Women make up a smaller proportion of top earners in British financial and professional services than before the COVID-19 pandemic, research from the London School of Economics and Political Science (LSE) showed on Monday. Women made up 19.4 per cent of the top 1 per cent of earners in the sector on average between the first quarter of 2020 and the second quarter of 2023, down from 19.7 per cent in the three years up to the first quarter of 2020, the research showed.
Gender Pay Gap: A Persistent Issue
“The lack of progression of women to the most senior roles in financial and professional services is a major factor contributing to the gender pay gap,” said Grace Lordan, an associate professor at the LSE. “We are going backwards, but I am not surprised. For progress to be made, there needs to be a bigger shift towards recognising that diversity is good for business.”
Some of Britain’s top financial firms pay women 28.8 per cent less on average than male counterparts, according to salary data from 21 companies reviewed by Reuters last month. This stark disparity underscores the ongoing challenges faced by women in financial services.
Women in Financial Services: A Mixed Picture
However, the LSE research, based on the government’s quarterly Labour Force Survey, showed that women made up 28.3 per cent of the top 10 per cent of earners between the first quarter of 2020 and the second quarter of 2023, a rise of 2.5 per cent from the three-year period up to the first quarter of 2020. This indicates that while there has been some progress in certain areas, significant barriers remain for women aiming for the highest echelons in financial services.
The findings highlight a critical need for businesses to address these disparities and foster an environment where diversity in business is not just encouraged but actively pursued. The journey towards closing the gender pay gap is far from over, and it requires concerted efforts from all stakeholders involved.
