In search of gender and racial equality

know about In search of gender and racial equality

In a recent study of hiring of African-American front office distribution professionals, executive search firm Jensen Partners found that progress has been made in advancing diversity, equity, and inclusion in the workplace, but that the work is far from finished.

July 5, 2022 – The last two years have seen significant progress in raising awareness and opening a national dialogue on racism and diversity, equity and inclusion. There has been tragedy, with the murder of George Floyd, for example, and triumph with the recognition of Juneteenth, as well as the election of Kamala Harris as the first black vice president of the United States and Ketanji Brown Jackson as the first black woman to serve in the United States. Supreme. Court.

In a recent study, an executive recruiting firm Jensen Partners sought to better understand where DEI stands within the search industry, tracking 207 Black front office distribution professional hires from January 1, 2019 through June 2022. The findings offered a sense of hope combined with strong guidance for go ahead. “While progress has been made on diverse hiring, there is a long way to go to achieve true gender and racial equity in the workplace for women and people of color,” she said. Sasha Jensen, the founder and CEO of the search company. “And in working toward this goal, it is crucial to recognize that racial and gender discrimination and inequity are the context within which much economic activity exists.”

In search of gender and racial equality CONF

“Focusing only on the percentages of women or minorities in the workforce only captures part of the DEI picture and fails to address the root causes of the problem at hand,” said Ms. Jensen. “Therefore, companies need to think broadly about the impacts of systemic racism and sexism on women and communities of color and ensure that their DEI conversations focus on issues related to racial and gender justice.

In their analysis, Jensen Partners looked at data from front desk distribution professionals before and after May 25, 2020, the day George Floyd was killed, to measure the progress of racial justice protests. “We found that there has been remarkable progress in the overall number of Black front office distribution professional hires in terms of year-over-year hiring activity,” Ms. Jensen said.

more action needed

More specifically, the study found that between 2019 and 2020, hiring of Black delivery professionals increased by 50% (36 in 2019 vs. 54 in 2020), and hiring of Black delivery men increased by 76% (21 in 2019 vs. 37 in 2020). On the other hand, Black female distribution hires only saw a 13 percent increase (15 in 2019 vs. 17 in 2020).

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However, between 2020 and 2021, Jensen Partners noted a reverse trend, with a 76% increase (30 hires in 2021) in Black female hires compared to a 38% increase (51 hires in 2021) in Black female hires. of black men.

In search of gender and racial equality DDAs founder and CEO of Jensen Partners, Sasha Jensen leads a team of senior recruiting specialists and data scientists dedicated exclusively to sourcing, recruiting and placing investment and capital raising professionals for leading alternative investment firms. As a former investigative journalist, Ms. Jensen strongly believes the data supports an immediate call to action. As a woman-owned company, Jensen Partners was founded in 2012 on the principle that diversity is a critical and immediate need in the alternative investing space.

Said Ms Jensen: “While this progress is commendable and validates the commitments of numerous companies to improve DEI by signing up to industry initiatives such as the Institutional Limited Partners Association (ILPA) Diversity in Action Initiative and, more recently, the CFA Institute’s duniversity code, equity and inclusionour analysis suggests that further action is needed to truly deliver on these commitments.”

The study also found that male front office distribution professionals accounted for 62 percent of all black distribution professional hires and were more likely to hold senior positions than their female counterparts. Between January 2019 and June 2022, of 207 Black distribution professional hires, women made up just 38 percent of all hires, compared to 62 percent of male hires. Similarly, Jensen Partners found that black male distribution professionals were more likely to be hired for junior and senior roles, with a 31 percent placement rate for both roles. In its analysis, the firm noted that the majority of the 79 black female distribution professionals were in junior positions.

A need to promote DEI

“However, increasing numbers of female African-American front office distribution professionals are being promoted to senior-level positions,” the study said. “Although we note that Black distribution professionals are more likely to hold senior positions, our data shows that the number of Black women distribution professionals hired for senior positions has increased over the years.”

Related: Achieving Diversity in Private Equity

For example, the hiring of black women from distribution in senior positions increased from six hires in 2020 to 10 in 2021, suggesting a 67 percent increase. “This progress is particularly significant considering that hiring of African-American women in distribution roles increased by only 20% between 2019 and 2020,” said Jensen Partners.

