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Having broken away from working in our parent’s corner shops and restaurants, second generation Asians like myself are now often stereotyped for following professions such as medicine, law or dentistry.
But you only have to walk through the office of any major bank in the Square Mile or Canary Wharf to see that blacks and Asians make up a sizeable number of the total employees. Gender diversity seems to receive a lot of attention in the media, but racial diversity less so.
During my ten-year career in the City I worked at both investment banks and vendors consulting across pretty much every major trading floor in London and New York. It became apparent to me that the majority of black, Asian and other ethnic minorities are well represented (or perhaps over-represented) in certain areas such as technology, operations and at junior to mid-level management positions.
However, it’s also quite clear that this diversity does not necessarily extend to front office and more senior positions in many firms. Given the large numbers of ethnic minorities that have entered the industry over the years, why is diversity not extending to senior level and client facing roles?
There’s no clear answer to this. An article in the Harvard Business Review blog recently stated that although Asians in the US make up 5% of the total workforce, they only account for 1.8% of Fortune 500 CEOs and barely 2% of board members.
Some argue minorities come from less privileged educational and social backgrounds and therefore struggle to reach the upper echelons at blue-blooded institutions. Others (controversially in this article) state that some ethnic minorities tend to have less aggressive personalities due to their cultural or religious backgrounds.
In fairness, a lot of the larger banks have been investing in diversity initiatives for many years now. I would argue that some bulge bracket US investment banks, and I’ve worked in many, have done very well to ensure the workforce is racially diverse from the CEO downwards.
However, there’s still a big disparity within many European, small and mid-cap banks, as well as buy-side firms, where you would have to be blind not notice that there is a distinct lack of diversity at senior level.
But on the flip side, consider that many of the major Indian consulting firms now expanding in the West also lack white and European nationalities in their senior ranks. The importance for diversity in Eastern firms is just as important for their business in the West and globally.
It’s human nature, at a subconscious level, to like people that are similar to us. There’s also pressure to follow what is seen as commercially viable to keep a team or organisation’s demographic the same.
However, a diverse workforce benefits business by utilising people with distinctly different backgrounds and upbringings to solve problems in uniquely different ways increase creativity and innovation. In addition, due to the huge growth in China and India and an increasingly global marketplace, diversity of senior staff in financial services firms is already gaining rapid attention for the right reasons.
Finally, it’s important to realise the importance that head-hunters and recruiters play in the process of diversity. It is recruiters that shortlist the candidates that are put forward to hiring managers, so it’s just as important that the recruitment industry educates itself around diversity and takes the subject seriously rather than just a check box exercise or marketing ploy.
Whether considering ethnicity, gender, age, culture, sexual orientation, disability or religious belief, diversity will play an increasingly important topic in our careers.
Diversity does not have to be about controversial quota systems or arguing about ‘glass ceilings’, but when focused on the business case for diversity, understanding how we behave, how we can change this and in light of the rapidly transforming global market place, diversity can be considered from a more positive and thought-provoking perspective.
Kuljeet Chahal is managing director of Vivacity Executive Search & Selection: a niche recruitment company specialising in project, programme, and change management professionals to the financial services and consulting industries. Vivacity organises regular networking events around gender and race diversity to raise awareness of issues and assist organisations in recruiting from diverse talent pools.
Great article and good points raised, this is definitely a topic that needs more focus and attention.
One lame excuse that I hear a lot about for people from minorities is that they lack ‘gravitas’ to excel in senior positions.
Because of discrimination.
Subversive racial discrimination?
Great article. Recruiters have a part to play and it’s nice to see some positive education.
Good points. This seems to be an overlooked issue – perhaps a topic people in the industry are afraid to discuss.
Some very interesting points raised but from my experience both bankers and head hunters are driven by the bottom line and their bonuses so it will take some until they are forced to react to the demand from emerging markets in recruiting staff that understand these new client bases. It is inevitable that things will have to change. Perhaps with a bit of education an insight they can start changing faster and for the right reasons.
Having workedin Investment banks for my career as well, in technology, operations, and consulting environments I would have to agree that there is a significant representation of asians and blacks.
I do not think mal representation at the senior levels is due to discrimination however, and I therefore don’t think anything needs “to be done about it”. Having also worked as a headhunter, I can say that this and most industries work in a meritocratic way.
I have met some incredibly successful minorities (including my wife) who have got there due to their own capability without any need for “diversity policies”.
