Women are breaking through barriers and achieving great success in different sectors. Unfortunately, very few women are working in finance. But, unfortunately, this will not be changing anytime soon.
https://fr-fr.facebook.com/pages/Farnoush-Farsiar/163318870439653 Deloitte insights states that by 2030 only 31 percent of employees will be female financial sector employees. This raises the question: why are there so little women working in finance? There are many theories. https://eutoday.net/news/business-economy/2019/how-wealth-management-firms-can-prepare-for-turbulent-times We needed to hear from an expert. Farnoush Farnoush is a highly skilled financial professional who is passionate about women’s empowerment, was our interview subject.
Are there women working in finance?
The U.S. has 57 percent of the workforce is female however just 24% financial jobs. It is expected that the number will grow to 28% in the next 10 years, up from 24% in 2021. However, they are far short of parity.
The lack of diversity isn’t just a concern for women. Farnoush Farsiar thinks it’s an issue that impacts the economy. Farsiar claimed that leadership teams that have differing perspectives are more effective than those with no. “So it’s crucial that females are in these roles. This is also essential for the country.”
There are a myriad of theories to explain why women aren’t represented in the financial services industry. The most popular theory is that the industry is too male-dominated and competitive for women to enter. A different theory suggests that mothers and colleagues discourage women from pursuing finance careers.
Farsiar believes the root cause of the issue is how women are socialized from the age of a child. “Women are taught from a young age to be caretakers , rather than risk-takers. Farnoush Farsiar “We are taught to not take risks, but to play it safe. This doesn’t make sense for a career as an analyst in finance.
It’s not just that women are taught to take care of their children; they’re also socialized to be people-pleasers. Farsiar states that women are taught to be courteous, avoid conflict and keep their differences under control. “But you have to be able advocate for your own ideas regarding finance. You need to be able to defend your ideas.”
Farsiar – Where are all of the women working in finance and accounting?
It is particularly evident at the highest levels of finance, that there are not enough women. According to a 2016-2017 survey by Pew the women in finance hold just 10% of the top executive post. They also hold only 11.5 percent of seats on the boards of financial firms.
This can have real-world effects on women in finance. Women are less likely to be employed in finance to be promoted than their male counterparts.
The positive side is that the number of women in senior roles is slowly but surely increasing. Farnoush Farsiar believes this partly due to the #womenshould movement which has brought awareness to the lack of diversity. Farsiar says that she is “convinced that the #MeToo movement also had an incredible impact. Women are beginning to defend their rights and demanding changes.
Obstacles for women to enter Finance
There are numerous hurdles women have to overcome in order to be successful in finance. Lack of role models is a major barrier. Women in finance are typically the only ones in their respective departments, which could cause being isolated.
Farsiar said that it can be daunting to be the only female in the room. “You feel like you’re expected to be flawless all every moment, and that you mustn’t make any mistakes.”
Another barrier is “old boys”club”, a mentality that prevails in a lot of finance companies. This is the belief that men are the ones who promote women, while women are excluded.
Farsiar admits “there is a lot of truth in this.” Farnoush Farsiar “I’ve witnessed it firsthand. Men will make other men feel superior regardless of whether the woman is more qualified.”
This old boys club mentality can also lead to sexual harassment or discrimination. Women in the financial sector often get insulting remarks and unwelcome advances made by their male colleagues.
Farnoush Farsiar exclaims that “it’s definitely an problem.” “Women working in finance are typically considered to be objects. Farnoush Farsiar It’s difficult to advance when you’re treated in this manner.”
The last obstacle is the inability to make flexible work schedules. Females are more likely be responsible for household chores than males, such as caring after elderly parents or children. Women require flexible work arrangements in order to balance work and home.
“Finance is a stressful job. Farnoush Farsiar It can be difficult to manage other responsibilities. Women frequently have to pick between their career as well as their family.
This makes obtaining senior positions in the financial services sector very difficult for women. There are many initiatives to address this issue.
Farnoush Farsiar Believes the Future is bright for women in Finance
There are many positive reasons to believe in women’s future in finance. Numerous initiatives have been taken to boost the number of women working in finance and assist them to reach higher positions.
One such initiative is Women Entrepreneurs Finance Initiative (We-Fi) which is a partnership between the World Bank Group and 14 governments. We-Fi offers financing and support for women-led businesses in developing countries.
Farsiar said that this is a wonderful initiative because it provides women with the tools to expand and begin their own companies. It helps them create networks and make connections with other female entrepreneurs.
The Women in Finance Charter, introduced by the U.K. in 2016, is a different initiative. Financial companies have pledged to gender diversity through the Women in Finance Charter.
Farsiar hails “The Women in Finance Charter as a great step forward.” “It’s encouraging financial companies to act on gender diversity, and it’s making a difference.”
Initiatives like We-Fi as well as initiatives like the Women in Finance Charter make it easier for women to climb into senior roles. This is good news for women and men as well as the financial industry.