A BLUEPRINT FOR BALANCE - TIME TO FIX THE BROKEN WINDOWS - WEARETHECITY
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A BLUEPRINT
FOR BALANCE.
Time to fix the broken windows.
Dr Maureen Vontz, Dr Heejung Chung, Dr Jane Dennehy,
Dr Ruth Sacks, Patrick Woodman, Dr Wahida Amin
January 2018
ACKNOWLEDGEMENTS
CMI and the authors would like to thank all those who took part in the different
strands of work. We’re grateful to the survey respondents for their contribution and
in particular to the many individuals who gave us their time and insights generously
through the 53 depth interviews carried out for this report. Some are named in the
report, although many remain anonymous. In particular, we would like to thank the
below organisations for sharing their approach to improving gender balance.
• AngloAmerican • Mentore Consulting
• BBC • PwC
• BlackRock • Royal Air Force
• Deloitte UK • RBS
• E.On • Santander
• EY • Sky
• Government Equalities Office • UBS
• Harvey Nash • Virgin Money
• Marks & Spencer
We’re also grateful to the CMI Women Board, chaired by Heather Melville, for their
support at every stage of this work.
Authors & Academic Advisory Board CMI Research Team
CMI would like to thank the report’s Patrick Woodman, Head of Research
authors for sharing insight, ideas and and Advocacy
expertise. Particular thanks go to Dr Wahida Amin, Research Manager
Maureen Vontz, the lead researcher
Ipek Noel, Research Manager
and author, for all her work throughout
the project. Tony Sobrado, Research Officer
Dr Maureen Vontz, Duke Corporate
Education (lead researcher) We also gratefully acknowledge the
Dr Heejung Chung, University of Kent editorial contribution of Matthew Rock
of Think Publishing, and Emma De Vita.
Dr Ruth Sacks, University of
Northumbria
Dr Jane Dennehy, Gender Hub
2
CONTENTS
Acknowledgements.............................................................................................................................2
Foreword...............................................................................................................................................4
Ann Francke, CMI CEO and Heather Melville, Chair of CMI Women
CMI Women’s Blueprint for Balance..................................................................................................5
Key findings: how employers are working to achieve gender balance..........................................6
Recommendations for balance..........................................................................................................8
Gender balance: the opportunities and the challenges................................................................10
1. Balanced recruitment...................................................................................................................12
2. Pay and rewards...........................................................................................................................14
3. Skills and career development....................................................................................................16
4. Making flexible working work for everyone...............................................................................20
5. Progress with mentoring and sponsorship...............................................................................24
6. Leadership equality and management culture..........................................................................26
The blueprint for balance: action steps...........................................................................................32
Research methodology.....................................................................................................................34
3
FOREWORD
ANN FRANCKE AND HEATHER MELVILLE
Ann Francke MBA CMgr CCMI FIC Heather Melville OBE CCMI
Chief Executive, CMI Chair of CMI Women
What a time it has been for campaigners thriving or failing to reach their full This report highlights some gender
for gender equality. In 2017 the #MeToo potential. That is why this report, and balance best practice from world-class
hashtag campaign became emblematic CMI’s associated Blueprint for Balance, organisations. We make a series of
of the bravery of women in speaking focus on the practical ways in which proven, innovative and practical
out against injustice and, in doing so, managers and business leaders can recommendations that leaders can
opening the floodgates to the unseen, accelerate gender inclusivity, and learn from. We hope you find these
darker side of working culture. It was challenge the visible and invisible inspirational and purposeful, and that
not for nothing that The Silence behaviours that stymie progress. they help you make 2018 the year for
Breakers – the movement that asked action.
women to speak out – won Time These are what we call organisations’
Magazine’s person of year. “broken windows”. These seemingly
small symptoms of incivility in a
One brave woman, Susan Fowler, the
workplace leave open the possibility of
software engineer who lifted the lid on
more serious violations. When small
sexual harassment at Uber and inspired
infractions remain unchallenged or
women to speak out against its
invisible, an organisation can unwittingly
poisonous culture, was the Financial
perpetuate a culture that is not
Times’ Person of the Year; the previous
year, it had been Donald Trump. Enough inclusive, hampering efforts to improve
said. It’s clear that 2017 was a turning gender balance. By fixing these broken
point, a year when one voice after windows, organisations can start to
another joined together to bring about build inclusive cultures where women,
change – and the momentum for that other minorities, and men, can thrive.
change continues. Already in 2018, To accelerate that progress, our Broken
the #TimesUp campaign sums up the Windows campaign helps men and
sense that it’s time for real change. women to recognise, acknowledge,
Yet change cannot be achieved through and challenge, the smaller moments
words alone. Although women and and behaviours in the workplace that
men must continue to speak out, it ultimately lead to larger gender
takes practical action to challenge inequalities. Share your stories,
workplace cultures that stop women in confidence, with us:
brokenwindows@managers.org.uk
4
CMI WOMEN’S BLUEPRINT
FOR BALANCE
SURVEY OF 856 MANAGERS
53 IN-DEPTH MANAGER
INTERVIEWS
17 EMPLOYER BEST PRACTICE
CONVERSATIONS
This report charts employers’ current
approaches to achieving gender
balance and showcases the How far do your organisation’s practices support gender balance?
best-in-class practices that are
starting to achieve real change. Detractors Passives Promoters
Recruitment practices
But it shows that many organisations (NPS = 2%)
34% 29% 37%
have much more to do, revealing the
Pay and reward practices
“broken windows” of gender bias (NPS = 0%)
38% 23% 38%
that still – for far too many women –
Career and skills
mar the reality of work. development (NPS = -7%)
37% 34% 30%
We look at examples like Sky, where Flexible working practices 39% 31% 31%
(NPS = -8%)
39% of top leaders are now female.
