Industry diversity shows little improvements, but firms step up on data collection

The investment industry is improving its collection and voluntary disclosure of diversity data, but the demographic make-up of the industry shows little sign of improvement in terms of overall representation.

The Investment Association and PwC have jointly published the third annual Talent Report: A Demographic Snapshot of the Industry, which captured data across eight attributes: age, caring responsibilities, disability status, ethnicity, gender, neurodiversity, sexual orientation and socio-economic background, from 45 UK investment management firms, employing around 29,000 people directly.

It found firms are collecting data against a wider set of characteristics compared with previous years, with 75% of respondents collecting data across at least six of the eight characteristics listed above. Age (94%), gender (92%) and ethnicity (82%) had the highest disclosure rates, the report said, with disclosure of socio-economic background data showing a marked improvement from a rate of 49% to 57%. However, the IA said, while these voluntary disclosure rates increased slightly year-on-year for most demographic characteristics, disclosure rates remain lower for sexual orientation (62%), disability (53%) and neurodiversity (47%), highlighting the need for continued efforts to build confidence.

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Karis Stander, director of culture, talent and inclusion at the Investment Association, commented on the findings: “Consistent collection of demographic data remains vital for understanding the composition of our industry’s workforce and tracking its evolution over time. This year’s report reveals firms are expanding both the breadth and depth of data gathered, providing clearer insights into workforce demographics despite the absence of a regulatory requirement to do so. While data collection is on an upwards trajectory, and the demographic make-up remains steadfast year-on-year, we recognise that building trust and encouraging disclosure remains a journey.”

However, there were little signs of improvement in terms of industry representation with this year’s figures remaining broadly stable year-on-year. For example, around 58% of the workforce is male, compared to 41% female – slight increase in women year-on-year – but overall representation by ethnicity remained the same between 2023 and 2024.

The IA explained under two-thirds (63%) of employees identify as white, while Asian and Black employees account for 11% and 3% of the workforce respectively. Disability representation also remained relatively stable at 4%, with a high non-disclosure rate of 47%, the report found.

Katy Bennett, workforce reporting lead at PwC UK, said: “To fully unlock the potential of a workforce through the lens of equity, diversity and inclusion (EDI) starts with understanding where organisations are today, where barriers remain and where opportunities exist. Collecting and analysing workforce data provides the foundation for that understanding. It enables firms to identify patterns, measure impact and make informed decisions that lead to meaningful and lasting change. The industry’s ongoing commitment to transparency and accountability is encouraging. However, to shift the dial, the data needs to be used to create evidence-based insights that are used to drive action.” 

More positively, the data also found that accountability for DEI strategies lies increasingly at the top of firms, with 61% of respondents identifying CEOs and executive leadership as accountable, compared with 59% in 2023.

This, the report said, shows the industry continues to align with DEI values despite some rollbacks on diversity initiatives in some parts of the world. Economic and geopolitical uncertainty, shifts in the workforce, and rapid technological advancements are all reshaping how companies work.

“The investment management industry is navigating a period of significant change. Economic uncertainty, geopolitical tensions, intergenerational workforce shifts and rapid technological advancements are reshaping organisational structures and how work is performed, while also influencing the composition and capabilities of our workforces. At the heard of this transformation are the people who drive our industry forward – their skills, experiences and perspectives are essential to building firms that are resilient, innovative and competitive.”