Career vs. Family Needs
Justified or not, women are perceived to be less career-oriented than men. The perception is that they desire work-life balance more than what people have been accustomed to. But that isn’t a bad thing.
As women emphasize work-life balance, company culture improves. This again ties back to prioritizing the team over leaders. They promote more collaboration and empowerment, and that is a good thing for the company and its culture.
Nevertheless, the true test for female advisors is breaking in, to begin with, given the existing culture and leadership at most firms.
Existing Company Culture And Leadership
A Carson Group and Hidden Insights Group survey reveal some of the biggest challenges female financial advisors face. According to their study, approximately 60% of participants cited culture and leadership as the top hurdle when joining the industry.
Moreover, about 55% of participants said mentoring and coaching were critical to their development. These rigid cultures make it a problem.
But if these financial institutions want to stay ahead of the curve, it looks like recruiting more women, with their fresh perspectives on teamwork, leadership and relationship-building, is a vital piece to a well-heeled future, no pun intended.
For their part, female advisors understand the need to create a strong network of mentorship and guidance. Efforts like the CFP Board’s Women’s Initiative are a step towards progress—progress that’s particularly helpful for women wanting to join the industry.
Moving Forward
Although we’d be mistaken to simply extrapolate historical trends and assume linear growth, the future of female financial advisors is nonetheless bright. In the same McKinsey study, women are expected to control $30 trillion in financial assets by 2030. That’s close to the annual U.S. GDP, and the huge market is primed for the taking.
For many financial institutions, then, they must tap on the unique perspectives offered by female advisors. More than just a novelty and a growing niche, their unique ways of building relationships are key to the financial advisory practice. Let’s all strap in as women take on the forthcoming growth surge in wealth management.
Jeremiah D. Desmarais is CEO and founder of Advisorist.