We explore the roles of senior Management culture 48% 31% 22%
(NPS = -26%)
leadership and line managers in
transforming business culture, with Mentoring and sponsorship 59% 20% 21%
(NPS = -39%)
an in-depth look at Deloitte which has
achieved its highest-ever proportion
of female partners. We also look at
the return-to-work schemes of UBS,
at the RAF’s commitment to opening
up opportunities for women, at Virgin Fixing the “Broken Windows”
Money’s drive to close its gender pay Employer practices are only part of
gap with real-time management data the story. In many organisations,
on pay, and more examples. there remains a gap between rhetoric 81% OF
and reality, with female managers
The Blueprint for Balance continuing to experience everyday MANAGERS
The need for employers to learn from sexism and bias in how their HAVE SEEN
such exemplars of best practice is companies work.
clear from our survey of managers
‘BROKEN WINDOWS’
across the UK. At most, only one third Fixing these broken windows is the BEHAVIOURS
of managers give their employers top most urgent challenge facing any
marks in any of the six categories of manager trying to support gender
CMI Women’s Blueprint for Balance. balance in their organisation.
NPS ratings: we applied the ‘Net Promoter Score’ approach to managers’ ratings of their employers in these six key areas. Scores of nine or 10 are called Promoters; seven or
eight are Passives; six or lower are Detractors. Detractors are deducted from Promoters to give the NPS.
5KEY FINDINGS
HOW EMPLOYERS ARE WORKING
TO ACHIEVE GENDER BALANCE
1. LINE MANAGERS ARE KEY TO FIXING BROKEN WINDOWS
Line managers play a pivotal role in changing behaviour and creating balanced workplaces. Their
actions are decisive in the success or failure of efforts to create balance. Yet many of the women
we interviewed have seen their line managers block, not champion, change.
Without progress on the reality of line management behaviours, the rhetoric of senior leaders falls
flat. Managers need to learn about the behaviours and practices that make a difference. They
need to be empowered to call out bias and create change, while also being held to account for
their impact.
“Lots of male and some female managers don’t seem to know they are being unfair or sexist. They
need to learn about and understand how institutionalised sexism works and develop strategies to
overcome it at a personal and corporate level”, said a middle manager in an engineering company
in South East England.
2. MAKING GENDER A BUSINESS ISSUE: THE CHALLENGE
FOR LEADERS
Our case study employers all credit senior leadership as essential to achieving change. Effective
leaders make gender a business issue – core to how the organisation works – not a “women’s
issue” that can be sidelined.
“Today, what is making a difference is all senior leadership talking and endeavouring to deliver the
same line in a coherent way.”
Air Vice-Marshal Warren James CBE, RAF
Without vision, personal commitment, and linkage to strategic priorities, gender balance will
remain out of reach. Yet our survey found that only 19% of junior and middle managers regard
their senior leaders as being committed to gender balance – and senior leaders are in fact the tier
of management least likely themselves to describe gender as a priority (42%).
3. CREATE ACCOUNTABILITY: MEASURE IT, MANAGE IT
Companies like Sky and Virgin Money have set targets for gender balance and ensure
transparency in tracking and reporting progress. Diversity and inclusion is part of performance
management, tying financial rewards and consequences to behaviours and delivery of targets.
“If we set financial targets, there are repercussions, but there are no repercussions for missing
gender balance targets.”
A female head of Diversity and Inclusion in a professional services company.
Use of metrics and targets is often lagging behind aspiration. Only 27% of managers report that
their organisation has clear targets for gender balance.
64. BRINGING DIVERSITY TO LIFE: MAKING IT PERSONAL
At the same time as making gender a mainstream business issue, we found that effective
executive leaders talked about deep personal motives underlying their commitment to gender
balance. For instance, for male leaders that often related to a vision of the future for their
daughters.
“As far as my girls are concerned, they can do anything. I want to make sure they are ready
for work and that nothing is happening there that they can’t do.”
A male executive in a FTSE 100 financial services company.
It’s personal, genuine, relatable for other employees, and highly effective to engage others in
bringing gender balance policies to life.
5. B
UILDING THE BUSINESS CASE: TALENT IS THE DRIVER
The most common driver for organisations focusing on gender balance is attracting and
retaining the best talent (cited by 58% of managers), at a time when employers face growing
competition for skilled people.
Programmes like the UBS Career Comeback programme attract women who have taken time
out of work, helping the company tap into a wealth of talent.
“As all organisations struggle to find women to fill senior leadership roles, we think we
have access to a new talent pool that with a bit of creative support can make a fabulous
contribution to the business.”
Carolanne Minashi, Global Head of Diversity & Inclusion at UBS.
6. THE JOB’S NOT DONE: TACKLING SECOND
GENERATION BIAS
The overt discrimination of previous generations may not have completely disappeared. But
the most common challenge now is “second-generation” gender bias: behaviours flowing from
basic assumptions about working life or about the qualities required to succeed in leadership,
which reflect masculine values and men’s life situations.
“[Discrimination has] gone underground. Views are now more masked and only rear their
heads in passive, unobvious ways.”
A female managing director in a FTSE 100 financial services company
One female manager in a manufacturing company told us that “Women are still viewed as
‘admin’ in my organisation.”
And despite recent high profile gender debates in business and the media, some female
managers told us that gender is at risk of becoming invisible as a business priority. One female
leader told us of the dismissive attitude one male senior executive when talking about gender
balance in their company: “Well, don’t you think we’ve done enough?”
7RECOMMENDATIONS FOR BALANCE
Our recommendations highlight key actions for senior leaders,
line managers and diversity specialists alike to change cultures,
address the broken windows, and take action across the six
areas of CMI Women’s Blueprint for Business. See our full
recommendations on pages 32 to 33.
