The Women’s Recession
by Sima Matthes (New York City)
A recent article in the Financial Times stated that men held 80% of jobs lost in this recession. This would seem to indiate that, across the board, men seem to be suffering the most from the current economic crisis. But contrast this to the findings set forth in a stunning report released by PricewaterhouseCoopers in the UK on April 15th in which they found a disproportionate effect of the recession on women in banking. According to Ruth Sealy, the Deputy Director of the International Centre for Women Business Leaders at Cranfield School of Management, who was quoted in the Times Online commenting on the report, “There is a sense among … women in banking that this is very much a gendered recession.”
The PwC survey “received 1059 responses (Male: 9%, Female 91%) from around the world during March. The majority of respondents were in full time employment, in professional services, banking and finance in London and the South. 56% provide the main source of financial support for themselves, their partner/family.” According to PwC, “the survey demonstrates how short term decisions regarding reductions in training, development and redundancies could adversely affect women’s development and progress to leadership positions in the recovering economy.”
60% of those surveyed for the study believe that the recession will “reinforce the glass ceiling” while nearly 75% of those surveyed saw layoffs and firings as a new opportunity to exit the corporate world. Further, 30% of those surveyed believe that in the next three years, work environments will become less flexible, and workers will be less likely to avail themselves of flexible work arrangements for fear of losing their jobs. Sarah Churchman, Director of Diversity, PricewaterhouseCoopers stated, “All the statistics show that it is harder for women to make it to the top. The recession is threatening to make things worse,” particularly when it comes to cuts in programs that help equalize the business opportunities for women, especially training and education for executive development. 50% of the respondents in the PwC survey believe that women will be most negatively impacted by corporate cuts to learning and development budgets.
“For the past five years there has been anecdotal evidence that women are leaving corporate life either to go to work for organizations whose values are more synergistic with their own or to set up their own business and make their own careers.” So says Ms. Sealy, who was also the lead researcher on her organization’s annual Female FTSE report, which tracks the number of female directors on FTSE 100 boards.
As previously reported by The Glass Hammer, boards with higher percentages of female directors tend to do better—a 53% increase in equity returns. Yet there is growing concern, reflected by these studies, that men will continue to retain their jobs and their place in the executive pipeline even as women leave. “It’s no surprise that women turn to their entrepreneurial side in a recession and see opportunities for a new start or role after years of corporate life,” said Ms. Churchman. “However, “ she continued, “the by-product of the recession could be to stall or reverse the [financial] sector’s gender diversity progress and investment, short changing the UK economy’s recovery by removing or alienating a generation of female talent…”
Banks are already experiencing a brain drain as women re-evaluate their opportunities and leave the work force. “It is a major problem because of the huge amount of intellectual capital that these organizations are losing,” Ms Sealy says.
It’s simply short-sighted corporate think that allows that intellectual and actual capital to slip away. The smart money is on companies who recognizes the truth as stated by Ms. Churchman, thus: “ Securing and maintaining the recruitment, retention and development of women in mid management roles now, is the only way a pipeline of women in senior executive roles can be maintained in the recovery.”
