Achieving gender diversity remains a significant challenge in the Financial Services sector, despite notable improvements in female representation. While progress has been made, Board, CEO, and C-suite positions continue to be predominantly occupied by men. The industry’s commitment to gender diversity may stem from goals like meeting BEE targets, ethical considerations, or recognizing the positive impact of diversity on business performance. Nevertheless, the path to placing women in leadership roles is fraught with difficulties.
Understanding the Challenges
The obstacles to advancing women into leadership roles can be attributed to a complex interplay of factors. “Those Financial Services companies trying hard to attract, develop and retain female talent must synthesise a sustained, multi-faceted approach, which is not simple or easy,” explains Phryne Williams, founder of Capital Assignments, an executive search firm specializing in the Financial Services sector. She notes that even before reaching entry-level positions, there appears to be a shortage of South African women pursuing educational paths that qualify them for finance careers. Moreover, women who do enter the mid-to-upper management levels often face higher attrition rates compared to their male counterparts.
Efforts to achieve gender parity need to start outside the workplace, by encouraging young girls in schools and universities to consider careers in Financial Services. This support should continue through every stage of the leadership pipeline, ensuring that women remain engaged throughout their careers. Consequently, improving gender parity requires both systemic and individualized approaches.
Dispelling the Myth of Ambition
A common misconception attributes the lack of women in leadership roles to a supposed lack of ambition compared to men. This myth, though debunked by research, persists and needs continual challenge. According to McKinsey’s Women in the Workplace 2023 report, 79% of entry-level women and 83% of middle-management women aspire to advance to the next level in their careers. Furthermore, 75% of women aim for top management roles, including C-suite positions. “It is data that challenges Financial Services companies which are losing female employees on their way up to the top to think more and differently about why they are struggling to retain female talent. What are the real considerations and circumstances that may cause female talent to give up on a promising career path or a coveted role in a successful company?” questions Williams.
Integrating Gender Equity into the Employee Value Proposition (EVP)
In the competitive market for qualified female talent, particularly black female talent, Financial Services companies must present a compelling EVP. Williams highlights, “We see our top female candidates carefully evaluating their choices. We know that they want to see women in leadership in the organisation, including on their interviewing panels. They want to know if the company has female role models for them, and they hope to find mentors who are like them.” Several large corporations, including banks and insurers, have developed platforms and forums for women within their workforce to address these concerns, thereby strengthening their EVPs. Female candidates also seek a workplace culture conducive to their advancement.
Although overt gender bias is less common today, second-generation gender bias persists. This includes micro-aggressions and unconscious bias that often go unchallenged within workplace culture. For black female employees, this issue is compounded by both gender and racial biases. Williams asserts, “Because these are seemingly minor or vague infractions, managers and team leaders may overlook them, believing that addressing them would appear to be making mountains out of molehills. However, research shows that micro-aggressions, which are one of the common manifestations of these biases, have a significant impact on women. They heighten workplace stress, affecting well-being and performance, and create barriers to a female employee feeling like she belongs, potentially even affecting perceptions of personal safety.” Such experiences can lead to disengagement and higher turnover rates. Leaders must champion gender equity, educate employees about second-generation bias, and commit to zero-tolerance policies as part of their EVPs.
Customized Retention Strategies
Attracting top female talent is only the beginning; engagement and retention require a personalized approach. “It’s important to understand the whole person, her aspirations and motivators, and priorities in life over time,” Williams notes. Different individuals may respond to varying strategies—mentorship, workplace flexibility, or financial incentives. As organizations refine their retention strategies for exceptional talent, there is a growing recognition that merely placing a woman leader in the pipeline is not enough. “As she develops and evolves in the organisation over time, it is likely the needle will fluctuate, either moving away from the target or towards it. It’s obviously far better not to leave the outcome to chance, but to make a sustained, intentional effort to support her in achieving her career goals while taking her life goals into proper consideration.”
In summary, advancing women into leadership roles within Financial Services requires a multi-faceted approach, addressing both systemic and individual factors. By fostering an inclusive environment, debunking myths about ambition, and implementing personalized retention strategies, the industry can better support female talent and move towards true gender parity.