FIXING THE BROKEN
WINDOWS
• Call out, challenge, change • Make change personal – tap into
behaviours – too many “broken people’s emotional connections and TAKE ACTION
windows” behaviours pass motivations to accelerate progress
unchallenged. Make 2018 the year towards gender balance. Leaders Head to www.managers.org.
for action. Every manager has a role should open up about their personal uk/BrokenWindows to:
to play. motivations for promoting the gender
agenda, as well as making the Access our Blueprint for
• Share stories – listen to the day-to- business case. Balance Tool where you
day experiences of women in your can download best practice
organisation. Share your experiences • Work with men as change agents resources, benchmark your
of broken windows to find the best – show how advances for women organisation and upload
ways of addressing them and evolve are advances for men too. Work with and share your resources to
support the drive for
a more inclusive culture. men to role model the behaviours
diversity
needed to change cultures, like using
• Match reality with rhetoric – flexible working for family reasons, to Sign up to CMI Women,
leaders and middle managers alike make those behaviours the norm and CMI’s network for managers
need to be aligned in their behaviour not the exception. who want to help us to
to change to make sure that policies drive gender balance in
and practices deliver real change. the workplace and create a
world-class pipeline
• Make it a business issue – leaders of women in management
need to make gender balance a and leadership
bigger management priority. Measure
Find out how to take
it, set targets and report on progress.
part in our CMI Women
Empower line managers to make
Broken Windows campaign
change, and make them accountable which will identify the
for their actions. smaller, discriminatory
and sometimes accidental
• Reinforce the business case – behaviours that continue
win the argument about whether to exist in our culture
enough has been done on gender and contribute to gender
by highlighting the business case for inequality.
your organisation. Use the evidence
that diversity delivers results and Follow us on Twitter
show how gender initiatives address @CMI_managers
key business needs, like helping to #CMIWomen
attract and retain talent or improving
how far leadership teams reflect your
customers.
8THE BLUEPRINT FOR BALANCE
BALANCED RECRUITMENT SKILLS AND CAREER DEVELOPMENT
• Mandate diverse interview and selection panels for • Tackle women’s perceptions that they have less access
all roles, especially senior posts. to development opportunities by ensuring equal intake to
• Use blind CVs and insist on diverse candidate lists. leadership programmes.
• Stop seeing career breaks as a shortcoming. • Tailor any women’s leadership development programmes
Recognise the value of alternative skill sets and to the needs of the organisation. Be considerate about
experience. the language and promotion of single-sex programmes,
and make sure they support inclusion rather than
separateness, for instance by expanding women’s
networks to include men.
• Enhance return-to-work programmes for career-break
returners. Use one in 10 of the new management and
leadership Apprenticeships to support returners.
PAY AND REWARDS MENTORING AND SPONSORSHIP
• Lead the way for gender balance by being • Executive leadership teams should be tasked to sponsor
transparent. Publish your pay gap and say how you at least one high-potential woman and track their progress.
will work to decrease this. • Support senior and middle managers in sponsoring female
• Analyse your data and link progress to middle managers. Provide guidance on how to advocate for
performance targets and rewards. the person being sponsored.
• Ensure maternity leave and flexible working is not • Support female team members in particular to become
considered a penalty in pay negotiations. mentored and sponsored, whether by senior women or by
men.
FLEXIBLE WORKING PROMOTING LEADERSHIP EQUALITY
• Find managers at all levels who are role models for • Keep up momentum at senior levels by applying best
working flexibly for family reasons, especially men. practices and sustaining the focus on the talent pipeline.
• Develop campaigns and training to make sure • Target 50/50 balance. Why settle for less?
flexible working really works and doesn’t create • Focus on culture by tackling broken windows, engaging
pitfalls for women. Focus on how it can enhance men as agents of change, and making it personal.
performance outcomes.
• Address the stigma around flexible working.
Challenge presumptions based on the long hours
culture.
9GENDER BALANCE: THE OPPORTUNITIES
AND THE CHALLENGES
CMI and many others have set
out in recent years the benefits
of gender balance, as well as the
scale of the challenges we still
face to achieve it.
What’s the business case for An 18% ROI premium Diversity could add Diverse companies are
action? Diverse teams deliver for gender-diverse $12 trillion annually to 21% more likely to
better results. leadership teams.1 the global economy 2 out-perform competitors.4
and £150 billion a year to
A huge economic and social opportunity the UK economy 3 in 2025.
awaits if we create gender-balanced
organisations.
Employers in the UK have to redouble
efforts to recruit, develop and retain
female managers if they are to create
diverse and balanced organisations To achieve
By 2024, equal numbers,
over the next decade. Right now,
women outnumber men at junior
the UK needs 1.5 million
levels, but too few make it through 1.9 million of the new
new managers managers need
middle management and to the top of
to be women.6
an organisation.
While 66% of entry-level management
roles are occupied by women, this
reduces to just 40% of women in
middle management roles.5 To achieve the gender pay gap for UK managers
a 50/50 split of management jobs stands at 26.8%, with male managers
between men and women by 2024, on average out-earning female peers
the UK will need 1.5 million new female by £11,606 a year. The gap increases
managers.6 to £34,144 for director-level positions.7
With government regulations driving
Major inequalities also persist in pay. new levels of transparency about pay,
The latest analysis of management pay there is a renewed focus on closing the
from CMI and XpertHR revealed that gap.
1
Credit Suisse, The GS Gender 3000 (2014 and 2016) 4
McKinsey, Delivering through Diversity (2018)
2
McKinsey Global Institute, The Power of Parity: How Advancing Women’s Equality 5
Gender Pay Gap, CMI (2017) http://www.managers.org.uk/campaigns/gender-
Can Add $12 Trillion To Global Growth (2015) salary-survey-2017
3
McKinsey Global Institute and McKinsey & Company United Kingdom, The Power of 6
CMI analysis of UK Commission for Employment and Skills data, from Working
Parity: Advancing Women’s Equality in the United Kingdom (2016) Futures 2014-2024 (2016)
7
Gender Pay Gap, CMI (2017) http://www.managers.org.uk/campaigns/gender-
salary-survey-2017
10FEW WOMEN REACH THE TOP
Women don’t just face a glass ceiling – it’s a ‘glass pyramid’,
with wider pay gaps for women the higher they reach.
DIRECTORS 19%
26% 74% £34,144
GENDER PAY GAP*
REPRESENTATION
SENIOR MANAGERS 18%
36% 64% £19,852
MIDDLE MANAGERS 10%
40% 60% £6,341
PROFESSIONAL 11%
50% 50% £4,364
ENTRY LEVEL / JUNIOR 4%
66% 34% £960
*Because the pay gap between men and women at senior levels is far bigger than junior levels
in real terms (not just percentage terms), it drives up the overall average to 26.8%.
Broken Windows
CMI’s research has also shown that
gender discrimination is still rife in
@!*
the workplace. 81% of managers
have witnessed some form of gender
discrimination or bias in the past
year.8 Women were more likely to
have observed such behavious (85%
compared to 80%).
