Why Are We Still Failing to Invest in Female Talent?

We spend a lot of time celebrating the progress being made in diversity and gender equality in the legal industry. However, every so often we come across a statistic or study that makes us stop and realise just how much more work needs to be done to invest in female talent and to get rid of gender bias.

One that stood out to us recently was the realisation that still only 6.4% of Fortune 500 companies are run by female CEOs. Add to that the continuing pattern across industries that the higher up the ranks a woman gets, the pay gap widens, as seen in a study by the Chartered Management Institute (CMI). Even women who have branched out on their own find they come up against more barriers to progress than their male counterparts. Female founders and business leaders are struggling to achieve investment – a truly shocking 91% of publicly announced growth company cash investment deals were companies without a single female founder.

Within law, the picture is just as disheartening. Though there are many measures being taken to improve opportunities for women, they don’t seem to be having the effect one would hope. A McKinsey study of North American law firms, Women in the Workplace 2017, found only 19% of equity partners are women, and women are 29% less likely to reach the first level of partnership than are men

All Talk, No Action on Gender Bias?

It appears for all the progress in conversations around the importance of enabling more women to succeed and thrive in her chosen career path, there is a huge gap between acknowledging problems and taking the steps to address them. Gender bias is still very much present in big business decisions.

Why are companies, law firms and investors still reluctant to put their money where their mouth is? Here are just some of the lingering problems preventing investment in female talent, and the measures that need be taken to resolve them.

Problem #1 Unconscious Gender Bias

Investors, employers and company boards are all too often surrounded by people that look and think the way they do – the all too familiar ‘Old Boys Club’. This is not necessarily down to overt, conscious sexism or aversion to diversity – more that people don’t see the problem with being surrounded by people who look like and have similar backgrounds to themselves. It is important to confront the gender bias that we hold and teach ways to overcome them.

Measures to take: Facebook recently revealed that they have created an anti bias training course for employees, to help them interrupt and correct bias where they see it in the workplace. The company has also shared information, videos and presentations on its website for public access, so this a good place to start for anyone thinking of implementing their own anti-bias training for themselves or their employees.

Problem #2 Caregivers and Flexible Working

Employers are still far more concerned about women taking time out to have children or to care for family members than they are about men. Though parental and caring responsibilities are becoming more equally shared, women remain primary caregivers in our society, and therefore either have to juggle endlessly or step back from their career path. Women with family commitments, or those simply seen as being of childbearing age/circumstance may still be overlooked for promotion or ‘demanding’ roles due to the reluctance to allocate for flexible working.

Measures to take: It’s time for more organisations to take flexible working seriously as a wider part of company culture, rather than a case by case solution to a problem. Employers and employees both play a role in making this happen. The Law Society of Ireland provides a clear and comprehensive guide to conversations and statistics around flexible working practices. The more commonplace flexible working becomes in our industry, the less barriers primary caregivers will face in career progression.

Problem #3 Lack of Incentivisation

Something that is often missing from the conversations around inequality is incentives for organisations to invest efforts to tackle the gender bias problem for the benefit of all. There is real pressing need for companies to invest in female talent to drive extraordinary returns and the economy forward.

Measures to take: Look at the proof of the business case for gender equality. This McKinsey study is a few years old but shows just how essential female talent is for competitiveness, with companies in the bottom quartile for both gender and ethnicity diversity statistically less likely to achieve above average monetary returns compared to other similar companies. Obelisk Support is also living proof that tearing up the traditions and focusing on both men and women who want to work differently can lead to big things – global expansion, policy influence, award recognition, and being an important part of the drive for change in the legal industry. We have seen first hand the rewards that can be reaped from investing in female talent.

Problem #4 Lingering Belief in Inequality

Underlying all these issues is that a small but significant portion of society still believes that women are not equal to men in terms of ability and potential to lead and play the same roles in society. That is a far bigger problem to address, but facing up to this uncomfortable reality can help shape conversations we need to have to deconstruct societal imbalance and change thinking.

Measures to take: There is no single remedy to this overarching issue, just the continuation of discussion and of efforts to change what we can in our own pool in order to create a ripple effect. Despite slower progress than we might have expected in some areas, it is important not to lose hope and realise that small changes come together to change the culture at large. We are heading in the right direction to eradicate these ideas once and for all.