This taskforce is an opportunity to change UK financial and professional services. But why is it needed?

There is a lack of socio-economic diversity at the top in UK Financial and Professional Services (FPS).

Across eight financial services organisations, 89% of senior level employees are from professional backgrounds*. This compares to 47% at junior levels, 52% of UK CEOs economy wide and 37% of the UK’s working population. (The Bridge Group, 2020)
Across UK FPS, 52% of employees at all levels of seniority are from professional backgrounds (58% Legal, 56% Management Consulting, 50% Finance, 43% Accounting. (Social Mobility Commission, 2020
In law, 60% of Partners are from professional backgrounds. (Solicitors Regulation Authority, 2019)

Meet broader diversity and inclusion objectives. 

Across eight financial services organisations, 8% of Black employees attended an independent school compared to 19% of White employees. (The Bridge Group, 2020)
There is intersectionality between socio-economic background and other characteristics: Across ten leading law firms, 23% of Black female employees attended an independent school compared to 52% of White males, and 60% of Asian males. (The Bridge Group, 2020) This compares to a national average of 7%.

Boost productivity

Across eight major financial services organisations, employees from non-professional backgrounds* progress 25% slower than peers, with no link to performance (this rises to 32% for employees who also identify as Black). These employees are exhausted by efforts to conform to dominant cultures, impacting individual performance. (The Bridge Group, 2020)
Across seven law firms, employees educated at state schools are 75% more likely to feature in the top decile of performers than those educated at independent schools. (Social Mobility Commission, 2020)
Across ten law firms, employees from lower socio-economic backgrounds take a year and a half longer on average to reach partnership, compared to their colleagues form high socio-economic backgrounds. (The Bridge Group, 2020)

Access a wider pool of talent 

There is a risk that high performing talent will migrate to other more inclusive sectors. There is a £5k class pay gap in the tech sector versus £17.5k in financial services. Laurison, D and Friedman S (2020). The Class Ceiling: Why it Pays to be Privileged. Bristol University Press, Policy Press. Edition 1. (ISBN:978-144733610)

Maximise global competitiveness

The UK is ranked 21st in World Economic Forum’s Global Social Mobility Index - outperformed by rival global centres USA, Singapore, Japan, Germany on lifelong learning. The need to upskill a broad range of talent is promoted by both the Financial Services Skills Commission and the Professional and Business Services Council. Individuals from non-professional backgrounds are less likely to access training. (Social Mobility Commission, 2020)

_{* Socio-economic diversity defined by Parental Occupation at 14 (recommended metric to use)}

Socio-economic diversity taskforce brochure