Studies show women in finance are more likely to face discrimination than other industries, but what can be done to change this?
Women in finance are likely to be seen as less competent and less likeable than their male counterparts displaying the same behaviour, according to new research.
The study, undertaken as part of Melbourne Business School’s Gender Equality Project, found that negative evaluations of women remain prevalent in business, but are most pronounced in male-dominated industries, such as finance and mortgage broking.
Lisa Corlett, general manager at IMFS finance, says women are put under pressure to prove their worth in the finance sector, especially in management and executive roles.
“It takes longer to earn their respect. It does come, but it probably took me a year or two before people thought ‘Oh OK, she knows what she’s talking about’ and they don’t fight you the whole way.”
Negative perceptions of part-time brokers also represent a barrier for women wanting to balance broking with family commitments, she says.
While Corlett agrees that brokers who work full-time in another career will struggle to successfully keep up with the demands of broking, mothers can balance parenthood and part-time broking very effectively.
“Those sorts of comments are very much a detriment to our industry. My most successful broker here last year happens to be a female and she happens to be part-time. She’s very, very efficient. Some people can work longer hours and be busy being busy, but she is a woman with a purpose.”
The prospect of facing an extended period of time with no income, as most new brokers are expected to, can be especially difficult for women with families, says Corlett.
For this reason, larger players in the industry should offer salaries to new brokers, as IMFS plans to in order to bring a new-to-industry broker and mother onto their team.
MFAA president Phil Naylor, acknowledges the gender gap in broking and the value women bring to the industry.
“It is commonly recognised that women, in general, are more engaging with consumers, their empathy and ability to actively listen and problem solve with customers is highly valued across the board. The broking profession is actively trying to engage more women in the industry with some success…”
A SEA CHANGE
Naylor says the profile of new members to the broking sector is slowly starting to include a higher ratio of women, and Corlett agrees.
“We’ve got two female directors and a female manager and we’ve got a few female brokers now," says Corlett. "Nobody would look at our business and go ‘Oh, that’s very male-dominated’, but we're probably still an anomaly.”
The presence of strong, successful female brokers in the industry has helped to aid this change, says Corlett, but more could be done to make these role models more accessible to new brokers.
“I think that’s something we could do far better as an industry. We’ve got the bums on seats that are there, that are doing it so people can see it, but I think the next step is to have a bit more coaching from a mentor perspective. We can marry up some new recruits or some people that are trying to get a leg up in the industry.”
Naylor says there are a number of female mentors in the industry that are happy to aid those actively seeking advice, and also encourages any women who feel they are facing discrimination to make an effort to participate actively in the mortgage community through channels such as the MFAA's Women in Mortgage Business Network and state councils.
Corlett also says women who rise above discrimination and display their strengths will be rewarded in both career prospects and respect from their peers.
“To me it’s always been a case of remaining professional, not changing who you are to try and prove a point, just stepping above it… I know that people say you shouldn’t have to be better to be noticed but I just thought if that’s what works, I can spend my time being angry and yelling that I’m being overtaken by all these people that aren’t as good as me, or I can prove that I’m better.”
What can you do in your business?
The Gender Equality Project offers four suggestions on ensuring a fair and balanced workforce.
- A no ‘just joking’ policy
Light-hearted sexist comments or behaviour, no matter how minimal or seemingly insignificant, contribute to dissatisfaction amongst women in the workplace and ultimately affect employee retention, even amongst female employees that are not the subject of the behaviour.
Under a 'no just joking’ policy, anyone who hears a sexist remark would be expected to point it out and the person who made the remark would be required to say, “I am sorry that my comments were offensive.” The matter would end there. This puts the blame squarely with the perpetrator, and prevents the target being accused of lacking in humour or similar.
- Awareness of a bias is a useful first step for creating the motivation to change.
“Many people are unaware of how much their thinking, judgments and responses are influenced by unconscious knowledge and unconscious processes,” says the project report. “Measurement, reporting, discussion and training on unconscious knowledge and how it can lead to bias at work and in people’s personal lives can be particularly useful.”
3. Strategies for effective slower thinking
Bias and discrimination often stems from unconscious knowledge and processes. Openly discuss with your employees this risk, and consider employing some of the following strategies to reduce unconscious bias.
- the use of decision making tools
- structured social interactions so that all people have equal chance to participate
- keeping a record of decisions to make sure that opportunities are being fairly allocated across all employees
- discussions at the end of meetings to consider if any biases might have played out in decision making processes.
4. Audits and redesign of systems and processes to detect and minimize bias in decisions
Some approaches that can be particularly useful are:
- remuneration audits to identify pay gaps, taking into consideration bonuses and other discretionary rewards,
- redesign of selection and promotion system to minimize the impact of gender
- evaluation of competency frameworks to ensure they include both male and female traits
Do you think there is discrimination in the broking industry? What do you think can be done to close the gender gap?
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