Racial diversity in the workplace boosts business
Many companies work hard to maintain workforce diversity. However, some fail and they could be missing out, suggests a new study by McKinsey.
Workplace diversity remains a hot topic in the corporate world. And even though studies show that greater diversity results in greater success, numbers could still be better. Racial equity has a direct correlation with profitable business outcomes. For every 10% more racially or ethnically diverse a company’s senior team is, earnings are an estimated 1% higher.
The study, which was commissioned by The Kellogg Foundation, looked at the reasons why businesses, particularly those in the financial sector, are struggling to retain and maintain, a truly diverse work force.
Representation and retention
Staff retention was cited in the report as one such issue. According to the data collected, at entry level, a Black person is 1.4 times more likely to leave a financial services firm than a white person. Black women also have the poorest representation within the executive corporate levels, and make up just 10 percent of the workforce in comparison to white men.
Reportedly, promotion rates are higher for white staff too. Black people are 50% less likely to be promoted to managerial or senior positions. The study did report that Asians fared better in the promotional steaks though and are more likely to be promoted to high level positions. Meanwhile, Latino staff are marginally less likely to be promoted in comparison to white employees. But, at executive level, that margin widens to 40%.
Overall, up to 40% of black employees perceive that it is more difficult for them to achieve promotion than colleagues of other demographics. However, an estimated 27% of Asians felt unfairly discriminated against, compared to 10% of Latinos and just 3% of whites.
The study pointed to a sense of isolation for Black employees working with primarily white staff. This sense of isolation, it stated, was often a trigger for microaggressions to take place within the workforce. Microaggressions take the form of judgment being questioned without due cause, requesting additional evidence of competence compared to other employees, being mistaken for someone at a lower level and not being recognised for the contributions offered. Microaggressions, the study stated, appear to be more targeted at Black men than any other demographic.
The data suggests the best ‘call to action’ is to first highlight the areas within the financial sectors particularly, that suffer from the lowest representation of diversity. With a view of expanding diversity, companies must then make a commitment to improving inclusion. These actions require the support from company hierarchy, so that barriers preventing diversity are removed. Specific actions required include businesses making more effort to attract more people of colour, and then make those staff feel appreciated, and in line for fair promotion.
Similarly, recruiters play a role in increased company diversity, by presenting diverse portfolios of candidates when hiring for senior positions. The study suggests recruiters could be compensated for taking such actions, while companies can suggest employees refer people of colour for recruitment.
Finally, the report suggests ‘fostering belonging’ among diverse employees, making sure there is inclusion, a sense of connection and the development of healthy, workplace relationships.
The Ultimate FinTech & InsurTech LIVE Event
From October 12th-14th, 2021, BizClik’s FinTech & InsurTech event will bring together influential executives from around the world. Streamed live from Tobacco Dock, London, this three-day event will be an excellent way to finish the year strong, gaining the confidence your company needs to move forward into the future.
With keynote addresses from global leaders, dynamic roundtable discussions, and extensive networking opportunities, FinTech & InsurTech 2021 will expand your network, deliver insight, and enhance your organisation’s reach.
Already confirmed speakers include Colin Payne, VP & NextGen FS Global Lead at Capgemini; Dipu KV, President and Head of Operations & CX at Bajaj Allianz General Insurance Company; Bryan Caroll, CEO at TNEX; and Lucy Demery, Managing Director at Barclays.
The event will include:
- Keynote addresses from respected industry leaders
- Dynamic live roundtables (inc. Q&A)
- Fireside discussions
- Inspirational Speakers & Presentations
- Extensive networking opportunities
Meet the Speakers
Each week, from now until the event, we’ll be announcing the latest speakers who are set to grace our physical or virtual stage, prepared to share their knowledge and insight with attendees.
Our second batch consists of:
Currently the Senior Vice President of Business Development & Fintech for Mastercard UK & Ireland, a position he’s held since 2014, Abraham describes himself as “a proven and successful senior sales leader with experience across a wide range of industries, sectors, and channels.”
Graduating from the University of Northampton in 1994 with a BA in Economics and Law, he worked for nine years at Sainsburys - eventually responsible for banking the company’s revenue and running its ATMs - and then Barclaycard for three years as Head of Client Management. In 2007, Abraham became VP of Client Management at American Express, and then VP and GM Global Supplier Relations EMEA in 2012.
In his current role at Mastercard, Abraham is accountable for the acceptance of all payments and products through all channels, devices, and technologies across UK and Ireland. In addition, he oversees the deployment of innovative new payment tech within the region.
Fraser-Hawkins’ role as CEO, UK Corporate, at Marsh McLennan is the continuation of a long and successful insurance career, which has included being London Sales Director for JLT Group and Branch Director for Willis Towers Watson.
Marsh prides itself on being a company that hires top-tier talent, does work that impacts peoples’ lives, and offers its employees the opportunity to make a difference. This is clearly an attitude that aligns with Fraser-Hawkins’ own values; regarding the insurer’s UK Young Professionals initiative, a support network to help young professionals in their development, he said:
"I am passionate about developing talent and our Young Professional CRG provides a brilliant community for our Young Professional colleagues to discuss key issues relevant early in their careers, as well as an environment to promote the skills, learning and network for success."
Massaro is currently the CEO of Boston fintech Flywire, a role he took on in 2013. He first joined the team in 2012 as VP of Business Development, but it wasn’t long before his entrepreneurial skills were redirected to leading the entire company’s high-growth strategy worldwide.
An expert in domestic and international payments and billing, enterprise technology sales, strategic alliances, enterprise software, SaaS, product management and marketing, and much more, Massaro is a consummate finance professional whose credentials befit the leadership of a prominent global payments fintech.
His previous positions include Consultant at PwC and Product Line Manager at Oracle, and he maintains a Mentor role at startup accelerator MassChallenge. He graduated magna cum laude from Babson College with a BS in Information Systems and Finance.
This event is set to be one of the year's most unmissable. If you want to get leading perspectives on the future of fintech and insurtech, go to Eventbrite and purchase your tickets now.