Shocking 91% Pay Gap Raises Questions about Financial Sector’s Glass Ceiling
18-Jul-18
Shocking 91% Pay Gap Raises Questions about Financial Sector’s Glass Ceiling Recent pay gap records submitted by large UK corporations have revealed that for the highest earning workers within the financial sector there is a huge 91% pay gap between men and women. The discrepancy is caused by more men than women within senior roles, with the difference in the number of men vs women in these high earning positions having increased by 17% in the past six years. This indicates that the glass ceiling stopping women rising to the top within the financial sector is stronger than ever. [i] It is natural to ask, “how can this be possible in the 21st Century?” A study of the reasons why, reveal a lack of easily identifiable causes, with some articles suggesting simply that there are few women in senior finance positions because there have always been few women in senior finance positions. In other words, perhaps it is a symptom of a sector that is averse to change. However, the industry must change in order to survive; not only for the sake of a fair sector and diverse operations, but also because hiring more women in senior positions is integral to the profitability of the companies and the good of their clients. Why does it matter? Firstly, in modern society a truly diverse group of employees is not only ethically and legally demanded but is also vital to the functioning of a company. How can one expect to appeal to a diverse modern world if one does not employ diversely? Indeed, we see that the lack of women in finance has a huge impact on profit. Across 6 wealthy developed nations, a survey found that over 50% of high earning women do not have a financial advisor. In the US, 44% of the women in this bracket who do have a financial advisor, feel that their advisor does not understand them.[ii] The industry needs to change. The missed assets in the US alone from this apparent marginalisation of women may amount to a staggering 5 trillion dollars.[iii] Surely more women in ...
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