When it comes to fostering equality in the workplace, RIA owners are in a unique position to affect change. While bigger organizations housed across multiple locations have to contend with tradition, bureaucracy, and the sheer number of employees, the independent RIA owner can set his own agenda when it comes to fairness in the workplace.
And I do mean “his own agenda:” in the RIA space, men make most of the decisions. Although women make up about 46% of the total workforce at independent RIAs, only 21% of C-suite positions are filled by women, according to
At Dynasty Financial Partners, a 10-year-old firm that provides infrastructure and consulting support to a network RIAs, we’re committed to disrupting this old pattern, in part by mirroring best practices around workplace equality, and in part by taking more overt action.
In this spirit, we inaugurated the Dynasty Women’s Network (DWN) — an association for women employees of Dynasty, members of its RIA network, and other partner firms — early in 2019. At one of our first-large scale events for DWN last February, Dynasty CEO and co-founder Shirl Penney shared a few words, emphasizing his personal support for the new group. He then left the meeting, asking all males present to exit with him, leaving the women who remained to set the DWN’s agenda on their own terms.
A clear majority of independent RIA employees feel respected and valued
One of the first fruits of the DWN was a survey that shines a spotlight on aspects of workplace gender bias while pointing to a strong foundation for positive change.
On the plus side, the survey of more than 100 women and men at eight firms shows that a clear majority feels accepted and appreciated in their jobs — for the most part. Among the most positive takeaways from the survey:
- 93% say they feel a sense of belonging to their place of employment
- 92% say they feel “respected by teammates,” and 91% say as much with reference to their managers
- 87% say their work-related opinions are valued
And when it comes to their employer’s support for professional development, 96% feel their place of employment communicates the idea “that people can always improve their talents and abilities.”
The planning needs and strategies for a woman should focus more heavily on longevity and creating lifetime income streams after her spouse has passed away.
On the other hand, women in wealth management — from support staff to partners — feel there’s room for improvement in five main areas.
1. Administrative tasks
In response to the statement “Administrative tasks that don’t have a specific owner (ex., taking notes in meetings, scheduling events, cleaning up shared space) are divided fairly at my company:”
- 20% say they “strongly disagree/disagree”
Of those who disagreed, 54% are female, 23% are male, and 23% declined to disclose their gender
2. Promotions
Reacting to the statement, “Promotion decisions are fair at my company:”
- 16% “strongly disagree/disagree”
- 32% are on the fence
3. Compensation
To the assertion “I feel that compensation is fair, relative to similar roles at my company:”
- 12% disagree to some extent
- 27% prefer neutrality on the issue
4. Work/life balance
Reacting to “My company enables me to balance my work and personal life:”
- 30% disagree or strongly disagree
Of those who disagree, 39% of respondents identify as female, and 8% decline to self identify
5. Full- versus part-time employment
In response to the question “Do you feel if your company offered part-time options that would be appealing to you personally?”
- 44% “strongly disagree/disagree”
- 36% neither agree nor disagree
Responses about full- and part-time work opportunities provide an interesting take on work/life considerations. It might be supposed that workers with young children or other relatives to care for might prefer part-time opportunities. After all, it seems like a good way to stay in the workforce on a part-time basis, presumably without giving up much or any seniority. But the skepticism around the idea of taking a step back may be a function of a “hard-charging,” stereotypically-male culture that makes little allowance for cutting back on work, even for a set period.
Workplace fairness has to go beyond box-checking
One DWN survey participant mentions the prevalence of this do-or-die mindset in an anonymous comment. “Senior leaders should examine their conflicting messages,” the participant writes. “How many times do we hear about the Super Bowl or Navy Seals, which are teams with only type-A males and no women in the main event? Or all the males who golf and drink with [business] partners? Checking the box on hiring diversity is useless without significant behavior change and diversified activities to promote inclusion.”
A Pakistani Muslim women who started her career as a financial advisor in the U.S. after 9/11, Ayesha Yasin faced and overcame multiple stereotypes.
From an HR perspective, it’s hard to disagree with this sentiment. But changing aspects of workplace culture, especially those as seemingly ingrained as perceptions of gender roles, requires leadership. In this light, not alluding exclusively to male-dominated activities, and seeing to it that men and women play equal and alternating roles in certain routine tasks — like ordering bagels, taking notes, and sending out Zoom invitations — can go a long way toward making change around diversity and inclusiveness more than just talk.
That’s not to say anyone should defy conventions of hospitality, according to DWN chair Michelle Smith, CEO of Source Financial Advisors: “There’s a balance to be struck between being a gracious and attentive host who notices things that are important for a pleasant and productive meeting and being the chick who always pours coffee and unwraps the bagel platters.”
In this respect, independent RIA owners have the flexibility and entrepreneurial drive to make theirs not just the fastest growing and most dynamic service channel in the wealth-management industry, but also the fairest. That’s a mission made more attainable by staffers who, though eager for change, already feel respected and appreciated in their roles.
