business one, with 61% stating that CEO action on racism would greatly improve company culture.
Rick Lacaille, a former chief investment officer at State Street Global Advisors (pictured), said that leaders must make an active effort to create a culture that fosters inclusivity.
“Our diverse talent pool offers an enduring, positive differentiator for the UK financial services industry, yet the Reboot report suggests this potential is being squandered by firms’ inability to address the need to build an inclusive culture,” said Lacaille.
“Investors in the UK may yet benefit from diversity, but regrettably, more regulation relating to disclosure may be needed.”
Businesses that embrace racial and ethnic inclusion will see healthier corporate cultures, more engaged and productive employees, and greater potential for business growth.
Financial services firms that fail to tap into the broadest possible pool of talent are missing opportunities to better represent the society they serve and drive sustainable business growth.
Reboot urges leaders with a call to action, addressing barriers to progression and actively installing a culture that boosts inclusion is necessary to make the necessary changes removing this stunt in growth.