Women in Finance Charter Blueprint 2022 - Bain & Company
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Women in Finance Charter Blueprint 2022
Foreword
from
With thanks to the Women in Finance Charter
Accountable Executive Taskforce:
Amanda Blanc Nishma Gosrani OBE
Group CEO, Aviva Partner, Bain & Company
Women in Finance Champion
The time for talking about gender equality In the financial services industry, there
is over. Now is the time for us to act and to is general agreement that ‘what gets
act decisively and this blueprint is the first measured gets managed’. This blueprint
step towards doing that. sets out challenges and success stories
and provides a practical blueprint for
The Women in Finance Charter CEOs and their executives to deploy.
Accountable Executive Taskforce has
worked with Bain & Company to develop It is vital that we make progress now. The
a blueprint that considers the key DE&I industry’s reputation and ability to attract
dimensions, using ‘best in class’ examples, great talent are at stake. I am grateful to
to provide you with an actionable toolkit a large number of financial services CEOs
to accelerate your journey to gender and senior leaders listed in this blueprint
parity. for their time, openness and energy to
make change on this issue. We bring
Of course, not every organisation will or together the most innovative ideas from
can approach this issue in the same way, across the financial services sector and
so the blueprint is designed to be tailored beyond.
and adapted to your organisation’s needs.
It gives businesses a clear idea of where It has been an extraordinary opportunity
they are on their journey to gender parity, to partner with Amanda Blanc to develop
how mature their initiatives are and what this blueprint. Bain & Company has
still needs to be done to get us where we undertaken this work pro-bono and it has
want to be. been a privilege to lead the team.
With this blueprint, we all have a roadmap We believe that, together, we can deliver
that will guide each of us towards the a fundamental shift in the representation
ultimate goal of genuine, lasting gender of women throughout the industry.
parity.
2 Women in Finance Charter Blueprint 2022 3
Table of Objectives and Executive Summary 6
contents Overview of the Women in Finance Charter Blueprint 8
1 Recruitment 18
2 Retention & Promotion 26
3 Culture & Behaviour 36
4 Embedding DE&I 46
Appendix 54
4 Women in Finance Charter Blueprint
2022 2022 5
Objectives Executive Summary
of the blueprint Women in Finance Charter (WIFC) signatories agree a diverse workforce is good for business – it
is good for customers, profitability, investors and workplace culture.
However, building diverse workforces can be hard. Progress of women in senior management
across financial services (FS) has been slow – from 31% in 2018 to 32% in 2020.
Leading FS organisations have recognised a fundamental shift will be necessary to move the
needle on gender representation.
The pandemic has created opportunities and made existing challenges more acute – reshaping
how and where we work while increasing the difficulty, especially for women, of balancing home
and professional life.
To give CEOs a strategic overview of best in class initiatives to Amanda Blanc, Group CEO of Aviva and Women in Finance Champion, the Accountable
significantly shift the representation of women in UK financial Executive Taskforce and Bain & Company have partnered to design an industry-first blueprint
services organisations. with practical recommendations and a toolkit of ideas.
The blueprint is based on interviews with leading FS CEOs, Bain IP, academic research, cross-
industry case studies and a survey of over 100+ signatories.
It is structured into four reinforcing pillars. For each pillar, best in class organisations have:
To create inspiration and challenge for all organisations, 1 Recruitment: A centralised process, interrogated for bias and focused on skills over
wherever they are on their journey towards gender parity. experience, with a broad talent pool and commitment to interview 50% women for roles at
all levels.
2 Retention & Promotion: Flexible working possible in every role, transparent performance
and pay processes, comprehensive infrastructure for parents and a culture of sponsorship
for women.
3 Culture & Behaviour: Inclusivity and diversity deeply embedded in their purpose, a culture
To provide a toolkit with practical recommendations and a of sharing vulnerability, role modelling flexibility and making bold interventions to remove
transformational approach to execution including data-based unacceptable behaviours.
tracking and targeted interventions.
4 Embedding DE&I: A transformational, data-led approach to change (that will evolve into
BAU) with cascaded targets, financially accountable executives, high quality data and a well
resourced team to track and monitor progress.
While the blueprint focuses on gender representation, it can be leveraged by organisations of
any size as they take action across the whole diversity, equity and inclusion (DE&I) agenda.
6 Women in Finance Charter Blueprint 2022 7
Gender This is an industry-first
representation blueprint to accelerate
remains a significant issue, gender diversity across
even with the effort so far financial services
Key inputs
Interviews & surveys Best practice from Cross-industry case
with Charter across financial studies from best in
Historic progress …at this rate it will signatories services class companies
has been slow take ~30 years to
(1pp in 2 years)… reach parity
Bain IP on culture Bain expert Secondary research,
transformations network of DE&I e.g., academic
50
Representation of women and DE&I practitioners literature reviews
in FS senior management, in %1
31.5 31.1 32.3 1-2% Overall blueprint
Compound annual
growth rate Overall ambition
(2018-2020) Accelerate the journey towards gender parity
in financial services
Recruitment Retention & Culture & Embedding
..... promotion behaviour DE&I
2018 2019 2020 2050
Forecast
n 185 207 208
Each pillar will include:
Case for Detailed policy Best in class Critical CEO
change actions case studies questions
Note: 1 Signatories only
Source: New Financial
8 Women in Finance Charter Blueprint 2022 9
Women in Finance
Blueprint 2022
Overall ambition
Accelerate the journey towards gender parity in financial services
1 2 3 4
Recruitment Retention & Culture & Embedding
promotion behaviour DE&I
Review and restructure recruitment process Transparent, gender neutral performance Culture of senior management making bold Hold CEO and CEO-1 financially accountable
for unconscious biases. management process. interventions to remove unacceptable for gender targets.
behaviours.
Skills based (not experience based) approach Comprehensive, wrap-around parental Set gender parity strategy including
to recruitment. support infrastructure. Assess and align leadership team to DE&I intersectionality and cascade targets
priorities of the company. throughout organisation.