My personal view is that getting to full “parity”, which seems to be how diversity justifies itself, will take a number of generations. No matter what colour, sex or creed one is, it will take time to get the same foot up on the ladder that Tarquin got when his investment banking father sent him to Eton and got him an internship before going to university.
There will always be exceptions that prove the rule but it will take more than one generation.
Discrimination is institutionalised, especially where I am. Have seen it for myself.
Err sorry but “professions such as medicine, law or dentistry” this is hardly bottom of the foodchain isn’t it???
Diversity for diversity’s sake is pointless. How “diverse” are the top levels of Indian / Chinese / Japanese institutions?
Be the best end of story. Some “minority” guys did it, do it yourself.
This article touches upon some important issues. There are multiple factors that have contributed to the lack of diversity, (gender or race) found in senior positions. Recruiters do have an important role to play but the media also need to continue to highlight this area to promote positive change.
Tarquin Golombu was in my house at Eton. Indeed his father did get him an internship after Uni but he returned to his native Ghana after 2 years at Goldman.
French dude I think you misunderstood, the article covers that already i.e. diversifying the Indian consulting firms. Diversity is such a misunderstood subject, well done for having the guts to bring these points out in the open.
Very good comments and perhaps needs more focus as it is definelty overlooked in the industry, as I work in the recruitment industry, we have to take responsibilty in some part for this , and start educating businesses.
Asians are overrepresented in investment banking and finance on every level and in every business area. Asians and Blacks make up less than 3% of the British population but the proportion of Asians and Blacks working in banking (even senior levels) is higher.
This is not the US where the proportion of ethnic minorities in the whole population is much much larger (30%) and hence have more minorities represented in business as well.
This is the UK in Europe, not Asia or Africa. Get on with it.
It’s like complaining about Nomura having only a small group of Whites in their Tokyo headquarters.
You are just a bunch of unemployed ethnic minorities trying to play the race card, too transparent.
The recruiters and banking HR teams need to welcome more diversity into their firms for ethnic minorities to achieve senior roles. There is light at the end of the tunnel though with Citi and Deutsche Bank both headed by Indians. Hope even more people can further their careers as they have done.
Interesting article and would further add that really representation at senior level should really be based on merit. As Asians and Afro-Carribeans are relatively new into this field in time they will be recognised and would be represented at more senior levels. I think in there is more chance of this happening in the West than in the East.
It’s cos sales and ibanking are truly a skilless jobs, other than a capacity to work long hours, and so people pick people who ar like them – don’t think it’s just ethnic discrimination, ageism, prejuidice against so called over-qualified (codeword for eithe too old I guess or worse – “you are’nt like me so no thank you”,) Whenever there is a high paying job that really anyone who is willing to work like crazy could be trained up to do discrimination will be rife…
@Face It – your racist comment is clearly indicative of your intelligence and you clearly haven’t read the article properly, it’s not about ‘playing the race card’ but realising that a workforce that is representative of it’s client base (which is growing rapidly and diversifying globally in banking) will be able to respond to it more effectively, whether that’s more white people joining Nomura’s senior board in Tokyo or more Indians joining HSBC’s senior ranks in London.
There are business benefits to this which is why all the successful and larger global banks are taking diversity very seriously and investing millions into it: case in point JP Morgan and Goldman Sachs.
Ethnic minorities don’t want any privileges and most people I know disagree with the quota system that exists in some countries (which goes for gender diversity too) but there has to be change now that the world is changing so fast and power is shifting west to east. If you can’t face it go take a one way ship to a foreign desserted planet.
Great article around a very controversial area
Asians and Africans are more welcomed in the West than a White person in the East. Maybe I am wrong! However the banks have stepped up hugely to represent minorities!! Concerning point is that a lack of opportunities are for British people (all skin colours). More foreign people dominate the iBanks!
There once was a time where Asian would give their right arm to move west and work. Now the power has shifted. There will be a time where people in the West will go to the East. No such thing as the west anymore, it’s the west and the east. Globalisation.
Good Article, Kuljeet. I can see that there is a clear mandate for the managers to give preference to white candidates. This has come to me from horse’s mouth but what can managers do, they just cant do much about it as there are not enough good candidates who are born and bred here in UK. White managers themselves are fed up as white candidates lack work ethic, they still have to go for minority candidates.
I am sure sooner rather than later, this will correct itself as the candidate pool is shrinking.
Lets just ignore who’s actually qualified and best for the role and hold up a Dulux card to find out what colours the firm is missing in front, middle and back office.
Face it most people know there is always a nationalist streak in all banks. Global politics affect banks, find me a Libyan/Afghan national running a US/UK investment bank or a buy side house, I would love to see that.
