Goldman Sachs wants half of the next intake of its junior recruitment programme to be women, and will hold its managers responsible for promoting more minorities to managing director.
The firm has set "aspirational goals" of having half of all new analysts and entry-level associates hired in the US be women, 11% black, and 14% Latino, according to a staff memo. The investment bank set a lower goal for black hires in the UK, where it is seeking a 9% level.
Women account for nearly 38% of Goldman's US workers, and make up nearly 22% of top managers, 80% of whom are white, according to a company report. Blacks or African Americans represent 5.4% of Goldman's employees, and 2.9% rank as top executives or managers.
Fundamental change takes time, but if we're rigorous in our execution of incremental change, we will make it happen"
"We have announced our commitment to having women represent 50% of our global talent over time, starting with our goal of 50% representation of women in our incoming analyst class by 2021," the company states.
Managers will be asked to interview two or more "qualified diverse candidates" for all non-entry level associate, vice president and managing director positions, according to the memo.
Additionally, the bank intends to scrutinize its pipeline for managing directors earlier in the promotion process, which takes place every two years, and to hold business heads accountable for improving diversity.
"Fundamental change takes time, but if we're rigorous in our execution of incremental change, we will make it happen," CEO David Solomon, President John Waldron and chief financial officer Stephen Scherr said in a email to employees
Goldman revealed one of the worst UK gender pay gaps among large investment banks last March when it unveiled the figures for the first time as part of its pledge to the Women in Finance Charter. Its male staff in the UK are paid 36.4% more than their female peers, on a median basis. For bonuses, the gap widens to 67.7%.
Goldman is also looking into ways to "increase representation of the LGBT, disabled and veterans communities," added Solomon, who took the helm at Goldman in October.