New research: trustee diversity is growing, but recruitment remains a challenge
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New research from mallowstreet and Cardano shows that EDI (Equality, Diversity, and Inclusion) initiatives are yielding real results and greater diversity is taking root, with more schemes and trustee firms recognising the benefits of diverse perspectives.
Shifting from Awareness to Action
Over the past three years, the UK pensions industry has made notable progress in diversity. Trustee boards are becoming more balanced in terms of gender and age, but wider representation remains a work in progress.
- 71% of pensions professionals believe diversity improves governance and decision-making.
- 28% of schemes now have trustee boards where women are equally represented or outnumber men.
- 21% report that at least one in five trustees comes from an ethnic or cultural minority.
However, despite the increased focus on diversity, EDI target-setting has stalled, and recruitment practices are still limiting access to a broader talent pool.
Recruitment Gaps Threaten Progress
While many acknowledge that diversity enhances decision-making, trustee recruitment remains a major challenge. The industry still struggles with underrepresentation of certain groups, including people who identify as LGBTQ+, veterans, gender non-binary individuals, and people with disabilities or neurodivergences.
- 45% of trustee boards say their top challenge is attracting diverse talent.
- 39% of schemes plan to update how they communicate new roles to attract more diverse candidates, but more action is needed to grow the talent pipeline.
- However, fewer than a third of schemes and trustee firms have set EDI targets, fearing tokenism and limiting their talent pool.
The 2024 EDI Report explores:
- How diversity is evolving at DB, LGPS, DC schemes and professional trustee firms
- How EDI initiatives are impacting decision-making, teamwork and inclusion
- How nominated and professional trustees impact diversion and inclusivity
- Evolving recruitment practices and talent development in the pensions industry
- EDI influencers and decision-makers that can meaningfully impact the journey
To access the full findings and recommendations, download the EDI Report 2024 now.
Would you like to shape the next phase of our EDI research? Let's talk - book a call with us today.
