PRESS RELEASE: Monday 3 September 2012
Banking’s male dominated management culture is
biggest barrier to women reaching the top
A new report also shows that:
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British banks are unintentionally filtering out top female talent
‘Glass ceiling’ in banking is actually a succession of cultural and organisational barriers
Enforced quotas are not popular with women or men in the industry
Cultural shift is required to create a meritocracy in banking
Nearly half (48%) of women working in the banking industry believe they face career barriers
because of their gender, and one third (36%) of men agree, according to a report published today
(12 March 2012) by the Institute of Leadership & Management (ILM), sponsored by the Royal Bank
of Scotland (RBS).
The Women in Banking report is based on in-depth research with over 800 men and women
working across the banking sector. It explores why so few women are working at senior levels in
banking, the challenges they face and what banking organisations can do to address the issue.
The research reveals a mix of cultural and organisational barriers that make it progressively difficult
for women to rise to senior levels within banking. The five biggest barriers to female career
progression (listed in rank order of importance by women) were;
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The attitudes of senior male managers (72% female v 53% male)
The greater proportion of men in senior roles (70% female v 54% male)
The current organisational culture (61% female v 52% male)
A lack of flexible working opportunities (56% female v 41% male)
The lack of female role models (41% female v 33% male)
At a junior level, 38% of women and men acknowledge there are barriers to female career
progression. At middle management level that figure rises to 65% for women, but falls to 33% for
men. The higher up the management hierarchy, the more visible these barriers are for women and
the less visible they become for men.
42% of women agreed their organisation should do more to ensure gender equality at all levels of
the business compared to 28% of men. At middle management and senior levels combined, there
were large differences of opinion between men and women, with 51% of women believing more
should be done, compared to 29% of men.
Overall, 87% of women felt some form of positive action was needed, compared to 67% of men.
Flexible working was identified as the number one solution by 68% of women, compared to 42% of
men. A third (33%) of men felt there was no need for action, compared to 13% of women.
Just 19% of women and 10% of men felt quotas should be introduced to balance the proportions of
men and women in senior roles.
There is little sense that career progression in banking is based purely on merit. 48% of
respondents said promotion was determined by who you know, whilst only 22% believed that people
in the industry were promoted on merit alone.
Responding to the findings of the report, Charles Elvin, Chief Executive of the Institute of
Leadership & Management, said: “At a time of intense scrutiny, our banks need the best and most
capable people leading their organisations, irrespective of their gender. Our research shows that
talented women are still finding it difficult to reach senior positions. Rather than a single ‘glass
ceiling’, we see a series of barriers that filter out female talent at each stage of the management
hierarchy. This under-representation is in many instances due to the management practices,
attitudes and behaviour of senior managers.
“Banks can boost the number of women in senior positions by taking positive steps towards
strengthening and developing transparent management processes, measuring diversity metrics and
better management of flexible working.”
Banking is a highly competitive industry and progression to board or executive level is difficult
regardless of gender. However, statistics clearly show that women aren’t progressing as far or as
high as their male counterparts, with just 11% of senior roles held by women compared to a UK
average of 28%1.
ILM recommends the following solutions to help tackle the lack of gender diversity in the top levels
of banking.
Transparent performance management processes should be put in place to encourage
promotion on merit. Clear criteria for assessing employees on their output, not hours worked or who
they know, will benefit the business by rewarding and developing top talent.
Better measurement of diversity metrics will allow banks to raise awareness of the issue which is
key to tackling the problem. The figures should be shared with all managers across an organisation.
Tackling poor management practice around attendance and flexible working will address many of
the concerns expressed in the survey. Flexible working needs to be both available and culturally
accepted at all levels. This means a shift towards reward based on results, not attendance in the
office. Managers at all levels need to be trained on how to best organise workloads and support
flexible working arrangements.
Banking employers can encourage the possibility of career progression for women by raising the
voice and visibility of successful female leaders across their organisations. Especially seek out
1
Women Matter: Gender Diversity, a corporate performance driver (2007)
female role models who have maintained a good work/life balance.
Establishing and supporting programmes for sponsorship, coaching and mentoring of women
would address the lack of confidence surrounding career progression. Senior male executives
should sponsor and mentor aspiring female leaders, and vice versa.
The research also reveals that:
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Women are less confident in their own abilities compared to men and have lower career
expectations, reflecting the findings of ILM’s 2011 research Ambition and Gender at Work:
o 36% of women in middle management roles expect to still be in their current job in
ten years’ time, compared to 14% of men
o 42% of female middle managers expected to reach senior manager level in ten
years, compared to 70% of men
However, women were far more likely to ask for pay rises and promotions than their male
counterparts. 78% of women in middle management and 75% in senior management
admitted to asking for pay rises and promotions, compared to 65% and 53% of men in the
respective position
The full report, Women in Banking, is available to download from ILM’s website:
www.i-l-m.com/womeninbanking
Ends
For further information about ILM, please contact Scarlett Yianni or Sarah Savage at Colman Getty:
020 7631 2666 / 07793 202 870
[email protected] / [email protected]
Spokespeople available for interviews (contact Colman Getty):
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Charles Elvin, CEO, ILM
Peter Cheese, Chairman, ILM
David Pardey, Head of Research, ILM
Notes to editors
The Institute of Leadership & Management (ILM) is Europe’s leading management organisation. We
believe that good leadership and management holds the key to organisational effectiveness and social and
economic prosperity. Our fast-growing community of over 35,000 practising leaders and managers gives us a
real insight into the issues affecting the management community day-to-day, both in the UK and globally.
Each year we help over 90,000 practising and aspiring managers to fulfil their potential and achieve success
through a range of flexible leadership and management development solutions. Backed by an in-depth
programme of research, ILM operates internationally, improving leadership and management skills, across all
sectors, from financial services to the armed forces.
Institute of Leadership & Management (ILM) www.i-l-m.com