Gender targets in the board room is not the answer

THE news yesterday that a European directive has set targets for financial firms to increase the number of women on their boards may, on the surface of it, seem like a positive drive to tackle gender imbalance.

Picture: TSPL

In my view, however, it is an unhelpful and unnecessary piece of legislation.

The first point to make is that female under-representation affects myriad sectors and companies throughout the world, not just financial institutions. Singling out a particular group of companies only serves to chastise when, in this instance, a strategy of positive guidance and support would be far more beneficial. Indeed, most financial institutions, such as RBS, have already set their own targets, so this move is purely academic.

What we’re dealing with is fundamentally a business issue not a political issue, so the solution should come from within the business community, not through government intervention. From the work that I do with more than 100 companies, I know that there is a strong recognition that change is needed and that there is a clear desire for change to happen, because gender diversity is good for business performance.

The evidence supports this; interest and uptake in our services has increased by 250 per cent in the past six months alone, while last year 47 per cent of first time appointments to FTSE350 boards were women, up from 11 per cent in 2007.

Setting targets at the top is papering over the cracks. What senior business leaders really need is help in implementing progressive programmes to allow women to reach their potential and prevent them from exiting the workforce prematurely. Sixty per cent of graduates entering the corporate world are female, yet only 6 per cent are getting to the top. It’s a stark statistic that shows the problem lies at middle management. Over time, retention and cultivation of talented women at this critical point will naturally filter up to the top, leading to long-term and, crucially, sustainable gender balance in business.

• Heather Jackson is CEO of An Inspirational Journey which is organising the world’s first gender-balanced leadership conference, The Women’s Business Forum, 7-8 October, www.thewomensbusinessforum.co.uk

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