The world is never fair. You want a fair and diverse world go live in The Sims you can create plenty of diversity.
@french dude
It is easy for you to talk because you are a white guy with a blue eye and by definition you are on the right side of the balance…..lets talk a bit about France? the diversity there is close to zero….
French banks/insurance in London hire indians and blacks in majority in IT and backoffice….and hire only french dudes in the front office positions……
so yea I agree with you when you say “do it yoursefl” but if I were you I would not start doing patronising comments when you never really experienced discrinimation in your life
Great article and interesting debate going on here.
As an Indian American who works in London:
1) Investment banks are meritocracies, end of story. Minority CEOs: Morgan Stanley (Arab John Mack), Merrill Lynch (black Stan O’Neal) & Citi (Indian Vikram Pandit). DB will soon also have an Indian CEO in Jain.
2) Not to be rude to my British Indian cousins but to the extent you lag it is because you mostly lack the necessary soft skills, cultural skills, confidence, finesse etc. You grow up in Indian bubbles then wonder why you can’t relate to all kinds of other nationalities. You can be isolated and aloof when you run corner shops, but you have to embrace your new country fully from birth (as we do in the US) in order to be able to lead mainstream organizations.
3) Racial stereotyping is more profound here than the US, but I would not equate this with “racism.” While UK Indians have struggled in management, US Indians have led the following: (Citigroup, Pepsi, United Airlines, McKinsey, HBS, the states of Louisiana and South Carolina, etc.), US Indians have also led Orange, Vodaphone, INSEAD, etc. Europeans have had no problem with US Indians leading important companies. The answer then is clearly less of race than of m
Being a female of colour in financial services and a lawyer, I have experienced not only a glass ceiling but also discrimination because of the colour of my skin. How many non-coloured financial services in house lawyers are asked “which back waters of India did you get your qualifications from?” ” Are you a qualified lawyer?” by management and senior management? I have 3 degrees from one of the top ranked universities in world (not based in India).
The answer is that financial services is still masculine and of no colour. Being of colour and /or female is not board material or marketable for the Anglophile companies.
@ Frenchdude
Most of French banks and consulting firms discriminate to a great extent against Blacks, Arabs and Asians.
Take Tidjane Thiam for example. He even wrote an essay for a French think tank about his own experience and why he moved out of France http://www.facebook.com/note.php?note_id=327470454783
My Arab friends from Ecole Polytechnique, one of the best engineering schools in France, have also moved to the US for work.
A female French recruiter told me that French bosses tend not to hire Asians because they think Asians are not sociable and do not have good communication skills. I really apreciated the fact that she told me this, although there maybe other reasons she did not want to tell.
There you go frenchdude, so much for your patronising comments whatever ethnic group you belong to.
France has a very idealist philosophy that every French person is French, there is no such thing as a Black French or an Arab French, (the country therefore do not collect statistics on ethnic group). This is very liberal and a dream for immigrants. In reality though, not all French think this way given the examples above.
Are you sure your name isn’t Harriett Harman???
“Diversity” is a term for HR types to fill blank pages on powerpoint – we are in business, not social experimentation.
Any hiring manager that got the slightest sniff that a recruiter was pushing CVs on the basis of achieving some sort of race quota has a duty to sack ‘em.
Jenni – your role is to provide quality candidates to hiring managers, nothing more.
Pick the best candidate for the role – simple.
BTW – the last person I hired was Nigerian – purely on the basis that he was head and shoulders above the other candidates.
@ indian American banker,
Dont make this into an American V British thing, British Indians are more then capable of the top jobs and the skills and experience is evident.
Also this ‘indian bubble’ you speak of is irrelevant, we are actually proud of our Indian roots and culture here in UK.
Bottom line is the top hierarchy favor their white colleagues more than those of other ethnicity’s and it really needs to change.
but you’re all harder to sack..
What’s next for an Brit Indian like me? Completely give up on the idea of getting a job in FO?? I am ambitious just like you guys.
Being an Asian female of a very fair complexion and grey eyes, you would be very surprised at the change of attitude of employer’s as soon as they find out that i am the daughter of a Sikh immigrant. Anyhow, great stance on a rather controversial subject indeed.
‘….During my ten-year career in the City I worked at both investment banks and vendors consulting across pretty much every major trading floor in London and New York. ‘
well it sure helps to have poster boy good looks huh Kuljit. So whats your email add??