Interview diverse candidates for every role. Part-time/job share/flexible options for
all jobs and vacancies. Define and take symbolic acts (e.g., sharing Link predictive and time series analysis to
Tap into new pools of diverse talent. stories of vulnerability). initiatives.
Proactive, formal sponsorship for women
High-touch support programmes & long lead and acceleration pipelines for top talent. Advocate zero tolerance towards Adopt a transformation approach to manage
times to integrate new hires. exclusionary behaviour. and track initiatives.
Publish base and bonus payments of all
senior management. Conduct frequent pulse check on inclusion Use a real-time dashboard to review
sentiment in teams. representation data and risk mitigation.
Supported by technology and ecosystem partners
10 Women in Finance Charter Blueprint 2022 11
Where are you on this curve?
Assess the maturity of your organisation
Four indicators
for an organisation’s
maturity in gender diversity Emerging Developing Leading
Outcomes Women in senior 40% women in senior management.
management
50% less than men.
Organisations are at different Case study
stages of their journey 40%
towards gender parity
women in senior
management
2024
32% 2022
Average % of women in senior management (2021)
Based on survey of signatories 29% women in senior
CAGR1 n management
19-21 (2021) women in senior
management
Emerging Global
Investment 29 9% 7
2016
2021
Banks
Developing Other 30 1% 15
Emerging Developing Leading
Investment
Management 31 5% 24
Since 2016, Aviva has ... but in 2021, Aviva Now, backed by data,
launched a number of wanted to understand Aviva is leveraging the WIFC
programmes aimed at why it had not resulted blueprint to create a
Insurance 33 4% 15 increasing the number in a major shift in the clear plan to achieve 40%
of women... gender mix
In 2016, Aviva launched D&I Gender Leadership Plans to expand the
UK Banks 36 12% 11 development programme
for women ‘ALIO’, with
metrics were included in
the Group Executive Long
returners programme that
Aviva Investors implemented
over 250 participants. Term Incentives but no with Women Returners in
clarity if initiatives were 2019.
Government/ actually working.
Regulators/
Trade Associations
46 5% 6 In 2017, introduced equal
parental leave policy. Launch the #ThisisMe
Aviva used machine campaign to improve
learning to answer the employee data, and leverage
Leading In 2018, adopted flexible
question: “Why doesn’t the approach used for
Organisations
with 30% 25-29%Case study Case study Gender
balance
women in senior
40% management
women in senior 38%
management women in senior 2030
management
36%
30% women in senior
2022
29%
2021
management women in senior
women in senior
management1
management
2020
2016 2015
Emerging Developing Leading Emerging Developing Leading
LSEG joined the WIF …making meaningful …and are on track to achieve 40% NatWest introduced ...by 2021, they achieved ...and have ambitions to reach
Charter in 2016 and set progress with targeted women in senior management formal gender targets 38% women in global gender balance in global
an ambitious goal… interventions… and to expand target beyond. in early 2015… leadership roles (CEO-3+)… leadership roles (CEO-3+) by 2030
In 2016, set an ambitious Minimum diversity 54% of graduate hires are women. NatWest Group had c.50% In 2019, Alison Rose was Maintain balance in
target of 40% women requirement in candidate representation of women appointed Group CEO recruitment – hiring across
in senior management long- and shortlists (50% overall for many years but NatWest. In 2021, NatWest all roles in the UK increased
Build on career framework by it was not reflected at the Group Board was 36% women from 46% female in 2020 to
by end of 2022 – a 10pp women) for all roles at
improving visibility of internal roles top (29% women in global and 29% on NatWest Group 50% in 2021.
increase. director level and above.
and promoting opportunities for top three levels in 2015). Executive Management
women. Team with a female CEO,
Appointed an accountable Detailed D&I reporting, Grow the acceleration
CFO, CMO, Chief People &
senior Talent Acquisition embedded into wider Promoted visible executive pipeline for emerging
Embed inclusion best practice into Transformation Officer, and
D&I leader to set and business reporting, to track sponsorship and advocacy, women leaders with strategic
the talent process and seek new Chief Governance Officer &
embed plan to deliver progress. role modelling, storytelling. interventions including
pools of talent, e.g., introduced the Company Secretary.
diversity goals. executive coaching,
LSEG Returner Programme. mentoring and exposure to
Culture embedded into Reviewed role descriptions
Extended the Diversity senior executives.
Built a network of external their Group Strategic and adverts to remove
Integrate inclusion tracking to and Inclusion Yes Check
partnerships that support Objectives and measured/ bias and proactively built
create global senior roles and build guidance for line managers
the development of reported by each division a pipeline of internal and Continue the ‘positive
pipelines into senior leadership into the recruitment process
women. and function with a direct external candidates for action approach’ with
across all their jurisdictions. for all roles to ensure diverse
link to remuneration strategically important gender and ethnic diversity
shortlist and interview panels.
outcomes. roles. goals embedded into long
In 2020, achieved nearly term incentives for ExCo.
Reviewed all People policies and
100% maternity return In 2021, transformed their
enhanced terms, including, from Building on the positive
rates. Increased the visibility of approach to DE&I learning,
2022, trans-friendly health and impact of gender targets in Promote flexibility with up
women leaders and racially creating e-learning module
employee relations policies and 2018, NatWest introduced to 78% of staff having an
and ethnically diverse videos focused on ‘lived
procedures. ethnicity targets. element of working from
leaders in LSEG forums and experiences’ of colleagues,
zero involvement in third home in their role.
with help from some of their
party events with all male Continue diversity requirement for ~1,500 ‘Inclusion Champions’.
panels of three or more. candidates and interview panels.
1 ‘Senior management’ defined as ‘global leadership roles (CEO-3 and above)’
Sources: Bain interviews; LSEG Sources: Bain interviews; NatWest Group
16 Women in Finance Charter Blueprint 2022 171
Executive Summary
Recruitment is a powerful lever to accelerate gender representation.