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“Again, while these developments suggest consistency in efforts to create a more inclusive work environment by positioning diversity as an integral part of the hiring process, there remains a need for companies to more intentionally foster diversity and inclusion if you want to achieve racial and gender equity. achieved holistically,” said Ms. Jensen.

Analyzing the hiring of Black front office distribution professionals between 2019 and June 2022, the search firm also analyzed the hiring of Caucasian front office distribution professionals during the same period. Of the 5,598 white and black professionals hired, the majority (5,391, or 96 percent) were white professionals, while only the remaining four percent (or 207) were black professionals.

gender disparity

The study found that, overall, Black front desk distribution professionals were less likely to hold a senior position compared to their Caucasian counterparts. Of the 207 Black front office distribution professionals, only 90 (or two percent) held senior positions, while this number was 49 percent (or 2,736 professionals) for their Caucasian peers.

Additionally, of the top 90 positions held by Black front office distribution professionals, only 26 (or 13%) were held by female professionals, while this figure was 16% (or 889 professionals) for their Caucasian counterparts. Similarly, this number was 31 percent (or 64) for black professionals, compared to 34 percent (or 1,809) for white professionals. “These findings suggest that in both racial groups, women are less likely than men to hold positions of responsibility,” said Jensen Partners.

Since 2019, there has never been gender parity in companies’ hiring activities, with women consistently making up less than 50 percent of all hires, according to the report.

“Another area of ​​concern is gender balance and the representation of women in general,” Jensen Partners said. “According to our data, front office distribution women accounted for 41% of all hires in 2019, which decreased to 35% in 2020. In 2021, there was a 17% increase, with women accounting for nearly 40% of all the hiring, and so now, in 2022, this number has only increased by one percent.”

waiting for a raise

“In terms of both race and gender, the situation is even more concerning for Black front office distribution professional women who consistently make up less than two percent of all hires.”

In search of gender and racial equality story1 9 e1624279727917Jensen Partners Launches New Platform to Address Diversity in Hiring
Jensen Partners, a women-owned executive search and corporate advisory firm for the alternative investment management industry, will launch DiversityMetrics, a software platform for combining self-reported diversity data and human capital management technology designed specifically for asset managers who seek to quantify, measure, report and improve the diversity and inclusion of the workforce, both within their own organization and in their portfolios. The DiversityMetrics platform features a high-touch, high-tech approach that combines customizable data visualization tools with verified demographic data on more than 25,000 investment and distribution professionals, including 8,000 who identify with diverse backgrounds, working in more than 600 global and alternative organizations. investment companies.

“We know that the alternative investment industry has a diversity problem, and each new data point and anecdote provides additional evidence that we can use to identify where the gaps are and make specific recommendations for progress on diversity, equity and inclusion (DEI). said founder and CEO Sasha Jensen. “The power of the DiversityMetrics platform is that it enables alternative asset managers to quantify and qualify the intersectionality of race, class and gender in their workforce, and then use that data to make data-driven decisions about best practices and ensures that the list of candidates in any commitment of human capital are very diverse”. It’s a long-awaited product for the financial sector, which has had its share of diversity hiring problems for years.

In 2019, according to the study, African American female front office distribution professionals accounted for just under 2 percent of all hires compared to 39 percent for Caucasian women. In 2020, this number decreased for Black and Caucasian professionals by one percent and 33 percent, respectively. In 2021, although there was a 37 percent increase, Black professionals made up less than two percent of all hires at one percent, while their Caucasian peers made up 38 percent. So far in 2022, Black professionals have accounted for about two percent of all hires.

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“While these findings suggest there is room for significant improvement, we are confident that an increasing number of companies will incorporate the DEI lens into their recruiting activities in the coming months,” said Ms. Jensen. “Indeed, with increasing pressure to address inequality and growing demand for DEI-oriented search mandates by legislators Y investor network groups, such as the PRIwe expect to see an increase in diversity numbers in the coming quarters.”

Related: The Importance of Setting Proper Diversity Goals

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, managing editor; and Stephen Sawicki, managing editor of Hunt Scanlon Media