Walking the talk – How to narrow the gender gap in fintech

Women and men, despite being equally capable, have historically not been treated in that manner. While unfair that it had to be done in this manner, women have proven their strength and resilience, succeeding over the last 100 years in the push for the right to vote, to have equal rights to men, and to stand as equals. Today, this movement is still ongoing but is now more so focused on shrinking the gender gap in workplaces. 

In the last few years, we saw a newly coined term, the ‘She-cession,’ due to how the pandemic affected women in the workplace disproportionately compared to men. According to PwC, out of the 15.3 million people who lost their jobs in the UK between July and October 2020, 52% were women despite women making up less than 50% of the workforce. Over the pandemic, women’s jobs were overall 1.8 times more vulnerable than men’s which has caused the progress of women in the workplace to be set back years.

The Broken Rung for Women in Finance

The finance industry for women is an interesting yet somewhat disheartening case to look at. Women have strong representation within the finance industry, making up 66% of leadership positions in talent and 48% in marketing and business development. However, these roles are not typically part of the path to becoming a CEO. On top of that, women actually outnumber men at lower levels, but that quickly reverses itself on the way up the corporate ladder.

The exact problem is hard to nail down, but the general consensus is that for one reason or another, women are given fewer opportunities than men. This issue is so prevalent that McKinsey coined the term ‘the broken rung’ to refer to the fact that women and men are promoted to leadership at vastly different rates. According to the Women in the Workplace 2022 report, for every 100 men that are promoted from entry-level positions to management roles, only 87 women are promoted. This may not seem significant at first glance, but this leads to a domino effect that continues to the upper levels, resulting in what was seen in the US in 2019 with only six CEOs being women out of the 107 largest public financial institutions. 

The Importance of Women in Leadership

An HBR study done in 2019 showed that women scored higher than men in many different aspects of leadership, including the willingness to take the initiative, resilience, and drive for results. Does it mean women are inherently better leaders though? Or does it mean that the women in these positions need to be exceedingly exceptional compared to the male equivalent? While the answer is unclear, the latter seems more likely.

No matter how good of a leader a man may be though, women have a clear advantage in this aspect – the effect they have on women in the workplace and the industry. A woman in leadership can be a strong role model for others and be a motivator for other women to strive for those same goals. Studies have shown that women have a harder time promoting themselves compared to men and also tend to score their own performance lower. According to the PwC Workforce Hopes & Fears Survey 2022, women are less likely to feel listened to by their managers. However, having a woman to look up to as a role model or speak to for mentorship can go a long way in helping other women learn how to value their skills and make them feel listened to by decision makers. 

The Great Breakup

It is now more important than ever to learn how to retain and grow the number of female leaders within a company. Workplaces are currently undergoing a “Great Breakup” where women leaders are looking for companies that more closely align with their values. 

One major reason is to have a flexible work schedule or a hybrid workplace. Women are expected by society to be the primary caretaker and although this is changing, societal change is slow to take root. Flexibility is important because if women are expected to do most of the childcare, then they should be given the ability to do so comfortably. 

It is also important for employees to feel like they are valued by their company beyond the money they bring in, and a strong DEI initiative can do just that. Women leaders are looking for companies that, through their initiatives, are actively making cultural changes and improving the workplace for women. That can be a powerful motivator and is empowering for many that are looking for new opportunities.

Having a woman in a leadership role leaves the company can also deal a heavy blow as their departure can be a signal to the next generation that something is wrong. Could it be due to mistreatment? Headwinds that prevented advancement? The next generation will start to ponder these questions and if unaddressed, could lead them following suit to look for new opportunities. 

Ways to Retain and Grow

The best way to reassure the next generation of women leaders is to have well thought out and comprehensive DEI initiatives that let these young women know that they are valued by their employers. These DEI initiatives should include plans for mentorship programs, equitable salaries and benefits, and a focus on lowering the hurdles for women. 

Mentorship programs are a relatively effective way to educate and prepare young women for what lies ahead. While many people will naturally find a mentor in their workplaces, there is no guarantee that everyone will. Through a female mentorship program, young women can be guaranteed a level of guidance from a woman in leadership and learn to navigate the specific challenges that women will face. 

It is also important to ensure that people in the company have equitable salaries and benefits. Unconscious bias can cause a gap to appear between men and women, and has even caused 7% of women to be less likely satisfied with their pay when compared to men. So, it is important for companies to reassess and audit these potential issues. Offering hybrid work and flexible schedules are also effective ways to ensure the satisfaction of employees and can show women with young children that they are valued in the company. 

Another important step in ensuring a safe and productive environment for women is to educate employees on unconscious bias and microaggressions. Since unconscious bias is, by name, an unintentional judgment that people make, education is a necessity so people are aware that the seemingly innocuous statements and thoughts they have are potentially harmful. This will also serve to reduce microaggressions caused by well-meaning men and contribute to creating an equitable workplace for women. 

Only through the mentorship programs, ensuring equitable salaries and benefits, and educating employees, will the “broken rung” of the corporate ladder be slowly repaired. Implementing these programs and initiatives can not only help to retain women in leadership, but also attract others that are looking for better opportunities.