Financial Services’ Culture in Need of Reform

A recent report from the Treasury Committee has highlighted that the career progression of women in financial services continues to be hampered by what it describes as an ‘alpha-male’ culture within the sector and has called for this culture to be abolished. 

According to the report, this culture is particularly evident in bonus negotiations, where it's perceived that men argue more forcefully for bonuses than women. This can result in higher rewards for men, and acts as a deterrent for women.

In addition, the report finds that flexible working can be perceived as a “female" approach to working, and can adversely affect career progression. Long working hours based in the office can be unnecessary in some roles, particularly with modern technology, but a culture of "presenteeism" persists. To remove any stigma associated with flexible working, more senior men should lead by example by working flexibly, says the Committee.

The report notes that maternity leave can have a negative impact on the confidence of women, and many women returning to work can go into roles that are less financially rewarding or more junior than the role that they left. Employers can make unfair assumptions about the opportunities in which they may be interested. Industry should keep women up to date on live work-related issues, and should design schemes to assist women when returning to work.

“In the current bonus culture – whereby individuals argue how well they have performed – it's perceived that men argue more forcefully for bonuses, which can disadvantage women,” said Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee. “This should be replaced by a system where performance bonuses are assessed against objective and formulaic criteria.”

“Firms should also encourage flexible working, promote returner schemes for women on maternity leave, and re-examine their recruitment and promotion policies to eliminate unconscious bias – people recruiting in the own image – to avoid both group think and potential applicants being deterred,” she added.

Sex Discrimination Solicitors for Hertfordshire, London & Beyond

If you have been the victim of Sex Discrimination, we can help. Call now on 01442 330 813 or fill out our enquiry form and we will get back to you as soon as possible.

Contains Parliamentary information licensed under the Open Parliament Licence v3.0.