Global firms struggle with talent progression

Financial services firms are increasingly grappling with a critical challenge concerning talent progression, as highlighted in a recent report by Progress Together, the Financial Reporting Council, and Lewis Silkin, alongside legal analysis from Ius Laboris. The report titled Socio-Economic Background in Global Financial Services: Workforce Insight and Legal Analysis Across Jurisdictions pinpoints the consistent workforce dynamics across regions that are tied to socio-economic backgrounds, yet reveals that organisations often fall short in accurately measuring these factors.

Leaders across various markets report facing similar barriers to progression, notably confidence, visibility, informal networks, and access to opportunities influencing career advancement. Nonetheless, disparities in legal frameworks, cultural norms, and data maturity restrict organisations from adopting a cohesive global approach to measurement. This creates an escalating challenge for leadership, which must make informed decisions on talent and progression despite the unavailability or inconsistency of insight.

Sophie Hulm, CEO of Progress Together, indicated that “socio-economic background is influencing progression in every market - but many organisations are operating in environments where they cannot fully measure its impact. The leadership challenge is not whether to act, but how to make confident, responsible decisions when insight is partial and context varies.”

This research interweaves qualitative insight from the financial services sector with comparative legal analysis, showcasing the global expertise of Ius Laboris. It underscores how organisations are increasingly turning to hybrid approaches in the absence of consistent data, combining measurable insights with leadership judgement and process design.

Progress Together’s forthcoming campaign, Making the Invisible Visible, is set to focus on unveiling the hidden barriers that shape progression and facilitating organisations in translating their insights into actionable strategies. Richard Moriarty, CEO at the Financial Reporting Council, remarked that “the FRC is proud to have contributed to this research, which makes clear that regardless of legal or cultural constraints, leadership commitment and deliberate action can drive meaningful change.”

The report also offers a comparative overview of what firms can and cannot measure across various jurisdictions, highlighting the complexity and necessity for legal clarity in forming organisational strategies. Richard Miskella, Joint Managing Partner and Head of Employment at Lewis Silkin, stated that “at Lewis Silkin, we see first-hand the transformative impact that socio-economic diversity can have on organisations. The findings of this report reinforce the need for businesses to recognise and address the barriers that still exist for talented individuals from all backgrounds.”

Ultimately, the report advocates for organisations to transcend mere reliance on data and strengthen the systems and leadership practices that directly influence progression outcomes. Acknowledging and addressing these invisible barriers is rapidly evolving into a crucial leadership competency rather than just a data-related challenge.