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Addressing the Barriers Women Face in Finance: What Can Companies Do? Writer: Jasicka Shanthan. Date Written: 18/11/2024

  • Writer: Insights Digest
    Insights Digest
  • Nov 19, 2024
  • 3 min read

When we think of the finance industry, the image that often comes to mind is men in corporate suits. In fact, this stereotype is echoed in popular culture such as the viral TikTok song featuring the line “I’m looking for a man in finance…” . Women have almost always been underrepresented within this sector, roughly 42% of the workforce in financial services is comprised of women working full-time, revealing that women do make up a large bulk of the total financial labour force, however disparity is seen when we look at the number of women filling c-suite and managerial roles. There are several reasons for this imbalance; for example, the lack of self-nomination when these job roles arise, the unintentional yet internalisation of second-generation gender bias within a company (Harvard Business Review) and finally because women have other commitments such as caring for families.


Delving into the first reason, information taken from the article “Why women don’t apply for jobs unless they’re 100% qualified” by the Business Harvard review (Mohr,2014) suggests that, unlike men, women only apply for a job role if they feel that they meet every qualification stated in the job description. To address this issue, companies should encourage or even promote more of their female employees to take on these roles. This approach will help women become less self-critical and overcome the tendency to refrain from applying to these more senior roles and opportunities for career progression.


Second-generation gender bias refers to a less obvious form of discrimination within the workforce, yet it still hinders women from realizing their full potential (Executive Coaching Consultancy,2024). The Harvard Review presents a good example of what second-generation bias may look like; when a leadership position opens up the role is filled by a male and this is justified by the fact that they can’t find a woman with the right competencies for the job role. (Woman Rising: The Unseen Barriers, H.Ibarra ,R.Ely and D. Kolb, 2013), it can be intimidating for women to argue against such claim as it doesn’t overtly indicate unfairness but if this explanation is consistent for several cases, then it must be reported. Companies should make a conscious effort to ensure that recruitment processes are fair and that women are not overlooked or clouded by social prejudgements when it comes occupying these managerial positions.


Finally, women tend to face the challenge of balancing familial responsibilities with their careers. These additional unpaid commitments alongside their profession is the main reason for wage disparity. However, companies are getting better in trying to bridge the gender wage gap through initiatives such as hybrid working, which provide greater flexibility for working parents, and childcare schemes. For example, PwC offers funding for a limited number of hours of childcare support so that women can spend more time working.


To conclude, it is evident that women will encounter several challenges when working within the financial sectors, however these obstacles doesn’t mean that women cannot excel in these roles. Influential figures such as Vathany Vijayaratna (Deutsche Bank’s Ireland and Uk’s CEO ) should serve as inspiring examples of what can be achieved.


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