Wanted more women in banking Viewpoint careers advice blog

Wanted more women in banking Since the financial crisis erupted in 2008, there have been increasing calls around the world to hire more women in finance and banking, especially at senior level. A 2009 gender analysis by the UK Equality and Human Rights Commission on employment in the finance sector showed that the number of female managers in the financial sector is similar to the national average at 34%, but just 11% of corporate managers and senior executives in banking are women. The effects of this disparity go far beyond arguments of equality and fairness. Indeed, Christine Lagarde, head of the IMF and a passionate advocate of parity in banking, has gone as far as suggesting more female players in the industry may help prevent a repeat of the credit crunch. Speaking in June 2013, she said: “Women bring a better balance of risk and reward in business and finance. I have joked that a ‘male’ culture of reckless financial risk taking was at the heart of the global crisis. Companies with more women on their boards have higher sales, higher returns on equity, and higher profitability.” The world’s largest banks and financial institutions have acknowledged that a lack of female leaders could hurt the industry and are actively trying to recruit more women. The Bank of England, for instance, has taken action, on the recruitment front and with existing staff by championing the option and availability of flexible working arrangements. This has quickly paid off: in 2012, 44% of its graduate recruits were women, up from a long-term average of around 29%; and women now make up 32% of its management positions. Meanwhile, in February 2014, Lloyds Banking Group became the first FTSE 100 company to set targets for female executive numbers, pledging to have 40% of its top 5,000 jobs occupied by women within six years. The bank’s chairman, Sir Win Bischoff, is a founding member of the 30% Club â€" an initiative that encourages UK companies to aim higher than the Davies Review 25% target, setting a goal of at least 30% female representation on boards by 2015. Despite the banks’ efforts to hire more female graduates and help women stay with the sector and break the glass ceiling, why do women remain under-represented in the industry? For my colleague Yvonne Smyth, director at Hays and chair of our Hays Leading Women initiative, the phenomenon starts as early as when school children are receiving career advice. “We see a tendency for girls to be more attracted to the arts rather than STEM subjects. They consider longer questions of work/life balance from an early stage in their career plan, perhaps too early. The lack of female role models in financial services for young girls and those moving through the early to mid stages of their career can exacerbate this. ” The Hays Leading Women initiative was born as a result of the frequent discussions and reviews of staffing requirements our consultants had and continue to have with our clients, particularly in relation to the more senior level appointments of today and planning for the workforce of the future. Yvonne explains. “The discussion often moves to why there aren’t enough senior women in their business, which is a cause for concern, both from a commercial and cultural perspective. Taking the lessons from today and applying them to engage with the workforce of tomorrow is the shared goal of many organisations. ” Hays’ initiative looks to engage with all sectors and roles at all the industries where women are underrepresented, not just banking. “It continues to be a pressing issue and one which shows no signs of going away. The government and leadership teams of big business are fully behind this and there are many initiatives that aim to introduce and bring girls into the technica l workplace.” She cites the UK government’s new Your Life campaign, which brings together industry and educators to show how the science, technology, engineering and maths (STEM) subjects can lead to exciting, fulfilling and successful careers. Hays Leading Women acts at different levels of a woman’s career and through its programme of activities engages with females at all stages in their career with shared purpose of connecting women to the world of work, from school girls through to established professionals. Naomi Crawford, Head of Business Management, EMEA Compliance, at JPMorgan Chase, points out: You get a lot of women coming in from university and they probably stay up to the point where they want their first child. Once children come into the picture, a lot of women decide it becomes a work/life balance discussion between children and work. That’s when the industry starts losing women. Naomi says that as a response a lot of firms like JP Morgan offer flexible working â€" the ability to work from home, perhaps one or two days a week, or to work a shorter week. “This is not just for women with children, but also for men. It is important that management know when people need to take time out for family-orientated activity, be it their child’s assembly, or elderly parents/relatives who need extra support.” As of 27th June, in the UK, every employee has the right to request flexible working hours after the government extended the right previously reserved for carers and those looking after children. JP Morgan has a global site for women that gives them an opportunity to become inspired while getting to know what it is like to work in a bank. As Naomi points out, joining a bank can be a great opportunity. “You get to do some exciting things, working with great people, in a dynamic environment, which may even offer travel. It is a great place to start your career.” To share your thoughts on this article and to stay up to date with the latest business, employment and recruitment news in the financial markets sector, please join our LinkedIn group. Join the conversation