A RECENTLY published report on the UK investment industry reveals a workforce that is younger than expected, yet it highlights concerning lack of diversity, particularly in terms of gender and ethnicity.
Based on the report, 61 per cent of UK investment management professionals are white, while only 10 per cent are Asian/Asian British, and a mere two percent identify as Black/African Caribbean/Black British.
A further two per cent are of mixed/multiple ethnic groups and one per cent were of other ethnic groups including Arab, the report said.
A total of 24 per cent of workers did not disclose their ethnicity or preferred not to say.
Released on Wednesday (15) by the Investment Association (IA) and Willis Towers Watson’s Thinking Ahead Institute (TAI), the report focuses on Equity, Diversity, and Inclusion (EDI) data within the UK investment management sector.
The study also found that the investment industry still maintains a mostly male workforce.
Despite work on finding the gender balance, “the industry continues to be largely male,” at 55 per cent vs. 37 per cent female.
The remaining six per cent of workers did not disclose their gender or preferred not to say.
Significantly, the report draws attention to the proportion of employees not disclosing their ethnicity, indicating that this is not isolated to specific firms.
It underscores the importance of ensuring that all employees participate in efforts toward creating more diverse workforces.
According to the report, 96 per cent of firms actively collect diversity data, with a primary emphasis on age, gender, and ethnicity.
However, it notes a low response rate in gathering information related to neurodiversity and socioeconomic backgrounds.
Karis Stander, director of culture, talent and inclusion at the IA said: “It’s crucial that the investment management industry reflects the people that we serve and the society we operate in.
“Creating a culture of diversity presents a clear business case, and organisations with an inclusive workforce offer better returns, drive innovation, retain talent and ultimately provide a better service to our clients.”
The majority of firms cited reasons for collecting diversity data, with 65 percent aiming to better understand workforce composition, 60 percent striving to foster an inclusive corporate culture, and 48 percent using data to inform EDI initiatives.
Looking ahead, 33 percent of firms expressed intentions to broaden their data collection efforts to include information on workers’ socioeconomic backgrounds, caring responsibilities, and neurodiversity.
The report concludes by pointing out the ongoing necessity for concerted efforts to create a more diverse and inclusive workforce within the UK investment management industry.
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