85% 80% 83% 62%
According to CMI’s Creating Balanced of women of men of women of men
Workplaces research in February 2017,
have witnessed have witnessed women
when asked what behaviours they inappropriate remarks struggling to make their
had personally witnessed in the past views heard in meetings
12 months, half (50%) of managers
pointed to gender bias in recruitment/
promotion decisions, while 42% said
they had seen inequality in pay and
rewards. Over two-thirds of managers
(69%) said they saw women struggling
to make their views heard in meetings,
and four in five (81%) said they had £
witnessed inappropriate remarks £
(such as comments with sexualised
overtones masquerading as ‘banter’).
This report builds on these themes
to provide more detailed insights into 62% 42% 61% 31%
employers’ action to address these of women of men of women of men
challenges, the role of line managers, have witnessed gender have witnessed gender
and the reality of change – or its bias in recruitment/promotion bias in pay and rewards
absence – for women in management. decisions in the workplace
8
Creating Balanced Workplaces, CMI (2017) https://www.managers.org.uk/~/media/Appius/Submissions/Creating-Balanced-Workplaces-Infographic.pdf
111. BALANCED RECRUITMENT
5%
21%
70%
57%
As the first step in the employment
cycle, recruitment is a critical area
of focus for gender balance. Most 5%
managers regard their recruitment 21%
Interview questioning
processes as fair but it’s clear that
adoption of leading practices to 70% Unconscious bias training or other
ensure real fairness and gender diversity training
balance remains low. Supporting I haven’t received any training
middle managers during the 57%
Other recruitment training
process is the key to balanced
recruitment.
Leading employers use a range of
measures throughout the recruitment
Figure 1: Managers receiving training on balanced recruitment
cycle to create balance. They include Interview questioning
using gender-neutral job descriptions,
Unconscious bias training or other
blind-sifting applications, and insisting diversity training
on diverse candidate lists.
I haven’t received any training
Employer interviews also highlighted Recruitment tops the
Other recruitment list when
training Perhaps as a result, “that” 62%
the need to think differently about managers score their organisations of women and 42% of men have
the capabilities and experience against the six areas of the Blueprint witnessed gender bias in recruitment/
needed for the job role: recognising for Balance, with just over one third promotion decisions.
that candidates may bring relevant giving their organisation top marks for
skills from different contexts, or that recruitment. But it’s equally clear that More encouragingly, a large
sometimes the best hire is the person many organisations could do much to proportion of managers report having
who will excel in the role in six months’ improve their recruitment. received training that can support
time, not today. Strengths-based job gender-balanced recruitment, such
descriptions paying particular attention Fewer than half of managers (48%) as interview questioning (70%) or
to behaviours, rather than a checklist say that they have diverse panels unconscious bias training (57%).
of competencies, can encourage more when recruiting candidates. And just However, just over one in five don’t
female applicants. under one in five (19%) of managers receive any training at all (see Figure 1).
involved in recruitment report reviewing
While these practices may take some CVs without names or other gender
time time and effort to implement, identifiers.
identifying and attracting a gender-
balanced candidate pool is essential
for improving hiring rates of women.
12Confronting apathy Harvey Nash, the global professional real terms, Parslow says that’s three to
Individual managers need support and executive service firm, always four times the national average in that
from HR and leaders to make positive raise the question about balanced space. “Their motto is positive action,
change, while also calling out apathetic recruitment with clients. “We were not positive discrimination.”
attitudes to balanced recruitment. One talking to a female HR director at a
female managing director in financial large publically-quoted organisation
services cited management apathy and mentioned we do a lot of work
as a block to hiring more women: “I around gender diversity,” says Nigel
hear them complaining ‘Oh my God, Parslow, Harvey Nash’s managing
now we’ve got to make sure we’ve director. “Her response was that
interviewed a woman.’ They are simply this had no consequence for her
ticking a box.” recruitment search. That was the end
of that relationship.”
By contrast, another client in the
technical industry has insisted on
having at least one qualified woman
on its list for any role for many years
and as a result they now have more
than 30% female technical staff. In
CASE
STUDY
Sky’s focus on 50/50
As part of its strategy to achieve a
50/50 gender balance in their senior
leadership team, Sky committed to
50/50 shortlists for all senior roles. This CASE
was supported by efforts to attract STUDY
talented women through targeted
marketing, along with a dedicated
Women in Leadership Sponsorship &
Development programme.
Getting balanced with its clients, resulting in a diverse
“Our biggest driver is to reflect UK team, not only in terms of gender, but
society, so the right thing to do is
recruitment right also age, race and ability. The firm
aim for 50/50, which gives us a really When an individual leaves a team at follows a robust and fair recruitment
clear goal” said Katrina Watson, an short notice, middle managers can face process that relies on gender-neutral
inclusion consultant at Sky. Through a problem: find a quick replacement language in job descriptions, gender-
a business-led approach with balanced short-lists, and having
versus taking the time to pursue balanced
leadership accountability and working candidates meet several team members
recruitment. According to Rachael Hanley-
in partnership with HR, Sky adopted to ensure there is a broad range of
Browne, head of leadership consulting
a balanced recruitment process that feedback on a candidate’s fit.
at executive search firm Harvey Nash,
included 50/50 short lists and diverse balanced recruitment can take up to “We measure the gender balance on all
interview panels. This approach has
two to four weeks longer than traditional of our internal searches,” says Hanley-
seen female representation in their
recruitment. Browne. “We look at how many women
senior leadership team increase by a
we’ve interviewed and appointed and
third, from 29% to 39%. Harvey Nash is the only recruitment
discuss this internally at team meetings.
business to have earned National We look for non-traditional evidence of
Middle managers also work with the
Equality Standard accreditation competencies, such as experiences as a
recruitment team during the recruitment
based on its efforts at meeting client governor or finance committee member
process to reinforce Sky’s commitment
to gender balance. demands for more diverse shortlists and at a school.”
contractors, particularly in the STEM
“It’s getting the middle manager layer space. “Our recruitment consultants Adopting a broader view of experience
to engage in conversations about are asking themselves if they are and a longer-term perspective in finding
balanced recruitment,” said Watson. challenging clients to push them for the the right fit are hallmarks of effective
“This gets them thinking not just about ‘real’ criteria for the role, if they are using balanced recruitment. Bringing more
how to replace a current role, but about fair processes in selection versus just women into the business is not enough
the make-up of their team, what kind of looking for the ‘typical’ candidate,” says to ensure a diverse and inclusive team.
skills would best support and enhance Hanley-Browne. Offering a solid onboarding process
their current team instead of replacing that helps new people develop good
like for like. It’s having a trickle effect; When recruiting for its own organisation, connections and adapt to a new work
new managers coming up see that this Harvey Nash applies the same best context are also fundamental parts of
is just how we hire at Sky.” practice for gender balance as it does Harvey Nash’s internal hiring practice.
