The Hampton Alexander Review revealed earlier this year that, for the first time, women make up more than 30% of FTSE 350 board membership.
This is a big step forward but, while there is plenty of evidence to show organisations have been making progress in gender diversity, women are still under-represented at many levels in business.
In fact, the same review showed that although there is increasing female representation on boards, the pace of change is much slower below board level, particularly in more senior roles.
Diverse choices
We live in a world where we benefit broadly from diversity, whether through different perspectives and experiences or even culturally, in the number of dinner options we can choose from. It is not only an integral part of our lives but also important for business.
A recent McKinsey study showed a direct link between diversity and financial performance, with companies in the top-quartile for diversity in senior roles up to 24% more likely to outperform industry median profit margins than their bottom-quartile peers.
Diversity of thought and experience has also been shown to deliver better outcomes in other areas such as the capacity to foster innovation, build empathy and relate to our increasingly diverse client profiles. It is clear that business leaders have many compelling reasons to advance diversity in the workplace.
Since I joined Brooks Macdonald three years ago, we have been cultivating a workplace where different backgrounds and perspectives are welcomed.
A number of our diversity initiatives are starting to have an impact. Alongside these, we have found it helpful to work with external partners who are championing diversity, such as City Hive, LGBT Great and Talking Talent.
We have also partnered with Investment 20/20, which is bringing more diverse talent into our group at entry level. Though we have a lot more to do, I am delighted we have been recognised for our work so far, including winning Gold at the Portfolio Adviser Wealth Manager Awards in 2019 for Best Diversity Initiative for our flexible working policy.
No easy answers
As a female chief executive, I am often asked to support initiatives raising awareness of how women can progress their careers. I recently spoke at an HM Treasury panel discussion entitled ‘Women rising: HMT in conversation with women at the top’. The questions asked revealed much about what is important to women, from how to network externally, develop internal sponsor relationships or build the confidence to go for promotions.
By taking part in conversations like this I have learnt there are no easy answers. No single step or change will make the difference. But change is important and I feel now is the right time for us to explicitly focus on building a strong pipeline, helping more women progress up the finance career ladder.
By focusing on the next generation we can help women develop their careers, move into more senior positions and reach their full potential.
It is a somewhat expected path for the CEO – especially a female one – to champion diversity and inclusion. But it is something I feel is a critical part of my role, and I represent a team that is passionate about how we can collectively make a difference in this space.
I also get a lot of personal satisfaction from mentoring upcoming talent and knowing that, in some small way, I’ve contributed to their growth and development.
Dedicated to progress
Most critical of all, we need to make sure women have equal opportunities to progress, as this is how the pipeline of female talent will be developed. The challenge is how we can make a meaningful and sustainable contribution to this.
We know we are not alone in facing this challenge. The HM Treasury Women in Finance Charter works with signatory firms – of which we are one – that are committed to achieving gender balance at all levels across financial services.
Signatories have committed to stretching targets, but we also recognise that progress takes time.
We have set a goal to show our commitment to gender diversity within our own organisation. Just as importantly, we must make sure we are creating a supportive environment for ongoing change, and ultimately taking long-term accountability for the level of diversity within our sector. Focusing on the ‘next generation’ is our commitment to this crucial agenda.
Caroline Connellan is chief executive of Brooks Macdonald
