Black graduates from UK universities continue to face racial discrimination when applying for jobs in financial services, professional services and law, new research shows, even as companies say they are committed to tackling underrepresentation at work.
Black candidates hold just 2% of roles in the highest remunerated sectors of the UK economy despite being twice as likely as their university peers to seek careers within these sectors, according to research conducted by Bain & Co. in partnership with the Black Talent Charter.
Bain & Co., a top management consultancy, surveyed 400 students from UK universities and 308 employees at financial, professional services and law firms for the research, which examined the candidate journey from undergraduate study to job offer, including:
- University attended
- Subject studied
- Discovery of and interest in key professional areas
- Career attraction factors
- Subjective experiences during the candidate journey
- Objective outcomes of the recruitment process
Findings show that despite making up 8% of the UK university population and 4% at the top 20 universities (compared to making up 4% of the working-age population), Black graduates face disproportionate rejection during application processes.
For financial services roles, 34% of Black students surveyed identified themselves as likely to apply for a financial services role, compared to 16% of their white peers, challenging the notion that Black talent is scarce or uninterested in these roles. However, Black candidates are half as likely to secure job offers as their white peers, the research shows.
Rejection rates are even higher for Black students applying for graduate roles from outside the top 20 universities, compared to their non-Black peers at the same institutions.
Reasons cited for Black candidates’ lower success rates are both subtle and structural, said Laura Durrant, CEO of the Black Talent Charter. Companies point to “verbal skills,” “commercial judgment,” and “a lack of polish” as factors that hinder Black applicants.
“These seemingly innocuous terms often serve as proxies for entrenched biases. They reflect an outdated view of potential that prioritises conformity to traditional norms over the genuine capabilities of diverse candidates. For instance, accents, mannerisms and cultural expressions that diverge from corporate norms are unfairly penalised, effectively filtering out talented individuals who could bring fresh perspectives and innovative thinking,” Durrant said.
The research also suggests that many Black graduates find out about the pathway to specific careers much later than peers, underscoring a need for earlier and more inclusive outreach by employers.
"Our research suggests the adage is true: Black talent works twice as hard to get half as far,” said Durrant. “There’s strong representation at universities, studying the right courses, engaging with career opportunities, and applying in high numbers compared to peers, yet Black graduates still fall away during the process.”
She added that organisations must take a renewed look at the barriers that continue to exist in recruitment processes and shift their mindsets on how potential is assessed. The issue is not a lack of available talent but the need to diversify graduate pipelines with skilled individuals of Black heritage, she said.
At the current rate of progress, it will take 70 years to achieve proportional representation of Black talent in finance and professional services, according to the research.
Read the report here.
