The topic of diversity in Investment Management is hard to avoid and the spectrum is expanding. We’ve chosen to highlight some of the recent developments which are highlighting these various facets. Gender Pay Gap, LGBT, recruitment and Class Pay Gap
New report on Diversity shows stasis on Gender Pay Gap
The PwC and Diversity Project report released this week ‘Time to get serious: If diversity is a business imperative, treat it like one’ makes for depressing reading. According to its findings; of the five sectors reporting the biggest gender pay gaps in 2018, only investment management failed to record an overall improvement. In addition, the Gender Pay Gap in the Investment Management sector has deteriorated, leading to the second worst performance across 22 business sectors analysed. While Gender pay reporting has brought the lack of diversity within the investment management industry into sharp focus and added weight to the voices calling for faster change there is little movement.
The report lists four key action points for the industry to tackle the issue head on:
- Align strategy for promoting diversity and inclusion with business priorities
- Executive teams must set the tone for the organisation and ensure diversity and inclusion are recognised as business priorities
- Tackle scepticism
- Be honest - tell it like it is
LGBT Great gathers momentum with ambassador role
LGBT History Month this February was marked by the government pledge of £2.6million towards 12 organisations working to improve the lives of LGBT in the UK as part of the LGBT Action Plan. In tandem, LGBT Great, the global investment industry organisation working to develop all aspects of LGBT+ equality and inclusion within the workplace launched its #50for50 campaign which brings together 50 industry champions.
It has just announced Colette Comerford’s appointment as Lead Role Model Ambassador. She will be working with LGBT Great’s Leadership Team to engage and inspire Role Models in the investment and savings industry across the globe. Anyone interested in joining the Role Model team should contact: firstname.lastname@example.org
St James’s Place under fire for sexism in recruitment
Incentives and freebies are often frowned up in the industry especially as there are rules and regulations around inducements. However when it comes to recruitment they can be very controversial.
According to a report by Investment Week, St James's Place (SJP) ‘has been accused of using dated stereotypes in its efforts to try and attract women to its academy’.
SJP set up a 'Fashioning a New Career' recruitment event for women which included 45 minutes of browsing at Harvey Nichols, a 30-minute fashion and beauty presentation and complimentary mini beauty treatments.
The article goes on to quote Catherine Morgan, Money Panel founder and qualified financial planner, who said to Investment week ‘if SJP truly wanted to attract more women into the sector, it should be talking about things such as flexible working and supporting women in their careers when they have a family. She described the evening as "dated" and "very stereotypical"’.
ISJ Independent Financial Planning Chartered financial planner Lena Patel was also quoted: "It's not all high heels and shoes, is it? [SJP advisers] are normal people that are doing their job. They are parents or mums that are working. It'll turn off so many women."
The Investment Association Social Mobility Report
In a newly released report, Tackling the Class Ceiling - Recognising potential over polish, the Investment Association throws down the gauntlet in a bid to highlight lack of social mobility in the industry and ways to tackle it.
It starts by laying out the issues facing the industry and people within it today with some stark findings such as:
- Business as usual: Social and cultural capital are still in play in the industry. Access to social networks and family connections increase the chances of successfully landing a good job while employers may have a desire to recruit for familiarity or similarity
- Privilege pays more: A ‘class pay gap’ exists with people from privileged backgrounds working in finance reckoned to earn £17,500 a year more than people in the same industry from working class backgrounds
- Gender and race inequality: Black British women from working-class backgrounds are liable to earn an average of £20,000 less than white men from more privileged backgrounds