"Staff in the financial services industry are seeing a lack of diversity in their workforce, which presents a challenge to the sector."
Junior employees are half as likely to think their firm is succeeding on recruiting candidates from diverse backgrounds than leaders in the financial services sector, according to new research from Multiverse.
Fewer than half of entry-level employees in financial services (48%) think their companies are successful at recruiting candidates from low-income backgrounds, compared to three quarters of senior managers (73%).
The research finds a similar perception gap when it comes to employing people from a range of ethnic minority backgrounds. Eight in ten (78%) employees who have been in the sector for less than six months say their firm struggles to attract candidates from ethnic minority backgrounds. This falls to a third (31%) when experienced professionals are asked for their views.
Multiverse’s research also finds that the UK financial services sector is experiencing a major retention challenge, with two in five (39%) employees reporting they plan to leave the sector within five years. Among those who have been in the industry for six months or less, that figure increases to 68%.
With concerns about the diversity of new talent alongside figures showing existing employees plan to leave the sector in the coming years, Multiverse is calling for more financial services firms to back apprenticeships. The research finds that apprenticeships are supported right across the industry as a way of boosting diversity. Seven in ten (71%) of those who work in the financial services industry say that hiring apprentices helps to diversify the workforce, while nearly nine in ten (85%) of those who have worked in the financial services industry for less than six months share the same view.
Siobhan Randell, director of diversity, equity and inclusion at Multiverse, said: “The findings from our research are clear: staff in the financial services industry are seeing a lack of diversity in their workforce, which presents a challenge to the sector. But there’s an ideal opportunity to solve this. While there’s lots of new talent being hired as many leave the industry, leaders in the sector have the chance to make sure their workforce is representative of their local communities or of the communities they serve.
“Apprenticeships have a powerful role to play to improve diversity, ensuring a high-potential, sustainable pipeline of talent from a diversity of backgrounds. We’ve seen firsthand how apprentices are having a positive impact on the here and now, as well as the future, of financial services. With firms across the sector backing apprentices, there’s no better time than now.”
