Financial services firms are falling short on improving diversity and need to do a better job of recruiting more women and minorities, according to a new report from PricewaterhouseCoopers LLP (PwC).

Specifically, new research from PwC finds that although 76% of financial services sector employers report they’re actively trying to attract female talent, only 36% have seen a rise in female applicants and just 25% have been able to recruit more experienced women.

“Diversity and inclusion is still more of a high-level commitment than a reality on the ground within many financial services organizations,” the PwC report says.

The results are “disappointing given the significant focus we have seen financial services companies put on this issue compared with other industries — indicating that more effective interventions and actions are needed to get the results firms are looking for,” the PwC report states.

The employers PwC surveyed “mainly blame a lack of sufficient candidates” for the lack of progress, but that employees in the sector “point to the lingering assumptions and stereotypes so many women in financial services continue to face,” the report notes.

“It’s too easy to blame a lack of sufficient candidates for difficulties in recruiting women and people from minority groups,” the PwC report says. “In reality, there are plenty of candidates who would be ideal for your business but require a more active approach in targeting and attracting them.”

As a result, financial services firms need to “walk the talk” when it comes to diversity, the report states. This includes rooting out organizational biases; casting a wider recruiting net; creating accountability by actively targeting diversity and measuring progress; and utilizing technology to eliminate biases and enhance recruiting.

Less than 30% of financial services firms surveyed for PwC’s research said they’ve “shared information about the diversity of their workforce and leadership team,” and less than 40% “communicate their diversity strategy and associated targets,” the report notes.

“Candidates want an honest picture of the employment experience and culture before making a decision on where to work,” the report says, noting that 69% of women surveyed “looked at the diversity of the leadership team when deciding to accept a position with their most recent employer.”

Furthermore, 74% of women said they “explored whether an employer had positive role models similar to them before accepting their most recent position.”

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In addition, firms should treat their diversity performance as a reputational risk, the report suggests.

“Diversity and inclusion have become key reputational issues. To manage these risks, businesses can start by gauging how their organization is perceived on diversity and inclusion and what risks and opportunities these perceptions open up,” says Jon Terry, human resources consulting leader with PwC Global, in a statement.

“Even if the organization is behind the curve on diversity and inclusion now, they may want to consider opportunities to get on the front foot by acknowledging that there is more they want to do and setting out plans for accelerating progress,” he adds. “Such openness and resolve can make a favourable impression with current and potential employees and among other stakeholders.”

PwC’s report is based on a survey of 276 employees working for various financial services sector firms and employer representatives from 55 firms, including 33 banking and capital markets firms, 11 insurers, eight asset and wealth managers and three financial technology firms.

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