Diversity, Equity & Inclusion (DE&I)

Since the FCA published their discussion paper on DE&I, firms have now had two years to consider, develop and implement their DE&I policy and practice. In the Census, we asked respondents to answer:–

“Does your company have a clear Diversity, Equity & Inclusion Policy?” Overall, 82% responded 'yes' (compared to 83% in 2023 and 81% in 2022), and 18% responded 'no' (compared to 17% in 2023 and 19% in 2022).

We’d expect a clear rising trend here – and there isn’t one. Larger firms do have more onerous reporting requirements, but there is no real excuse for any firm having no DE&I policy. Yet it does appear that organisational size is a factor with BDMs – who will tend to work for larger firms - coming top at 94%.

Of course, it may be that other regulatory initiatives, particularly Consumer Duty and Vulnerability, have captured the headlines and the attention of regulated firms. To some extent, the question concerns perception and communication and business heads would give more assurance that a DE&I policy is in place.

18% of respondents saying they do not have a DE&I policy in place.

So, we have to express some concern that there are still 18% of respondents saying they do not have a DE&I policy in place. We also note that from the Census, 91% of respondents identify as white compared to 82% for the UK population as a whole. This suggests that the sector may have work to do to attract a broader range of employees, yet it is good to note that earnings are not higher for white respondents.

We noted for the 2023 Census that Equity is often overlooked in industry initiatives around DE&I: we suggest that this might be an area for the regulator to examine, possibly indicating a need for enhanced communication efforts.

We also asked respondents to comment further:

The Comments…

Positive Comments

No discrimination. All valued
We start with making an inclusive environment so that we see that not only do we have a large diverse team they stay
Encouraged to bring whole selves to work
We subscribe to Future Plus, and monitor all aspects of our business in relation to ESG, including DE&I
They have a strong focus on the above and management training to be unbiased
The most comprehensive I’ve seen and the culture reflects the success of these policies
Independently rated in these areas and scored highly, an example of this is the business is split 50:50 men to women
I completely support it. New employees must be the best person for the role, in terms of experience, qualifications, attitude and character, and irrespective of race, beliefs, gender or disabilities
I am on my companies D&I committee. We are committed to promoting a workplace where all colleagues can be their authentic self. Piloting a reciprocal mentoring scheme
Our HR is outsourced so all policies are fairly standard for UK
Based on acknowledging and recognising each individual, ensuring they have a voice and it is heard. Equal pay, equal opportunity, equal benefits whether part-time or full time

The Sceptical Response

Shouldn’t have one
Usual woke crap
I find it fatuous
Box ticking
Virtue signalling
It goes the other way now favouring female and less represented
All DEI which aim for equity rather than equality based on immutable characteristics are fundamentally flawed and should be banned
They do what they need to do to be seen as inclusive, however men are favoured and there is not much diversity
It goes the other way now favouring female and less representative

Qualified Support

Very comprehensive in theory but not always followed - highly inclusive policy but a focus on gender
Inclusive policy but in reality it‘s very white and male oriented
Fully embraced it and now gone over the top

Respondent’s views were overwhelmingly positive and supportive of the way their company behaved. However, a number were clearly sceptical of the initiatives feeling that commercial reality was being compromised. Others felt supportive in principle but considered that it had gone too far, and some felt that only gender was considered.