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This year, the theme for International Women's Day is #BreakTheBias. This theme celebrates the achievements that women have made, takes action for equality, and raises awareness against bias. What better way to honor the holiday than to examine how women are breaking down barriers in the financial services industry?
When you think of industries that have traditionally been part of the "old boys' club," the financial services sector comes to mind. And while women have made huge strides in challenging the biases and discrimination they face in all facets of business, they still have a long way to go. According to research from McKinsey & Company, women in financial services are much less likely than their male counterparts to be promoted from entry-level to management positions, with only 86 women promoted to manager for every 100 men. This results in a long-term negative impact on women's ability to make their way through the talent pipeline. This is a significant reason that it has been so challenging for the industry to equalize gender diversity at the top of the ladder. In fact, according to Deloitte Insights, the proportion of women in leadership roles within financial services firms was just 24% in in 2021.
Furthermore, women in the planning profession are severely underpaid compared to their male counterparts. According to 2021 data from the U.S. Bureau of Labor Statistics, the median weekly income for male financial advisors was $2,183, while female financial advisors earned just $1,424.
How are women challenging the barriers they continue to face? By rewriting the rules.
Between a lack of opportunity for career growth, a lack of flexibility regarding work-life balance, unfair pay, and toxic work environments, women are shaking up the financial services industry by branching out and starting their own firms.
Women make excellent financial advisors. As a study by the Warwick Business School concluded, women make better investors than men, with data showing that women outperformed men at investing by 1.8%. Furthermore, women are naturally entrepreneurial. Statistics from the National Association of Women Business Owners shows that there are a total of 12.3 million female-owned businesses in the United States.
Women in our profession are tired of being overlooked. We've overcome the barriers that have been put in our way, but there remains much work to be done. What can you do to help overturn archaic inequalities and inequities? Like Mahatma Gandhi famously said, "You must be the change you wish to see in the world." Lead by example. Change by doing. Keep persevering.
More specifically, continue fighting for fair pay. We can’t resolve gender disparity in the advisory profession without closing the pay gap. Prioritize work-life balance, flexibility, and job stability for yourself and your team to help avoid burnout. Provide opportunities for professional growth and career development through mentorship and sponsorship. It's imperative to create a culture where female mentorship programs work so that female financial planners are better prepared to navigate this male-dominated space, break stereotypes, and gain leadership roles. Most importantly, network with like-minded individuals. Find a group of women you can rely on – women you can turn to for advice, support, and partnership.
There is strength in numbers, and together we can break the bias.
Bridget Grimes and Katie Burke co-founded Equita Financial Network out of a need to fuel business success while empowering other women in the financial services industry. Equita became the first platform solely focused on women-led financial planning firms, designed to encourage women to make the leap into launching their own practice and provide solutions to support them every step of the way. Equita is a way for like-minded women to not only share resources and run their business at an affordable cost, but to also share ideas on everything from best practices to help with questions regarding client issues.
Equita Financial Network helps female financial advisors pursue an independent path, take more control of their business, gain access to better career opportunities, and boost their overall sense of freedom. If you’re ready to break away from your current firm and go independent, reach out to the Equita team.
Read more articles by Katie Burke, Bridget Venus Grimes
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
