Analysis by the London School of Economics shows that British women are four times more likely than men to be in the top 1% of earners in the financial and professional services industry. Despite decades of efforts to close the gender gap in pay and career advancement, the gap has widened slightly since before the pandemic.
simply put
Women hold 19.4% of the top 1% of jobs in finance and professional services, slightly lower than the 19.7% average in the three years before the pandemic.
However, while still far from parity, women hold a higher share of the top 10% of positions, at 28.3%, and have shown signs of progress, increasing by 2.5 percentage points over the period.
The London Stock Exchange’s analysis, which draws on the Quarterly Labor Force Survey (QLFS), the UK’s main survey of economic activity, from January 2017 to June 2023, also found some rebalancing in terms of qualifications. Women currently make up 37% of senior executives and directors in professional services and finance, roughly the same proportion as female full-time employees.
Why hasn’t gender equality improved further?
The persistent gender seniority gap that widens as you get closer to the top of the career ladder suggests businesses are not doing enough to close the gap, despite all the well-documented benefits it brings of access to talent and more diverse thinking .
The reasons behind it are complicated, and there is an important factor career penalties against mothers rather than fathers, biases – whether blatant or unconscious – and wider social factors that work against women’s careers, e.g. The average burden is higher for household chores and care responsibilities for children and the elderly.
These factors have proven stubborn over the years, so to some extent the question to ask is why meeting Have they improved without significant changes in attitudes or behaviors?
In fact, the COVID-19 pandemic may hinder gender equality, as layoffs disproportionately affect women, while companies tend to defund diversity, equity and inclusion (DEI) programs when trading conditions are tough. In the United States, the situation is further complicated by conservative backlash against affirmative action, often through legal means.
“We’re going backwards, but I’m not surprised. To make progress, there needs to be a bigger shift and a recognition that diversity is good for business. There also needs to be significant investment in upskilling managers to be inclusive leader and recognize that leading a diverse team is a skill I would still be making the same offer ten years from now.
Hybrid work may be more beneficial to working mothers, but there is evidence that those who work remotely are at a professional disadvantage compared to those who go to the office, and orders to return to the office are already starting to push moms out of the workplace.
What’s next?
The trend towards greater gender equality in mid- to senior-level jobs and among the top 10% of earners is encouraging, particularly in relatively male-dominated industries such as finance and professional services.
It is reasonable to expect a knock-on effect for the most senior and high-paying jobs over the next decade, as more women will have the necessary experience to merit consideration.
However, the trend persists, whereby women’s chances of advancement decrease with seniority. Until this dynamic changes, the gap will remain considerable.
