Rathbones : Gender bias undermines meritocracy in financial services

Gender bias undermines meritocracy in financial services

Gender bias distorts the assessment of performance of women in the financial sector, a new compelling analysis from the London School of Economics (LSE) has concluded after a behavioural experiment showed that participants rated a fictitious “Stephanie” as less competent than a male counterpart “Stephen”, despite identical performance.

The research, “Advancing Women in Financial Services: Productivity and Merit”, is the culmination of Women in Banking and Finance’s (WIBF) landmark four-year Accelerating Change Together (ACT) research programme, to be launched today at an event hosted by Rathbones, a leading UK wealth and asset management firm and co-sponsor.

The research was led by Dr Grace Lordan, founding director of The Inclusion Initiative at the London School of Economics. In its final reporting year, ACT concludes that financial services must take steps to create a meritocracy, and in doing so will see the advancement of women in the sector.

Dr Lordan said: “Right now women in financial services on average still do not have equal opportunities, visibility and voice. Yes, there are occasions when men are worse-off, and our methodology allows firms to identify these occasions. I would love the legacy of ACT to be that we see equal opportunities visibility and voice for all colleagues in financial services that is determined solely by merit. I am certain if we aim for a meritocracy – given the research has demonstrated so many errors in allocation of opportunities, visibility and voice by gender- that women will end up better off . Over the four years of ACT research, we have provided frameworks and measurement tools to enable firms achieve this goal”.

Anna Lane, CEO of Women in Banking & Finance, added: “The financial services sector sits at the heart of the UK economy. When it gets inclusion right, the productivity dividend flows far beyond our industry. Meritocracy isn’t just a moral principle it’s the route to stronger, fairer growth.

ACT has given us four years of evidence that equality of opportunity, visibility and voice drive better decisions and performance. The question now is whether we have the courage to redesign our systems to make that a reality.”

Camilla Stowell, Rathbones’ CEO of Wealth said, “We are deeply committed to fostering a positive and inclusive culture in which all employees thrive and women, in particular, have the support and encouragement to progress to leadership roles.”

The new ACT report also…