Equality? Women in financial services

I recently asked a number of our female members for their views on equality in financial services for a paper I was writing. The overall feedback was that although there has been noticeable progress in encouraging women into senior positions in financial services, we are still far from establishing equality. Career progress is level for women and men only to a point – for example, women who make it to senior positions still earn less than their male counterparts. The higher the position, the bigger the gap.
 
According to member views, this is due to gender perceptions and covert sexism, with senior managers often recruiting in their own image or requiring experience that men are more likely to have.
 
There is also still a view that women make weaker leaders, can be emotional and may be unable to balance their family and professional lives, and it is often assumed that flexible hours mean less commitment, with part-time workers – often women – being passed over for promotions. On the other hand, women themselves may also lack self-esteem and often do not seek opportunities.
 
However, if we look at the statistics, women in senior positions are less likely to make risky decisions than men. Bearing in mind that risky decisions have been blamed for bringing about the current financial crisis, there is a strong need for female representation. There is also a significant body of research that shows that mixed management is more likely to make better decisions and to come up with innovative ideas.
 
The situation is different for women working for SMEs in the financial sector. Even though SMEs often pay less than larger companies in financial services, this is rarely based on gender, and employees are often rewarded with friendlier working environments. In terms of entrepreneurs, there is also much evidence that women lack appropriate business support, have worse access to finance and are disproportionately impacted by their responsibilities as carers. Nevertheless, those who manage to set up their own businesses are as likely to be successful as men.
 
There are number of ways to tackle these inequalities. Organisations should build special support programmes and provide access to role models, networks and mentors to help women overcome gender perceptions. Stereotypes should be challenged through management training and diversity education. Women themselves should be provided with relevant training.
 
Transparency is the key to overcoming gender inequality in financial services and that is why clear performance standards need to be set. Companies should regularly report disaggregated HR data.
 
Ultimately, what is needed to address these issues is not more legislation, but real buy-in from all levels of companies backed up by effective support and guidance from government for businesses of all sizes.
 
ACCA's new position paper on equality in financial services can be found here.