Nabila Salem, President of Revolent, explores the impact of the new mandatory regulations set by the EU to encourage gender diversity at the top and the bottom line benefits. She also provides sound advice on how companies can attract more women for senior and board roles.
The new mandatory regulations set by the EU for encouraging further gender diversity at the top levels of business are an enormously welcome sight to people like me – and many others. It demonstrates that regulatory bodies are beginning to truly do something about the need to get more women through the door and into leadership roles within businesses.
So, what are the regulations and their benefits, and what do they mean for UK organisations? While some people may baulk at the idea of over-regulating businesses, these changes help ensure that women are genuinely represented at all levels of an organisation. They’re a shift towards making the working world for women in the EU fairer; while also recognising the positive impact that a diverse board or team can have on an organisation.
THE NEW EU REGULATIONS
From 30 June 2026, large companies operating within the EU will have to ensure a share of 40% of the “underrepresented sex” (typically women) are included among non-executive directors. And a similar target of 33% has been set or women in all senior roles; including non-executive directors and directors, such as Chief Executive and Chief Operating Officer, as reported.
On a purely moralistic level, I’m truly excited to see this new regulation come into play. Representation is the first step in encouraging more women into senior leadership roles, and I expect these regulations to really help sectors (especially those that historically struggled to attract women) to fix any gender diversity issues – once and for all.
I am optimistic that even in countries like the UK – where the new EU regulations will not take effect – this will make a significant difference, as we see our neighbours across the sea hitting and exceeding these targets.
REPRESENTATION MATTERS
I’m a big believer in Marian Wright Edelman’s famous phrase: “You can’t be what you can’t see.” I hope that this will be the start of more women seeing other women at the upper levels of business.
Beyond that, I hope that these new regulations will have a knock-on effect on gender diversity across different industries, too. Having more women represented on boards of directors and in leadership positions means more women will be sat at the decision-making table; further ensuring that businesses do better at setting and meeting their gender diversity targets.
I am especially hopeful that this change will positively impact sectors like tech (where my company operates), where – regretfully – there is still a huge pipeline issue when it comes to gender diversity. In fact, due to the many challenges women face in tech, relatively few seem to remain in the sector long-term and progress into more senior roles. What’s more, research by Accenture has shown that almost 50% leave the industry for good by the time they reach 35. Shocking, isn’t it? Especially when you consider that, across other sectors, the number of women leaving their industry sits at a much lower 20%.
BUSINESS CASE FOR MORE GENDER DIVERSITY
The business case for greater gender diversity is not just about boosting gender diversity and representation (even though that should be enough). If you want to run a successful business, building a diverse and inclusive environment is crucial, as McKinsey show in their report Diversity Wins.
It’s a brilliant resource that I hope everyone takes a little time to read as it highlights how diversity truly is a ‘no-brainer.’ Not only because of the moral imperative, but also from a financial perspective. The report outlines how more diverse companies consistently outperform those with less diversity. When it comes to gender diversity, for example, the report demonstrates that gender-diverse boards are 25% more likely to be more profitable than their less diverse peers. And it’s the same with ethnic and cultural diversity: companies in the top quartile for diversity outperformed those in the lower quartile by a whopping 36%.
So, if you think that boosting diversity initiatives is a resource-intensive and cumbersome task among all the other pressing priorities in your business, just think of the staggering amount of profit that you’ll be leaving on the table because your company is unable, or unwilling, to change with the times.
IMPACT OF NEW REGULATIONS ON UK FIRMS
While these new regulations will not be put upon UK businesses directly, I hope that seeing so many organisations across the EU with more diverse boards will have a knock-on effect here too. One of the things that the pandemic clearly demonstrated is just how interconnected the world has become. Companies in the UK with very few women at board level (or, indeed, none) will start to stand out for the wrong reasons.
In short, I’m hoping we’ll see a kind of ‘peer pressure’, where businesses that are not gender-diverse at board level will seem archaic and unwilling to change with the times. Which is definitely not something you’d want in a potential business partner!
Beyond that, what I truly look forward to is less diverse businesses finally seeing with their own eyes that gender diversity impacts profitability. The businesses with proper representation at the top will perform better because they can represent the wide range of people that they hope to sell their product or service to, painting a more accurate picture of today’s global society. And once people see the financial difference that gender diversity makes, you just know they’ll start making it a priority!
HOW TO ATTRACT MORE FEMALE BOARD MEMBERS
As the President of an organisation operating within one of the most historically male-dominated sectors in the world, I know a thing or two about attracting women to your business. Currently, our senior leadership team comprises of 67% women, and this is no easy feat to achieve! From my experience, the following steps can help you attract more women at all levels of your business, not just the senior positions.
1. Reshape your succession planning
If you want more women in your business in the long run, you’ll need to support them better. Women typically have a harder time and more obstacles in their way when it comes to entering senior leadership positions – especially in male-dominated sectors like tech – but implementing proper support structures that can help women overcome these challenges can make a huge difference.
This is especially true for women who need to re-enter the workforce after a period of absence, such as maternity leave. Unfortunately, many women who re-enter the workforce are less likely to know where they stand or what opportunities are available to develop their careers.
To combat this, more companies need to have proper career planning initiatives in place. Not only will this help remove the burden of playing ‘career catch up’ on returning women – but it will also help these valuable employees achieve their full potential.
2. Utilise mentoring wherever you can
Mentoring and sponsorship can be hugely powerful tools in empowering women in your workforce. If someone has a sponsor to back them up, they are more likely to have the confidence to go for a promotion or take a leap of faith on a fantastic but potentially risky opportunity.
This is something we already do at my company. Recently, we launched an initiative connecting women working in tech with experienced, senior female figures internally and externally, which has already had some fantastic feedback. We also run regular sessions called ‘Buddy up with the Board’ where all our employees can book a 15-minute 1:1 slot with anyone on the Senior Leadership Team to discuss their career aspirations or any topic or initiative close to their heart. This also helps break down archaic hierarchical structures that can present more barriers to women.
3. Get on board with flexible working – ASAP
We all know that attitudes towards flexible work have shifted massively since 2020 – which is fantastic news for anyone wishing to see more diversity in sectors like tech.
Why? Because flexible working options are proven to be a very effective tool to help women start, develop, or progress in their careers in tech. Flexible and remote working policies give women more power to balance their home life with their working life, which is especially important when you consider that women are still more likely to take on more unpaid caring and domestic responsibilities than their male counterparts.
However, for this to truly take effect, employers need to ensure that there is no stigma toward those who choose flexible working. Managers should question any ‘proximity bias’ they may have. Additionally, people who utilise flexible working should be seen as no less committed than their office-based peers to the goals and values of their company; and should be treated as such. Putting clear career development plans in place and ensuring that flexi workers are just as visible as those who are office-based.
MORE ABOUT THE AUTHOR
As President of Revolent, Nabila Salem’s mission – and passion – is to build new, diverse talent pipelines within cloud technologies that are experiencing significant skills shortages; all while supporting people from currently underrepresented backgrounds to build an amazing career in tech. Nabila has over 15 years of leadership experience in professional services, tech recruitment, and marketing, both in the UK and USA. She plays an active role in encouraging, supporting and promoting diversity in the workplace. She was recognised in Management Today’s 35 Women Under 35 List in 2019.
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