It has come as no surprise to many that Lord Mervyn Davies, who was asked by David Cameron to review how to improve the lack of female presence on PLC boards, has rejected the possibility of mandatory quotas. The report is being finalised this week, to be published by the end of the month.
Quotas have provoked strong resistance in the UK - in our free liberal democratic society the notion plays havoc with our most precious of ideologies: meritocracy. To appoint or promote someone primarily because of their membership to a particular demographic group, rather than on the basis of individual merit, poses a threat to our social, political and cultural identity.
The classic liberal concept of equality of opportunity necessarily involves the removal of formal barriers, such as allowing women the vote, for example; the rest was up to individual women. However, long since formal barriers have been removed, women still only account for 12.5% of all FTSE 100 directors and occupy four out of the 23 cabinet posts. Progress is, in fact, stalling, despite the widespread acceptance of the business case for greater diversity, as shown by eminent research and consulting bodies such as McKinsey & Co. Evidently, other, less obvious barriers remain, and it is hoped that Lord Davies’ report will focus on identifying and tackling the massive ‘grey area’ which has been a talking point for too long.
It is thought that Lord Davies will call for greater transparency in the appointment of board members, and for increasing the expectation on headhunters to provide diverse shortlists. Companies will most likely be told to sign up to a new set of annual reporting measures, as part of a ‘comply of explain policy’ as advocated by the CBI earlier in the year.
However, whilst many companies make efforts to hire women at junior and senior levels, if they cannot retain them and encourage them through the ranks, progress will never gain its own momentum and will always demand an interventionist approach. It is the culture of companies which must be further examined: as headhunters, we often discuss ‘cultural fit’ as a prerequisite in desirable candidates. However, analysing what this means, above and beyond a competency sheet, can be difficult, and it is our belief that part of the diversity issue lies herein.
Some of the most established and respected diversity consultancies focus on fostering cultures of inclusion, often taking a psychological angle. They help companies understand the types of personality traits and behaviours that are key to successfully achieving the mix of competencies that they require in their people, and so flags cultural qualities that need to change or evolve in order to improving inclusivity. Through method developed from empirical research, these firms often attempt to create a sense of common ground and so inclusivity through revealing that we are all guilty of unconscious bias when relating to the unfamiliar.
If companies have masculine cultures, they are more likely to lose women. In such cultures, those unwritten rules of success can be more difficult to understand for women, and the required behaviours may not come naturally to them. For women to advance, it is important for those few women at higher levels of management to engage in role-modelling behaviours. For headhunters, encouraging clients to examine the notion of cultural fit is an opportunity afforded to few others.
Phoebe Miles, Consultant
