Analysis of pay equity and representation at senior levels among women in accounting firms has been a topic of growing interest. This statistical analysis aims to provide insights into the current status of women in accounting firms based on available data.
According to recent data from the ACCA, women make up 46% of the workforce in accounting firms in the UK. This represents a gradual increase over the past decade, indicating a positive trend towards gender diversity in the industry.
Analysis of salary data reveals that, on average, women in accounting firms earn 6.6% less than their male counterparts. Despite efforts to address pay disparities, the gender pay gap persists across various roles within accounting firms, ranging from entry-level positions to senior management.
The pay gap in accounting is less than the pay gap across the UK, which sits at 8.3% on average (source – accountingweb.co.uk).
The gap in pay within accounting is generally on a downward trend. Starting 25 years ago, in 1997, the gap was 17.4%, 10 years later, in 2007, it was 12.5%, 9.1% in 2017, then in 2019 to 2020 it dropped 2% from 9% to 7%, before a worrying upwards trend over the last 2 years going up to 7.7% in 2021 and 8.3% in 2022. (All sourced from financialaccountant.co.uk).
At the senior leadership level, women continue to be underrepresented in accounting firms. Only one fifth of executive positions are held by women (source – Accountancy Age), highlighting a significant gender disparity in leadership roles. This underrepresentation is attributed to a variety of factors, including systemic barriers, lack of mentorship opportunities, and unconscious bias in promotion decisions. Looking at both the overall % of women compared to those in senior leadership points to a problem in progression for women.
In addition to this, in 2022, only 12% of accounting firms were founded by women (source – Association of International Accountants), which was down from 22% the previous year and 20 and 21% in 2020 and 2019. This all means we still need trailblazers to provide role models to future generations of prospective female owners.
While there have been notable advancements in promoting gender diversity and equality in accounting firms, significant challenges remain. Efforts to close the gender pay gap and increase the representation of women in senior leadership positions require continued commitment from firms, policymakers, and industry stakeholders.
In conclusion, women in accounting firms face persistent challenges related to pay equity and representation at senior levels. Addressing these issues requires collaborative efforts to promote gender diversity, eliminate biases, and create inclusive work environments conducive to the advancement of women in the accounting profession.
There has been a lot of improvements made, but there is a lot more to do, starting in the short term, with addressing the increase in pay gap over the last 2 years . But also, there are a number of areas that could really help over the medium and long term and it is important we have an ongoing strategy around this important topic so that the gap goes away, and parity exists, but just as importantly, it stays away.
There are many more areas to consider, but the ones above are about awareness. Awareness of what can be achieved through role models, and awareness of the topic through clear communication. Awareness of the compensation so it is clear it is fair and equitable, and increasing awareness of the issues that are still faced through training.
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