01 December 2022
The City of London Socio-Economic Diversity Taskforce has published an action plan to tackle poor rates of social mobility in the UK and, specifically, the lack of socio-economic diversity at the top of UK financial and professional services.
The report outlines a 5-point pathway to boost representation at senior levels of the sector. It was produced after extensive research, an industry-wide consultation, case studies from leading employers, and recommendations from organisations including the Social Mobility Commission, Social Mobility Foundation, Sutton Trust, Social Mobility Business Partnership, and Bridge Group.
The report sets out a target that at least half of senior leaders in the UK financial and professional services sector should come from a working-class or intermediate background by 2030.
Data recently published by the Taskforce shows that 37% of senior leaders in the UK financial and professional services sector are currently from non-professional backgrounds. While around half of all employees in the sector are from non-professional backgrounds, defined as working class and intermediate backgrounds, these employees progress 25% slower than their peers. Only 36% of working-class and intermediate employees have climbed the ladder to senior levels.
The target of boosting this level to 50% of senior leaders by 2030 will be reviewed in 2025 to ensure it remains representative and achievable. By this time, the Taskforce expects all organisations in the sector to have started to collect data on the socio-economic background of their employees, which will provide a better-informed baseline.
The report also includes recommendations on how regulators, sector bodies, and government can support and incentivise employer action on this journey. The IFoA is currently developing an action plan to support the report’s recommendations.
Read the socio-economic diversity taskforce report.
IFoA's DEI Strategy update
You can find out more about the IFoA’s work to support members in their careers and ensure access to the profession is fair and equitable in our DEI Strategy update in the Actuary Magazine's November edition.