According to a report given by the BBC, MPs in the UK have found the rationale behind leadership domination by male employees. In many financial institutions, the alpha male culture has become the reason why women shun away from senior-most jobs. The Treasury Committee reported the need for change in firm’s bonus cultures. Bonus culture is mainly accustomed to the banking business in the investment divisions. It is used during a financial year to remunerate employee performance that has amplified the banks’ revenues.
The Treasury Committee states that it is alleged that male employees contended more convincingly hence higher rewards. Consequently, MPs raised a recommendation on assessing bonuses alongside clear measures. In an attempt to find a solution for this, the UK Finance industry body reported progress towards it. However, more ought to be done. The report given by the TSC on women in finance follows an enquiry of eight months. The survey was focused on finding out how more women can lead in high-ranking financial services roles.
In a testimony given by Jayne-Anne Gadhia, the CEO at Virgin Money, alpha male culture in some organizations where she worked previously pushed women away. She also emphasized on the negative attitude that women working in financial institutions have especially towards the bonus culture. The fact that they have to argue with men on how good they have performed or not scares them away. Also, performance management in these institutions is weak due to lack of robust central managers in leadership system. Instead, there is a prominent thought that men should be rewarded better.
In her response towards the alpha male culture, Amanda Blanc, CEO Axa Group, said that it has been the case in the past. However, it is not a predicament in the insurance business. The Committee also reflected on the gender remuneration gap statistics. A publication given out this year showed a considerable pay gap between males and females employed in financial institutions. According to the grapevine, the barrier to women progressing to high positions in financial services is interrelated to the bonus culture. This proves that there is an under-representation of women in senior positions.
The solution for this as recommended by the Committee includes considering women when offering top positions in financial services. Also, gender wage gaps should be bridged through printed policies and backing up women’s development. Re-examination of promotion procedures would be helpful in reducing favoritism and promoting returner systems for females on maternity dispensation. Moreover, the choice of subjects in colleges will help equip women should they choose financial service careers.