Equality on the top floor is heading in the right direction; as every FTSE 100 manufacturer now has at least one woman on their board.bWomen now account for 21percent of total directorships in FTSE 100 manufacturing companies – up from 19 percent last year. Over a third (36 percent) of manufacturing companies are at or above the Davies minimum 25 percent female board representation target – up from 31 percent last year. Leading the way: GlaxoSmithKline and Unilever are ahead of the pack with five female board members each, while Diageo has the greatest proportion at 44 percent. More to be done: industry must shed outdated ‘dirty and unglamorous’ image and take more steps to nurture talent from classroom to boardroom.
All of Britain’s leading manufacturers now have at least one female director on their boards, according to a new report out today by EEF, the manufacturers’ organisation, in partnership with Lloyds Bank Commercial Banking. But while the sector has made some great strides in female board representation, it is being urged to do more to tackle the industry’s outdated ‘dirty and unglamorous’ image and to nurture talent from classroom to boardroom. The report – the second annual assessment of the role of women in senior positions in manufacturing – shows that women now account for 21 percent of directorships in FTSE 100 manufacturing companies. They now hold 64 out of 305 manufacturing board seats – an improvement on last year when they held 59 out of 309 seats and accounted for 19 percent of board positions.
Over a third (36 percent) of FTSE 100 manufacturing companies are already at, or even above, the 25 percent target for female board representation set out within Lord Davies’ Women on Boards Report. Some companies are ahead of the game – GlaxoSmithKline and Unilever both have five female board members each, while Diageo has four, but leads in percentage terms with 44 percent of board places taken by women. More importantly, last year’s report identified two manufacturing companies with no female board representation – Croda International and Melrose Industries. Both have since dropped out of the FTSE 100, but now have one female board member each.
The percentage of non-executive (NED) roles going to women has grown from 23 percent last year to 25 percent in 2014, while executive (ED) roles remain static at 8 percent. Just under one in ten female board members (9 percent) are EDs, compared to one in three (29 percent) amongst their male peers. In addition to looking at the state of play amongst FTSE 100 manufacturers, the report also examines some positive examples of female progression amongst SMEs. SMEs employ almost 60 percent of manufacturing workers, with the majority of UK manufacturing businesses falling into this camp. This suggests that while it is important for women to have a voice in the boardroom, it is just as important to ensure they are reaching senior levels in SMEs too.
The report finds that senior women in SMEs agree with the views of their FTSE female peers, advocating increasing gender diversity through encouragement and development, not enforcement. Rather than quotas, they want to see companies take steps to identify and support talented women, improve the image and perception of manufacturing and do more to engage with schools. They also identify how important it is for girls to be taught STEM subjects with passion and to be exposed to inspiring role models, mentors and careers advice. Previous research shows that six in ten manufacturers (60 percent) believe that better careers advice in schools would encourage more young people into the sector[1].
