An annual report from Questback have revealed a shocking statistic for the financial services industry. This report found that 78% of businesses have a gap in favour of men. In addition to this, they found that Bonuses for women working in the UK banks was 52% less than their main colleagues.
The reasoning behind this apparent gap in the financial sector could potentially be down to the large number of existing members. As in this report they go on to say “The key factor behind this is simply the overwhelming number of men in senior, and therefore the most well-paid positions. According to the figures there are 4,600 men earning over £1m per year in financial services – and just 400 women. Men make up an average of 71% of those in the top quartile for pay”
Andrew Cocks Employee Insight Specialist at Questback commented on these recent findings, saying “Gender pay disparity is a burning injustice and clearly bad for business. Employers who fail to tackle the issue are not only likely to fall foul of the law and suffer reputational damage, but will also be at a distinct competitive disadvantage.”
He went on to discuss the potential reasons behind these recent gaps in pay, “What this research shows is that corporate culture plays a central role in the maintenance of the gender pay gap and is far from intangible and nebulous. While culture often influences behaviours and decisions unconsciously, it is quantifiable and measurable. Assessment tools such as this lift the lid on corporate cultures and challenge some of the comfortable assumptions we make about our organisations.”
It is vital that companies are making changes to achieve this closed gap, if they are successful in achieving this then they are more likely to reap the benefits of having a much wider diverse set of skills, increasing productivity and efficiency when it comes to decision making.
Andrew finished by discussing ways in which business leaders can attempt to close this gap, saying “When a yawning gender pay disparity is apparent, it is no good simply reciting platitudes around commitment to equality and fairness or hoping that setting quotas will somehow solve the problem. The first thing business leaders need to do is to take concrete steps to objectively understand their corporate culture and how it contributes to structural pay disparity. This insight can then be used to develop targeted interventions and a shared commitment to act. This will inevitably involve asking some potentially uncomfortable questions about what we truly value and reward as a business and critically evaluating how we make decisions around talent and reward.”
Additionally in the report, Questback listed points on ways to tackle this issue also, discussing the unconscious bias “Critically evaluate the language and tone of all your materials related to recruitment, competency frameworks, performance management and career development. Look for any inherent gender bias, for example such as around the language and tone within job adverts and the channels you are using to recruit. This is particularly important given women’s increased tendency to self-select out of promotion opportunities”
Questback initiated a survey of 1,000 UK financial services professionals to gain a deeper understanding of the cultural factors underpinning the Gender Pay Gap. Comparing the results with remuneration figures highlights a major difference between what employees think, and what seems to be happening in reality.
To view the full report visit.
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