Women are breaking down barriers and becoming powerful leaders in a variety of sectors. However, the sad truth is that only a tiny percentage of women work in finance. https://nzprofiles.com/company/5369521/kubernao-trust-limited ‘s not likely to change, unfortunately.
Deloitte insight estimates that 31% of the financial industry employees will be female in 2030. The question is what is the reason there aren’t more women working in the finance industry? There are a variety of theories. We wanted to learn more from an expert. Farnoush Farnoush an expert finance professional , who is passionate about women’s empowerment, was our interview subject.
What is the percentage of women employed in finance?
In the U.S., 57% are female, yet they hold just 24% of financial jobs. This figure is expected to grow to 28% within the next 10-20 years increasing from 24% at present.
It’s not an issue just for women. Farnoush Farsiar said that diversity is an issue for growth in the economy. Farsiar pointed out that leadership teams with diverse perspectives perform better compared to those with fewer perspectives. “So it’s essential that women are in these roles. It’s also important for the nation.”
There are a myriad of theories as to the reasons why women in the financial industry aren’t as well represented. One theory is that the financial industry is highly male-dominated and competitive, making it difficult for women to join. Another theory suggests that peers and parents aren’t encouraging women to consider finance careers.
Farsiar believes that women’s socialization from an early age is at the root of the problem. “Women are taught from a young age that they need to be risk-takers rather than caretakers. “We are taught to play safe and to not take chances. And that’s just not conducive to a career in finance.”
It’s not enough to have women being trained to be caretakers. They’re also taught to be people-pleasers. Farsiar states that women are taught to be courteous, avoid conflicts and keep their differences in check. “But you have to be able to defend your own ideas regarding finance. You must be able to and willing to stand up for yourself.
Farsiar – Where are all of the women in accounting and finance?
Women are disproportionately underrepresented in finance, particularly at the most senior levels. Women hold just about only 10% of executive-level jobs as per a 2016-2017 study by Pew Research. They also hold only 11.5 percent of the board seats at financial firms.
This imbalance has real-world implications for women in finance. This is because women are less likely to be promoted than their male counterparts and are also more likely to leave the field.
The positive side is that the proportion of women in senior roles is steadily increasing. Farnoush Farsiar believes the reason for this increase is due to the #womenshould movement which has raised awareness about the lack of diversity. https://rekvizitai.vz.lt/en/company/lionsgate_procurement_services/farnoush_farsiar_direktore/ says she believes that the #MeToo movement has had a similar impact. Women are speaking up to demand change.
Obstacles for women pursuing finance
There are many obstacles that prevent women from entering the financial world. Lack of role models is just one of the most significant obstacles. It can be lonely for women working in finance, to be the only female in their field.
Farsiar admitted that it’s a bit daunting to be the only female present in the room. “You think you need to be perfect each time and that you aren’t allowed to make mistakes.”
Another issue is “old boys’ club” A mindset that prevails in a lot of finance companies. This is a reference to the notion that men favor men over women while women are left out.
Farsiar admits “there is some truth to that.” “I have witnessed it personally. Men are always promoting women regardless of whether they have more experience.
This old boys’ mentality could lead to to discrimination and harassment of women. Finance professionals are frequently confronted with sexist remarks and unwelcome advances from their male colleagues.
“It’s certainly a problem,” Farnoush Farsiar exclaims. “Women in finance are often considered to be objects and it can be very difficult to get ahead when you’re treated this way.”
The last barrier is the difficulty in finding flexible work arrangements. Females are more likely be responsible for household chores than males for example, taking care of elderly parents or their children. Flexible working arrangements are necessary for women to be able to keep a balance between work and family.
“Finance is a complicated field, can be difficult to handle when you have other responsibilities. Women often have to choose between their career and their family.”
These barriers make achieving top posts in the financial services industry extremely difficult for females. However, there are many initiatives being implemented to overcome this.
Farnoush Farsiar believes the Future is Bright For Women in Finance.
There are many reasons to be hopeful regarding the future of the financial sector. There are many initiatives aiming to increase the number of females working in the financial sector and assist them in achieving senior post.
One such initiative is the Women Entrepreneurs Finance Initiative (WeFi), which is a partnership between the World Bank Group & 14 governments. We-Fi offers financing and support for women-led businesses in developing countries.
Farsiar stated, “This program is a great one because it gives women access to resources and opportunities to start and grow their companies.” It also assists them in create networks and connect with other successful women.
The Women in Finance Charter, introduced by the U.K. in 2016, is a different initiative. The Women in Finance Charter is a commitment of companies in the financial sector to promote gender diversity.
“The Women in Finance Charter is a great step forward,” Farsiar encourages. Financial companies are being encouraged to act on gender diversity and has made an impact.
Through initiatives such as We-Fi as well as the Women in Finance Charter, women are more likely to be accepted into and reach senior positions. This is great news for women and the financial sector.