Addressing the lack of diversity in senior public practice positions

As a sector that’s responsible for the financial health of businesses and individuals, you would think that public practice would be an inclusive space, right??

Wrong.?

Unfortunately, the accountancy profession remains one of the least diverse industries there is, especially at senior levels. The sad reality is that women and people from ethnic minority (BAME) groups are still at a disadvantage. The public practice workplace falls short on providing equal opportunities and promoting social mobility to create an even progression playing field.?

Despite the growing awareness and efforts towards inclusivity, the disparity still exists. Public practice still has a long way to go in terms of addressing its systemic societal issues to make it an industry that’s open to all. And we need to talk about it.?

Today’s blog will delve into the historic barriers, access limitations and systemic biases that are inherent within the accountancy field, and why firms need to do more to provide equal career opportunities.?

Historical Barriers??

The staffing issue within public practice is deeply rooted in the discriminatory traditions of the past.?

Accountancy is a profession that’s existed, in one way or another, since the inception of money. It’s a historic field built on conservative, patriarchal values, making it the perfect environment for white men to climb the ranks and, let’s face it, make a lot of money.

This white male-dominated culture has ultimately led to entrenched networks that inadvertently exclude underrepresented groups.??

It goes without saying that white, heteronormative men are way more unlikely to experience discrimination or harassment in the workplace. Unfortunately, this white-washed legacy has created a cycle where the lack of inclusivity in senior leadership roles discourages diverse talent from aspiring to progress to the top. The limited access perpetuates a status quo that hinders career advancement for women and professionals of colour.??

Instead of burying the past, we believe that firms should seize these historical barriers as a motivational force for implementing long-term change. Firms should acknowledge the diversity crisis in all its severity and make positive changes to ensure the mistakes of yesterday don’t seep into the future.??

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Under-Representation within Public Practice?

The lack of fair representation at senior levels remains to be a huge problem within public practice.

Whilst there have been efforts to reduce inequality over recent years, the pipeline of future Directors and Partners is still predominantly white and male.??

The International Journal Devoted to the Behavioural, Organizational and Social Aspects of Accounting has found that “ethnic minority auditors were less likely to become partners at accountancy firms.” Those that did were more likely to become partners in firms outside of the Big Four that “did not have prestigious clients” and were in “smaller offices” that earned “less fees”.??

To support this, The Telegraph conducted a report that found that only 11 out of 3,000 equity partners at Big Four accountancy firms are black. This statistic speaks for itself.?

Unfortunately, the sobering reality of public practice’s staffing problem doesn’t end there.

Another study by the Financial Reporting Council ?reveals that only “1 in 3 UK audit and accountancy firms do not even collect diversity data for their workforce .” The research further reveals that “while women make up 4% of Manager level roles at audit and accountancy firms, just 17% of women rise to Partner level roles.” ?

The FRC’s Chief Executive, Sir Jon Thompson echoes that “while it is encouraging to see more firms implementing diversity and inclusion strategies and more women, ethnic minority groups and disabled people being appointed to middle management roles, more needs to be done to ensure the firms are not limiting access to the most senior roles.”???

From this data alone, it’s obvious that inclusivity is still a major problem. Women and BAME accountants aren’t being offered the same opportunities as their white male colleagues, and firms aren’t doing enough to eradicate this.??

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Misrepresentation as a Talent Drain?

A culture of inequality doesn’t only victimise ethnic minority groups – it also negatively affects firms and limits their chances of securing the best talent.

A lack of diversity benefits no one, so why does it continue to exist??

An article by The Conversation summarises that “one of the consequences of ineffective diversity, equity and inclusion practces in the accountancy profession is a talent drain”. ??

A study by GetApp has found that 75% of people surveyed said that diversity in the workplace is important to them. Similarly, 57% say it’s essential to work for a company that supports social movements such as Black Lives Matter and LGBTQ+ rights.??

Another study by the FRC which measures the Board Diversity and Effeciveness in FTSE 350 Companies ? found that companies with at least one woman on their board “enjoyed higher levels of EBITDA margin after three years, witnessed higher stock returns and were less likely to experience shareholder dissent.” ??

But the compelling research doesn’t end there. A study by The Conversation found that “55% of accountants from under-represented groups leave their employers, and up to 18% leave the profession altogether.” ?

From these findings alone, it’s glaringly obvious that a more diverse workplace has benefits for both employers and employees.

