Equality gap still evident at senior executive levels

The greatest barriers to women achieving senior positions include a lack of engagement on gender diversity by senior leaders and men, according to a new study by Mercer.

The study, When women thrive, businesses thrive covered responses from 583 companies across 42 countries, representing 3.2 million employees (including 1.3 million women). It revealed that in the UK only 43% of companies say their board members are engaged in diversity and inclusion (D&I) and only 31% of line managers.

Compared to the rest of Europe, UK organisations participating in Mercer’s research have better overall female representation at all levels by an average of 5%. The findings also show that hiring rates for executive levels are higher for females than males (11% versus 9%) and for senior managers (12% versus 7%). However, female attrition levels are also higher at both executive (12% for women versus 8% for men) and senior manager (16% versus 11%) levels.

Globally, women make up only 35% of the average company’s workforce at the professional level and above. Other findings included that female representation declines as career level rises, with women making up 33% of managers, 26% of senior managers, and only 20% of executives. However, there is an increased focus on hiring and promoting women into executive ranks, seemingly driven by regulation and heightened media attention. However, current female hiring, promotion, and retention are insufficient to create gender equality over the next decade.

“If we keep doing what we’re doing it will take decades to achieve true gender equality – we need firm action, supported by senior leadership,” said Fiona Dunsire, Mercer’s UK CEO. “In our experience, companies that have succeeded in accelerating gender diversity are those that have implemented programmes and processes that lead to sustained change. Such initiatives include engaging men in diversity programmes, active management of family policies and equity in pay, promotion and performance management.

She added: “To remain competitive in a changing economy, businesses need to recognise that women have different competencies than men, and embrace and nurture those unique skills.”