Cranfield Female FTSE Board Report 2016

Targets for Gender Balance

The Female FTSE Board Report 2016

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5.2 WHY TARGETS WORK AND WHAT ARE THE PRINCIPLES OF TARGET SETTING?

Based on the UK’s journey since 2011, the experience of other countries trying to introduce voluntary change, 13 and best practice in the field, 14 we identify mechanisms that make target setting effective: –– Targets provide clarity in goals and a disciplined approach to change . Targets should be set in the context of a clear action plan with a specific timeline, to make diversity commitments tangible and create a sense of urgency. “Targets are good because they put data on the table that has to be measured […] this just makes the conversation happen at the senior table and if the conversation happens, actions follow.”

– (Female FTSE Director)

For example, in 2011 executive search firms were encouraged to create a Voluntary Code of Practice. One of the most effective provisions of the Code was the requirement to provide 30% women on a shortlist. 15

Yes we are seeing a genuine commitment from business for greater equality – but actions are often slower to catch up with words. Women are underrepresented in the higher paying, higher status jobs and industries, yet traditionally ‘feminised’ work is almost always undervalued. There are two things that I believe can deliver better gender balance, faster. First, I anticipate that compulsory gender pay gap reporting will create accountability for change – the causes behind the gender pay gap are amongst the biggest factors in women’s inequality in UK workplaces, and creating transparency and understanding should encourage action. Second,

we need businesses to rethink existing approaches and recognise that the barriers to women’s progression are structural – women don’t need to change. Only by moving away from a ‘fix’ the women approach towards true organizational and cultural change, will we make any real progress in achieving true equality.

Kathryn Nawrockyi Gender Equality Director at Business in the Community