To attract and retain talent, firms need to be proactive in promoting diversity and creating pathways that empower women and BAME accountants to progress. By disregarding inclusivity, firms are letting the best candidates slip through their fingers.??

“Diversity can’t be something that you do on the side”, says Sharon Gunn, ICAEW’s Chief Operating Officer. “Having that board-level buy-in is really important.”?

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How Firms Can Improve Ethnic Representation?

Enhancing diversity in senior accountancy positions will take more than just fostering an inclusive culture. A seismic shift needs to be triggered from the top down.?

Comprehensive strategies and sustained efforts need to be put in place to address the lack of diversity.

Here are some ways these challenges can be mitigated to provide BAME professionals with greater development opportunities.?

Mentorship Programmes?

It’s all well-and-good for firms to say that they provide “comprehensive in-house training”, but this isn’t enough. There’s a huge educational gap within public practice that roadblocks progression for people from marginalised groups. ?

Therefore, mentorship programmes need to be established to connect accountants from minority backgrounds with senior leaders.??

More Visible Role Models?

The undeniable visibility gap within public practice discourages diverse talent from pursuing opportunities for progression.?

Accountants belonging to minority ethnic groups want to see themselves represented amongst decision makers and board seats. Firms need to make more effort to highlight and promote diverse role models to empower others to pursue the same route.?

Educational Support?

Similarly to mentorship programmes, firms should make educational support a priority.??

Providing scholarships and full study support to underrepresented groups and those from a lower economic background will create a more equitable workplace, where everyone is offered the same opportunity to succeed.??

Diverse Recruitment?

Working with a recruiter who prioritises inclusive hiring practices is a great way to seek out diverse talent. Outsourcing the recruitment process to a third-party agency removes any implicit biases and will enable firms to access a wider, more balanced talent pool.?

Changes Happening in Public Practice Today?

While there’s still a lot of work to be done to make public practice a more inclusive space, we’re happy to see that there have been some cultural shifts in recent years.??

A number of collectives and organisations, such as Access Accountancy , are taking active measures to shed light on discriminatory staffing issues and bolster inclusion in the UK market.??

Widening the scope of progression for people from lower socio-economic backgrounds is something that a lot of thought leaders within public practice are on-board with.

For instance, Jenn Barnett, Head of Inclusion, Diversity and Wellbeing at Grant Thorton, has pledged to improve the landscape and make career advancement more accessible.?

“Recognising cultural norms, deeply ingrained cognitive bias in decision-makers and processes, holding leaders accountable for sponsoring diverse talent, shifts in language and behaviour, and having powerful networks and allies acting as a voice for change are also key.” - Jenn Barnett, Head of Inclusion, Diversity and Wellbeing at Grant Thorton.

The ICAEW is also taking the lead in building a fairer, more balanced public practice industry. The organisation was the first professional body to sign the Black Talent Charter and has launched the RISE initiative – a programme that teaches important skills to students from lower income areas, with sessions including commercial awareness, employability skills, personal brand and readiness for work.??

We’re happy to see key decision-makers within public practice banding together to spark positive, long-term change. However, sustaining diversity requires unwavering commitment from firms, individuals, and the broader industry.

Inclusivity isn’t a passing trend – it's something that demands dedication sector-wide.?

By embracing diversity, firms will benefit from a broader range of perspectives and ideas, ultimately leading to a stronger public practice.??

Does the lack of diversity within public practice directly affect you? Do you feel like you’re disenfranchised by the inherent inequal culture of accountancy??

Here at Public Practice Recruitment Ltd, we see first-hand that not enough is being done to address the lack of diversity in senior accountancy positions. Firms need to do more to support talent from all backgrounds and give every accountant a fair shot at career advancement. ?

Diversity and inclusivity are the driving forces of our recruitment processes. Our team goes above and beyond to secure the best job opportunities and ensure that our candidates feel valued throughout the process.?

“A diverse team brings a wealth of perspectives and innovative ideas; ideas that are essential for driving public practice forward. Nothing is more important to us than supporting talent from all backgrounds, so we can help create a better workplace where everyone can thrive.” - Garry Howling, Managing Director of Public Practice Recruitment Ltd.?

Looking to work for a firm that fosters a supportive, open culture? Get in touch with our team today or explore our jobs to find the best opportunity for you.??