Several reports over the last year have sequentially unveiled the significant impact that the Coronavirus pandemic has had on gender equality, especially in the realms of banking and finance. The most recent, from Barclays’ Bank Plc, reveals that the gender pay gap at the bank’s corporate and investment banking sections has risen to 43.2%, rising from 42.1% in 2020, as the gap in bonus payments between men and women grows.
In investment banking, women make on average, 56% of what their male counterparts earn, at Barclays’ bank the bonus pay gap stands at a staggering 70% in 2022, up from 66.2% in 2020 which indicates inequality is getting worse. These shocking statistics belie what is a convincing case for hiring women in senior leadership positions, a report commissioned by McKinsey & Co called Diversity wins, shows that teams with more than 30% female executives were 48% more likely to outperform those with few to no female execs.
While the gender pay and bonus gap continued to widen, the pandemic also seemingly impacted the number of women in the sector, as a 2021 report found that 29 percent of women working in financial services said they left their job either permanently or temporarily during the pandemic, a shocking statistic that indicates the struggles that many have faced in this sector in reaching equality. But how can this be put right?
Claire Trachet, founder of advisory firm Trachet comments:
“Social models are factually (still today) significantly biased against women and minorities (lower salaries, slower career progression, lack of access to C-suite or board positions, fewer & smaller investments received). There is no chance of reaching a more balanced set of opportunities for women and men without making conscious choices to start with – just like getting into any new habit.
Crucially, it is important to note that this is not advocating for the promotion of subpar businesses because they are led by women. It is about giving people a fair shot and owning the fact that biases run deep within businesses and institutions all around the world.
It is about initiating virtuous cycles. Most people who have had to fight hard battles to get through ceilings will keep the door open behind them. Some slam it back on the fingers of the ones behind them, maybe they’re scared they’ll fall back below the ceiling if they get associated with these other “minority” individuals, or maybe they fear showing some vulnerability. I’ve seen it a lot of these in Investment Banking and in Startups/VC but I’ve also seen a lot of people humbly keeping the door open through even the smallest gestures.
Diversity is an asset and benefits organisations in terms of creativity, wellbeing of employees, growth and importantly financial performance. It is therefore key to promote diversity in terms of gender and ethnicity as well as socio-economic backgrounds, to ensure that no one is left behind or left without opportunities for growth and success.”
