As a woman in the male-dominated advisory profession, I've experienced bias. I’ve had people assume I’m the assistant or note taker and had clients call me “sweetie,” seemingly because I was the only female in the room. Some have even questioned my age and whether I'm qualified to handle their money.
Being an established female in the advisory profession, a division of the finance industry, sets me apart because fewer than 25% of CERTIFIED FINANCIAL PLANNERS™ are women. That number decreases as the career level rises. Statistics from Catalyst regarding women in finance show that women held only 12% of CFO roles globally in 2018.
There are more opportunities for female advisors as firms seek to increase diversity. However, hiring should be based on more than filling a gender quota. It should be based on merit, understanding that most women have the same industry knowledge as men.
Otherwise, the problem of gender equality in the advisory profession will never be solved.
The lack of gender equity among advisors
Equal representation is a problem in general, but it's more prevalent in the advisory profession. So why aren’t there more women in finance?
One key reason is that women don't see other women in the industry. Being a female among advisors can be daunting when almost no one in leadership roles looks like you.
The lack of gender diversity in the advisory profession also stems from the fact that many women associate financial advice with sales, as I did. In college, I pursued a social work degree because I wanted to help people. While in school, I discovered the program to become a CERTIFIED FINANCIAL PLANNER™ and learned that I could meld my love of spreadsheets and numbers with helping people. As a CFP®, I love that I can provide peace of mind to my clients and help them achieve some of their most important goals, like living their dream retirements, sending their kids to college and giving to charities they support.
The importance of women in the advisory profession
Despite the significant lack of women in our profession, we need them more than ever.
Gender diversity has been shown to increase the bottom line. A recent study by Boston Consulting Group showed that companies with more diverse management teams had 19% greater revenues than those with below-average diversity in leadership. Diversity leads to different points of view, ideas and approaches to business.
Additionally, women outperform men when it comes to investing in stocks, so it’s no surprise that many women investors want to work with women advisors. As college-educated women see salary gains and become top earners, they use their money to shape the services they want, especially when picking financial advisors.
Women also often rank higher than men in key leadership capabilities. A Harvard Business Review analysis of 360-degree reviews showed that women outrank men in 89% of the skills measured, including inspiring others, building relationships, taking initiative and communicating powerfully and prolifically. These are all key traits of a great financial advisor, especially one that has a varied focus.
Encouraging women