132. PAY AND REWARDS: WE STILL NEED
TO TALK ABOUT PAY
The introduction in 2017 of
regulations requiring large employers Equal pay or gender pay gap?
to report their gender pay gap has Equal pay is straightforwardly about whether men and women are paid equally for equal or
been transformational in instigating similar work. Less favourable treatment between men and women in pay and conditions
senior management conversations has been illegal since the Equal Pay Act of 1970.
about pay and progression. The The gender pay gap, however, describes any difference between the average pay of all
gender pay gap remains significant – women and men in a group – such as those employed by a particular organisation. That’s
the focus of the new regulations, which require the publication of mean and median pay
but many employers are implementing
gaps for both salaries and bonuses.
coherent strategies for change.
As such, the gender pay gap reflects a number of factors, especially the relative lack of
Leading organisations are already issuing women in better-paid senior management jobs. A company could easily be in a situation
information about their gender pay gap, where it pays women and men equally at every grade (that is, in compliance with equal
pay law), but most of the women it employs are in junior roles while men dominate
including those we spoke to for this higher-paid management ranks. In that case, the company would still have a gender pay
report. Deloitte first reported its gender gap. For this reason, most employers currently have gender pay gaps.
pay gap in August 2015, reported again a
year later, and was one of the first
companies to report under the new reports internally on pay data by discussions and decisions on pay and
regulations, in July 2017, showing a mean gender, while 8% personally know their rewards. This contrasts with the
pay gap of 18.2%. Another early adopter organisation’s gender pay gap. 23% perception of male managers, 67% of
was PwC: its 2017 Gender Pay Report are not at all confident that their own whom believe there is a fair approach.
reports a disclosable pay gap of 13.7%, pay is the same or similar to others at While 41% of managers don’t think their
down from 15.2% the year before. the same level. organisations have a gender pay gap
Leading employers link their reported Secondly, the growth of the conversation (see Figure 2), this may be optimistic or
numbers clearly to strategies for about pay appears to have created reflect some confusion between the
change, which are typically wide significant doubts among managers concepts of equal pay and the gender
reaching, recognising that the gender about how fairly their organisations pay gap. Strikingly, only 8% of
pay gap is an outcome of multiple approach pay and reward. managers say that they know what their
factors including women leaving the organisation’s gender pay gap actually
Almost one in five (19%) of managers is. As the reporting regulations bed in,
workforce, being disengaged by poor
say they are ‘not at all’ confident that this number will surely rise.
company cultures, and failing to reach
their own organisation even provides
senior levels. The annual CMI/XpertHR analysis of
equal pay for men and women at the
Pay transparency – a question of same level or role. Women were far less management pay data for 2017
trust? confident: 60% of men were “very highlighted that an even bigger gender
While reporting regulations have confident” while only 34% of women gap exist for bonus payments, as much
triggered a reaction across corporate were “very confident”. This discrepancy as 46.9%. Perhaps as a result, 17% of
women say they do not believe that
Britain, our managers’ survey suggests in perspective was echoed in interviews.
men and women are equally likely to
we are still in the foothills of change.
Fewer than half (44%) of female receive bonuses if they meet
Firstly, we see low levels of transparency. managers agree that managers have a performance criteria, compared to just
Only 13% state that their company fair approach with respect to gender in 5% of men.
1426%
I don’t think my organisation No peer, had been earning more than me among women returners. “I was at this
has a gender pay gap – yet I got the promotion. I didn’t raise level when I went on maternity leave,”
Don’t know/not sure Yes it because now, as the team leader, says one female senior engineer. “I’ve
I’m being paid more, so I feel it’s being come back to the same level but took
addressed. But pay still isn’t openly a huge pay cut as I went to four days
discussed. I did hear of one woman – although I’m still working full time in
8% raising a freedom of information reality,” she says.
request for salaries. It was raised at the
risk committee and she was deemed Middle managers can sometimes take
25%
aggressive.” the lead on creating change by
41%
supporting return-to-work employees.
Another senior female leader in strategy As a female partner in professional
routinely found she was paid less than services recalls: “When I returned to
her male team members. “Apart from work after having my daughter I went
26%
one exception, when I’ve had male part-time to four days a week. I asked
direct reports, they’ve always been paid my boss for a bonus to reflect all the
more than me. And I’m the boss! There extra days I did – i.e. five-and-a-half
Figure 2: Do managers know the
is always a background story and days a week. I was told however that
I don’t think my organisation No reasons why.” She also did not raise the
gender
has pay gap ofpay
a gender their
gaporganisations? bonuses are linked to technical hours in
issue. “I wouldn’t wish for them to have
Don’t know/not sure Yes my contract and that the HR rules
less but it’s about fairness.” she says.
could not be broken. But my manager
Time to start talking Pay and returners instead increased my salary to
Talking about pay at work has Financial penalties were also apparent compensate for the extra work.”
traditionally been considered taboo
or at least in poor taste. While pay
transparency may be starting to break
this long-standing silence, our interviews
with women revealed ongoing challenges
for women in requesting and receiving CASE
pay rises. STUDY
Unsupportive line managers were
sometimes felt to be at fault. One female
middle manager working in strategy was
told by her boss that she could not do Tackling the gender pay attractiveness of its employment offer to
better than “meet expectations” on her men at entry levels while bolstering its efforts
gap the Virgin Money way to retain women in the business through
performance review because she’d been
How organisations respond to their data on programmes such as maternity mentoring.