There are important differences in the preferences and experiences of women
through the recruitment journey – e.g., women typically take 40 days longer to
Recruitment
complete the recruitment process (130 days vs. 90 days for men).
At the junior level, financial services organisations are successfully accessing
more women by centralising recruitment processes, looking for new pools of
talent and offering incentives (e.g., scholarships).
At the senior level, a solution is more difficult. Pressure to fill roles quickly
creates an unhealthy tension with the desire to find diverse candidates.
Leading organisations are taking bold steps to improve the mix of candidates at
every level and leveraging the point of entry to reduce their gender pay gap.
Mandating diverse candidates including 50% women on all shortlists.
Implementing longer, higher-touch and more personalised senior
recruitment processes.
Creating transparent pay structures and reducing the need for salary
negotiations.
The blueprint outlines five critical levers across the talent pipeline: outreach,
applications, interviews, offers and compensation, onboarding.
18 Women in Finance Charter Blueprint 2022 191 Recruitment
There are structural and The majority of financial services organisations:
behavioural barriers Standardise
recruitment process
Use DE&I friendly
communications
that impact recruiting women
74% 84%
have a centralised and publish commitment
standardised application process. to DE&I upfront.
Talent pools are % higher education STEM
students by gender
narrow
Women are under-represented
in some academic subjects. 63% 75%
have a ‘skills based’ de-gender all
65 35
recruitment framework. communications.
men women
Recruitment content
is gendered…
When a job qualifications
summary is more than Bold interventions
…resulting in unintended bias.
54 words will differentiate best in class
organisations in recruitment
women applicants decrease
dramatically
Timelines are too Avg. number of days taken to Best in class organisations will:
recruit senior managers
short…
90
...women take an additional 40 Ensure applications Access different Design the process to
days to recruit (on average). Men
are not biased talent pools accommodate women
Women
130 6% 18% 22%
prioritise psychometric organise women only build hiring timeline with
testing over CV. recruitment events. appropriate candidate
lead time for women.
Psychometric tests Psychometric
are under-utilised
testing can have
8% 18% 34%
Tests could help measure
talent in a standardised way.
84-90% accuracy for identifying
high performers1 hyper-contextualise
candidates’ historic
have career returner
programmes.
send personal messages
of congratulations from
performance. interviewers.
Note: 1At smajor UK bank
Sources: STEMwomen.co.uk 2021; Google Diversity Annual Report 2020; HI Executive Coaching; Sova Source: Bain survey with signatories, January 2022 (n=106)
20 Women in Finance Charter Blueprint 2022 211 Recruitment
Action can be taken at each step
of the recruitment journey
Outreach Applications Interviews Offers & compensation Onboarding
Emerging Upfront publication of Centralised, standardised Mandatory DE&I training for Standardised and transparent base Standard training and
organisation’s commitment to applications (vs. recruitment interviewers. pay and rewards policy for junior integration period.
DE&I. through personal networks). hiring.
Standard interview questions Preassigned buddies to answer
De-gender all communications and for all candidates. day-to-day questions.
processes (e.g., remove ‘masculine’
words from job descriptions, review ‘Skills based’ recruitment
marketing imagery, etc.). framework (focusing on
transferrable skills vs.
qualifications).
Diverse representation on all
interview panels.
Developing Partner with recruitment agencies Pool recruitment where possible. Predefined scoring criteria to Standardised and transparent Opportunity to connect with
specialised in diversity. minimise assessment bias. salary negotiation within explicit affinity groups.
salary ranges for senior hires.
Scholarships and outreach For senior hires: Personalised For senior hires: Prolonged
programmes (e.g., mentoring, interview timetable with high- integration period with regular
workshops) targeting diversity touch engagement from senior touchpoints from senior
groups. management. management.
Leading Career returners programme. Psychometric testing prioritised Build hiring timelines with longer Decisions about applicants made For senior hires: One-on-one
over CVs. lead time for women to help in batches (easier to track % of training with tech support,
Mandate diverse shortlists them connect and prepare before offers that go to women). executive assistant and other
for all positions including 50% Mandate diverse representation of interviews. support functions.
representation of women. candidates including 50% women Personal messages of
through to interview. congratulations from interviewers.
External talent mapping to
pro-actively build a pipeline of Hyper-contextualisation of Leaders accountable to close
candidates and help reduce lead candidates’ historic performance offers.
time for hiring. (e.g., assess grades vs. school
average). Start women at the target pay for
Leverage alumni networks to bring their new role irrespective of their
women back into business. Blind name and protected previous salary.
characteristics where appropriate.
Women-only recruitment events.
22 Women in Finance Charter Blueprint 2022 231 Recruitment
Returners programmes Key questions
are effective at bringing for self-assessment
back talent
Successful
1
Case studies
programmes include: What structural biases exist in
Mastercard run a 12 week returners programme your organisation and how are you
Significant lead time as for women (and men) who have taken an extended
candidates decide to re-enter (avg. 5 years) career break levelling the playing field?
the workforce
After evaluation of initial cohorts, they reformed the
Clear business case with programme to include:
investment for training and
2
An adapted interview process (e.g., questions that
ring-fenced positions
are easier to respond with non-work examples).
Consistent support from the
November start date to enable parents to transition
senior leadership, HR team
and hiring manager
child(ren) to school before starting back at work. Are you accessing enough sources
Tracking of returner outcomes
Protected headcount for returners to join the team of diverse talent?
full time if the 12 weeks are successful.
with closed feedback loop to
ensure programme evolves Celebration of returners and their managers,
profiling success stories to build momentum.
3
How are you meeting the
Other companies with Women Returners is a purpose-led consulting, recruiting preferences of women?
coaching and network organisation enabling the
returners programmes return of professionals post career breaks
Not exhaustive In partnership with the Diversity Project, they run a cross-
4
company investment sector returnship.
