A new Government inquiry into women working in the financial sector has highlighted the discrimination women face in the City.
The Women in the City report was published by the Treasury select committee last Saturday and details issues from the gender pay gap to flexible working, assessing their impact on women’s careers at a time when the country is in the grip of the worst financial crisis for decades.
It’s well-documented that City institutions are lacking in diversity and even considered ‘no-go’ areas for women, a claim backed up by a number of women who have come forward in recent years to speak about their experiences of discrimination and sexual harassment while working in banking. The issues have also been the subject of a Fawcett Society campaign. The report states:
“We began this inquiry because of concerns that the City was failing to use the talents of its female workers, and complaints of widespread discrimination. It is a fact that on average women, across the economy, earn less than men, and that men dominate top management in almost every occupation. Nonetheless, the disparities between male and female pay, and male and female career prospects appear wider in the City than in many other sectors.”
Depressingly, the report reveals that women working full time in the City earn 55 per cent less than male full time staff. The pay gap for bonuses and performance related pay is higher still at 80 per cent.
The Committee cited the ‘long hours culture’ of banking as something that prevents women from getting ahead, due to the fact that they often have additional caring responsibilities outside of their careers. And while most companies claim to offer a flexible working policy, the reality seems to be that many are reluctant to provide employees with information about it – even though a significant proportion of both men and women are eager to look into alternative working hours.
Despite its findings, the Committee has not recommended that legislation such as quota systems be put into place to help redress the balance. It pointed out that the ‘macho’ atmosphere of trading floors and boardrooms appears to be changing in part, with more women overall working in the City, even if this is predominantly at lower levels.
It has, however, made clear that companies must make efforts to change their working culture in order to promote career development and a positive working atmosphere for women – for example by conducting equal pay audits and improving access to flexible hours.
One particular point of interest highlighted by the report is that employing more women at a senior level could help to challenge a ‘herd mentality’ to decision-making which may have contributed to the severity of the current financial crisis. ‘Groupthink’ occurs when there is a lack of diversity and is often the cause of unchallenged rash decisions.
Harriet Harman, minister for women and equality, is quoted:
“I think that women's lives are different from men's lives, women's experiences are different, and therefore they bring a different perspective, and therefore a board of men and women is better than a men-only board.”
Some female City workers have commented that efforts to shake up the ‘boys’ club’ of banking will do more harm than good, with women being seen as problematic to employ. And others felt that the lack of diversity at senior levels is down to the fact that many women simply do not want to do the jobs.
The inquiry has been welcomed by the Equality and Human Rights Commission, which is also carrying out similar research. Andrea Murray, Group Director of Strategy, quite rightly pointed out:
“A modern Britain should be shocked at a gender pay gap within this sector that is almost twice as bad as the economy-wide gap experienced by women back in the 1970s.”
Photo via Matt from London’s Flickr.