on maternity leave. This meant she had It has also made a commitment, when hiring
the gender pay gap is perhaps as strong
no chance of a bonus. When she said an indicator of their commitment to gender externally, to match any flexible working
she wanted to talk about how she could equality as the data itself. Virgin Money was arrangements in place with the previous
earn a pay rise, her manager simply another early adopter of transparency and, employer, as a minimum offer.
rolled his eyes and refused to discuss it. led by CEO Jayne-Anne Gadhia, have been The approach to pay also means confronting
champions of gender balance in through the
“I was shocked, but what can you do?” the numbers. Virgin Money enhanced its
Women in Finance Charter. management decision-making tools, so that
In some instances, policies and In June 2017 Virgin Money reported a mean when line managers are considering allocating
processes are blamed – rather than line pay gap of 32.5% – a gap that had come down pay rises and bonuses, they have “real time
data” and can immediately see the impact
managers. “I went to my boss to talk from 36% the year before. It’s working to
close the gap with an approach that includes of their decisions on their gender pay gap.
about my pay after a good performance This visibility is helping managers become
helping managers across the business
review,” shared one female senior understand the impact of their pay decisions. aware of any unconscious bias in decisions
manager in financial services. “I was told, on pay, and it’s backed by transparency with
Matt Elliott, people director at Virgin Money, is employees, all of whom receive individualised
‘we’re doing our best and recognise your
robust in his description of the bank’s gender letters about their pay, including their position
potential, but the process is driven by HQ pay gap. “It isn’t something we can accept,” within the market benchmark for their role.
and we can’t get around it.’” he says.
Not only do line managers benefit from
When women do become aware of Looking deeper at the data, Virgin Money this insight but the tool rolls up to the top
pay discrepancies with men, they are discovered that it had far fewer men (27%) executive levels. “I review the break down at
working in customer service or lower paid the executive committee level with the CEO,”
unlikely to raise it for fear of the roles and a disproportionately high level said Elliott. “As a result of our approach we
consequences. “When I became a of men (65%) in the best paid roles. The look at every grade level and person to ensure
manager of the team, I saw their company took steps to both improve the fairness, so there is a lot of transparency...”
compensation,” says a female senior
manager in financial services. “One of my
male direct reports, who had been a
153. SKILLS AND CAREER DEVELOPMENT
The more senior the level of Disagree Neither agree nor disagree Agree
management, the rarer women
become: so supporting women’s Female 31% 9% 60%
skills and career progression is
key. Employers need to ensure
women participate in leadership Male 21% 13% 66%
development schemes; dedicated
programmes, networks and
innovative return-to-work schemes
are also supporting career mobility. Figure 3: I’m happy with the career and skills development opportunities I have in my organisation
Our interviews highlighted that
employers are focusing on ensuring
that men and women participate in
development opportunities. But our
Disagree Neither agree nor disagree Agree Don’t know
survey revealed differences between
the sexes in their experiences. Female 27% 9% 62% 2%
Women are more likely to disagree that
they are happy with the development
Male 11% 7% 81% 1%
opportunities at their organisation:
31%, compared to 21% of men (see
Figure 3).
Figure 4: Opportunities for career development/progression in my organisation are equal for men
And there are strong differences and women
when asked if career development
opportunities are equal for men and
women. 27% of women disagreed with
this, compared to just 11% of men (see
Figure 4).
For the leading organisations we
interviewed, the response to this
challenge included ensuring gender
balance in the uptake of their
leadership development schemes, but
also dedicated development activity
for women: whether formal leadership
programmes, or broader support
networks.
16For many
organisations, an
important part of
improving women’s
chances of career EXPERT VIEW
progression is to
support women’s Women’s leadership development – missed
opportunities
networks. Dr. Ruth Sacks, University of Northumbria
Have we done enough on gender? When it comes to leadership development, the
answer is clearly no.
Leadership programmes for One of the key routes to greater gender equality is through leadership and management
women development programmes. There are women-only programmes, programmes created
for professional groups or sectors, courses for men and women as well as conferences
The retailer Marks & Spencer and a plethora of networking and social event groups. They can offer role models, case
studies and Q&A sessions to share knowledge, experience and as well as challenge
engaged a leading university to help attitudes, understanding and awareness.
it understand why women were not
Many companies have internal women’s networks which offer safe spaces to discuss
progressing into more senior roles. challenges and difficulties experienced in the company as well as mentoring and
It conducted 20 in-depth interviews coaching schemes. There are also cross-organisational, industry and sector specific
with women as well as an open survey groups which offer a more neutral context for such discussions and training.
of 200 women, which revealed three These all increase awareness, maintain the conversations and debates about gender.
key areas to focus on including better After all, there is an assumption that if you don’t speak about gender it’s not a concern
career planning, along with flexibility or issue.
and inconsistency across the business; Many of the leadership programmes for women focus on communication and
and perceptions of culture. presentation skills, self-confidence and those areas of knowledge in which women
feel they have least confidence and competence such as finance, governance and
networking. Some courses target women specifically looking to gain board level
Building on this knowledge, M&S put
executive or non-executive roles.
together a mentoring and leadership
Non-gender specific executive development programmes also often address these
programme for women. The company
topics equally well, also including unconscious bias training or similar such topics.
worked with leaders to help them think Women will delve deeper into certain issues when they are in a women only group.
about who was in their leadership But when the more challenging topics such as bias, assumptions, language, attitude
teams. and meaning are addressed in mixed gender groups, skilled facilitators can encourage
conversations which are challenging and generate better understanding, among both
men and women, to support change.
Says Simmone Haywood, M&S’s
Head of Talent: “Colleagues across These initiatives make a significant contribution to driving interest, engagement and
actions to improve gender balance. The number of attendees, the frequency of events
the business are seeing the benefits
and the popularity of leadership development programmes are evidence of this. Each of
of creating a more inclusive workplace the programmes or events will have an impact on the participating individuals and the
and we’re in the process of rolling out network they create because of being involved in the development experience.
a smarter working project to challenge But have we done enough? In relation to leadership development, the answer is no.
the way people work and offer more
It’s not enough because rarely are there incentives or encouragement for participants
freedom and flexibility.” to share their learning and understanding, or add value to their performance using their
new perspectives, skills and knowledge if no-one appears to be interested: “I can’t tell
Women’s networks where my boss is on this”, as one interviewee told us of her male line manager. This
For many organisations, an important means that the ideas, strategies, cross departmental relationships and networks that
part of improving women’s chances are proposed and enthused over during the courses rarely transfer to organisation
practice or implemented policy.
of career progression is to support
women’s networks. BlackRock is one When women’s leadership development seems not to have any real value to the men
with whom the female participants work, its value is massively reduced. If creating a
such company (see over). better gender balance is a business issue then learning and behaviour outcomes must
have greater importance.