The programme is a 6-month placement, with group
coaching to support the return-to-work transition.
Are senior executives
In 2021 there were 7 participating employers and 18
women returners, with 84% securing roles, mainly in front- accountable for recruiting a
office (the 2022 programme expanded to 12 employers). gender diverse workforce?
“Our mission is to remove the Career Break
Penalty, creating powerful initiatives to bring
women back into mid to senior level roles.
Julianne Miles MBE, CEO
5
What is your 5 year ambition for
recruitment?
Sources: Bain interviews; Mastercard; Women Returners
24 Women in Finance Charter Blueprint 2022 252
Executive Summary
Retention &
Reversing the loss of women in financial services requires a fundamental shift.
Women receive less pay than men and the lack of pay transparency makes it
promotion
hard to challenge. The gender pay gap in financial services is ~25%, the worst
performing industry in the UK.
Performance management processes, and therefore promotion rates, are
biased against women – over half of women working in financial services believe
that their diversity status is a barrier to career progression.
In addition, limited support infrastructure makes balancing work with caring
responsibilities a major barrier – women take on 60% more childcare
responsibilities and both men and women report that taking flexible working
options hurts their career.
Leading companies are making strategic interventions to push women to the
top and taking responsibility for supporting women (and men) to fulfil their
personal and professional needs.
The blueprint outlines five critical levers: parental support, flexible working,
compensation, talent management, development and sponsorship, performance
management and promotion process.
26 Women in Finance Charter Blueprint 2022 27
22 Retention and Promotion
Women face unequal remuneration compared to men Promotions and performance management are biased
against women
Women continue Annual salary of FTSE 350 FS Board directors Promotion processes are structurally biased
(k, GBP, Exec & Non-Exec)
to receive unequal
722 54%
“ 68%
compensation
Men
Promotions are opaque and
of women working in FS clearly linked to networking of surveyed organisations
believe that their diversity do not have representation
247 -66%
with seniors – all men.
Women status is a barrier to of women in all promotion
career progression in their Former investment banker #1 committees.
organisation.
This is exacerbated
by a lack of pay 84% Performance reviews are gendered, with high performance
transparency… of surveyed organisations do not
publish bonus payments for senior expectations for women
82%
members of organisation (C-Suite
and MD/SVP -1).
In a study by the London School of Economics, women
“
were much more likely to say they would be penalised for of surveyed organisations
making mistakes... that their high performance was more do not audit performance
regularly discounted compared to men. reviews for bias.
They don’t give you any reason or explain the
criteria behind bonuses. People just don’t talk
about it.
Former FS employee #4 Women lack exposure to C-Suite and organic sponsorship
compared to men
…and women’s
reluctance to
% who have never
negotiated pay
Men are
45%
more likely to have a sponsor than women.
“ Isolated interventions are not always
enough. We found that we need genuine,
broad, longer-term programmes for talented
women that provide mentors, sponsors, the
40
chance to join external networks or attend
negotiate pay courses, and perhaps the opportunity to
Men
Only experiment in different roles or divisions to
20%
help progress their individual careers.
55
Tim Hinton, Head,
Women of surveyed signatories offer sponsorship Corporate & Commercial Banking
programmes to senior women.
Sources: Bain interviews; The Guardian “Women paid two-thirds…” 2021; Bloomberg “UK Gender Pay Gap” 2021; PeopleManagement Sources: Bain survey with signatories, January 2022 (n=106); Bain interviews; “The Good Finance Framework” 2021; Women in
“Men more likely to…” 2019; Bain survey with signatories, January 2022 (n=106) Innovation “WInSight: The Secret of the Sponsor” 2021; PwC “Clearing the barriers…” 2018
28 Women in Finance Charter Blueprint 2022 292 Retention and Promotion
It is hard to balance work and caring commitments
(women and men)
Building strong
parental infrastructure
Women take on the
majority of household
No. hours of unpaid work/week
is critical for top talent and
responsibilities...
Since Covid-19, women
Men
16 ~60 %
additional
some are already doing it
hours
report additional 5 hours
per week on childcare.
26
“
Women
Parent friendly spaces
It is critical that companies Dedicated on-site facilities for nursing mothers
step up and invest in the with access to breast-pumping equipment; on-site
support infrastructure
62%
healthcare centre (e.g., GP, nurse).
…partially driven by required for people to
unequal parental thrive in their career
whilst managing caring
Healthy pregnancy
support structures... Surveyed organisations of male employees responsibilities – we Ante- and postnatal included in health insurance
offer a median of admit there is an adopted an equal parental options, protected time to attend antenatal
2 weeks paternity leave unspoken rule that leave policy in 2017. appointments.
versus 20 weeks men should not take
maternity leave. Amanda Blanc, Extended parental leave
paternity leave.
Group CEO 6 months full pay parental leave (incl. adoption)
Women in Finance regardless of gender.
Champion
Financial support
Employees who take six months or less family
…and flexible working
can be inaccessible 35% 91%
friendly leave are eligible for an annual bonus that
reflects a full year of contribution.
and stigmatised of women employees of surveyed
High-touch support before & after leave
who worked part time organisations do
reported that their not monitor for High-touch support system throughout handover,
working pattern had unintended penalties the leave itself and during re-onboarding.
hurt their career. for taking flex options.
Protecting client relationships
“
Interim relationship managers to cover leave
and relationships handed back afterwards with
transparency to the client.
No men were part-time. We were told it
wouldn’t impact work but it undoubtedly did.
Career path coaching
Former wealth management #1 Career and family coaching for all individuals taking
family leave, focused on well-being, flexibility and
careers.
