Mentorship, Self-Efficacy, and Professional Identity: Exploring the Impact on the Career Advancement of Racial and Ethnic Minorities in the Financial Services Industry

The representation of racial and ethnic minorities in leadership roles within the American financial services industry remains disproportionately low, despite growing diversity initiatives (McKinsey & Company, 2020; U.S. Government Accountability Office, 2022). This poses a problem as it impacts the industry's potential innovation, decision-making, and competitiveness (Dixon-Fyle et al., 2021). The underrepresentation of minorities in such roles highlights systemic issues within corporate culture, particularly in terms of access to mentorship and professional development opportunities, which are critical for career progression (A. Baldwin et al., 2022). The study is based on Role Identity Theory, theorizing that individuals' roles within their social context significantly shape their self-concepts and professional identities (Burke & Stets, 2022). This theoretical framework guides the exploration of how mentorship influences the development of self-efficacy and professional identity, potentially affecting career advancement for racial and ethnic minorities. The research questions focus on the extent to which mentorship affects self-efficacy and professional identity, and how these factors, in turn, influence career advancement within the industry. Using a quantitative approach, survey data was collected from 206 racial and ethnic minority professionals in the financial services industry. The survey assessed constructs related to mentorship experiences, self-efficacy, professional identity, and career advancement. Statistical analyses, including MANOVA and multiple regression, were utilized to examine the relationships between these constructs. The findings indicate a correlation between mentorship, self-efficacy and positive views of career advancement, however they do not indicate the same correlation for the development of professional identity. The findings suggest that while mentorship effectively boosts self-efficacy, its role in shaping professional identity may require further exploration to understand its full impact within the financial services industry. These results further highlight the critical role of mentorship in fostering an inclusive environment that supports the professional growth of minority employees (A. Baldwin et al., 2022). Consequently, this research advocates for the implementation of structured mentorship programs tailored to the needs of racial and ethnic minorities within the financial services industry, suggesting that such initiatives could reduce the leadership gap and promote a more diverse and effective leadership landscape.