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According to a recent report, gender balance in the financial industry could take 140 years to achieve.
OMFIF’s Gender Balance Index 2023 found that while gender parity is improving, the progress isn’t fast enough.
“Unfortunately, there are no easy answers to resolving this issue of slow progress. Clearly, a proactive strategy should help. But there is no direct causality between mentorship programmes, quotas, parental leave policies and a better GBI score,” said OMFIF.
“This suggests that the key to success is less tangible — perhaps it is as much about culture as anything, in an institution as well as in the country or society in which it operates.”
OMFIF noted that 336 institutions are covered by their index, yet just 14 per cent are led by women. In 2022, this figure was 13.7 per cent. While we’ve seen an increase, the progress is too slow to see parity anytime soon.
Furthermore, the report found that Asia-Pacific is the most male-dominated region. Some financial industries have reached the halfway mark in gender parity, while others are yet to reach the quarter-way mark.
OMFIF urged organisations to think about gender balance more seriously, as female leadership has benefits for the business.
“The presence of female leaders has an important impact, though it will be refreshing when those leaders are celebrated purely for their talents and achievements rather than also for their gender. Only at that point — where a woman being in charge is seen as nothing remotely unusual — will the culture of financial services feel truly balanced,” said OMFIF.
According to the report, parental leave is a big contributor towards equity. OMFIF found that 83 per cent of respondents give three months or less of paid maternity leave. Easing the stress of new parents is a worthwhile bridge to gender parity, said OMFIF.
Mentorship programs are another effective venture, according to the report. Companies that saw a decrease in gender balance were those that did not have mentorship programs in place.
OMFIF said that including employees in the decision-making process is a great way to promote inclusivity. Fair opportunities for all and a chance to steer company policy can create room for better gender parity.
“Employees should feel included in the decision-making process within their own teams and the wider organisation. Inclusive decision-making processes ensure that employees feel heard and valued, leading to greater engagement and commitment to the organisation’s goals. This promotes a more diverse and inclusive workplace culture,” explained OMFIF.
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Mentoring pairs up less experienced workers with more seasoned ones to provide coaching, training, and development. This can be done informally or formally, with meetings and quantified results.
Jack Campbell
Jack is the editor at HR Leader.