Onsite quality creche
High quality creche in building (or nearby) – parents
Sources: Bain interviews; Bain survey with signatories, January 2022 (n=106); ONS 2020, 2016; Volvo “Volvo Cars reveals
can visit in day; minimises time for drop off/pick up.
unspoken workplace…” 2021; UN Women and Ipsos “The Covid-19 pandemic has increased care burden…” 2020; EMW
2020; KCL “Flexible working: myth or reality” 2020 Sources: Bain interviews; EY; First Direct; Barclays; Goldman Sachs; 10X; Citi; Fidelity
30 Women in Finance Charter Blueprint 2022 312 Retention and Promotion
There are five components to
retaining and promoting equally
Talent management, Performance
Parental Flexible development and management and
support working Compensation sponsorship promotion process
Emerging Enhanced maternity pay (beyond Access to expanded range of flex Standardised and transparent Succession planning for Employees set their own targets
statutory minimum) with provision options (part-time, job sharing, base salaries. C-Suite -1, -2. (with skills matrix as a guide) and
of limited paid paternity leave. hybrid) for most jobs. are measured against them.
Longer-term succession planning
Flexibility in role to take extended (C-Suite to middle management)
periods of leave for key life with early recognition of emerging
stages/events (e.g., bereavement, leaders.
caring responsibilities, learning
opportunities).
Developing Full pay equal parental leave (e.g., All jobs advertised and offered as External, expert audits to measure Regular training programmes Regular opportunities for structured
4+ month period) with equal adoption flex working – requires innovative pay equity and publication of targeted at women available to all. upward feedback.
leave. solutions for some roles. results (above mandated).
Partner with external executive Standardised skills matrix for
Full pay leave for miscarriage/ Active promotion of flex options. networks to provide coaching and performance review at each tenure
fertility treatments. support to senior women. which is interrogated for (and free
Monitor take-up of flex options (by from) bias.
Dedicated parent-friendly facilities. gender).
Formalise and centralise opportunities
Monitor parental leave take-up by within a database (vs. relying on
gender. networking).
High-touch support before and after No need for self-nomination for
leave incl. buddies and mentors. promotion.
Leading Career path coaching tailored for Senior executives (men & women) Publish bonus payments for senior Formal sponsorship programme for Pool promotions (easier to track % of
parents. role modelling job share and part members of organisation (C-Suite women at all levels with sponsorship promotions that are given to women).
time. and MD/SVP -1). training for all senior management.
Protected portfolio relationships Ensure diverse representation on all
(where applicable) with active Track and address unintended Quarterly interrogation of Acceleration pipeline for emerging promotion committees.
handback post leave. penalties for people taking flex processes and formulae for bias. women leaders with strategic
options. interventions (e.g., exec. coaching, Mandate diverse candidates for all
On-site or near-site quality childcare Benefits package that supports exposure to senior exec.). senior level promotions.
and medical facilities. women at key life stages (e.g.,
fertility treatment, menopause). Clear and transparent career ladder Audit performance reviews for bias
Incentivise senior leaders to role /talent framework (including lateral (e.g., gendered language in feedback).
model parental leave & monitor take- moves, path to middle management).
up by gender. Monitor and measure how women
Senior management advocacy with (with intersectional lens where
Bonus paid for parental leave based direct and visible interventions. possible) are being offered and taking
on extrapolated performance. up ‘stretch opportunities’.
Track outcome of sponsorship
Deep dive on prior page programme. Deep dive on next page
32 33
Right to protected time for career
Women in Finance Charter Blueprint 2022 development.2 Retention and Promotion
Best practice performance Key questions
management system for self-assessment
Objective Standardised skills matrix for each tenure. 1
setting Predefined and peer-reviewed.
Are parents fully supported to
Interrogated for biased criteria. balance home life with their career?
Focused on growth metrics.
Employees measured against individually defined
targets agreed with their manager (using skills matrix
2
as guide).
Managers trained in target setting.
Are flex options available to all and what
Ongoing Monthly, coaching-based check-ins with manager to
is being done to address low take-up?
monitor progress with upward feedback.
coaching and
feedback Specific feedback with a holistic view and equal focus
on accomplishments as well as development areas.
3
Feedback recorded digitally (to allow for easy
auditing).
Evaluation Simplified rating scale (e.g., not achieved/achieved/ Do you have a transparent and
over-achieved), absolute rankings.
and outcome equitable compensation process?
Multiple sources of feedback for annual review.
Standardised length for reviews.
4
Outcomes regularly reviewed for bias and recalibrated
against historical performance.
Diversity outcomes included in scorecards for senior
management.
What interventions are you making
to accelerate talented women?
Link to Compensation directly linked to performance reviews
(with transparent, pre-determined structure for
compensation calculation).
Compensation linked to diversity scorecard
for executives evaluated by the Remuneration
5
Committee. Is your performance review system
allowing diverse candidates to succeed?
34 Women in Finance Charter Blueprint 2022 353
Executive Summary
Culture &
A well-defined inclusive culture is essential for diversity to thrive.
Inclusive culture is determined by an organisation’s collective behaviours
behaviour
– the company’s purpose, values and beliefs and the enablers and signals it
uses to reinforce them.
For example – to live out the value of ‘a flexible and inclusive culture’,
leaders enable (e.g., adopt flexible working for all roles), signal (e.g.,
publicly share when senior leaders go part time) and reinforce (e.g.,
celebrate part time employees).
The culture of financial services is still full of microaggressions and
exclusionary behaviour.
28% of women in FS have experienced actual physical harassment (vs.
18% across all sectors).
43% of women in FS have experienced inappropriate language, insults, or
bullying (vs. 34% across all sectors).
Due to Covid-19, ways of working have changed irrevocably but the detail of
the hybrid model is still in flux. Leading companies are designing new ways
of working to mitigate the potential impact on women.
The blueprint outlines five critical levers: purpose, values and beliefs, role-
modelling, networks and listening, symbolism and storytelling, and operating
model.
36 Women in Finance Charter Blueprint 2022 373 Culture & behaviour
Key components Financial services is lagging
of a culture re-invention behind on creating an
inclusive culture...
