By Melissa Breen
Back in 2023, the FCA announced it would be putting into play stricter rules to protect women in the finance industry following a string of sexual assault allegations in the City.
This a good thing, a step in the right direction to helping women feel safe in the workplace which will encourage more women to enter the finance industry.
While it’s fantastic to see the FCA take a stand on this issue, other issues are bubbling under the surface.
In the UK, 45% of women work in the finance industry, but just 22% occupy leadership positions. To add to this, OneStream research shows that just 1 in 5 females are CFOs within the FTSE 350.
Significant barriers exist preventing women from getting the top jobs, which will impact how change is created.
This is not just about meeting targets either. Having a diverse workforce is an asset to any company. It provides a plethora of unique experiences, perspectives, and approaches to problem-solving, which leads to better business outcomes.
Smashing the glass ceiling
On paper, it sounds straightforward. But women in finance continue to face obstacles which could be preventing or slowing down their progression up the corporate ladder.
One main barrier that continually directs women away from their potential is a lack of access to high-visibility projects. Businesses should ensure they offer both women and men opportunities to show they are ready to step into the executive’s shoes.
Talent isn’t a gendered phenomenon, so anyone should be offered the opportunity to shine.
There are also problems with networking that create barriers for women. Networking plays a huge part in someone’s career advancement, but people naturally favour people who are like them. Senior executives must fight the urge to only network with people they’re familiar with. Conversing with people who are different to them will offer them different perspectives and viewpoints that could be great for business.
Women are also often underrepresented on corporate boards, impacting their influence over strategic decisions and the general day-to-day running of the company. However, this is changing. The FCA has put targets in place for 2025, and these are already being met, so we’re hopeful this will no longer be the case.
What can/should leaders be doing?
People in leadership positions have a responsibility to encourage diversity and equity within their organisation and the wider finance industry. As Morgan Wootten once said, ‘leadership starts at the top’, and there are clear steps leaders should take to ensure having diverse leadership teams is as normal as having a coffee machine in the office.
Whilst there has been action, and words continue to be said, there is always more executives should be doing. Here, are some recommendations.
The existence of equal pay reporting means this should no longer be an issue, but sadly it still is. With this in mind, leaders must communicate a clear and tangible commitment to equal pay in all aspects of the company.
Reviewing and adjusting employees’ pay structures regularly to ensure they are fair, impartial, and free from any gender or diversity biases. Leaders should be transparent about compensation and promotion decisions, so employees understand the rationale behind why those decisions were made. Being transparent not only builds trust but encourages accountability which will spark an increase in the productivity of the employees.
Having women in leadership positions serves as a powerful message and symbol to other women and underrepresented groups, which will then inspire more women to pursue leadership roles.
When diversity in the workplace is spoken about, it shouldn’t be in just a tokenistic sense. It should be about creating an environment where people feel valued and respected for who they are, and where their experiences and perspectives on life are seen as assets. Encouraging this will lead to more well-rounded decision-making and innovative solutions.
Having a diverse leadership team will also lead to making better decisions because a wide range of scenarios and problems will have been identified, which leads to better solutions.
Mentoring is another great way to support and advance the career development of women. Mentoring relationships provide women with opportunities to gain knowledge and develop new skills.
Alongside that, meeting different people through networking can allow women access to valuable professional networks, which could open the door for potential sponsors. At OneStream we do this by offering a mentorship programme called Women in Leadership, which promotes and advocates the empowerment of women in leadership positions.
Essentially, it is important to recognise the value of women not just in the workplace, but in the boardroom and understand that with their insight, that is how a company can truly progress. Efforts are ongoing to make sure that the workplace is truly diverse, but there is a lot more that can and should be done.
About the author
Melissa Breen, Senior HR Business Partner at OneStream
Melissa is OneStream’s Senior People Director for EMEA and APAC who takes pride in her forward thinking and strategic approach. Over the past two decades, Melissa has gained extensive experience working with investor-led digital companies on a global scale, where she has built a reputation for spearheading corporate transformation, creating lasting changes that benefit the entire company.
