DEI - What leaders are doing & the perspective of a female global investment manager

Hello and welcome to the latest instalment of the Berkeley Croft newsletter.

Here's what we're covering:

1. The true state of diversity in Asset Management
2. What are leaders doing to enable diversity??
3. The gender pay gap
4. Tackling unconscious bias?
5. How diversity is good for business
6. From the perspective of a female Global Investment Manager
7. Solution: New Diversity Checklist

?If you’d like to discuss how you can tackle these challenges in your team, we’d be happy to have a call. Get in touch with us today.

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The true state of diversity in Asset Management

It should come as no surprise that Asset Management doesn’t fare particularly well in terms of gender inclusivity (and diversity in general). In fact, efforts toward closing the gap between men and women are aptly described as “average”.? The UK as a whole lies 20th in the Global Gender Gap Index, ahead of countries like Australia and Canada, but behind developing nations like the Philippines and Rwanda. Asset Management is one of the main offenders.?

Progress has been slow-moving at best. The number of female fund managers in the UK remained largely unchanged from the end of 2000 to 2019 – it sits at around 14%.

Our recent Diversity in investment management eguide offers you a useful bigger-picture view of the industry and examples of how we’ve helped our clients build more diverse teams. Download your copy here.?

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What are leaders doing to enable diversity??

Leaders in the investment sector have much to learn from other industries. Here are some examples of businesses making meaningful changes towards more inclusive and welcoming workplaces.?

Microsoft commissioned a report in the UK to learn more about women in IT – what they enjoy about the industry, and what made them hesitant to work in the field. They used these findings to start an initiative called “T Party” which created a community for women in tech, sponsored women to go on an app coding course, and provided them with career mentors in the tech space. This initiative enabled Microsoft to increase its hiring of women in tech to more than 35%.?

Asda tracks what it calls “all-male leadership spines” which show employees who report to all-male leadership from store managers upwards. They then use this data to disrupt these chains and include more female representation.

Atkins, a British multinational design, engineering, and project management consultancy, implemented a gender balance improvement plan with a four-year strategy in place. This plan included a commitment to flexible working policies and practices.?

Schroders has taken steps to emphasise diversity in its recruitment channels and data analysis. The company collects diversity profile data and has prioritised the review of maternity and paternity working policies.

Explore more: Organisations making an impact in diversity and inclusion?

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The gender pay gap

Would it shock you if we told you that the gender pay gap in investment management is more than twice the size than that of companies in other industries??

Men earn 30% more than women in the investment management sector, while that figure sits at 14% for other industries. This discrepancy is largely due to the overwhelmingly male senior leadership. Portfolio management roles are also mostly held by men.?

Read more:? The gender pay gap in asset management

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Tackling unconscious bias?

Even the best intentions can be derailed by unconscious perceptions and biases. Thankfully, there are tools at your disposal to counter these pitfalls in your business.?

5 steps to eliminate unconscious bias from your hiring process

1. Understand hiring prejudices

Consider carrying out internal research to identify the demographics within your organisation and then determine patterns and imbalances to be addressed.

2. Edit your job descriptions

Masculine language, including adjectives like ‘competitive’ and ‘determined’, result in women perceiving that they would not belong in the work environment. On the other hand, words like ‘collaborative’ and ‘cooperative’ tend to draw more women than men.?

3. Software is your friend

We know that unconscious bias occurs as a result of first impressions, so the best way to tackle that is to remove them completely. Take advantage of software that can make CVs ‘blind.’ They remove personal and demographic characteristics to allow you to focus on the candidate’s specific qualifications and skills.?

4. Consider introducing a skills test

Questions surrounding company culture and soft skills play an important role at the interview stage, but this is an area that can encourage unconscious bias. Consider introducing a skills test, even before a formal interview, to establish measurable parameters.?

5. Welcome international talent

A workforce that includes people from all over the world is going to be more diverse than one from the surrounding area of a physical office.?

Read more: Unconscious bias in Asset Management?

Working with a talent partner is another great way to remove innate biases in your hiring process. Get in touch to see how we can help.?

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Diversity is good for business

Several senior leaders within the financial sector have commented on evidence that suggests a diverse workforce makes better decisions. Here are some of the ways awareness of the need for diversity in a team gives your business an edge.?

1. A wider talent pool. Business leaders who are mindful of unconscious biases embrace the best and most qualified candidates for their positions.?
2. Strong financial returns. A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity management were 35% more likely to have above-average financial returns.?
3. Fresh ideas. A heterogeneous employee pool brings new outlooks, problem-solving skills, and unique perspectives that can lead to impressive breakthroughs.?
4. Representation. It’s important for clients to feel that they are represented in the sector. Familiarity and recognition help to foster good relationships that ultimately result in better service.?

Read more: What asset management leaders are doing to enable diversity at work

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From the perspective of a female Global Investment Manager

One of the women in our network shared these experiences with us. These points highlight just some of the biggest challenges women face and make it clear that discriminatory microaggressions are far-reaching.?

• Being overtly ignored during meetings. Some women find a male backup before the meeting, in the knowledge that their male counterpart’s voice will be heard and the point taken as valid.?
• Gender-based and gender-biased name calling. Like being referred to as a ‘drama queen’ for voicing legitimate concerns. These sorts of comments are designed to undermine women and their (often very rational) voices.?
• Being applauded for success in spite of being a woman. Comments like “You’ve done very well, for a woman.”
• Probing questions about marital status, family, and life plans. In one case, being very openly asked during a conversation about a pay rise: “But can’t your boyfriend provide for you?”?
• Being left out of the boys’ club. Not being included in celebratory get-togethers and thereby missing out on valuable networking opportunities.?
• Menstrual cycles! Women who are fatigued, exhausted, and in intense pain would be expected to stay silent, hide their feminine hygiene products on the way to the bathroom, and carry on.?

Read more: Addressing the UK Asset Management Gender Imbalance

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Diversity, equity and inclusion checklist

Knowing where to start is often the hardest part of making meaningful changes.?

We’ve taken our experience working in the investment sector and compiled a checklist for promoting meaningful diversity in teams.?

Use this free resource to actively improve representation within your organisation.?

Download your copy here.?

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If you have any questions or would like to discuss your talent needs, reach out to us today.?

Speak soon,?

The Berkeley Croft team