Companies ‘are failing to help black bosses get into boardroom’

Businesses are failing to help talented black and ethnic minority professionals get past middle management, research suggests.

The report, commissioned by the Black British Business Awards, studied 30 corporations and found a lack of clear paths to promotion for minority employees — partly due to a failure to start conversations about race.

Dr Doyin Atewologun, lecturer in organisational leadership and learning at Queen Mary University of London, led the research. She found that more BAME (black and minority ethnic) workers were being hired across the companies, and chief executives believed they had initiatives in place to help these employees progress. But despite this, very few made it to executive levels.

Fewer than 50 per cent of the HR directors who were surveyed had concrete plans to help mid-level BAME employees move up.

Melanie Eusebe, co-founder of the BBBAs, said: “The discomfort around language and speaking about race is great. What do we say? What do we do? That has led to one of the reasons why the problem is so hard to tackle. [When there were conversations] we found there was a whole lot of goodwill, a whole lot of people working together but with no aligned strategy.”

Fellow co-founder Sophie Chandauka, executive director at Morgan Stanley, said: “If every CEO and division had tracked and monitored attraction, retention, and progression of talent with reference to race, it would be clear what the trends are in departments that are not doing well, and managers that are not ensuring black talent progresses. There need to be consequences for that not happening.

“This research is really now enabling us as a catalyst for change as it adds that component of gravitas for the awards to be more than a celebration.”

The awards, in their fourth year, recognise the contributions outstanding black entrepreneurs and professionals make to society.

Finalists include former Goldman Sachs investment banker Martin Ijaha, 35, who grew up on a council estate in Chelsea. In 2014, he co-founded fintech app Neyber, which allows staff at private and public corporations to borrow money at low interest rates and then repay debts through salary deductions. Last week the start-up — which was inspired by sou-sou, a traditional west African savings club used by Mr Ijaha’s mother — received a £100 million investment from his former employer.

Mr Ijaha said: “I’m really proud to be a finalist. I think it’s as simple as having people who look like you [succeeding], it means that at some extent you can relate to them and see it’s something you can achieve.”

Another finalist is Sandra Federighi, 41, global chief finance officer at Stella McCartney. Ms Federighi said: “These awards are important because there is such a lack of role models that people can look up to and relate to. The system was not designed by people of colour and it’s not designed for them.

“In general I believe things are getting better but you also get a sense that it’s HR ticking a box and I want to create true opportunities for everyone.”

The winners will be announced at the Grange St Paul’s Hotel on October 19.