As the financial industry kicks off 2015, its a good time for firms to consider how they can up their game in creating a diverse workplace.
Many financial firms are keenly aware of the need to bring more women into management and front-line positions. Nevertheless, progress is slow and
There is plenty of research suggesting that a representative workforce improves the bottom line. Researchers at Pepperdine University found
A 2012
What explains these results? Consider that women executives tend to grasp the needs of other women who are consumers or business owners. Thats a key advantage, given that women represent an
Another key factor is that women tend to be more collaborative in their leadership style. They seek out knowledge and gather facts before making decisions. Gender diversity can therefore help companies gain wider perspectives on their goals and processes and promote a greater sense of common purpose.
Diversity also leads to more robust and balanced discussion in the workplace, which reduces risk. A
Despite the arguments that favor diversity in hiring, many firms still lag in this area.
In the banking and brokerage world, less than 40% of 1.2 million jobs in securities-related fields were held by women in in 2013, according to the U.S. Labor Department. And the Certified Financial Planner Board of Standards says that just
Its true that the financial industry isnt alone in its underrepresentation of women. The so-called STEM industries science, technology, engineering, and math also struggle with this problem.
The top companies in STEM have begun to understand they have a problem. They know this issue doesnt fix itself and that solutions have to be baked into company management processes.
This month, for example, Intel announced it would
Some financial firms are paying heed to such initiatives, but recruiting top talent is a growing challenge. One human resources executive at a major Wall Street firm told us that its recruitment of recent college graduates had dropped off by 40% in recent years, a trend the firm attributed to competitionfrom tech giants like Google and Facebook.
There are clear lessons here for managers who are serious about leveling the playing field.
First, they need to make hiring managers accountable for diversity. One former top executive at JPMorgan Chase told us that managers were compensated, in part, based on the diversity in their group and that they were asked to interview a diverse panel of candidates, including both women and minorities.
Second, corporate culture needs to be more accessible to women who are considering advancement. Many dont apply for promotions without encouragement. Indeed, the CFP board believes that womens reluctance to take professional risks is part of the reason why their presence as certificants is so low.
Third, financial firms should consider mentoring programs that can help boost diversity within an organization. Sun Microsystems
Lastly, firms should consider more flexible work schedules, such as work-from-home arrangements, in order to empower women with families to pursue high-ranking roles. We understand the value of having employees work together under the same roof. It creates an energy that makes innovating and executing ideas easier. But not every worker has to clock into the office each day particularly those who dont need to face clients.
Maureen Adolf is president of the
Read more:
