Culture, talent and inclusion (CTI) are business imperatives for investment management firms. Culture, talent and inclusion have a real impact on a company’s long-term reputation and sustainability.
It is the underlying culture that influences the way people think, act, and make decisions, which in turn impacts the inclusivity of an organisation and its talent more widely. Successful businesses create an environment where people want to work, where they feel challenged, able to use their talents, and are valued.
We want to create an equitable, diverse and inclusive UK investment industry at all levels. The Investment Association's (IA) CTI workstream captures initiatives that seek to support member firms across the whole employee lifecycle, from entry level talent to senior and c-suite roles. Importantly, this is all underpinned by equity, diversity and inclusion (EDI) considerations.
IA members can access the member-only Culture, Talent and Inclusion webpage, which acts as a resource platform for CTI related resources and policies.
The Investment Association’s CTI initiatives and resources
The Investment Association in collaboration with the Thinking Ahead Institute have launched the IA Equity, Diversity and Inclusion Data Survey 2022, our campaign to gather richer data on EDI across the investment management industry. The survey aims to, for the first time, provide us with a more detailed overview of the demographic makeup of the UK investment management industry.
As investment managers ramp up efforts to promote inclusive work environments and to attract and retain a diverse workforce, the FCA is also calling on firms to collect more robust data to demonstrate progress on EDI. It is well documented that effective EDI strategies rely on a sound data-driven approach. The IA believes that it is critical to provide an evidence-based understanding of the EDI landscape to better represent the customers we serve and to future-proof our industry.
An aggregated set of data would allow investment management firms to benchmark their journey against the wider industry whilst also gaining a better understanding of how they can drive forward meaningful change.
Our findings will be published in a report in November 2023, which will analyse EDI at UK investment management firms across different levels of seniority and business functions.
Mentoring and reverse mentoring for change
The Investment Association (IA) and #TalkAboutBlack, part of the Diversity Project, have launched the annual Black Leaders Programme, a mentoring and reverse mentoring programme for senior Black professionals in investment management.
Acknowledging the barriers to advancement that Black professionals face, this mentoring programme will aid in establishing a pipeline for underrepresented talent to leadership roles. Senior Black professionals with 10 or more years’ industry experience are paired with C-suite mentors from different investment management companies.
The programme helps mentees hone their executive leadership skills whilst equipping them with the tools and insights required to boost their careers and drive transformation within their organisations. It also provides reverse mentoring to current executive leaders by allowing them to hear and act upon insight into the lived experiences of Black people in the industry.
More information can be found here.
Investment20/20, the IA’s talent solution, drives a forward thinking, responsible and inclusive investment industry where every firm attracts, develops and retains talented people from all backgrounds. Investment20/20 is focused on creating a more diverse and inclusive investment industry. It is driven to ensure: every individual has the capability to succeed and thrive; aspiring professionals can learn, grow and create value for the firms that seek to attract and retain them; and that workforces are truly reflective of the investors, communities and people we serve. More information can be found on Investment20/20 through their website here.
External initiatives we’re encouraging the industry to support:
We voluntarily disclose our own gender pay gap figures, as we think greater transparency is essential to achieve change and increase gender diversity. We also collect anonymous data on our employees’ ethnicity through our annual Employee Diversity Survey.
More information on the IA’s CTI initiatives is set out in our publications:
Underpinning other areas of work
Due to the impact and influence of culture on the way an organisation operates and interacts with consumers, it also underpins much of the wider work the IA does, including Corporate Governance.
Culture is at the heart of how the FCA authorise and supervise firms. The FCA defines culture as ‘the habitual behaviours and mindsets that characterise an organisation’
Recognising that it is not possible to assess mindsets and behaviours directly, they have identified four key drivers of behaviour which firms can identify and manage:
• Approach to rewarding and managing people