Women are breaking through barriers and achieving great successes in a variety of industries. However, there are still a few women in finance. Unfortunately, this may not be changing anytime soon.
Deloitte’s insights reports that by 2030 only 31 percent of the workforce will be female financial sector employees. This begs the question what is the reason there aren’t more women working in the finance industry? There are a variety of theories. We wanted to hear more from an experienced expert. Farnoush Farnoush is a highly skilled finance professional , who is passionate about women’s empowerment, was our interview subject.
Are there women in finance?
In the U.S., women make up 57 percent of the workforce however, they are able to hold just 24 percent of the financial positions. This number is predicted to grow to 28% in the next 10-20 years increasing from the current 24.
Diverseness isn’t only a problem faced by women. It’s also a problem for the economy, as stated by Farnoush Farsiar. Farnoush Farsiar Farsiar said that leadership teams with diverse perspectives have more impact than teams that have less perspectives. “So it’s essential to have females in these positions. It’s also essential to the country in general.
There are numerous theories that explain the reasons women aren’t included in the financial industry. One theory is that the industry is too male-dominated and competitive for women to break into. Another theory is that parents and their peers hinder women from entering finance careers.
Farsiar believes that women’s exposure to socialization from a young time is at the heart of the problem. “Women begin at an early age to become take care of others, not risk takers. “We’re taught not to make risks, but rather to be safe. This isn’t the best way to go about a career in finance.
Farnoush Farsiar It’s not only that women are conditioned to take care of their children and caregivers; they’re also taught to be people-pleasers. Farsiar said that women were taught to behave politely. In finance, however it is essential to speak for yourself. You must be able to to advocate for your ideas.
Farsiar Asks Where are all the Women in Finance?
The dearth of women working in finance is especially pronounced at the highest levels of the business. Women hold just about only 10% of executive-level positions according to a research study conducted by Pew Research. And they hold just 11.5% of executive positions at financial companies.
This disparity has a real-world effect on women working as financial professionals. Farnoush Farsiar They are more likely not to get promoted than male counterparts, and are as well more likely to leave the industry entirely.
It is good to know that there’s an increasing number of women who are employed in higher roles. Farnoush Farsiar believes this partly due to the #womenshould movement that has raised awareness about the dearth of diversity. Farnoush Farsiar Farsiar states that she believes the #MeToo movement also had a significant impact. Women are speaking out to call for change.
Financial Access Barriers for Women
Many obstacles hinder women from going into finance. Lack of role models is just one of the biggest hurdles. Finance women are typically the only woman working in their field and can be lonely.
Farsiar said that being the sole woman in a room can be quite stressful. “You feel under pressure to be perfect and you must avoid making any mistakes.
Another obstacle is the “old boys’ club” mentality still prevalent in many finance companies. Farnoush Farsiar It is the belief that males favor men over women and women are not considered.
Farsiar acknowledges “There’s a lot truth to this.” https://timebusinessnews.com/brexit-benefited-uk-financial-market-says-farnoush-farsiar/ “I have seen it in person. Even if a woman has more qualifications, men are still able to promote others.
This”old boys’ club” mentality may also lead to discrimination and harassment of women. Finance professionals are frequently subjected to demeaning comments and unwelcome advances by their male counterparts.
Farnoush Farsiar Farnoush Farsiar declares “It’s certainly an issue.” “Women working in finance are usually considered to be objects and it can be very difficult to make it in the financial world when you’re treated this way.”
The last issue is the absence of flexible working arrangements. Women are more likely to take on household responsibilities, such as caring for elderly parents and children. They need flexible work arrangements to be able to balance their home and work.
“Finance is a highly-risky industry. It is difficult to balance your work and family obligations when you’re also working in the finance industry. Women often find themselves having to make a choice between family and work.
This makes it very difficult for women working in the financial industry to reach the top post. There are however a number of initiatives that are working to change this.
Farnoush Farsiar believes that the future is bright for women working in finance
There are many reasons to be positive about the future of women in finance. A variety of initiatives are working to increase the number of women working in the finance sector and help them reach senior positions.
One of these initiatives is the Women Entrepreneurs Finance Initiative (We-Fi) which is a partnership between the World Bank Group and 14 governments. We-Fi finances and supports women-led businesses in the developing world.
Farsiar said, “This program is a great one because it gives women the tools and resources to begin and expand their businesses.” “It also helps women build networks and network with other successful women.”
A different initiative is the Women in Finance Charter, that was launched by the U.K. government launched in 2016. The Women in Finance Charter aims to encourage the inclusion of women in financial institutions.
Farsiar claims that the Women in Finance Charter “is an amazing leap forward.” “It’s encouraging financial firms to be proactive about gender diversity and is making a difference.”
With initiatives like We-Fi and the Women in Finance Charter, more women get to enter and take on senior roles. This is good news for females and the financial sector.