The North Star % of women experiencing
that guides a company over time
28% of women in FS have actual physical harassment
experienced actual physical
28
Led by purpose – the ‘why we exist’
harassment FS
Translated into values – what we think is right or wrong
18
Rooted in beliefs – our underlying assumptions All
industries
43% of women have % of women experiencing inappropriate
language, insults or bullying
experienced inappropriate
language, insults or bullying
Visible
FS
43
collective
34
Purpose, All
behaviours industries
values & Set
beliefs off
Behaviours Men are more likely to Interruptions from men
when talking to women vs men¹
Set your are the interrupt women
manifestation
North Star
of culture, what Women
2.1
people do and
say every day Men
1.8
...a step change is required
Enablers,
signals &
“ “ “
reinforcers
You can fix for processes in You can do some great things in Culturally, women face a steeper
recruitment and promotion but if the recruitment experience, but it climb to the top of the mountain
you don’t make an environment is the lived experience day in and as a result of biases in the
Enablers, signals & reinforcers where women feel they’re day out that makes a difference workplace, microaggressions
comfortable in where they’re to your culture and your ability to as well as higher workloads at
make change happen in day-to-day business working, you have a long retain top female talent. home.
way to go.
Leadership role modelling, networks and listening Joanna Place, Julie Coffman,
Everyday symbolism, storytelling, rituals and the work environment Janet Pope, Chief Operating Chief Diversity
Chief of Staff Officer Officer
Operating model components, e.g., talent engine (who to hire, what to incentivise)
Note: 1 In 3 min conversations
Source: Bain IP Sources: Bain Interviews; PwC “Clearing barriers…” 2018; Forbes “Gal interrupted…” 2017: George Washington University, 2014
38 Women in Finance Charter Blueprint 2022 393 Culture & behaviour
Women lack role models Since Covid-19, leading companies focus on inclusive
ways of working
and structures
that help them feel included Hybrid working is
on the rise following % who want 3+ days a week
in office
Covid-19...
More than
Employers
70
Culture is not always role modelled by CEO and 80 %
senior management of UK financial services firms expect
to work in a hybrid manner.
Employees
20
11% 29% 51%
“
incentivise senior leaders to publicise and celebrate of CEOs actively promote
role-model parental leave. take-up of parental leave gender parity programmes
…but there is risk of unintended
and flexible working options and flex options. penalties including exclusion It is likely that there will be unintended
by senior management. consequences for hybrid working with the
50
return of presenteeism… we risk going back
several years in women’s progress unless
% organisations take steps to recalibrate
lower promotion rate for those who the performance evaluation process and
consciously mitigate or disregard factors
WFH 4 days a week after 21 months
Inclusive structures are not in place compared to office colleagues…
affected by work location and face to face
visibility and presence.
15% 36% 39% …those working from home are likely to
experience proximity bias1.
Tracy Garrad, CEO of AXA Health
have transparency have an inclusive meeting forbid official business meetings
around people who are protocol to ensure the in traditionally male-dominated
exited for harassment or right people are at the spaces (e.g., golf courses, pub
inappropriate behaviour. table and to eliminate after 7pm).
‘groupthink’. As companies define hybrid policies, consider:
A zero-based approach Inclusive meeting Investing in WFH set-up,
to meetings – rethinking protocols for those e.g., screens for market-
what can be virtual vs. who are virtual. based roles.
Inclusivity is often not monitored face to face?
xtra investment in events
E
38% 41% Tracking take-up of veryone joins on
E to build connectedness.
WFH and outcomes individual laptops
on performance. in hybrid meetings Including the voice of
use social listening tools to conduct an annual cultural and virtual attendees women and millennials in
understand sentiment. diagnostic to assess speak first. policy development.
and benchmark cultural
maturity of organisation.
Notes: 1 Proximity bias is where we give preferential treatment to those who we are in close vicinity to
Sources: Bain interviews; PwC “Hybrid Working Comes to Financial Services” 2020; Bloomberg “Four in Five…” 2021; HBR “Don’t let
Source: Bain survey with signatories, January 2022 (n=106) employees…“ 2021
40 Women in Finance Charter Blueprint 2022 413 Culture & behaviour
Five components to create an Builds on
inclusive culture
recruitment,
retention and
promotion
activities
Purpose, values & beliefs Role modelling Networks & listening Symbolism & storytelling Operating model
Emerging ‘Inclusion’ and/or ‘diversity’ CEO/C-Suite make regular public Use women’s networks to deepen Public celebration of ‘bright spots’ Zero-tolerance policy for
embedded in company purpose, statements about inclusion and relationships and increase (e.g., people who act inclusively, harassment (e.g., belittling).
mission or values. importance of DE&I measures. belonging. role model company values).
Formal and anonymous reporting
Clear rationale about why you Women role models broadcast Encourage intersectional Inclusive office facilities (e.g., systems for harassment and other
believe in an inclusive culture, internally and externally (e.g., collaboration across networks. spaces for breastfeeding). claims.
including the business case, speeches, success stories on
publicly available. websites, displaying photos in Employee advocacy surveys (e.g., CEO actively promotes gender Sentiment survey at least twice a
office). eNPS) cut by role, gender, ethnicity parity programmes and flex year.
Clear, public definition of inclusive and reviewed by Board & ExCo. options.
behaviours and expectations for all. Defined inclusive hybrid working
model.
Use ‘exit’ interviews to gain
feedback on sentiment.
Developing Purpose and values embedded Publicise and celebrate take-up of Women’s networks have exec Active women ally groups. Set up business meetings in
in the day-to-day experience of parental leave and flexible working sponsorship, a business-focus and environments inclusive to all
employees (e.g., office meetings options by senior management. are used as a platform to report Allocate time for culture (with (e.g., meetings in the office vs. in
themed around company values). and address issues. focus on lived experiences) in the pub).
Reverse mentorship where there is regular company-wide/team-wide
capacity and support (e.g., Exco). Annual cultural diagnostic to meetings. Organisation takes significant
assess and benchmark cultural action against individuals found
maturity of organisation. to break harassment policies.
