Written evidence submitted by the City of London Corporation (WFN0028)

Introduction

1. The financial services sector is a major driver of national prosperity through providing skilled jobs, tax revenue, and enabling investment that improves lives and supports society. The sector employs over 1.1 million people across the UK and makes up roughly 11% of the UK’s total tax income, with £72.1bn in tax contributed in 2016/17.[1]

2. Skills and access to opportunity are two of the greatest drivers of inclusive economic growth and shared prosperity. The City of London Corporation is committed to the essential task of increasing social mobility in London, through improvements to diversity in talent. To support this, the City Corporation is undertaking a number of initiatives to remove barriers that limit access and progression of diverse talent. In addition, through engagement with the City’s neighbouring boroughs and Greater London, the City Corporation aims to support the aspirations of young people and improve their employability. This includes work in schools, support for job seekers, training provision, and direct engagement with businesses.

3. Figures suggest that 48% of financial service sector jobs are currently filled by women (ONS, 2018), and the City Corporation wants to ensure that these women are provided with equal opportunities to reach senior positions within City companies. The City Corporation is therefore supportive of the aims of HM Treasury’s Women in Finance Charter, and is included in the latest list of signatories published in March 2018.    

Power of Diversity

4. Power of Diversity was launched by Dame Fiona Woolf during her term as Lord Mayor in 2013/2014 and is now led by the Lord Mayor’s Appeal charity.[2]

5. The initiative aims to address issues such as gender, disability and inclusive leadership, and includes themed breakfasts, senior leader forums and research programmes, with the ultimate objective to provide a forum to showcase initiatives which become the blueprint to creating fully inclusive workplaces and equal opportunities for all.

6. A large part of the programme focuses on ways in which to create inclusive working cultures and how to tackle the challenges faced by City businesses with recruitment, retention and the development of diverse talent.  Currently, over 70 City employers are collaborating on this initiative.

7. In 2017, the City Corporation published 'Unleashing the Power of Diversity: Measurement, Motivation and Management' research undertaken by Cass Business School and Ashridge Executive Education.[3] The report explored why good diversity and inclusion strategies are not always being implemented in City firms. The recommendations outline a ‘3Ms’ approach to embedding diversity: measurement, motivation and management.

8. Continuing conversations with businesses have highlighted a need for further work in this area, to support employers to make positive change.  Four areas have been identified:

a)      Making Diversity and Inclusion (D&I) matter to the bottom line

there is often a gap between the strategic messages of the company on D&I, and how this is manifested in the day-to-day running of the business.  Without understanding the bottom line impact of good (or bad) inclusion practices, it is difficult for managers to understand what ‘good’ looks like in practice. 

b)     Measuring D&I performance and taking action where required

Consistent measurement is key to translating strategic ambition, into practice and pending changes to corporate governance and statutory reporting on gender pay gap are opportunities to do that.   Using performance data, a company can identify where the system blockages are, and where talent drops out and where gaps emerge.  Increasingly, companies are measuring individual behaviours against stated corporate values, ensuring there are personal motivators to get the necessary traction at mid-tier.

c)      Making Diversity and Inclusion matter to the mid-tier manager

Across all the businesses represented, they recognised the fundamentally influential role of middle management as holders of the vast bulk of relationships, both internal and external.  To create momentum and sustain systemic change, their participation and ownership is a critical success factor. 

d)     Growing – and holding – your own

While attracting a diversity of talent in recruitment process is still a challenge for some, other businesses report the frustration of developing and nurturing a diverse talent base, only for them to then leave the company.  Not only does this have a business impact, but also loses the enthusiasm of these internal champions and sponsors for the D&I agenda.  Companies want individuals to progress and thrive within their business. 

Business of Trust

9. It is imperative that that growth of the financial services sector is inclusive, responsible and sustainable. Last year, the Lord Mayor of London, Charles Bowman, launched the Business of Trust initiative[4], which seeks to drive a wide-ranging responsible business agenda that inspires organisations to operate with integrity and grow their positive impact – economically, socially and environmentally. Promoting gender diversity is an important part of this agenda, particularly in relation to attracting and retaining talent. 

The ‘She Can Be’ campaign

10. The City Corporation actively supports girls to have a broader awareness of the careers and opportunities open to them.  In February this year, the She Can Be campaign was launched, led by the Lord Mayor’s Appeal in partnership with Girl Guiding UK.[5]

11. Overall, 25 companies participated and gave young women (aged 14 - 18) and businesses the opportunity to collaborate, and for the City to inspire the young women by highlighting the key skills they need, and already have, for the future workforce.

City Bridge Trust

12. The City Bridge Trust (CBT), the City Corporation’s charitable arm, aims to tackle disadvantage in Greater London through grant making, social investment, encouraging philanthropy and influencing social policy.

13. CBT’s recently launched 2018-2023 strategy, ‘Bridging Divides’[6], commits to a new vision for London to be a city where all individuals and communities regardless of their sexuality, gender, ethnicity and ability can thrive, especially those experiencing disadvantage and marginalisation.

March 2018