What’s it going to take to get more women in the financial planning industry at a time when gender diversity in business is such a hot topic, albeit a challenging one?
As it stands about 80 per cent of financial planners are men, and 20 per cent are women.
Traditionally the industry has appealed to more men. There are more likely to be business owners and work in sales and investment roles.
While this looks set to change as the industry shifts towards a more personally connected adviser, there are a number of challenges on the horizon when it comes to women.
We asked a number of high profile women in planning for their tips and insights on making the industry more inclusive.
The benefits of inclusion
“I have seen a trend where good businesses are now encouraging women to step out of the shadows of administration and into advice roles,” said Integra Financial Services financial adviser Deborah Kent.
“Businesses which are doing this well are offering flexibility of working and have mentoring programs for women.
“This I believe has come about by the continued conversation around promoting women in the industry, the many female network and mentoring groups have lead the charge for change, our voices have been loud and happy to say they are being heard.”
“Panel discussions are starting to change where there is a drive to have a 50/50 representation. Associations are also encouraging women to step up to committee roles and board roles.”
Groups such as AFA Inspire and the FPA’s Women in Wealth are among the key organisations that are encouraging networking and mentoring amongst women in advice.
There are also an increasing number of business owners now making their mark and taking the lead by recruiting more women to improve their own gender diversity.
Attracting women
Trust is an issue at the moment, and this makes recruitment of graduates, new financial planners and indeed women, all the more difficult.
AHS Financial adviser Heidi Schwegler believes that more work needs to be done to reach young women in schools and universities to try and promote the changing profession and raise awareness.
“People have got this natural distrust towards advisers at this point in time particularly because of the Royal Banking Commission.
“And now if you go around and ask a young girl, or young child what do you want to be when you grow up, no one will ever say, I want to be a financial planner, so how do we change that?
“I think the way things are changing is that financial planning and investment advising have traditionally gone hand-in-hand, and traditionally that investment adviser has been a male, but those days are numbered, says “Ms Schwegler.
“Soon robots are going to come in do it better, faster, and cheaper than us, and if you go and see a financial planner you want to feel connected to that person, and to feel connected that means you are going to have a deep and robust conversation which women are naturally placed to have. So I think it is the best time for women to be coming into the profession,” she said.
Breaking gender stereotypes
A new report which looked at the level of gender inequality in the investment management space, found that the ‘boys club’ was still alive and well across the sector. It’s now raised fresh questions about gender bias in financial planning.
The report found that that a lack of women in senior roles had a lot to do with a ‘boys club’ culture, which discriminated against women in the workforce and at social events.
The report also found that men were more likely than women to be rewarded for their work and that parenthood disadvantages women more so than men.
Wealth Planning Partners adviser Amanda Cassar says the ‘boys club’ exists in some parts of the planning industry.
“You see it more in the corporates but it is not so prevalent in the independent, self-employed financial advice space,” she said.
Ms Schwegler, who is a finalist in the female excellence in advice awards, says she hasn’t personally experienced a ‘boys club’ culture in financial planning, and believes if it’s there, it must be dying out.
“We probably see it more at the funds management level where there probably is an element of that cowboy mentality. I definitely experienced that in the 90s and early 2000s, but in the last 10 years I have not experienced it and the industry has definitely cleaned up its act,” says Ms Schwegler.
Deborah Kent also thinks the ‘boys club “atmosphere is starting to change: “attendees at Advice forums are showing a pick up in the number of women attending. So the tide is changing.”
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