Investment managers urged to tackle ‘class ceiling’ in finance
An industry body is calling on investment managers to promote social mobility in their recruitment and retention practices in an attempt to make the industry more representative of people from different classes and socioeconomic backgrounds.
In a report published today, the Investment Association (IA) outlines steps employers can take to improve their recruitment processes. These include broadening outreach to schools, colleges and universities that the firms might not otherwise target, and taking contextual considerations into account when comparing applicants’ academic results.
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The research also encourages investment managers to “recruit for potential rather than polish” and take steps to ensure that their “workplace culture doesn’t favour people who’ve come from a more privileged backgrounds”.
“I grew up in a mining town in Yorkshire and for too many people from a similar background without networks or connections, a job in financial services can feel out of reach or even inaccessible,” said IA chief executive Chris Cummings.
The IA’s report also highlights the ‘class pay gap’ within the financial services. It has been estimated that people from privileged backgrounds working in finance earn £17,500 a year more than their colleagues from working class backgrounds.
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“Putting diversity at the heart of recruitment and retention practices can widen horizons, produce better investment outcomes and discourage group think,” said Cummings.
“Our industry has become much better over recent years at acting on initiatives that promote gender, LGBT+ and racial diversity. However talking about social class and the journey people from different social backgrounds take into the City arguably remains one of the last social taboos,” he added.
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