17CASE CASE
STUDY STUDY
BlackRock’s Women’s Part of the cultural integration was the Deloitte’s Women in
inclusion of men as network members.
Initiative Network Participating in WIN helped men become Leadership programme
Female leadership was in-built at asset not only be better managers of women, but When Emma Codd took over as
manager BlackRock. Two of its eight also better fathers, according to reports managing partner for talent at Deloitte
original founders in the 1980s were from male members. The inclusion of men UK, one of the first things she did was
in the gender conversation at BlackRock to spend time understanding what
women. But the firm recognised that
expanded, where men were invited to sit was holding women back. “We had a
this didn’t mean the entire organisation
on panels alongside women at WIN events. women’s network and a target of 25%
was diverse and wanted to create more
Mentorship roles, originally filled by senior female partners, but we were seeing
formal ways to connect and foster female
women, also became filled by men. By a steady decline in women joining us
talent. The acquisition of Barclays Global
engaging with WIN, many men reported at entry level and were making slow
Investors (BGI) in 2009, offered a key
‘lightbulb’ moments of recognising progress towards our target,” she
opportunity. BGI, which had also been led
unintentionally biased behaviour and explains.
by a female CEO, had a well-established
began to more intentionally manage
Women’s Initiative Network (WIN) with Her analysis led to a detailed Women
team dynamics and career advancement
women who were deeply engaged in opportunities. in Leadership action plan, including
investing in each other’s growth. activities to increase the number of
The Women’s Leadership Forum (WLF) is a women the firm recruits, to ensure
BlackRock soon appointed Kara Helander year-long leadership programme for senior development opportunities are clearly
as global head of philanthropy and women at the firm that complements available and to provide a working
diversity. Helander was formerly the other leadership programmes by focusing environment enabling women to
head of corporate social responsibility on specific challenges women face in balance a successful career with family
at BGI and had worked to enhance the advancing in the organisation. “We’re life or other commitments outside the
scope and scale of WIN. Senior women working to continually have more diversity workplace.
from both legacy firms came together in key high leverage roles,” says Jonathan
to create BlackRock WIN. They focused McBride, Helander’s successor. It has Other key elements of the plan to help
the network on attracting and retaining extended its Women’s Leadership Forum advance women included a return-
women, developing an inclusive culture, to director level and is expanding the to-work programme for individuals
and keeping its activities business-focused concept of the programme for a wider set who have been out of professional
WIN grew quickly – soon there were of vice-presidents. “We’re taking what services workforce for more than two
chapters in every major office – and it years; coaching for primary carers
worked for women and applying it across
returning from maternity/parental leave
became a catalyst to integrating cultures. broader populations,” says McBride.
(and mandatory sessions for their line
managers) about balancing career
and family; and an advocacy-based
sponsorship programme. Deloitte also
offers flexible or agile working for all –
see page 22 for more.
18“As soon as I was promoted, I fell pregnant and I then
spent my whole middle stage of my career having two
children. My career slowed down and it took me about
three years to get promoted again, compared to my
peers who did it in one-and-a-half years.”
CASE
STUDY
Returning from career breaks Career comebacks at UBS offering such a model for permanent roles:
“Internships may lead to a real hire, but it’s
Swiss wealth manager and investment hard to find data on real conversion rates.
Parenthood is widely recognised as bank UBS has a unique proposition with We wanted to guarantee the best outcome.
one of the most critical challenges its Career Comeback programme aimed Two years later, we know both approaches
facing women’s career progression. But at people who have taken a career break have impact but our model for permanent
leading employers do not accept that of a minimum of two years. Different to its roles makes a strong commitment from the
programmes for UBS maternity returners, outset for both our Hiring Managers and
it must mean women are condemned
Career Comeback offers permanent the candidates.”
to fall behind their male peers as their positions and is aimed for those outside of
careers progress. UBS who, for whatever reason (but largely Minashi understands the financial
childcare related), took a career break. impact for women returners. Many
organisations discount remuneration on
One interviewee’s experiences were “We’re aiming for director and senior- these programmes and it can be hard to
typical of how parenthood can interrupt level roles and we’ve found a huge bring salary levels back in line, even if the
career progression. “As soon as I was wealth of talent that were operating at internships lead to permanent roles. “We
promoted, I fell pregnant and I then that level before taking a break, but are have a threshold of quality in skills and
being overlooked by standard recruiting experience and we’re aiming for director-
spent my whole middle stage of my methods” says Carolanne Minashi, global level and senior roles,” she says. “We’re
career having two children. My career head of diversity and inclusion at UBS. “As not entertaining the idea of discounting
slowed down and it took me about all organisations struggle to find women pay. If people are coming at senior levels,
three years to get promoted again, to fill senior leadership roles, we think we are paying them at senior levels.”
compared to my peers who did it in we have access to a new talent pool that
with a bit of creative support can make a Restarting a career after a break period
one-and-a-half years.” fabulous contribution to the business.” is not straightforward and challenged
UBS’s standard recruitment practices.
CMI has called for employers to draw So far, its commitment to female returners “Algorithms don’t work in this case,” says
is paying dividends with 100% retention Minashi. Line managers and recruiters
on their Apprenticeship Levy funding after a one-year pilot. The programme need training and support to help them
to support returners, by dedicating has two offerings; a conventional 20 week look past the break and only at the
one in ten Apprenticeships to internship-style programme offered in New skills competencies and life experience
parental returners. Leading employers York and a permanent-hire programme that the candidate brings, candidates need
meanwhile are actively working to runs in Zurich and London. “We wanted a higher level of touch and a softer
to start with both offerings in our pilot approach. We’re mindful that this can be a
support parents returning to the year to see which approach was the most nerve-wracking process and a confidence
workplace, including those coming effective.” test for many returners. Even if we can’t
back from extended career breaks – find a match for someone, we’ll suggest
According to Minashi, UBS is the only
like, for instance, UBS. financial services company currently
other organisations for them.”
