Green Park has released its most recent Business Leaders Index, which examines the sex and ethnicity of the FTSE 350. The 2024 report compares a decade of data collected during 2013-2023. The data highlights some clear progress for ethnic diversity and inclusion as well as areas in which these are lacking.
‘Hoping for change is not enough.’
Key Findings:
1) Progress is visible for some. There has been an increase in overall ethnic minority representation at all levels of seniority for the first time since the analysis began.
2) Ethnic minorities and women are often on the ‘B road’ to get to the very top. Sales and commercial roles, often the preferred route for CEO, have poor representation.
3) Diversity and people led functions are the least diverse ‘People or human capital roles’, such as CHRO, Chair, CPO, etc., have low levels of ethnic minority representation. However, the CDO role is the only senior position that has greater representation of ethnic minority backgrounds than of White.
4) There is a huge divergence emerging amongst minority ethnocultural groups. Hindu and Sikh colleagues account for most of the increase in ethnic minority representation while Black ethnic groups are less represented at senior levels. Analysis shows that at Top 3, Black ethnic groups are the only group with lower representation now than in 2019.
‘Over the course of a decade, we have seen DEI morph from a niche consideration for Human Resource teams to a strategic imperative on the C-Suite agenda.’
Some key insights from the report:
- Much of the change has come from organisations themselves, where they are determined to improve their standing amongst employees and potential hires.
- Success comes from determined, intentional and evidence-based action. Hoping for change is not enough.
- Where there is a disconnect between organisations’ narratives about their pace of change and the statistical evidence on it, trust is damaged.
- The talent is out there but it can’t be accessed, retained or improved in the same ways.
- Credible role models are crucial. It is key to showcase the expertise and talent of role models, not only their diversity.
- Representation is fluid and not always consistent at all levels in an organisation. A lack of representation at senior levels or progression into them can make an organisation less appealing for candidates. Organisations that foster and retain their own and diverse talent are more competitive.
‘The talent is out there but it can’t be accessed, retained or improved in the same ways.’
Conclusion
While there has been some tangible progress, there is still a long way to go in improving ethnic diversity and inclusion across a full range of backgrounds, roles and organisations. Progress occurs when organisations commit to improving diversity transparently and with a clear, evidence-backed understanding of how and why they are going to affect change. Strong role models, good progression and development as well as representation and diversity at all levels make organisations more attractive for a diverse range of talent. Such findings and practices are undoubtedly apt and applicable for the housing sector and beyond it.
To join the Leadership 2025 movement and commit to improved ethnic diversity in housing’s leadership, please contact us today.
You can read the full Green Park report here:
https://www.green-park.co.uk/filedownload.php?a=6426-660c20d34d1e5