Yesterday EU justice commissioner Viviane Reding announced proposals for there to be at least 40% women non-executive directors on the boards of big listed companies by 2020. However, according to a study by executive coaching firm Talking Talent, there are many barriers that will stop women reaching the boardroom level.
The study of over 2,500 professional UK women found that 71% highlight rigid career options and 79% state inflexible hours as barriers for them not progressing in their careers.
The study claims these barriers along with additional parenting milestones can influence the direction of certain professional women who were looking to reach board level in their company.
It has called for a greater flexibility in the approach to the pacing, timing and nature of a woman's career.
The study claims the rigidity of career path and lack of translating into an in or out decision and as a result business is failing to offer choices to women which engender loyalty and offer valued career progression.
Helen Morrissey, CEO at 30% Club, said: "It's now widely recognised that encouraging and enabling women to progress at every level of a company is good not just for those women but for businesses themselves.
"While we still need to work hard to achieve real balance, the pace of change is significant, and important, of course, it's been achieved without resorting to the short term and illusory fix of quota."
Morrissey added: "I'm strongly of the view that if change is to be meaningful, businesses must own and lead the efforts. That is the only way to achieve sustainable, long-term positive changes in corporate culture, more opportunities for women and better results for all."
The decision by the EU for there to be at least 40% women non-executive directors on company boards has been met with a mixed reaction.
Katja Hall, CBI chief policy director, said: "Businesses will be relieved that the Commission has listened to their concerns. These new proposals rightly focus on the need to improve boardroom diversity, while allowing firms to recruit the best candidates from the widest possible talent pool. MEPs should get behind this approach.
"Increasing the number of women in boardrooms is important for businesses, who know that gender diversity brings greater creativity, higher performance and better customer insight."
Hall added: "That is why firms are already taking action to increase the flow of women to the top, such as targeting mentoring schemes at women and offering flexible working."
Helen Wells director of Opportunity Now said: "This new proposal from the EU appears to be the worst of both worlds. This directive will undermine the good work many organisations are already doing to set their own strategies, and would let too many others off the hook, as the focus would move away from implementation of the Lord Davies recommendations.
"By imposing a single numerical goal on companies, without any sense of where they are now or their existing commitments to action there is the risk that extra board positions will be added to comply quickly, but carry on with 'business as usual' with the existing board.
Wells added: "The other risk is that in order to comply, companies will be forced to only appoint women when a board position arises, which will make it more difficult to keep the UK business community on side."
Business Secretary, Vince Cable said: "The UK welcomes the Commission's decision not to impose mandatory quotas for women on boards. We remain fully committed to increasing women's representation in UK boardrooms, but along with like-minded member states, we have consistently argued that measures are best considered at national level. So we are pleased the Commission has listened to the concerns raised."
Cable continued: "We believe that the UK's business-led, self-regulatory model, as set out in the Davies Review, is the best approach for us. We will now consider the Commission's proposal carefully and work with other member states to ensure the final directive supports our efforts to ensure we have diverse and effective boards."
