City pay and bonus gaps are cultural and systemic issues

Yesterday’s news on the shocking discrepancies in pay and bonuses for men and women performing the same jobs within some of the leading finance firms was sobering to say the least.

Trevor Phillips, chairman of the Equalities and Human Rights Commission, noted in his BBC Radio 4 interview (http://news.bbc.co.uk/today/hi/today/newsid_8241000/8241520.stm) that he was very disturbed that the pay gap seems to begin in starting salaries and then continues throughout employees’ careers. Women on average start at £24,000 per year while men start at £37,000. Women who take time out to have families are disadvantaged when they return to work. The greatest discrepancies are in bonuses which reflect managers’ choices within organisations which, at worst, are penalising women.

Phillips noted that while the survey revealed good practice in many organisations, it uncovered the fundamental cultural and systemic issues that underlie pay and bonus gaps.

We have seen firsthand that while most people see the inherent value in flexible working and job sharing, actually creating new working models is a bridge too far because it demands a mindset shift within organisations with entrenched cultures. The new findings shine a bright light on this area and are a call to action for employers.

Phillips outlined a three-step plan for banks to address pay and bonus inequality:

1. Put someone with real clout in charge at Board level to lead change initiatives
2. Monitor progress
3. Get outside help if necessary

Women need viable working options and equal pay and bonuses that enable them to progress their careers within the banking sector.

Right up our street: “Hiring in the right kind of outgoing personality” in the FT

I read Jonathan Moules’ article - Hiring in the right kind of outgoing personality - in the FT (July 4/July 5) with both interest and empathy. (I would attach a link but this particular article is not available on www.ft.com!) The individuals he interviewed highlighted exactly the hiring challenges the entrepreneurs we meet are dealing with. These included:

• Filling key positions in functions founders feel ill-equipped to manage
• The importance of personality/fit/chemistry in a small team
• How to vet candidates thoroughly
• Lack of training in how to hire

The issues were echoed by the participants at our seminar – Making killer hires for your small business – on 29^th June. Many entrepreneurs don’t like hiring, because they don’t feel 100% competent and they may have been burned. The hiring process is also very labour intensive for teams where all available resources are focused on building the business.

The Eat Your Cake team is convinced that small businesses can make great hires every time. In our experience it comes down to two things:

• Being very clear about the role you are filling and the person you are looking for
• Sharpening your interviewing skills

We counsel small businesses to follow a simple step-by-step process which we have seen works really well. This entails strictly screening CVs and only interviewing candidates who have most of what you are looking for.

The insights offered by coach David Glassman in the article were spot on. You need to hire for the future, bringing on board people who can take your business to its next level of growth and beyond. You must also cultivate self-awareness and use objective and consistent processes to assess potential candidates and involve your whole team.

Everyone counts in a small team

Recently I needed to see my dentist and my optometrist. In both cases they were unavailable, so I saw one of their colleagues. I admit I felt some mild trepidation; once I find someone I trust I want to see them and them alone. Happily in both cases my expectations were met – and exceeded – by the other team members I saw. I really appreciated their ability to listen, their knowledge and their supportive approach. I left feeling impressed by the judgment of these small businesses when it comes to making good hires.

They had understood the importance of getting every hire right, matching strengths and personalities with roles, each of whom are part of a cohesive team. A mature, unflappable office manager is a good foil to the health professional. Chemistry between people is palpable, not only within a team but to everyone anyone comes in contact with. Mutual respect and trust are key. For example, looking through his colleague’s notes on my previous visits, the optometrist I saw commented to me, “Tom (not his real name) always writes up such thorough notes.” This enabled him to do his job – serving me – better. And it left this customer feeling assured that her needs were being met.

I’ve had some less positive experiences, too. One is at the hairdresser’s where the teenage trainees struggle to make conversation with people old enough to be their parents. And after one too many brutal head massage, I politely pass on these now! I’ve given my feedback and I have been assured that the senior stylists are trying to coach the youngsters to develop their conversational skills. I think they should reconsider their hiring practices going forward. That way they could expend less of their resources on getting trainees up to speed, and reduce the likelihood of creating disgruntled customers.