Heading in the right direction?

A report on women in the financial services sector found they are still at a disadvantage, whether it’s the gender pay gap or the number of women in senior positions. But some forward-thinking firms are determined to effect change, says Helena Pozniak

Attracting more women at all levels could provide the catalyst needed for a real shift in attitudes

The artist Grayson Perry grew so frustrated with bankers insisting that the aggressive male culture of the City had changed that he created a sculpture – a giant penis embossed with bank notes.

Men dominate the financial sector – especially at the top, says Perry, even if they’re keen to appear politically correct. He made the piece to reflect a “bastion of male power” during his recent Channel 4 series exploring masculinity.

Statistics back him up. In the financial services sector women comprise just 14 per cent of executive committees, even though 66pc of new recruits are women.

According to a report on women in finance commissioned by the Government and conducted by Jayne-Anne Gadhia, chief executive of Virgin Money, one of the reasons is that women are still struggling to climb through the ranks.

For example, the report found that on average women are paid 40pc less than men in the financial services sector, compared with 20pc in other sectors.

As a result of Ms Gadhia’s review the Government has introduced a Women in Finance charter, which invites companies to pledge to set internal targets for women in senior management and publish progress reports.

More controversially, the charter recommends linking leaders’ pay to how well they deliver on the pledge. Ms Gadhia says this would ensure that the targets are achieved.

So is the sector guilty of being more chauvinist than others? Yes, says Michelle Pearce, who adds she was asked at interview if she could hack it as a woman when she began her career as a stockbroker back in 2010. “I was shocked,” she admits. “I had just come from university and assumed we were all liberal and equal. It was a boisterous environment but I certainly didn’t feel less able to cope.”

She joined the firm nonetheless and did well, but found networking to be one of the greatest challenges. “Events were very male,” she says. “Golf, cricket, rugby or football.” So, in response, she hosted afternoon teas for other women in finance.

Ms Pearce left the world of stockbroking to co-found an online investment firm, Wealthify, and finds the technology sector a lot less stuffy, with fewer “suits” and more women. “Financial services could learn from the tech sector,” she says.

Will the Women in Finance charter, which is voluntary – to date it has been signed by large banking groups such as Barclays, HSBC, Lloyds and Royal Bank of Scotland (RBS), among others – make a difference?

“It’s not a silver bullet,” admits Jon Terry, global financial services people leader at PwC. “It will only work if organisations sign for the right reasons – that they truly believe there is a business case for diversity.”

Research by consultants McKinsey suggests that there is indeed a case: mixed gender boards outperform those comprised solely of men.

Female role models in senior positions are an essential part of the process, says Mr Terry, but perceptions of the sector remain poor.

A survey by PwC – Female Millennials in Financial Services: Strategies for a New Era of Talent – reveals that one in five women would not work in finance because of the sector’s image; and two thirds state they don’t believe they would reach senior level in their organisation.

Forward-thinking companies such as PwC have launched initiatives to change negative perceptions, including schemes to encourage women back into the sector after leaving to start a family; enhanced maternity packages available to dads as well as mums; mentoring and sponsorship; and aspirational programmes targeting female students. “Attracting more women at all levels could provide the catalyst needed for a real shift in attitudes,” says Mr Terry.

Women who have left the profession say they did so because they struggled with the long hours and the lack of understanding. They point out that it’s the culture that really needs to change – a criticism that Penny Davenport, former vice president at JP Morgan and now a business coach, would agree with.

“There just isn’t much tolerance for perceived weaknesses or emotion and this can start to wear down some women,” she says. “And finance is not family-friendly. If you’re not willing or able to put in the same hours as the boys, it’s hard to maintain the pace of your career.”

This is why some firms are putting the focus on retaining women who have started families – “returnships” – even though it’s early days for many schemes. Last year, Deloitte began a “Return to Work” programme, which convinced women, including senior manager Charlotte Blyton, to go back to work after taking a break to have children.

Ms Blyton admits she had concerns but after a 12-week internship and support from a mentor, she says it has given her a confidence boost. “I had thought I might need to take a step down but the whole point of the programme is that it encourages you to come back at the same level.”

This year Deloitte has announced it is extending the scheme and has reported that more than 30pc of new partners who were promoted in June are women. The company has also voiced its commitment to pay transparency – an area that Ms Gadhia’s review picked up on, criticising the secrecy of the bonus culture within the sector.

More than anything, though, women need to know companies are paying more than lip service – that the real problems aren’t being masked by well-meaning but ineffective quotas or initiatives.

At RBS – where each member of the executive committee has pledged to increase numbers of women in their area of the bank to at least 30pc by 2020 – change takes real commitment, as Marjorie Strachan, head of inclusion at RBS, points out.

“Staying tight and focused on our plans is hard work,” she says. “But change takes time – achieving anything authentic usually does.”