In 2011, trends indicated that Black talent would be proportionately represented in business within 30 years. In 2020 the murder of George Floyd put the agenda of race firmly into the spotlight with businesses committing to targets and priorities around race. Despite this, data from the 2021 Census indicated that the gap had widened, and that it would take approximately 50 years before British business accurately reflects the Black working population. Data taken from just one year later, in 2022, shows that this gap may have widened again to almost 70 years. We are, in fact, moving backwards.
Research from the Black Talent Charter in collaboration with Bain & Company, has shown that, despite ongoing efforts to diversify, the highest-paid sectors of British business remain white dominated professions. The finance and the professional sectors, which include consulting, accounting, law and finance, have annual average salaries of between £40 – 100k, and yet they currently employ less than half the percentage (2%) of the Black British working population (4.4%). This employment gap is a systemic problem that has resisted efforts to move the dial within business.
This 2% representation of Black talent in the finance and professional services sector compares even more poorly with a range of other key benchmark population statistics. Black people are 13.5% of the population of London and make up 8% of the university student population. There has been a marked effort to bring Black graduates through into major corporations and these programmes seem to be working at entry level. However, representation starts to fall away after middle management and disparities remain at senior levels. Here, fewer than 1% of senior leadership in the financial and professional services are Black. Even more starkly, the proportion falls to just 0.5% for leadership in investment banks and 0.4% of equity partners in non-law professional services firms.
Businesses that are diverse in their makeup are better positioned to understand and respond to the needs of their customers, innovate successfully, and attract top talent from all backgrounds. Evidence also suggests that companies with a diverse workforce and inclusive cultures will tend to perform better for shareholders – public or private – and for their other stakeholders (Parker Review, 2023).
In order to move the dial, businesses must hold themselves accountable for their recruitment and talent development. And whilst improving pathways is essential it is insufficient in isolation. Collaboration is a key part to achieving equity in business. Through the Black Talent Charter businesses can work together to recruit, retain and promote brilliant Black talent, as an essential part of operating and growing effectively.
Read the full report here.