Many businesses in Financial Services Industry (FSI) and elsewhere are working towards Equity, Diversity and Inclusion goals and want to support women leaders in the workplace. In many places, intentions are clearly articulated, and measured and the difference is recognised.
However, the 2022 Global Report by Deloitte confirmed there is still much progress to be made, globally, within financial services institutions, women hold 21% of board seats, 19% of C-suite roles, and 5% of CEO positions in 2021.
In the UK it is a not-too-dissimilar picture with 17.4% of women in C-suite roles. The report’s authors are positive about the progress and efforts being made to make further progress at senior levels, but forecasts are concerning for the next generation of female leaders with near-zero growth by 2030.
February 2023 heralded significant progress has been made in female representation at senior levels of business, with analysis announced in FTSE Women Leaders that women make up nearly 40% of FTSE top table roles compared to 12.5% 10 years ago.
There is much to celebrate here but the Fawcett Society analysis reveals that women only hold about a third of the top 5200 roles across UK society.Furthermore, only 7 women lead FTSE 100 companies, and only three companies on the FTSE 100 have more than 50% women in leadership
The latest Women in the Workplace report by McKinsey reveals the reasons why so many women are looking to change roles. Women, it describes, face stronger headwinds than men, are overworked and under recognized and are seeking a different culture of work. This last point runs deep as women are twice as likely to be champions of EDI but 40% report a lack of recognition for this in performance reviews.
When looking at gender representation in the corporate pipeline the numbers for women are stark
Recruiting talent is an expensive business, especially at senior levels where you not only have direct costs but also the loss of institutional knowledge and established relationships and networks to replace.
There are increasing pressures both societal and from the marketplace to address the issue of diversity. Diverse businesses can attract a wider talent pool, a larger client pool and significantly a richer pool of investors and yet according to government data only 7 women lead FTSE 100 companies, and only three companies on the FTSE 100 have more than 50% women in leadership.
Back in 2011, Lord Davies produced his report on Women on Boards. He was a long-time champion of diversity who actively supported the development and advancement of women, including myself, during his time at Standard Chartered Bank.
The report calculated that at the then rate of growth gender equity on boards would be achieved around 2080 in the UK. Awareness and considered positive, accountable, action was and still is necessary to accelerate this growth.
The case for women on boards, quoted directly from the report here is much the same as the case for women at all levels of business as proven in numerous academic studies before and since.
“The issues debated here are as much about improving business performance as about promoting equal opportunities for women. There is a strong business case for balanced boards. Inclusive and diverse boards are more likely to be effective boards, better able to understand their customers and stakeholders and benefit from fresh perspectives, new ideas, vigorous challenges and broad experience. This in turn leads to better decision-making. This business case is backed by a growing body of evidence. Research has shown that strong stock market growth among European companies is most likely to occur where there is a higher proportion of women in senior management teams.[1] Companies with more women on their boards were found to outperform their rivals with a 42% higher return in sales, 66% higher return on invested capital and 53% higher return on equity.[2]”
[1] “Women Matter: gender diversity, a corporate performance driver”, McKinsey & Company, 2007. [2] “The Bottom Line: Corporate Performance and Women’s Representation on Boards”, Lois Joy, Nancy M Carter, Harvey M Wagener, Sriram Narayanan, Catalyst, 2007”
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