@kashima
It is Kuljeet not Kuljit…please dont get our fashion boy upset…..
that when Kenyan government people asked me ‘to serve us BLACK people’, I just realized how would we suffer if blacks were majority of the population. Just take a look at Zimbabwian or South African white farmers and their attacks from the Blacks. And it is happening now. Enough said.
@ i’m afraid.
I think your fear is unwarranted if it is the victim you fear and not the oppressor.
Diversity, both the topic and the ideal is so over-rated and distracting. Every so often, this topic rear its ugly head, get’s discussed ad nauseum and then disappears into the night like a “ghost”.
Some things will change regardless, and some things won’t. “You” will only win, and not be phased by the racism that is orchestrated, managed and rewarded by the powers that be, when you realize that the more things change; the more they remain the same…generation to generation…
Change begins with “YOU”.
Great discussion, though it seems some haven’t really read or understood the article properly.
Diversity isn’t about quotas or getting preference, it’s about fairness of opportunity in the work place irrespective of colour, gender, disability, orientation etc. Now more organisations are realising it also makes good business sense for the workforce and management makeup to reflect their clients and target markets. Global companies increasingly see lack of diversity as something that can restrict growth into new markets keeping this an ongoing and relevant topic for next decade and beyond. Diversity and the cause and effects are still evolving. And yes, this means Indian and Chinese companies will be hiring more non-Indians and non-Chinese as well !
Kuljeet has provided a balanced insight into a difficult subject showing the business advantages and has highlighted the role recruiters play in diversity by ensuring hiring managers see ALL the best candidates for a role.
I work in a traditional asset management company and it’s the same old story over here. The Oxbridge types (overwhelmingly white and upper/middle class) get the best jobs (fund managers and research analysts). The Asians are usually in the back office and IT areas.
I think that American companies are more meritocratic and the European ones, as their culture is based on mass immigration. In Europe, Asian are expected to “know their place” and keep their heads down.
So for in the UK, if you’re an “old school tie”, from Oxbridge, you’ll be invariably white and middle/upper class and you’ll be fast streamed into the best jobs.
If you’re an Asian, from a red-brick university in a workclass town, with no good connections, you’ll go to the dull back-office or IT jobs in a bank.
I work in a traditional asset management company and it’s the same old story over here. The Oxbridge types (overwhelmingly white and upper/middle class) get the best jobs (fund managers and research analysts). The Asians are usually in the back office and IT areas.
I think that American companies are more meritocratic and the European ones, as their culture is based on mass immigration. In Europe, Asian are expected to “know their place” and keep their heads down.
So for in the UK, if you’re an “old school tie”, from Oxbridge, you’ll be invariably white and middle/upper class and you’ll be fast streamed into the best jobs.
If you’re an Asian, from a red-brick university in a working class town, with no good connections, you’ll go to the dull back-office or IT jobs in a bank.
@bright smark “this ‘indian bubble’ you speak of is irrelevant, we are actually proud of our Indian roots and culture here in UK.”
Are you trying to prove my point or yours? Truth is you are not only isolating yourselves but the “Indian roots and culture” you are talking about doesn’t even exist anymore. The educated class in India has embraced the 21st century global order and are better equipped to excel in the City while most of you are stuck holding on to antiquated piece of mid 20th century rural India and then wonder why your white colleagues discount you. Then you get predictably defensive, go on about racism and wonder why you are not accepted.
I am a friend of India and will put my knowledge of its history, business, politics and literature up against anyone. But India is not my country. My country is America and I’m darn proud of THAT. My parents rightly raised me that way.
When you guys rebalance your relationship towards India, treat Britain and only Britain as YOUR country, maybe the rest of your compatriots will trust you to run major companies and governments. Until then your complaints sound very hollow even to a sympathetic if neutral observer like
@Indian American banker
Happy that you have not experienced the challenges others have had or have been able to rise above them through hard work and determination. Large numbers of people work hard, have all the skills (including soft skills) and yet still see issues around diversity holding them back. To dismiss their problems as a lack of skills, integration, trust or growing up in an “Indian bubble” shows a poor understanding of the issues involved and an incorrect focus on diversity simply being a racial or “Indian” issue. The fixation on how “American” you are seems to be more about your own insecurities and is irrelevant because shockingly American companies also discriminate against the truest stars’n'stripes Americans. The companies you cite as meritocracies did not simply happen that way and many have gone before you to make them fairer and more diverse; there are still large numbers of companies where this is not the case. So again I do applaud your success and self belief is great though arrogance is not. A little more humility please and recognition of how your successes became possible would be good.