Tailored benefits solutions encourage diverse workforces

Author: David Cartwright Forbes

The alternative investments sector has long struggled with gender diversity, especially at senior levels. Recent data shows that as of 2024, women make up only 22% of global alternative assets industry professionals¹. Crucially, the share of women drops even further up the hierarchy: only 15% of senior roles in alternatives are held by women¹. This leadership gap is mirrored in the broader finance sector. For example, in the UK, women comprised just 42.7% of employees in finance and insurance in 2023². A similar pattern is observed globally: women represent almost half the labour force but less than a quarter of senior management positions³. The “leaky pipeline” phenomenon means that while gender parity is closer at entry-level jobs, women remain significantly underrepresented in decision-making as careers progress.

A strong Employee Value Proposition (EVP), which is intrinsically linked to company culture, is essential for businesses seeking to attract and retain diverse talent, and research from our Workforce Trends Report suggests that organisations developing an EVP to support attraction and retention of talent is increasing year on year. Employee benefits are a key component in this proposition and essential in fostering workplace inclusion and gender parity. By tailoring benefits to meet diverse employee needs, firms can improve retention, support career progression, and cultivate a more equitable leadership pipeline.

The business case for inclusive benefits and diverse teams

Organisations that fail to attract, retain, and promote diverse talent risk more than just reputational damage; they compromise long-term performance and competitiveness. A strong EVP with inclusive, family-friendly benefits can help remove barriers that disproportionately impact women (such as gaps in childcare or flexible work options), improving retention and advancement. Research consistently demonstrates that more diverse teams lead to better decision-making, innovation, and financial performance outcomes.

For instance, a survey by the International Labour Organisation found that companies with an inclusive culture and policies had a much higher likelihood of positive business outcomes⁴. The probability of achieving increased ROI and innovation was 63% in organisations with inclusive practices, alongside a 60% higher chance of improving talent attraction and retention and a 59% greater likelihood of enhanced creativity and innovation⁴. When corporate boards achieve gender balance, companies are almost 20% more likely to report improved business outcomes¹. These findings reinforce that diversity is not just a “nice to have”; it directly correlates with stronger performance metrics.

Multiple studies from public and academic institutions back up this business case. The IMF, examining millions of European firms, has documented a positive association between higher shares of women in senior positions and superior firm financial performance⁵. Similarly, UK government research highlights that companies in the top quartile for gender diversity are far more likely to outperform those with homogenous leadership⁶.

In concrete terms, failing to modernise workplace policies to meet diverse needs can damage the bottom line. Costly turnover increases when talented employees (often women) leave due to unmet needs like flexible working or adequate parental leave. By contrast, firms that invest in supportive benefits (such as extended parental leave, childcare support, flexible hours, and mentorship programs) see higher employee satisfaction and loyalty. Happier, supported employees tend to be more productive and stay longer with the company. Empirical research shows a strong positive link between employee wellbeing and productivity – improvements in worker satisfaction are associated with higher output and performance at the firm level. In short, inclusive benefits that address employees’ real-life needs help cultivate a more engaged workforce, reduce staff turnover costs, and preserve institutional knowledge – all contributing to better firm performance over time.

Key benefits solutions to drive diversity

To advance gender diversity, firms must implement benefits that directly address workplace barriers for women. A tailored, forward-thinking approach to employee benefits can create a more inclusive and high-performing workforce.

1. Family-friendly policies

• Enhanced parental leave: Firms should provide extended, equal maternity, paternity, and shared parental leave. Enhancing maternity, paternity, and shared parental leave can mitigate this “motherhood penalty,” by encouraging fathers to take parental leave as well as mothers. This helps normalise shared caregiving responsibilities, reducing the stigma often associated with maternity leave.
• Childcare support: A lack of affordable childcare or flexible leave often forces women to pause or quit their careers, which is reflected in workforce statistics. In the UK, for example, women are seven times more likely than men to be out of work due to caring responsibilities, according to analysis of labour data⁷. Organisations can ease the return-to-work transition through subsidised childcare, onsite nurseries, or partnerships with childcare providers. Such initiatives ensure that caregiving responsibilities do not become a career limitation.

2. Flexible work arrangements

• Hybrid working and flexible hours: According to the UK Office for National Statistics, almost two-thirds of mothers reported being more likely to increase their hours or responsibilities at work if they had flexible childcare arrangements⁶. Combining hybrid work gives employees greater control over their schedules, reducing the pressure of balancing professional and personal commitments.

3. Leadership development and career progression

• Return-to-work programmes: Many women leave the workforce due to caregiving responsibilities. Offering structured return-to-work pathways, including upskilling initiatives and reintegration support, ensures that talent is not permanently lost.
• Mentorship and sponsorship programmes: Proactively supporting women through leadership development, executive coaching, and networking opportunities can help address the gender gap in senior roles.

4. Health and wellbeing support

• Menopause-friendly policies: As more women remain in the workforce later in their careers, firms must introduce policies supporting employees experiencing menopause. Workplace adjustments, access to specialist healthcare, and menopause-inclusive insurance policies can make a significant difference.
• Mental health support: Employee assistance programmes (EAPs), tailored counselling services, and mental health initiatives can improve wellbeing and productivity, particularly in high-pressure roles.

Conclusion

By tailoring benefits to meet diverse employee needs, firms in the alternative investment space (and the wider financial sector) can make tangible progress in closing gender gaps. The data clearly shows that women are not a small minority at the entry-level, they comprise a significant portion of the talent pool. Still, systemic barriers have kept them from equal representation in leadership. Addressing those barriers through modernised benefits and policies is not just about fairness but a strategic business decision. Companies that create an inclusive environment will strengthen their talent pipeline, foster greater innovation, and achieve better financial results. Investing in the right benefits and workplace culture today will build a more resilient, high-performing, and equitable workforce for the future.