According to recent data, considerable progress has been made in the UK over the past few years in terms of the number of women in leadership roles. In 2021, there were almost 700 more women in leadership posts in the FTSE 350 firms, bringing the percentage of women in leadership positions to 31.5%, an increase of 2% year-over-year. This change has come about despite the problems that many UK businesses faced in responding to COVID-19.
Data on how many women occupy boardroom positions in the UK has been collected since 2004, and there has been a considerable amount of progress in that time. In 2011, the figure was at just 20%, and current projections say that it could increase to more than 34% by 2024. Although the numbers of female leaders in UK businesses fell briefly during the pandemic, they now seem to be back on track.
The number of female leaders in the UK is now at around the global average, so more progress can certainly still be made. There are many reasons behind this change, including changes in attitudes and global market trends. In addition, women have greater options for getting into management, including women’s leadership management courses.
Why Female Leadership Has Increased in UK Businesses
Female leadership in UK businesses has increased over the last few years thanks to deliberate efforts by the government and various organisations. Women have always been capable of reaching these positions, but there have been many barriers, both seen and unseen, that have prevented them.
Attitudes towards women in the workplace have changed a lot over the last few decades, making it easier for them to progress in their careers. Greater workplace flexibility has also allowed more women to excel in their roles, driving positive change and allowing for a more equal workplace. Other countries have achieved a much higher percentage of female leadership, and this shows that more can still be done.
Aside from creating a more equal and balanced society, some data suggests that greater female leadership could be beneficial to business. According to research from academics from the Universities of Glasgow and Leicester, companies with more than 30% female executives were more likely to outperform companies that don’t. In addition, companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies at the bottom.
How Can More Progress Be Made?
The UK has now climbed to second in the international rankings for women’s representation on boards at FTSE 100 level. However, there is undoubtedly more progress to be made. Only eight of the top 100 publicly traded firms in the UK have female chief executives, which has led some commentators to claim that while progress is being made toward gender targets, progress for women in positions of senior leadership has halted.
The FTSE Women Leaders Review study made several suggestions to UK businesses on how further progress can be made towards equality. These suggested guidelines include setting new voluntary targets for FTSE 350 boards to achieve 40% female representation. In addition, the FTSE Women Leaders Review suggested that by the end of 2025, FTSE 350 businesses should have at least one woman serving in executive director positions. These include Chair, Senior Independent Director on the Board, CEO or Finance Director.
