- Saturday, April 20, 2024
By: Radhakrishna N S
WITH the majority of partner-level roles being held by white men, the audit and accountancy profession is lagging behind businesses when it comes to diversity in senior management, according to a new research by the Financial Reporting Council (FRC).
The research has revealed on Monday (21) that one in three UK audit and accountancy firms do not even collect diversity data for their workforce.
The findings are contained in the FRC’s upcoming ‘Key Facts and Trends in the Accountancy Profession’ report.
FRC noted that it was “ironic” that many of the firms advised other companies on how to improve their own strategies to boost diversity and inclusion.
“While women and ethnic minority groups are increasingly being appointed to middle management roles at accountancy firms, the firms – which ironically advise large corporations on their own diversity and inclusion strategies – need to do far more to maximise their pipeline of future talent and promote women, BAME and disabled employees to the top levels of management,” FRC said in a statement.
The latest statistics reveal that while women make up 46 per cent of manager level roles at audit and accountancy firms, just 17 per cent of women rise to partner-level roles.
A similar trend can be seen at smaller firms with less than 200 employees, where 52 per cent of manager-level roles are held by women, but just 11 per cent of women hold partner-level roles.
Encouragingly, the industry has a strong pipeline of future talent with women making up 37 per cent of professional body membership, up from 35 per cent in 2014.
FRC’s Chief Executive Sir Jon Thompson said: “The business case for improved diversity has been made, and now it’s time for the audit and accountancy profession to take further positive action.
“While it is encouraging to see more firms implementing diversity and inclusion strategies and more women, ethnic minority groups and disabled people being appointed to middle management roles, more needs to be done to ensure the firms are not limiting access to the most senior roles.”
The FRC also urged business leaders to sign a government-backed pledge taking personal responsibility for promoting diversity and inclusion.
