The Importance of Socio-Economic Diversity in Financial Services

Odgers Berndtson is proud to be a supporter of Progress Together, a not-for-profit membership body focused on advancing socio-economic diversity within the financial services sector at senior levels.

Individuals from advantaged backgrounds are 43% more likely to reach senior positions in financial and professional services firms. Conversely, those from lower socio-economic backgrounds typically take 15% longer to advance from middle to senior roles, compared to their more privileged peers.

This disparity leads to a lack of diversity at the top, an over-representation of individuals from independent schools, and an inequitable corporate environment where many face significant class barriers.

At Odgers Berndtson, we see removing these barriers as essential, and is at the core of why we are supporting Progress Together. As global executive search specialists, we have a responsibility to address the socio-economic diversity gap and tackle broader Diversity, Equity and Inclusion (DE&I) challenges within leadership.

We achieve this by integrating DE&I into our search process, to ensure firms can access diverse and high-calibre leadership talent. What’s more, we understand that developing diverse talent begins at a grass-roots level, which is why we are a founding member of #10000BlackInterns and have partnered with the Social Mobility Foundation since 2017.

For us, this is not just the right thing to do, it also ensures we can provide our clients with strategic advantages that benefit them in the following areas:

Innovation and creativity

Diverse leadership teams bring a variety of perspectives, experiences, and problem-solving approaches. This diversity fosters greater creativity and innovation, which are vital for developing new financial products and services that can meet the needs of a broader client base. A BCG study shows, 

Equity and access

Promoting socio-economic diversity helps in addressing inequalities in access to financial services. This can lead to more equitable financial outcomes and empowerment for underserved communities, contributing to overall economic stability and growth.

Market expansion

The financial services sector serves clients across the entire spectrum of socio-economic backgrounds. Having a leadership team that mirrors this diversity can help financial institutions better understand and cater to the needs of different demographic groups, potentially leading to expanded markets and customer bases.

Improved decision making

Academic studies show diversity triggers more careful information processing among group members. By incorporating a variety of viewpoints, financial services firms with greater leadership diversity can make more balanced and well-rounded decisions, reducing risks and enhancing outcomes.

Talent attraction and retention

Companies that emphasise DE&I are more attractive to potential employees.

This is particularly true for Millennials and Gen Z, over half of whom consider an employer’s stance on social issues when looking for a new role.

Reputation and corporate responsibility

Demonstrating a commitment to DE&I, particularly at the senior executive level, can enhance a company's reputation, aligning it with broader social values and expectations. This alignment is increasingly important to stakeholders, including investors, regulators, and customers, who are more frequently assessing companies based on their social and governance practices.

Furthering the DE&I debate with regulators and industry groups

We contribute to the ongoing discussion about DE&I with regulators, policymakers and industry bodies, based on our experience of working with financial services firms and other industries. These engagements ensure an industry wide lens is applied to DE&I issues, ensuring that policies are not only comprehensive but also effectively address the unique challenges within the financial sector.

Diverse leadership teams have an edge

A diverse leadership team brings different perspectives that lead to better decision-making, new approaches and higher productivity.

We provide our clients with access to this broadened talent pool, ensuring they can leverage diversity to its fullest potential.

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Get in touch. Follow the links below to discover more, or contact our dedicated leadership experts from your local Odgers Berndtson office here.