Business is still a ‘boys’ club’: it’s holding your firm back

Professor Geeta Nargund at The Pipeline argues that sexism is still rife in the City.

Despite continued focus on gender equality and diversity in the media, true change for women at work has, sadly, been moving at a glacial pace. As highlighted by the Women in Finance Charter recently, just one in three of the organisations who have signed the Charter met their gender diversity targets last year.

Coupled with the exposé on the Garrick Club, and the Treasury Select Committee’s recent Sexism in the City report, it is clear that businesses need to do more to abolish the all too common ‘old boys’ club’ culture once and for all.

The fact is, as reports and revelations continue to reveal, sexism is still rife in the City – and in 2024, let alone any year, this is frankly unacceptable and shocking. But in order to create real change, gender diversity needs to be recognised by businesses as so much more than just a corporate box-ticking exercise. 

Balance in the boardroom

Women make up half of the UK’s workforce – yet despite this, progress towards parity in the boardroom is still moving slowly in most businesses.

In its latest Women Count report, published in November last year, The Pipeline found that female representation on the boards of the FTSE350 has only just exceeded 30% - and this doesn’t even factor in the balance between commercial and functional roles. As core feeder roles to senior leadership positions, the report found that just 1 in 5 commercial roles in executive committees are held by women, while only 9% of the FTSE350 companies have a female CEO.

Of course, gender parity can also vary across sectors. While the Women Count report highlighted those sectors which have made positive progress and achieved at least 40% female representation on boards (such as transport, health and insurance), it also become clear that other industries had quite a long way to go. Private equity firms and IT companies, for example, had less than 20% female representation on board, while banking firms were only slightly improved at 32%.

Achieving true gender parity in the boardroom is not just essential for meeting diversity targets and helping to create better workplace cultures. It is vital for business growth and success. Research from London Business School, SQW and the Financial Reporting Council has shown that firms which embrace diversity in the boardroom see increased profits. 

Against a backdrop of increasing pressure to better support women at work, businesses must seize this opportunity and reap the benefits.

Tackling toxicity

While appointing and promoting women is vital, it is still only a part of the solution. Without tackling the toxic practices and cultural issues in finance head-on, much of the female talent in its pipeline will struggle to make it to the top. 

The good news is that businesses can take action to better support women at work, whilst also bolstering gender parity. By reviewing their culture and processes to ensure they promote fairness and equality, firms can give all employees the best possible platform to succeed. For example, promotion procedures must be based purely on merit, in order to be truly fair – and investing in skills-based development programmes will help employers nurture their pipeline of female talent.

Additionally, firms must bring an end to the ‘woman tax’, and stop placing an added burden on women with responsibilities such as marketing or HR initiatives alongside their primary role, without placing the same expectation on their male counterparts. 

The fact is, as evidenced in not only the Women Count report but also the Sexism in the City report, women have continued to be clear about the support and change they need to see from their employers. But without truly recognising and implementing this change, businesses won’t be able to eradicate the ‘boys club’ culture.

Good business requires gender balance and equality; and now is the time for companies to act to protect and nurture their female talent. If they don’t, it’ll be the businesses that ultimately lose out.

Professor Geeta Nargund is Chair at The Pipeline

Main image courtesy of iStockPhoto.com