The financial services sector has long been grappling with gender balance issues, with women often underrepresented in leadership roles and facing systemic challenges at various levels. Here are some of the key gender balance problems and potential ways to improve them:
Underrepresentation of Women in Leadership Roles
Women make up a significant portion of the workforce in financial services but are disproportionately represented in lower and middle management. At the executive level, the gender gap widens significantly, with only a small percentage of women holding top leadership roles (e.g., CEOs, board members).
This is often referred to as the “glass ceiling,” where women find it difficult to ascend to the highest ranks despite being qualified.
Gender Pay Gap
The financial services sector has one of the largest gender pay gaps compared to other industries. Women are often paid less than men for the same roles, and this discrepancy is more pronounced in higher-paying positions.
This contributes to unequal career progression and limits women’s financial empowerment.
Cultural Barriers and Bias
Many financial institutions are dominated by masculine, competitive cultures, which can be unwelcoming or alienating for women. Gender bias, whether conscious or unconscious, can also impact hiring, promotion, and retention.
The “old boys’ club” mentality persists in some organizations, where men support the advancement of other men, leaving women with fewer opportunities for mentorship and networking.
Work-Life Balance Challenges
Women often face greater challenges balancing work and family responsibilities, especially in sectors like finance that are known for demanding long hours. The lack of flexible work arrangements or support for caregiving responsibilities can disproportionately impact women, leading to higher turnover rates and fewer women reaching senior positions.
Lack of Mentorship and Sponsorship
In the financial sector, women frequently have less access to mentors and sponsors who can advocate for their career progression. Sponsorship, in particular, is critical because it involves someone actively promoting an individual’s advancement within the organization, which men tend to benefit from more frequently.
Gender Stereotypes in Client-Facing Roles
Women are often pigeonholed into certain roles (e.g., HR, marketing, or support functions) rather than client-facing or revenue-generating positions, which are traditionally male-dominated. These client-facing roles are often the ones that lead to leadership positions.
Ways Improve Gender Balance in Financial Services:
1. Set Clear Targets for Gender Diversity
Financial institutions can adopt measurable goals for gender representation at different levels, including senior leadership. Publicly setting and tracking progress toward these goals can increase accountability and encourage sustained efforts to close the gender gap.
Examples include targets for women on boards or in executive roles, as seen in initiatives like the 30% Club.
Become a Returner Friendly Employer. Join Back to Work Connect
Become a Returner Friendly Employer – advertising roles throughout the organisation to a large female user base. Introduce Returner Friendly Recruitment processes and tap into their expert market insights to efficiently source and support midlife candidates.
2. Close the Gender Pay Gap
Conduct regular pay audits to identify gender pay discrepancies and take corrective action where necessary. Transparency around pay practices and ensuring equal pay for equal work is crucial.
Offering structured salary negotiations and ensuring women are compensated equally for performance can help reduce this gap.
3. Promote a Flexible and Inclusive Work Culture
Implement policies that promote work-life balance, such as flexible working hours, remote work options, and enhanced parental leave (for both parents). This can help retain women who might otherwise leave due to family responsibilities.
An inclusive culture that supports diversity in leadership styles can make the workplace more welcoming to women.
4. Address Cultural and Structural Biases
Educate employees about unconscious bias through training programs and implement bias-free recruitment, performance evaluation, and promotion processes.
Diverse interview panels and blind recruitment practices can help eliminate biases in hiring and promotion.
5. Enhance Mentorship and Sponsorship for Women
Encourage formal mentorship and sponsorship programs that pair high-potential women with senior leaders. Companies can also provide leadership development programs specifically designed to support women’s career growth.
Having male and female leaders actively sponsor women can help them navigate the challenges in reaching top positions.
6. Increase Women in Revenue-Generating and Client-Facing Roles
Encouraging women to take on revenue-generating roles can improve their chances of moving into leadership positions. Providing training, development opportunities, and support for women to succeed in these areas is essential.
Firms can also ensure equal access to client-facing opportunities and support women in developing the necessary skills and networks.
7. Promote Transparency and Accountability
Publicly disclosing gender diversity statistics at different levels of the organization and progress toward closing gender gaps can increase accountability. Investors and other stakeholders are increasingly demanding transparency around diversity metrics.
Setting up diversity and inclusion committees can also monitor progress and advise senior management on areas for improvement.
8. Celebrate and Support Women Leaders
Showcasing successful women leaders in the financial sector through internal and external platforms can help shift perceptions and inspire other women to pursue leadership roles.
Recognising achievements through awards, leadership programs, and public recognition helps build momentum for gender diversity.
By addressing these issues through targeted interventions, the financial services sector can make strides toward improving gender balance, leading to a more inclusive and innovative industry.
For more information and supports on creating a Returner Friendly recruitment process reach out to our team at info@backtoworkconnect.ie
Keep up to date with the latest Returner Friendly employers, upskilling & retraining opportunities by joining our platform HERE
Sign up to our newsletter & job alert today and never miss the ideal opportunity again ! Sign up HERE
