International Women’s Day is an annual celebration that serves as a reminder of the incredible contributions that women make to society. This day provides an opportunity to reflect on the progress that has been made and the challenges that women still face in different industries, including accountancy and finance. In the UK, women have been making strides in these fields, but there is still a long way to go to achieve gender parity.
Although the number of women working in financial services in the UK has grown steadily over the years and reached 43% of the workforce in 2019, there is still a significant lack of women in leadership, executive, and board positions. This is evident when we examine the statistics, which show that there is a vast gender imbalance in the top levels of financial services. For example, while women hold one-third of all board positions in the FTSE 100 companies, only 15% of finance directors in these companies are women. Additionally, there are still 44 all-male executive committees in the FTSE 350, which has not changed much since 2018. According to Catalyst, women held only 12% of CFO roles globally in 2018. In major financial services firms in the UK, women’s representation on executive committees was only 20% in 2019.
Addressing the pay gap
According to ONS data, there are a range of financial roles which include men being paid more an hour than women including Financial Account Managers (a pay gap of 18.8%), Chartered and Certified Accountants (a pay gap of 6.6%), Finance Professionals (a pay gap of 3.1%), and Finance Associate Professionals (a pay gap of 17.6%).
This gender disparity is not unique to finance and accountancy. In fact, it is a widespread issue that affects many industries. However, it is especially important to address this imbalance in finance and accountancy because of the critical role these professions play in the UK economy.
Gender-diverse companies
Finance and accountancy are vital industries that contribute to the country’s economic growth, job creation, and stability. By not fully utilising the talents and abilities of women in these industries, the UK is missing out on a significant source of innovation, creativity, and productivity. Furthermore, research has shown that gender-diverse companies tend to perform better financially, highlighting the need for greater gender balance in finance and accountancy.
The importance of empowering women
Encouraging more women to pursue careers in finance and accountancy is essential for several reasons. Firstly, it helps to address the gender imbalance in these industries and promote diversity and inclusion. Secondly, it helps to tap into the talent and abilities of women, which can contribute to innovation, creativity, and productivity in these sectors. Finally, it helps to create more opportunities for women to achieve financial independence, which is essential for closing the gender pay gap and achieving gender equality.
What organisations can do
To encourage more women to pursue careers in finance and accountancy, organisations should provide various support and resources can be provided to help them progress in their careers. These include:
Mentoring and coaching
Providing women with mentors and coaches can help them develop their skills, build their confidence, and navigate the complexities of the workplace. Mentors can provide guidance and advice on career development, while coaches can help women overcome personal and professional barriers to success.
Networking opportunities
Networking is essential for building professional relationships and finding new career opportunities. Providing women with networking opportunities can help them connect with other professionals in their field, learn about new opportunities, and build their reputation.
Training and development
Providing women with training and development opportunities can help them develop the skills and knowledge they need to progress in their careers. This can include technical training, soft skills training, and leadership development programs.
Flexible working arrangements
Flexible working arrangements, such as part-time work, remote work, and flexible hours, can help women balance their work and personal responsibilities. This can be especially beneficial for women with caregiving responsibilities, allowing them to continue to work while also caring for their families.
Affinity groups
Affinity groups are groups of professionals who share a common identity or interest. Creating affinity groups for women in finance and accountancy can help women connect with each other, share experiences, and support each other in their careers. For example, the Women in Finance Charter is a UK government initiative that aims to increase gender diversity in senior positions in the financial services industry. Companies that sign the charter commit to improving gender diversity in their organisations by setting targets, reporting progress, and implementing policies and practices that support gender diversity.
Furthering your career
Although the real responsibility is on the organisations and leaders in the industry to go about change, women in finance and accountancy can further their careers in the industry by taking the following steps:
Seek out mentors and sponsors
Affinity groups are groups of professionals who share a common identity or interest. Creating affinity groups for women in finance and accountancy can help women connect with each other, share experiences, and support each other in their careers. For example, the Women in Finance Charter is a UK government initiative that aims to increase gender diversity in senior positions in the financial services industry. Companies that sign the charter commit to improving gender diversity in their organisations by setting targets, reporting progress, and implementing policies and practices that support gender diversity.
Build a strong professional network
Networking is crucial for career advancement. Women can attend industry conferences, join professional associations, and participate in networking events to meet and connect with peers, potential mentors, and sponsors.
Invest in ongoing professional development
Continuous learning and development are critical for staying relevant in the fast-paced financial industry. Women can pursue relevant certifications, attend workshops and training programs, and read industry publications to stay current on trends and best practices.
Advocate for themselves
Women need to be their own advocates and proactively seek out opportunities for advancement. This may involve speaking up in meetings, asking for stretch assignments, and seeking feedback on performance.
Challenge gender bias
Women can challenge gender bias by speaking up when they witness it in the workplace. They can also advocate for policies and initiatives that promote gender diversity and inclusion, such as flexible work arrangements and equal pay.
Support other women
Women can support each other by building strong networks, mentoring and sponsoring junior colleagues, and advocating for gender diversity and inclusion in the workplace. By working together, women can help create a more equitable and inclusive industry.
So what can everyone else do to support women? Being an ally to women involved actively supporting and advocating for gender equality and recognising and challenging sexism, misogyny, and other forms of gender-based discrimination. Other ways to be an ally to women include listening, educating yourself, speaking up and challenging sexism, supporting women-led initiatives, and taking action to support gender quality in your personal and professional life.
In conclusion, International Women’s Day provides an opportunity to reflect on the progress that has been made and the work that still needs to be done to achieve gender parity in finance and accountancy in the UK.
Celebrating this day is not only important for recognising the contributions of women in these industries but also for highlighting the need for greater gender diversity to promote innovation, creativity, and productivity in the UK economy. Let us all work together to create a more inclusive and equitable future for women everywhere.
