Attending the recent GPG Conference in Sydney, I was amazed at how many women were there.
They weren’t all advisers — some were practice managers, BDMs, or paraplanners. Yet there certainly were numerous, particularly younger, women coming through — in my 14 years as an adviser, this is a trend I am seeing grow at many industry events (although we still didn’t have to queue for the bathrooms!).
It got me thinking about how we as an industry can encourage more women into our profession. And why doing so isn’t just about workplace diversity but equal representation for our clients too.
Public perception
Many advisers may not realise that our industry has an identity problem. As a woman, I hear it regularly: “I thought financial advice was only for men.”
Many women don’t seek financial advice. Often, they simply don’t see it as being relevant to them. Some, but obviously not all — especially divorcees — say they feel more comfortable working with a woman.
A lack of female advisers only perpetuates this thinking in a lose-lose scenario — we lose out on potentially lucrative clients; women miss out on advice they often desperately need.
Visibility is empowering
Anecdotally, it appears our industry is attracting more women. Yet we still need to see more women go on to become practicing advisers. To this end, we cannot underestimate the power of greater visibility of women.
One lady I met in Sydney explained how she wasn’t sure where she wanted to take her career. However, after Julia Schortinghuis and I spoke after jointly being named Adviser of the Year, that same lady approached me and said, — I want to be an adviser; it’s clear for me now”.
Both winners being female is a testament to visible change within our industry.
Youth engagement
Women in Mining entered schools to help young ladies understand the roles available within that industry. We are now seeing more women embarking on careers in engineering and STEM.
But what of our own industry? Where is the engagement with schools and universities about careers in advice?
Financial advice as a career wasn’t available when I was a kid, it was more about insurance broking. We’ll keep losing out to other sectors without this direct engagement.
Supporting parents and carers
According to Australia’s Workplace Gender Equality Agency (WGEA), 88 per cent of primary carer’s leave — including parental leave — is taken by women.
Furthermore, it states that “half of the organisations in male-dominated industries do not offer any form of paid primary carer’s leave”, compared with one in four across female-dominated industries.
So which industries will women needing parental/carer’s leave gravitate towards? Naturally, the ones where their income is less likely to take a hit.
What are we doing to make ours one of them?
Accreditation support
A licence and PI are large, fixed costs — a certain number of hours need to be worked / a number of clients need to be on board just to recoup that cost, let alone earn a living.
Maintaining accreditation while taking unpaid or minimum wage parental leave, or transitioning to part-time work, simply may not be financially feasible. As an industry, we should explore options to address this.
Would equitable paid parental leave stem the exodus of female advisers forced out of the profession? Could such entitlements attract more young women into the profession prior to starting a family? What role is there for subsidised or fully funded accreditation costs as standard?
Perhaps the additional financial impost on employers is a strategic longer-term investment.
Mending misunderstandings
Many consumers still don’t know what financial advice is. Often, they think it’s about selling an investment, rolling over a super fund, or starting an SMSF.
They’re missing the big picture. I believe it’s about strategy first; investment is secondary.
People are unlikely to venture into something they don’t understand or think doesn’t apply to them. That goes for careers in financial advice as much as seeking advice.
Talented women — and men — who intend to pursue accounting, law, teaching, psychology and many other sectors may find our industry appealing if it is clear to them what we actually do — we help people solve problems, avoid mistakes, build clarity and peace of mind, and ultimately create the lifestyle they long for.
I for one used to be an accountant, but I find the role of adviser far more satisfying. Chances are other women would too — if only they were encouraged to join our industry and supported to remain with us.
Helen Baker, financial adviser and founder, On Your Own Two Feet
>> Furthermore, it states that “half of the organisations in male-dominated industries do not offer any form of paid primary carer’s leave”, compared with one in four across female-dominated industries.<< The reason many advice firms might give for why they aren't going to offer parental leave is that it's too expensive. However, if those firms were to look at their retention and attraction rates, they may find that they find it hard to attract and keep women. Perhaps women aren't applying in the first place, they're self-selecting out as they aren't willing to work for an organisation that understands how important equity is. As a female adviser who has had a few children but is not planning on having any more, I can tell you that when I discovered my new employer has a policy to pay 3 months full pay parental leave PLUS up to 12 months superannuation while a parent is on parental leave, I was beyond happy. It showed that they truly value their staff and understand the extra issues women in the workplace have to go through. Incidentally, this company doesn't have any issues with attraction and retention of amazing staff.