Diversity and inclusion are essential to tackle financial talent shortages

Key findings:

• 64% of UK financial professionals prioritize diversity and inclusion when choosing an employer.
• Additionally, 76% of Gen Z employees rate diversity and inclusion as one of the top factors when searching for a job.
• 46% of Gen Z believe their organization focuses on things like gender diversity more than other important areas like neurodiversity.

Almost two-thirds (64%) of UK financial professionals rate diversity and inclusion as important factors when choosing an organization to work for, new survey data reveals.

This wake-up call for employers was revealed in the largest global talent survey across the accounting profession, conducted by ACCA (The Association of Certified Public Accountants). The latest annual Global Talent Survey 2024 provides a unique and important insight into how people feel about their work life in the financial industry.

“Talent shortages and the cost of meeting salary increase demands, as well as the many job opportunities available to professional accountants, mean that talent acquisition and retention is an ongoing major challenge for employers. It’s no surprise that the number of respondents planning to leave remains high this year at 54%,” said Jamie Lyon, Global Head of Skills, Sectors and Technology at ACCA.

“However, 64% of respondents said a strong culture of diversity and inclusion was an important factor when choosing an employer, and employers who are strong in this area have the ability to differentiate themselves in a competitive market. There is a real opportunity.”

Diversity and inclusion (DE&I) strategies are not new, but they have become increasingly important among financial talent when choosing where to work, and employers need DE&I to attract and retain the best talent. There is pressure to implement policies.

The newest generation of talent, Gen Z, is likely to put DE&I at the forefront of their job search, with 76% of this age group rating DE&I as an important factor in choosing an organization. ACCA research draws on a wealth of research showing that Gen Z is more principled than older generations, and that working in a diverse and inclusive environment is more important to them than pay. It’s backed up.

How can you make sure you have the right people?

As it becomes more important for companies to attract and retain talent for the future, understanding what employees truly value from their employers is not just about knowing, but about implementing and taking action. It has become important to move.

As the cost of living crisis continues, it is no surprise that 50% of UK financial professionals plan to ask for a pay rise in the next 12 months. Additionally, 49% believe the best way to secure a raise is to leave their current organization. And with 54% of finance professionals expecting their next career to be outside their current organization, employers need to embrace this insight and take steps to retain talent.

Without strengthening other workplace factors, such as diversity and inclusion, hybrid work models, and mental health support, employers face the real possibility that half of their current workforce could move within the next 12 months. ACCA believes that there are significant risks.

“The latest Global Talent Trends Report sheds some interesting light on the situation around the world and here in the UK. The UK has excelled in some areas, such as hybrid working and providing mental health support, but DE&I policy is clearly an increasingly important factor for financial professionals,” said Gemma Gathercole, Strategic Engagement Lead for the UK at ACCA.

“Equally important are skills and training. Industry is excited about AI, but 54% say they have not developed the skills needed for the future workplace. “Finding ways to support the implementation, attract and retain a diverse workforce, and remain competitive in terms of pay and job opportunities is something ACCA will continue to support our members through education and policy support.”