Leading CEO has 1:1s with ExCo and Board Transparency around people Women’s networks are well funded, Senior leadership regularly and Inclusive meeting protocol to
to share their vision and understand who are exited for harassment/ including compensating leaders. openly share experiences of ensure the right people are at the
ExCo/Board beliefs about diversity inappropriate behaviour. vulnerability (and encourage table and to eliminate groupthink.
and inclusion. Listen to and include the teams to also).
Recognition, and compensation perspectives of men on gender Transparent feedback and growth
Deep dive on next page where relevant, for additional work equality. Inclusive use of pronouns. opportunities actively shared.
taken on by role models (to ensure
Culture established where the diverse few are not fatigued). Processes established to actively
CEO can and should make bold, listen to employees, e.g., weekly
periodic interventions. Senior leaders always challenge pulse checks, ‘stay’ interviews,
exclusive behaviours in meetings. using social listening tools.
Role modelling open and honest
communication down the line.
42 Women in Finance Charter Blueprint 2022 433 Culture & behaviour
Best practice CEOs Key questions
take time to understand for self-assessment
their leadership’s priorities
1
Do you know what views your ExCo and
If your organisation has Board members hold about DE&I?
made a commitment
through the WIF Charter,
you need a plan in place
to deliver it through your Do you know how
your ExCo and
2
senior team.
Board members will Are you measuring inclusivity on a
Leading CEOs listen prioritise DE&I? frequent basis?
to ExCo and Board
in 1:1 sessions to truly
understand their priorities
and hold them to account.
3
What inclusive behaviours are you and
your leaders role modelling today?
Many will progress Some may not prioritise Some may decline to
4
business objectives their business’s DE&I take action on diversity What symbols do you leverage to
expressed in their commitments, which could issues and will therefore be highlight inclusivity day-to-day?
organisation’s DE&I hamper organisational misaligned with delivery of
commitments. delivery against this business DE&I commitments.
objective, but are CEOs will need to assess
5
convinced through the most appropriate
experience sharing, performance management
education, reverse process to hold ExCo and
mentoring and evidence. Board to account as they
Can you demonstrate a no tolerance
would for other business
objectives.
approach towards exclusionary behaviours
including microaggressions?
44 Women in Finance Charter Blueprint 2022 454
Executive Summary
Embedding
Most change efforts produce mediocre results because they lack a focus on
delivery – gender representation is no different.
DE&I
Signatories setting gender representation targets and making them public has
been a major success of the Women in Finance Charter.
However, execution of targets has not been treated with the rigor of a business
problem.
While ~60% signatories surveyed collect diversity data at each stage of the
employee lifecycle, only ~20% apply rigorous quantitative and qualitative
analysis to the data to understand the impact of their initiatives.
There is also an opportunity to increase focus on intersectionality in target
setting & tracking.
Change is hard and disruptive. Executing gender parity will require a
strategically-focused transformation programme and accountability in the line
to change behaviours, even when it’s uncomfortable.
The blueprint outlines five critical levers: ambition and strategy, accountability
and governance, engage and inspire, track and maintain, manage risk.
46 Women in Finance Charter Blueprint 2022 47
24 Embedding DE&I
Signatories set targets To execute change, it is best practice to establish a
transformation taskforce
but do not treat
DE&I as a transformation Responsibilities
Board & ExCo
Resources Cadence Tools
Set high Nominated Monthly monitoring
level gender ExCo and Board of key KPIs.
representation sponsor for Dashboard with
targets and gender diversity. Quarterly review of overview on
oversee progress. high level targets
Change is hard and disruptive and plan.
Gender
representation
Only 12% of organisations achieved Inclusion
DE&I Council sentiment
desired results from change efforts.
Progress on
Choreograph the Cross-functional Monthly updates.
initiatives
transformation C-Suite -1 leaders
programme (4-6 for large Detailed review
and remove organisations), led of gender
roadblocks. by ExCo gender representation
Signatories setting public targets is a major success... diversity sponsor. strategy every
Dashboard for
three months.
each pillar
94%
Tie performance
of gender parity Detailed
to senior mgmt.’s 46% Transformation taskforce
initiative
compensation track and report Translate high Dedicated full-time, Weekly meetings tracker
representation of women level plan into cross-functional with input from
Nominated a C-Suite in senior management. detailed portfolio team (of 5-8 for data team, with
management incl. large organisations). initiative leads
member who is
accountable 85% roadmap and risk joining as required.
for DE&I tracker.
Detailed
roadmap for
Initiative leads each initiative
Drive the Embedded in Collaboration
...however, gender diversity is often not prioritised realisation of a the BAU of line across initiative
as a business problem specific initiative. managers. leads as required.
13% 59% 18% 32%
have a
transformation
collect diversity
data at each stage
conduct
quantitative
have a real-time
dashboard with
A transformation
taskforce that of employee and qualitative gender parity targets taskforce allows
manages dynamic lifecycle. analysis linked to at ExCo and Board
initiative portfolio initiatives. meetings. companies to
and roadmap. accelerate their
gender parity
Sources: Bain survey with signatories, January 2022 (n=106); Bain risk assessment survey 2018 (n=426) agenda until it
48 Women in Finance Charter Blueprint 2022
can become BAU 494 Embedding DE&I
Embedding DE&I
with a transformation
approach has five key aspects
Accountability and
Ambition and strategy governance Engage and inspire Track and maintain Manage risk
Emerging High level targets for gender C-Suite member who is Affinity networks/ally groups Collect and analyse high One-off training focused on limiting
representation in senior accountable for gender diversity advocating for change. level representation data by downside risks and value of
management. initiatives. demographic, tenure, and business diversity to teams and businesses.
Partner with external DE&I function.
High level plan to achieve gender Accountability for initiatives training providers.
representation targets. embedded ‘in the line’. Track and report representation of
Forums to foster open debate women in senior management.
and education.
