6 Ways Transparency Can Boost Women in Leadership in the Financial Services
By Melissa J. Anderson (New York City)
This month the Financial News released the results of its fourth annual survey of women in the financial services. One of the most surprising findings was that 90% of the women surveyed want banks to be required by the government to provide greater transparency on compensation data.
The research, which surveyed 200 of the most senior leaders at twenty investment banks and corporate and investment banking divisions, showed that women represent only 8% of leaders in the industry.
The fact that almost all of them named compensation transparency as a policy of key importance is revealing. Even the most senior women in the financial services feel the wage gap is a hindrance to recruiting and retaining the best and brightest female employees – that is, half of the best potential workforce.
But based on the research, compensation isn’t the only area where transparency could be useful. Shining some sunlight in other areas of the workplace could benefit both women and the firms that need to employ them.
1. Transparency around promotion requirements. According to Phillipa Leighton Jones and Fareed Sahloul of the Financial News, “Sixty one percent of women think they are working harder than male counterparts in order to be viewed at the same level of achievement by managers.” If managers made promotion requirements more transparent, women could approach promotion more systematically. It would also force managers to think more critically about who they promote and why.
2. Transparency around female role models. While many women are uncomfortable putting themselves out on the spotlight, junior women coming up the ladder behind them need to see successful role models. Powerful role models can make a world of difference in showing that it can be done.
3. Transparency around sex discrimination. The study suggests that talking more openly with coworkers can help increase awareness that sex discrimination is still alive and well in 2011 – and that the work to end sex discrimination must be ongoing. Jones and Sahloul write:
“Over 60% say they have suffered some form of sex discrimination by the time they have racked up 15 years service. These are your most senior and valuable employees. Invite your female staff to talk about past discrimination, identify vulnerable staff, and find ways to make sure your organisation does not perpetuate the discrimination.”
4. Transparency during career breaks. This is a different kind or transparency. When women take a career break to raise children (or “offramp”) it is important to keep them in the loop while they’re gone. Many companies have been successful in creating programs that provide a link between women on a break and a mentor or contact back at the office. For example, PwC’s Mentor Moms program keeps women aware of what is going on in the firm (and with their clients and coworkers) while they are on maternity leave so they can maintain momentum when they get back on track.
As the Financial News’s Yasmine Chinwala writes:
“Time out for caring means women often have interruptions to their careers and as a result they miss out on training opportunities, promotions and general career progression. These are areas that companies including SG, Goldman Sachs and Morgan Stanley, are seeking to address by targeting women returning from maternity leave to ensure they get specific skills training where they need it, such as coaching them on leadership and offering them sponsorship from senior managers.”
5. Transparency around sponsorship. The Glass Hammer has written at length recently on the importance of sponsorship. Sponsors are senior people with a seat at the table who lobby on your behalf. The unseen networks of power within firms are often the track to key projects and promotions – and having a sponsor within those unseen networks can help women get ahead. By providing transparency around the idea of sponsorship, firms can make these networks more visible, or at least encourage women to reach out to sponsors they might not have known they needed.