Women's quota, equal opportunities, gender quota in boardrooms – all these measures and buzzwords aim to increase the proportion of women on boards and in management positions. But what is the status quo in Switzerland really like and how is the gender pay gap related to it? What can we expect from this topic in the future?
Development and status quo
If we look at the entire workforce in finance, the gender ratio is relatively evenly split: Women make up about 45% of the employees. However, it is noticeable that the proportion of women decreases the higher the position. Do we still have to assume in 2023 that the financial sector continues to be a male domain?
In terms of all sectors, the proportion of women in top positions in Switzerland is 17%. Compared to other countries, this is not bad at all. But overall, this figure is still quite low and says on the other hand that 83% of top positions are held by men – that is anything but balanced and fair. The financial sector does better: the industry records a 24% share of women in top positions. Overall, still only a quarter of all top positions. Why is that actually the case?
Possible causes for the inequality
On the one hand, this is due to the traditional and still popular family constellation: Both childcare and care of the elderly were and are often taken over by women. This often forces women to take on part-time jobs. And this in turn is poorly compatible with a management position – a vicious circle.
Furthermore, the financial sector is not perceived as an attractive industry by many women. On the one hand, this is because many women cannot reconcile a job in the financial sector with their moral concepts. The image of the industry has suffered considerably since the beginning of the financial market crisis in 2007 and has not recovered to this day. In terms of public perception, the financial industry ranks second to last on the popularity scale – ahead of the energy sector.
Furthermore, the working atmosphere is said to be less collegial and characterised by rivalry. This "elbow mentality" goes down much less well with women than with men: one third of the male participants said that this was precisely why they found the industry exciting.
The most decisive reason, however, was the perceived difficulty in balancing family and career. Therefore, women prefer the corporate areas of marketing and human resources, while men favour the financial area.
Last but not least, the fact that there is a lack of female role models also plays a role. If there are not enough women in top positions to look up to and orientate oneself by, one's own motivation and confidence in one's own abilities may also decrease.
Equal opportunities in top management: Switzerland catching up internationally
The proportion of women in Swiss financial companies has increased from 13 to 24 percent within two years, almost doubling. British insurers had a women's quota of 28 percent on the board, in France it was 27 percent. This puts Switzerland in sixth place compared to the other European countries.
In Switzerland, gender guidelines have been anchored in Swiss company law since January 2021. After transitional periods, companies will have to have 30 percent women on the board of directors (from 2026) and 20 percent on the executive board (from 2031). Partners Group already has a 38% share of women, Credit Suisse 36% and the insurer Zurich 33%. Number one is USB, where 42% of the people on the executive board are female. Swiss Re and Swiss Life have some catching up to do: At 15% female representation and even 0% (Swiss Life), there is still a lot of room for improvement.
In the Swiss insurance industry, the proportion of women has risen overall in recent years. In 2021, the industry recorded the highest proportion of women since the survey began, at 44.7%.
Important measures for the advancement of women include flexible working hours, childcare offers that are coordinated with gainful employment or tax incentives. This improves the compatibility of work and family and the female talent pool in middle management can grow. This is a signal and an important prerequisite for more women to climb the career ladder to the highest management level.
Why does the promotion of women work so well in Switzerland? Because banks and insurance companies in Switzerland have set a clear goal to focus and prioritise it. The companies want to give the female gender these opportunities to systematically develop and take on new tasks so that at a later stage they will have acquired the necessary expertise needed when they reach management or even a CEO role.
Gender Pay Gap: Problematic in Switzerland, too
The gender pay gap describes the difference in pay between women and men. In Switzerland, this gap is 15 % – the gross salary of women is thus on average 15 % lower than that of men. Switzerland thus performs worse than the average in an EU comparison: the gender pay gap in the European Union averaged 13 % in 2021. Countries such as Romania, Poland and Slovenia do better: the gender pay gap here is less than 5 per cent. LHH Recruitment Solutions sets a good example:
"At LHH Recruitment Solutions, we attach great importance to gender equality. We live the Equal Pay principle and therefore pay everyone depending on qualification the same – regardless of their gender. In this way, we create an incentive for women to work in management positions."
Elodie Pilnière, Director LHH Recruitment Solutions Geneva, LHH Recruitment Solutions
Conclusion
The financial sector in Switzerland has understood that diversity is also important at the executive level and is currently implementing this very well. Some of the top banks and insurers have already implemented gender guidelines in company law that will not come into force until 2026 or 2031 – the financial sector is becoming more diverse and thus more attractive for women. In terms of pay, however, Switzerland performs below average: women earn on average 15% less than men.