194. MAKING FLEXIBLE WORKING
WORK FOR EVERYONE
Flexible working is an important 70%
Flexi time/flexible scheduling
component of creating gender 49%
balance. The majority of managers 70%
regard it positively and enjoy Working from home on occasion
54%
its benefits, but leaders need
67%
to prevent any ‘stigma’ being Reduced hours (e.g. part-time)
18%
associated with flexible work by
40%
finding role models to normalise its Job sharing
7%
use for family reasons, especially
by men. 34%
Compressed hours
9%
Flexible working can mean many 23%
Term time working
things: working from home, working 4%
compressed hours, term-time hours, 16%
Designated home office worker
part-time or flexi-time working. It has 5%
become an umbrella term to describe 15% Offered by
Annualised hours organisations
all kinds of working outside traditional 2%
9-to-5 office hours. However it’s 7% Used by
defined, it’s widely regarded as an My organisation does not 22%
offer flexible working managers
important way to improve gender
balance, for two main reasons.
Figure 5: T
ypes of flexible working
Firstly, allowing women to work flexibly
– for family or non-family reasons – and
produce the same output as non-
flexible workers allows them to have
the same opportunities for promotion.
Secondly, and simultaneously, allowing
men to work flexibly can make it easier
for families to rebalance family duties.
Our survey found 78% of managers use
some form of flexible working, with 70%
using flexi-time, flexible scheduling or
working from home on occasion (see
Figure 5).
9
Chung, H. & van der Horst, M. (2018) Women’s employment patterns after childbirth and the perceived access to and use of flexitime and teleworking. Human Relations 71(1): 47-72
20Two-thirds of managers agree that More difficult to collaborate/work 43%
together with others
flexible working has supported their
career. This is particularly true for Difficulty in managing staff 33%
female managers (71%, compared to I don’t think my organisation experiences and 26%
57% among male managers). challenges as a result of flexible working
More work for those who do 23%
not work flexibly
Managers also endorse flexible
working’s benefits for organisations. Conflict between workers 23%
Just under half (48%) believe that Increased stigma towards parents/ 13%
it makes for a more productive carers/women
workforce. 64% agree that it creates a Increased costs to the employer 12%
more family-friendly culture while just
over a third (37%) agreed that flexible Figure 6: Perceived problems of flexible working
working creates a more gender-equal
workforce.
Those managers who use flexi-time, Policy and practice of flexible where a culture of “working everywhere
working from home on occasion and working can often be at odds and all the time” develops.
job sharing were the most likely to give Could flexible working generate effects
their organisation top marks on the that hold back, rather than advance, So a culture of presenteeism can
question of whether its flexible working gender balance? There is increasing penalise both men and women for
practices support gender diversity. evidence of significant pitfalls that choosing to work flexibly. “Even though
These arrangements can be crucial in managers need to avoid. I’m 80% now, I don’t just work four
allowing women to stay in employment days a week,” said a female partner at
after childbirth.9 While intended to support better a professional services firm.
work-life balance, flexible working can
Getting flexible working right: instead lead to longer working hours Challenging the “flexibility stigma”
managers’ challenges and overtime hours.11 According to Dr Recent studies show one third of all
Just over a quarter of managers report Heejung Chung, University of Kent, workers identify a “flexibility stigma”
that their organisation experiences no there are three key reasons.12 attaching to workers who work flexibly
challenges in implementing flexible – attitudes that flexible workers are less
working, but many did perceive First, to reciprocate for the favourable productive than full time colleagues and
challenges. Top of the list was making it work arrangements “gifted” by their contribute less.13
harder to collaborate effectively (43%). employers, workers expend greater
effort, and increase their motivation The evidence suggests men may
Flexible workers are also perceived as and commitment, which leads them be more likely to feel that flexible
being more difficult to manage: one- to work harder and/or longer hours. workers are not as productive, but
third of managers state that it can be Where there is negative stigma towards ‘flexibility stigma’ can affect both men
difficult to manage team members who flexible working (see below), workers and women. In a series of studies,
work flexibly. may feel they have to work even harder researchers found men more likely
to compensate. to feel they were penalised for taking
Only 13% identify a challenge of leave after the birth of a child and less
stigma associated with flexible Second, employers can increase likely to get pay rises or get promoted;
working – though this splits 17% of work intensity through the back door while women who worked reduced
women and just 10% of women. Our when work becomes detached from hours were given less meaningful
interviews add to recent academic fixed hours and more difficult to assignments.14
research suggesting that “flexibility regulate in terms of hours worked.
stigma” presents crucial pitfalls for This is especially true when workers Those themes were borne out in our
organisations to avoid.10 “voluntarily” work longer hours to meet survey and interviews. The risks were
demands at work or when there are particularly recognised by women. 37%
incentives for workers to work harder. of female managers felt that promotion
prospects may be harmed by flexible
Third, flexible working alongside the working, compared to a quarter of
development of technology, and men.
increased competition in today’s
workplaces can lead to “enabled
intensification” and blurred boundaries,
10
Williams, J.C. (2013) The Flexibility Stigma. Journal of Social Issues 69(2) 13
hung, H. (2017) Work Autonomy, Flexibility and Work-Life balance Final report.
C
11
Lott, Y. and Chung, H. (2016) Gender discrepancies in the outcomes of schedule Canterbury, University of Kent. http://wafproject.org/research-outputs/final-report/
control on overtime hours and income in Germany. European Sociological Review 14
Williams, J.C. (2013) The Flexibility Stigma. Journal of Social Issues, Vol 69, Issue 2.
32(6): 752-765. Available at: http://dx.doi.org/10.1093/esr/jcw032
Chung, H. (2017) Work Autonomy, Flexibility and Work-Life balance Final report.
12
Canterbury, University of Kent. http://wafproject.org/research-outputs/final-report/
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