UK banks given new targets to boost working-class senior hiring

London — The UK financial services sector Do more to “break the ‘class’ ceiling” and have at least half of senior leaders come from working class or low socioeconomic backgrounds by 2030, according to a government-backed task force I am asking for

The City of London Corporation, the governing body that oversees the UK’s financial industry, said Wednesday that the move is important not only to improve board diversity but also to boost growth in the sector. rice field.

and new reportthe governing body’s Socioeconomic Diversity Task Force, which was commissioned in 2020, outlined a path for companies to ensure that accent and parentage do not determine progress in the workplace.

“We need to break through the ‘class’ cap. Removing unfair barriers to advancement is not only the right thing to do, but it also helps companies improve productivity,” said task force chair Catherine McGuinness. , retention and innovation.”

According to the survey, around half of all UK financial services employees now have a non-professional background, defined as working-class and middle-class backgrounds. Still, they tend to progress him 25% slower than his peers.

According to the report, just over a third (36%) of these employees manage to climb the senior-level ladder. Employees with non-professional backgrounds, on the other hand, tend to be paid up to £17,500 ($20,890) less per year and have nothing to do with professional performance.

The report also says that the UK has one of the lowest levels of social mobility in the developed world, with “those who are already financially advantaged tend to stay at the top”.

Under this target, banks and other financial and professional services firms will be encouraged to collect data on the socioeconomic background of their employees to provide an accurate baseline as they work towards the 2030 target. Expected.

The task force, which worked with over 100 sector representatives on the report, will review sector-wide targets in 2025 to ensure they are realistic.

The report does not address the implications that companies may face if they fail to meet the standards.

This goal coincides with the launch of another report from the task force outlining the business benefits of increased socioeconomic diversity. According to the report, socioeconomic diversity not only drives productivity and innovation, but it can also increase corporate profits by 1.4 times.

“We cannot grow as a country unless our people grow. For too long, individual growth has been constrained by people’s socioeconomic backgrounds. Today’s recommendations mark a departure from the past. said Andy Holden, co-chair of the Socioeconomic Diversity Task.

This comes as the UK financial services industry races to reaffirm its status as a global financial hub following a series of events. Post-Brexit corporate relocation and Fall in international rankings.