68 per cent of those from ethnic minorities are facing discrimination while working in the financial services industry, a study from Reboot and Coleman Parkes has found.
2022 marks the second year of the ‘Race to Equality in UK Financial Services’ report, which surveys 800 financial services workers who have more than a decade of experience in the industry.
82 per cent of those surveyed have received unwelcome comments based on their background, and a quarter stated that racial jokes are tolerated in their workplaces.
Businesses are not dealing with discrimination issues well, the study says. Of the 47 per cent of those who have raised issues with HR, three quarters felt that the problems were not handled effectively.
Furthermore, after reporting discrimination those surveyed reported that they had been treated differently by managers (52 per cent) and colleagues (48 per cent). Demonstrating the tangible impact of this, 49 per cent found they had to take time away from work after experiencing discrimination, and 56 per cent have had to seek counselling.
40 per cent of those in the survey expected to be searching for a new role within the next six to 12 months, with 10 per cent of these participants citing their current company’s discriminatory culture as a reason for this.
A lack of ethnic minority representation in senior management is recognised by 46 per cent of financial service firms, and 69 per cent of survey participants recognised that there are efforts to be more diverse within the hiring process. However, this is not necessarily centred around ethnic diversity — 58 per cent believe that gender is prioritised over race.
Currently, 22 per cent of white peers feel ‘uncomfortable’ talking about race in the workplace and only 60 per cent stated that they want to be advocates for their ethnic minority colleagues.
The report offers a three-point action plan for organisations: Negative office cultures must be challenged; leaders must take charge and “champion the cause from the top”; and ethnicity data reporting must be more transparent, allowing for the ethnicity pay gap to be closed.
Commenting on the report’s findings, Richard Lacaille, global head of ESG at State Street, says: “We need to look hard at this report and take the necessary steps to achieve this goal. This includes all of us not shying away from talking about race, and leaders ensuring that inclusion, diversity and equality is not simply delegated to the HR department. Business leaders need to ensure that ethnic minority staff in their enterprises or departments are not facing the discrimination and other negative experiences identified in this year’s Race to Equality report.”
Oliver Bilal, head of EMEA distribution at Invesco, adds: “An equal opportunity to progress is not only morally right, a cornerstone of good business practice and key to creating a dynamic, productive workplace. The problem will only be solved through action and accountability. In our view, equality of opportunity should be embedded in the institutional structure of an organisation.”
