As a local north Florida news reporter, my focus often centers around the stories that affect residents of Suwannee County. Today, I’d like to share some insights on a global issue that is undoubtedly impacting our local community — the persistent gender pay gap in financial and professional services.
According to a recent study by the London School of Economics, women in the U.K. are four times less likely than men to be among the top 1% of earners in these sectors. Even more concerning, this gap appears to be widening since the onset of the pandemic.
A closer look at the numbers
Women currently occupy only 19.4% of the top 1% highest roles in finance and professional services, a slight decrease from the pre-Covid average of 19.7%. This stark discrepancy underlines the challenges women still face in achieving equal representation at the highest echelons of these sectors.
Despite this, there are some signs of progress. Women’s share of the top 10% of positions has increased to 28.3%, up by 2.5 percentage points over the past few years. Women also make up 37% of senior managers and directors in professional services and finance, mirroring the percentage of female full-time employees.
Understanding the lack of progress
The persistence of this gender seniority gap suggests that corporate efforts to narrow it have been largely insufficient. The reasons behind this are complex and multifaceted, including:
- A significant career penalty for mothers but not for fathers.
- The existence of both blatant and unconscious bias.
- Societal factors that disproportionately burden women with household chores, and child and elder care responsibilities.
The impact of the COVID-19 pandemic has only exacerbated these issues, with layoffs affecting women more than men and businesses often cutting back on diversity, equity and inclusion programs during tough trading conditions.
As Dr. Grace Lordan, the founding director of The Inclusion Initiative at LSE and associate professor in its Department of Psychological and Behavioural Science eloquently puts it, “We are going backwards. For progress to be made there needs to be a bigger shift towards recognizing that diversity is good for business.”
So, what’s next?
The gradual increase in gender representation in mid-senior roles and among the top 10% of earners is encouraging. This could potentially lead to knock-on effects on the most senior and well-paid roles in the coming decade.
However, we can’t ignore the fact that women’s chances of progression continue to decrease with each step up the career ladder. This dynamic needs to change for the gender pay gap to close significantly.
As residents of Suwannee County, we are not immune to these global trends. It’s crucial that we continue to push for diversity and gender equality in our own community and workplaces. This isn’t just a fight for women, but for all of us who believe in fair and equal opportunities for everyone.
