Although money managers have continued in their work to close the gender pay gap, more work can be done, an industry report released Wednesday shows.
Efforts to close the gender pay gap — the average difference between what men and women are paid — fall into three categories, said the report published by the Investment Association: attraction and recruitment; retention and advancement; and measuring and monitoring.
"Attracting and recruiting women into the industry continues to be a crucial step towards addressing the gender disparity and the gender pay gap within investment management," the report said. Managers have focused on implementing measures to bring women into their companies by raising awareness among the wider public of the investment industry.
Firms have also worked to mitigate any biases at the recruitment stage, providing "supported routes" into the industry.
In addition to attracting women into roles, money managers have also worked on retaining women who are looking to build a career in investment management. Efforts include programs and policies to "empower women to have more control over their working arrangements" and efforts "to advance and develop these women."
"This is critical for closing the gender pay gap, as a significant driver of its existence is the greater number of men than women in senior and high-earning roles," the report said.
In the area of measuring and monitoring, money managers are creating "an accurate picture" of their firm's current position, as well as a clear idea of where they want to be.
This measurement is crucial as it "provides a basis on which firms can build their diversity strategies efficiently and effectively, ensuring that measures are targeted in the appropriate areas," the report said.
Despite continued efforts, the IA said more can be done and made a number of recommendations to money managers. It said managers should implement diversity policies for the recruitment process and ensure the wider public understands and is familiar with the investment industry. This can be achieved through "insight days," graduate fairs and by partnering with third parties.
Firms should also ensure that any subtle biases in job descriptions and applications are addressed, as these "can impede women from entering the industry," the report said.
Further recommendations include incentives for women to stay within a company, such as improved parental-leave policies and return-to-work programs. Finally, the capturing of diversity data and setting of clear targets for female representation at senior levels should also be considered.