Developing Equal gender representation as Chief Diversity Officer with direct DE&I training incl. modules on Regularly collect gender Regular health check of initiatives
an explicit strategic goal for the reporting line to CEO. gender embedded into onboarding representation data at each with C-Suite.
company with a business case. processes. stage of employee lifecycle (e.g.,
DE&I Council in place with cross- recruitment, promotion). Empower second line of defence
Detailed annual gender functional representation and Internally publish and promote (i.e., business functions) to help
representation targets for all parts budget that oversees execution of ways of getting involved to move Present gender representation ensure accountability for the DE&I
of organisation (contextualised by roadmap and risk management. the gender DE&I agenda forward data at internal townhall meetings agenda.
team and industry benchmarks). (e.g., focus groups, events). with open discussions.
DE&I team of 1-3 people with
Detailed strategy alongside the some resources (e.g., for external Engage organisation in gender Annual, external publication of
representation targets (ambition, training). representation plans through descriptive gender diversity data
targets, initiatives, key metrics, regular comms. (e.g., granular representation data,
accountable leaders, execution High level consideration of inclusion statistics, pay equity
roadmap and progress tracking). performance against gender Regular ‘in the line’ training for all audits), initiatives, and targets.
diversity targets tied employees focused on behaviour
to compensation for all change (e.g., how to listen, show
senior management. empathy, adopt growth mindset).
Open dialogue at events and
townhall meetings, with guest
speakers.
Leading Detailed annual gender Performance against gender Active ‘sponsorship spine’ – trusted Predictive and time-series analysis Identify which key risks are most likely
representation targets for all parts parity targets, and intersectional employees ‘in the line’ who can linked to initiatives (e.g., scenario in different phases of the programme
of organisation with intersectional targets where possible, deeply influence change and support analysis). using predictive analytics.
targets where possible. embedded into KPIs/scorecards impacted groups.
for all senior management Rigorous quantitative and Re-evaluate risks every 60 days and
and discussed at annual review and Training managers in small groups qualitative audits (e.g., create tailored mitigation plans.
promotion committee. (i.e., 4-5) on coaching, giving de- representation data, intersectional
gendered feedback and building an targets, eNPS). Transformation taskforce managing
RemCo hold the CEO accountable inclusive culture. dynamic initiative portfolio and
for role modelling inclusive Real-time dashboard to showcase roadmap day-to-day and delegating
behaviour. Closed feedback loops. progress against gender targets execution of actions to teams/
accessible to public. individuals.
Real-time dashboard to showcase
progress against gender parity Identify and implement mitigating
targets at every ExCo and Board actions for top risks.
50 Women in Finance Charter Blueprint 2022
meeting.
514 Embedding DE&I
Example ExCo and Board dashboard
Key questions
for self-assessment
illustrative
Gender representation
Total Intake Promotion Leavers
% representation of women
Annual Year to Trend Annual Year to Trend Annual Year to Trend Annual Year to Trend
1
target date MoM target date MoM target date MoM target date MoM Do you cascade targets through all
levels of the organisation?
Total 50% 47% 55% 54% 50% 50% 50% 52%
Board 36% 27% 100% 100% N/A N/A 0% 0%
ExCo 42% 42% 100% 100% 50% 50% 50% 0% 2
Senior Is your senior management held financially
40% 37% 70% 65% 60% 50% 37% 40%
Mgmt. accountable for progress against targets?
Junior 50% 51% 50% 55% 55% 52% 50% 65%
Support F.
3
50% 57% 45% 50% 50% 55% 50% 50%
Senior
Support F.
50% 59% 45% 50% 50% 51% 50% 50%
Junior
Do you have a sponsorship spine set
up through the organisation?
Sentiment on inclusion Overview of DE&I initiatives
All Women 4
Annual
target
Current
Trend
MoM
Annual
target
Trend
MoM
# Progress Red Flags Are you measuring the impact of your
initiatives and making adjustments as
eNPS 60 55 60 Total 60 55% N/A required?
Belonging
85% 75% 80% Recruitment 25 60% N/A
& Inclusion
Culture 80% 95% 75%
Retention &
Promotion
28 60% N/A 5
Support & Culture & Do you actively manage risk of your DE&I
90% 90% 95% 27 40% N/A
Equity Behaviour transformation programme?
52 Women in Finance Charter Blueprint 2022
On track to
meet target
Potential risk to
meet target
Not on track to
meet target 531 Recruitment
Best practice examples
Outreach
Best in class practices Leading initiative
Appendix
Educational outreach programmes (school to university) including scholarship schemes targeting
diversity groups.
Mandate diverse shortlists for senior positions including 50% representation of women.
External talent mapping to pro-actively build a pipeline of candidates and help reduce lead time
for hiring.
Leverage alumni networks to bring women back into business.
Organising women-only recruitment events.
Support women to get back into business after a career break through a returners programme
(placing women in teams for a defined period, offering training and support through interview
process).
Retrained and New diverse talent Access to
reintroduced 500+ pipeline for portfolio military
mums (and dads) management talent pool
into workforce ‘Investing in Investors’ is a Dedicated Military Talent
new full-time, intensive one- Pool channel for service
Supports the Supermums
year development programme leavers and veterans,
social enterprise to train
targeting professionals with with CV and interview
mums and dads across 9
little to no financial experience workshops and 12 week
countries in Salesforce CRM.
(including those from under- secondments available.
represented groups) to join
BlackRock’s Fundamental Equities
Team as Research Analysts. Four
successful candidates will join the
London office in April 2022.
Doubled applications from women to the Citi Academy in Belfast
Set up CitiSpire, a mentorship programme for women at university (with focus on first years) that
provides informal mentoring with women technologists and workshops (e.g., presenting with
confidence). Increased intake of women at the Technology Academy from 21% to 42%.
Additionally, worked with the local school board to set up training for primary school teachers about
how to integrate coding into the classroom.
Sources: BlackRock; Salesforce; Barclays; Citi
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