Women are breaking through more barriers and enjoying huge accomplishments in many fields. However, the sad reality is however, that women still are a minority of finance professionals. It may not change soon but it will be a long time before that happens.
Deloitte insight estimates that 31% of financial industry employees will be women by 2030. This raises the one-of-a-kind question: Why are there so little women in finance? There are numerous theories. However, we needed to hear from an expert. Farnoush Farnoush an accomplished finance professional who is passionately committed to women’s empowerment was the reason we sat down with her.
How many women are employed in Finance?
The U.S. employs 57% women however only 24% of them hold financial jobs. It is predicted that the number will grow to 28% in the next 10 years, compared to 24 percent in 2021. However, they are far short of parity.
The absence of diversity isn’t just a problem for women. Farnoush Farsiar believes it’s also a threat to the economy. “Diverse leadership teams perform better than ones that do not possess a wide variety of perspectives,” Farsiar said. “So it’s not just vital that women are included in these positions and other positions, but it is crucial for the country as overall.”
Farnoush Farsiar There are a myriad of theories as to how women working in the finance sector aren’t as well represented. The most popular hypothesis is that the financial sector is too male-dominated and competitive for women to make it into. Another theory says that parents and peers don’t encourage women to choose financial careers.
https://www.privatebankerinternational.com/analysis/business-profile-plato-capital/ Farsiar believes the root cause of the problem is how women are socialized from the age of a child. “Women at a young age are taught to be risk-takers, but caregivers. “We’re taught to play safe, not to take risks. This isn’t the most effective approach to pursue an investment career.
Farnoush Farsiar It’s not enough for women to be educated as caregivers. They’re also taught to be people-pleasers. Farsiar said women were taught to behave politely. However, in the field of finance you have to be able to speak for yourself. It is essential to be able to defend your personal ideas.
Farsiar asks , where are all the women working in finance?
At the highest levels of the financial industry, women are especially underrepresented. According to a study conducted by Pew Researchers only 10% are held by women in senior executive posts. They also hold only 11.5% of executive positions at financial companies.
This disparity could have real-world consequences for women working in finance. This is due to the fact that women are less likely to be promoted than male counterparts, and are more likely not to stay in the field.
The good news is that the amount of women in senior roles is slowly but surely increasing. Farnoush Farsiar believes it is because of the #womenshould Campaignthat has created a greater awareness of the lack of diversity. Farsiar says she believes that the #MeToo campaign also produced a profound impact. Women are speaking out to demand change.
The obstacles women face when trying to get into the world of finance
There are many barriers which prevent women from pursuing careers in the world of finance. The lack of role models is just one of the most significant obstacles. It is lonely for women working in finance to be the sole woman in their field.
Farsiar said that being the only woman in a room could be very stressful. “You feel like you’re expected to be perfect all of the time, and that you mustn’t make a mistake.”
Another obstacle is “old boys’ club” This mentality is prevalent in many finance companies. This is a reference to the notion that men are the ones who promote men and women are not promoted.
Farnoush Farsiar Farsiar acknowledges that there is an element of truth to this assertion. “I’ve witnessed it firsthand. Even if the woman is a better candidate, even if she has higher qualifications, men still promote others.
Farnoush Farsiar This old boys club mentality can result in sexual harassment or discrimination. Finance women are often confronted with unwelcome advances and demeaning remarks from male counterparts.
Farnoush Farsiar says, “It is definitely an issue.” “Women working in finance are typically treated like objects, and it’s very hard to succeed when being treated this way.”
Not to be forgotten it is the issue of flexible working arrangements. Females are more likely than males to be entrusted with household responsibilities, like caring for children or elderly parents. Flexible work schedules are essential to allow them to manage work and family.
“Finance is a highly demanding business, and it’s difficult to keep up with the demands when you have other responsibilities. Women are often forced to choose between their career or their family.
https://www.asiunical.org/farnoush-farsiar-discusses-what-challenges-female-business-leaders-have-to-face/ These challenges make it extremely difficult to become a senior financial professional and enter the industry. There are however some initiatives that can help change this.
Farnoush Farsiar believes the Future is Bright For Women in Finance.
There are plenty of evidence to suggest that women will continue to work in the financial sector. Numerous initiatives have been initiated to boost the number of women and get to the top of the financial industry.
One of these initiatives, Women Entrepreneurs Finance Initiative is a partnership with the World Bank Group with 14 governments. We-Fi is an investment and support program for women-owned businesses in emerging economies.
Farsiar declared that this was a fantastic initiative, as it gives women the tools they need to develop and create their own business. “It can also help build networks and make connections with other women who are successful.”
The Women in Finance Charter was another initiative the U.K. government launched in the year 2016. The Women in Finance Charter is a commitment by financial firms to promote gender diversity.
Farsiar says the Women in Finance Charter “is an amazing leap forward.” “It’s encouraging financial companies to be proactive about gender diversity, and it’s creating a positive change.”
Women in Finance Charter and We-Fi help more women achieve high-level positions. This is good news for both the women and financial sectors.