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Race at the top: leadership talent pipeline falling short of UK demographics

One of the best pieces of news from last month’s general election result was the increase in Black, Asian and Minority Ethnic (BAME) MPs, which has risen from 27 in 2010 to 42 today

One of the best pieces of news from last month’s general election result was the increase in Black, Asian and Minority Ethnic (BAME) MPs, which has risen from 27 in 2010 to 42 today. However, whilst this increase represents a significant step forward, if Britain’s BAME population were proportionally represented in the chamber, there would be 117 non-white MPs – more than double the number currently in Parliament. This highlights the gap between BAME representation in the general population and in the top jobs – a gap need to take steps to address.

We know that there is still chronic BAME under-representation in the workforce, particularly at senior levels. Last year we published our report ‘Race at the Top’, which found that the number of BAME people in top management positions has dropped by over 21,000 between 2007 and 2012 – and that, unless action is taken urgently, the gap between BAME representation in the workforce and in management roles will only continue to get wider.

Additionally, BAME managers and professionals tend to be concentrated in specific careers, with three-quarters of BAME managers in just three sectors: public administration, education & health; banking, finance & insurance; and distribution, hotels & restaurants. By contrast, only 6.6% of head teachers, 3.3% of police ranks of chief inspector or above and 2.4% of officers in the armed forces come from BAME backgrounds. There are also just 62 BAME FTSE 100 directors – and no BAME FTSE 100 CEOs – and only two BAME Cabinet members.

Although recent reports have found that 10.3% of BAME people are in ‘class 1’ roles such as doctors, lawyers and civil servants, there are stark disparities between BAME groups; 4.2% of Bangladeshis fall into this group compared to 15.4% of Indians. This suggests that not only are many UK sectors still closed off to BAME people, but that those who are able to access these professions have yet another set of hoops to jump through if they want to progress in their careers.

These findings should set alarm bells ringing for all employers – private sector and public sector policy makers alike – as it is vital that their workforce reflects the clients, customers and communities they serve at all levels.

What can business do to address these gaps and give all employees the chance to succeed, regardless of ethnicity?

Our Gender and Race Benchmark 2014 found a number of approaches employers can take that correlate with reducing the disparity between BAME and white employees’ promotion rates. Monitoring the talent pipeline, making inclusion competencies part of leadership frameworks and testing managers on their ability to be inclusive via 360-degree feedback all have a positive impact. Organisations with high BAME promotion rates were also more likely to have strong employee networks that have a senior executive sponsor, have clear roles and responsibilities aligned to supporting business development, and are also consulted on by the business on policy and business practices. The 2015 Benchmark is now open and offers a great opportunity to see where your organisation currently stands on diversity in order to develop action plans for the future.

We also have a number of case studies from employers who are leading the way BAME progression within their workplaces, including the Crown Prosecution Service, HM Revenue & Customs, the Home Office, and National Grid. They offer excellent examples of best practice and I would encourage other employers to look at how they can implement similar action within their own organisations.

However, addressing promotion rates must go hand-in-hand with identifying employees with high potential for leadership roles, including those from BAME backgrounds. Our 2014 Benchmark also found that BAME employees were less likely to be rated in the top two performance categories for performance appraisal or to be identified as high potential and selected for leadership training.

Despite this, there are actions being taken that are having a positive impact on the progression of BAME employees in the workplace: transparent selection criteria, unconscious bias training for board members, actively promoting development programmes to BAME employees and monitoring their uptake, and making line managers accountable for BAME employees’ progression through personal performance objectives.

A small but significant achievement from our campaigning last year should drive this agenda forward. In the preface to the 2014 Corporate Governance Code (Sept 2014) and formal notice of consultation in 2016, the Financial Reporting Council redefined diversity as “gender and race”.  

However, there is still more government can do to tackle the issue of BAME representation at the top. We have seen the impact on female representation on boards that the Davies review had, and would like to see the new government take forward a similar review for ethnic minorities. An Ethnicity and Business Council looking at leadership pipelines, education, enterprise and progression at every stage of people’s careers would be even better.

Changing demographics can’t be ignored: in the UK one in four primary school children secondary school pupils now come from a BAME background, and Leeds University has projected that BAME people will make up a fifth of the UK population by 2051. Better alignment with increasingly diverse employees, customers, clients and service users will enable employers to compete in an increasingly diverse global environment.

Currently, the idea of an equal Britain at the top does not ring true, but we can build momentum as race rises to the top of the employment agenda. Now we need to ensure that this new impetus is not lost. Employers need to take action now to build diversity into their talent pipelines. This is about business being fit for the future, not a nice to have.

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