Britain's economic sector lacks diversity to hire women to top jobs

Britain’s finance ministry yesterday declared that he wants more ambitious diversity targets at financial firms as the pace of hiring women to top jobs is too slow.

With the 2016 launch of ‘A Women in Finance’ charter by the finance ministry in a bid to improve diversity in the financial sector, an analysis reported that just 14% of executive committee members were women in 2015.

More than 370 firms with over 900,000 employees in total have signed up to the charter and commit themselves to voluntary diversity targets.

Also, a review by the think tank ‘New Financial’ showed that of 187 of the firms, only a third have met or exceeded their targets.

Catherine McGuinness, Chairman of the Policy and Resources Committee of the City of London Corporation, poses for a photograph in London, Britain. Image credit Reuters, Hannah McKay, File Photo

Importantly, it has been estimated that women make up 32% of senior management on average, still, short of the 33% minimum target the finance ministry would like to see for all signatories, the analysis reads.

“I am very determined to see the financial services sector make progress on this,” Britain’s financial services minister John Glen declared in an official statement.

The analysis carried out also found out that only 26 signatories have set themselves the goal of parity between men and women in senior roles, and that nearly 60% of firms have set a target of 33% or above for female representation.

John Glen, Economic Secretary to the Treasury, Britain. Image credit Reuters, Hannah McKay

“The Coronavirus pandemic crisis has shown just how quickly companies can adapt,” New Financial claimed. “There is an opportunity now to challenge legacy thinking in all areas (not just flexible working), cement diversity as a strategic business priority and accelerate the pace of change.”

Catherine McGuinness, leader of the City of London financial district, added: “This review shows everyone that signatories are moving in the right direction, but we need to keep increasing the pace.”

Finally, a third of signatories believe that linking pay to diversity targets has been effective.