Only 6 per cent of women in hospitality make it to the top
Sharon Glancy, business solutions director at People 1st talks about why hospitality businesses can’t afford to ignore their female employees.
Women in leadership is back on the political agenda as equalities minister, Harriet Harman, calls for more women on the board. Although some may question whether this is political correctness gone a step too far, it raises some interesting issues for the hospitality industry.
Whilst I’m not in favour of positive discrimination and believe that women should be promoted on merit, it’s notable that hospitality has a lack of women leaders – an interesting paradox given that 59 per cent of the industry comprises women.
Yet, in an industry where labour turnover is exceptionally high – 31 per cent - and recruitment difficult, businesses can’t afford to ignore women. A recent survey by Leeds University Business School found a strong correlation between the proportion of women on the board and the survival rate of a business. They claim that one woman on the board can cut a company’s chance of going bust by 20 per cent whilst two or three female directors lowered the chances of bankruptcy even further.
Our own research found that only 6 per cent of women in hospitality made it to the top – half the UK average for all industries – and worryingly, the proportion of female managers had dropped from 49 per cent in 2005 to 46 per cent.
People 1st realised that it was only scratching the surface and wanted to have a better understanding of what was happening and to identify the drop-off points. Surely raising a family wasn’t the sole reason?
Anecdotal feedback indicated that confidence in a male environment was an issue. Women were generally reluctant to promote themselves and therefore didn’t have the same visibility as their male counterparts. Lack of career structure and female role models also seemed to pose barriers to the top.
To unpack this further, People 1st embarked on a major initiative called Women 1st to encourage more women to strive for the top and become ‘board ready’. We have set up a professional network which so far has 40 female members who are now starting to benefit from having their own personal mentor and sponsor, and the opportunity to take part in workshops and training. We’ve recruited dynamic and successful role models within the industry to mentor them and lend their voice to a campaign to highlight the benefits and output women bring to the business.
As the recession continues, hospitality businesses need the right combination of complimentary skills and talent on their board. By being more flexible and being aware of the barriers that women face, businesses can tap into a wealth of diversity of views and experience that can make all the difference between success and bankruptcy.