On the 12th June 2024, Sustainable Trading member Instinet hosted a summer panel and drinks event for members, which included an in-person panel discussion. Moderated by Sustainable Trading’s Sustainability Consultant Viki Leibow, the panel comprised of Asha Patel of Instinet, Francis Ritter of Vanguard, Michelle Rodrigues of Instinet and Simon Steward of Capital Group.
The discussion focused on the journey to improving diversity in the trading industry, looking back at how attitudes towards DEI have changed over the years and explored what steps we need to take to promote inclusive recruitment, retention and culture across the industry.
Embracing a more diverse and inclusive workforce
A key question for the trading community is why the industry has not progressed at the same pace as other industry segments with respect to embracing a more diverse and inclusive workforce.
Attracting employees is an area to be worked on. Younger generations don’t necessarily attach the same cachet to working ‘in the City’ (or financial markets generally) as previously, focusing their attention on more contemporary technology-native segments. Research on the Gen Z age group has shown that for many, if not most, work/life balance is considered more important than pay.
It has been shown that younger generations also care about companies’ sustainability and inclusion efforts and how it will value their contribution as an employee.
Industry Perceptions
It’s acknowledged that the trading industry suffers from a more negative image regarding diversity and workplace behaviours, that do not align with modern expectations of what constitutes acceptable business practices and working conditions. While this may be more perception than reality, it does impact the attraction and retention of new talent. The trading environment’s unconventional working patterns – early starts, long hours and unpredictable and demanding workloads – are also often cited as deterrents for certain segments of the workforce, for example those with young children. There may also be a perception within firms that traders are too busy to show the ropes to enlighten other internal and external interested parties about what they do and why.
These challenges are not insurmountable, however, and could be addressed with a more open approach to job-sharing, flexible working and greater encouragement of potential recruits to explore a career within the trading environment.
Accessibility and opportunity
One of the challenges of improving diversity in the trading industry is that it may not be presented as, or perceived to be, a particularly accessible career or employment opportunity. In fact, the financial services industry as a whole may seem inaccessible to those without direct visibility to it, whether through family, community, education or peer groups. Undertaking positive action, such as introducing the career opportunities available in the industry much earlier than at traditional under-graduate level is important, for example engaging with teenagers through school career development programmes to explore the relative merits and opportunities offered by a career on a shop floor or on a trading floor.
Positive action also means targeting underrepresented groups. One firm represented on the panel is a partner to a charity that focuses on improving socio-economic mobility for young adults from disadvantaged backgrounds, with success stories from university and intern placements. One member of the panel shared their experience as trustee of a charity that mentors young women from less advantaged communities to provide visibility to opportunities available in different industries – trading environments, law firms and other professional sectors – highlighting how this can not only improve the industry diversity but also offer paths towards upward mobility.
Retention
Mid-career development constraints continue to be imposed on many women who have taken time out to have children, for example, impacting their progression and representation at executive level. At the same time, recent global events like the pandemic have made jobs more flexible and accommodating (e.g. remote working), and potentially more accessible to people hitherto ‘excluded’ from traditional trading roles. Management being open to condensed work weeks, job sharing and other forms of flexible working can help retain employees with outside responsibilities.
Ironically, in the trading environment, retention poses a unique challenge in the form of lengthy employee tenure. A “once a trader, always a trader” mindset can mean that individuals stay in roles for far longer than is typical in other industries, which can limit opportunities to introduce new talent. Similarly, employers often look no further than the existing talent pool when filling positions, rather than widening the net to other industry segments and sectors. l
Routes to Greater Diversity
Internal Mobility
One route to greater diversity is through internal mobility, supported by inhouse programmes that encourage interested employees to take a dip into the trading environment. For some firms, this can simply be a question of creating visibility to the trading function and making it possible for people to get a first-hand understanding of the roles, actors and purpose of the function, mitigating perceptions that it’s hard to get into and/or a uniquely demanding working environment suited only to a special type of individual.
Lead from the Top
Another way to foster a more diverse and inclusive environment is through leading by example. It wasn’t too long ago that paternity leave was first introduced. There was initially – and still in some cases today – resistance to taking it until managers led by example and made it easier for others to follow suit. In this instance, a cultural and mindset shift was required beyond ticking an employee benefit ‘box’ to give individuals confidence that there would be no detrimental impact on their role or career. Similarly, leadership teams should lead by example in their participation in communities (internal and industry-led) that influence and promote career advancement.
New entry points
There has been some progress in creating new joining routes for the ‘Gen Z’ entry level talent pool, with many firms recognising that ‘book smart’ doesn’t always equate to ‘work smart’, and acknowledging specific educational backgrounds and academic achievements may not be the only way to identify talent. To this end, some firms have adopted ‘apprenticeship’ programmes that combine an ‘on the job’ apprentice role with a sponsored university course. By the time individuals graduate, they have three years’ work experience under their belt and often, additional financial market-specific qualifications and accreditations. In our own employee workplace experience survey, we asked respondents about how they entered the industry; responses already indicate a growing number of entrants in apprenticeship schemes.
Overall, the sentiment of this informative and engaging discussion and audience questions was that many of the obstacles and challenges to achieving a more diverse and inclusive trading environment remain centred around the need for firms – and the broader industry – to commit to a more proactive approach to moving from stated ambitions to strategies and policies that deliver actual change. The progress being seen is applauded and welcomed, but there is still some way to go in achieving a meaningful shift to a more diverse and inclusive trading environment.