Rocked by regulatory change and technological innovation, the financial services sector is in a state of flux. As new market entrants make for increased competition, firms in this fast-moving industry can no longer afford to cling to old habits. If they are to keep apace, employers must take advantage of the entire talent pool to source the best candidates for their business.
Finally, key players such as Santander, Barclays and Bank of America have stepped up to the plate, putting diversity at the forefront of their strategy. As expected, a host of FS firms have followed suit, revising their recruiting methods to reap the benefits of a diverse culture.
Nevertheless, the problem still persists.
Earlier this year, findings from a PwC study revealed Financial Services is trailing behind other sectors in removing the barriers that prevent women from reaching their potential. According to their report, more than half (54%) of women in FS believe that an employee’s gender, ethnicity, age or cultural background can be a barrier to career progression in their organisation, compared with 45% of women in all industries. Unsurprisingly, the problem extends beyond gender: in fact, only 28 percent of professional positions in financial services were held by minorities, as reported by the US Government Accountability Office in 2015.
If firms in this industry are to reap the benefits of a diverse culture, they must adopt a proactive approach by building pathways for progression. It all starts with a strong pipeline:
Expand your network
Desperate to fill a vacancy, it’s easy to stick to the sources we trust. Of course, if you only start searching when the need arises, you’ll leave yourself little time to explore all options. Instead, employers must start building a pipeline for key roles long before there is a requirement; they must look to connect with as many talented FS professionals or graduates as possible.
Remember, a diverse pipeline is not one that comprises of exactly 50% female and 50% male candidates, nor is it a wish list or quota that must be achieved. It’s a vast network of high-potential professionals that an employer nurtures over time, be they existing members of staff or external candidates employed elsewhere. Growing this network will take commitment, but it’s forward planning that will see a healthy mix of talent flowing into your organisation.
Stop searching for cultural fit
Most leaders in the finance sector recognise the critical role that organisational culture plays in the employee experience. In fact, many have become near-obsessed with perfecting this element of the business to increase staff retention. When building an external talent pipeline, hiring managers at FS firms naturally seek to engage individuals who will fit like a glove into the existing corporate culture.
Rather than promoting diversity, however, this strategy tends to breed groupthink as fresh meat brings no fresh perspectives. Instead of looking for likeminded individuals, leaders must make a conscious effort to source people who can bring something new to the table.
Introduce mentoring programmes
In an industry that has traditionally been male dominated, mentoring programs for minority candidates can make all the difference. While an external network of diverse talent is essential, ensuring existing members of staff have the opportunity to rise to the top regardless of their race, gender or social background is critical in fostering in inclusive culture and eventually benefiting from diverse leadership. The introduction of a structured mentoring program can provide those who have historically been left with little in the way of role models the support they need to thrive within the firm.
Building a pipeline of qualified and experienced candidates that don’t solely fall into a single demographic is key in boosting diversity at leadership level – however, if financial services firms are to capitalise on the rewards a multi-cultural, multi-gendered workforce, they must ensure both their recruiting and promoting methods enable people of all backgrounds to climb the career ladder.
In a period of rapid change, organisations in the financial services sector must prepare for the challenges ahead by building the diverse teams that will lead their firms to success in the future.