Family Offices Have a Gender Diversity Problem
They are frequently run by males even though the financial industry has come a long way in recent decades in terms of equality.
International Women’s Day on Sunday is a good time to assess progress—or the lack of it—in gender representation in the banking sector.
In that vein, Agreus, a specialist recruiter in family office recruitment, posted a comment on its website stating that the sector «still seems to lag» behind when it came to corporate diversity initiatives addressing that disparity.
Nowhere to be Found
«Despite advancements in gender diversity across the broader financial landscape, Family Offices remain predominantly male-dominated, especially in senior leadership and investment roles,» it stated.
According to them, only 21 percent of professionals in the field identified as female, with 80 percent of the sector being run by CEOs internationally. That contrasts with a related piece on finews.asia that shows a significantly higher proportion of females in private banking workforces, including those in leadership positions.
More Wealth
«Women hold a disproportionately small percentage of leadership roles within Family Offices, despite the fact that more wealth is held by women than ever before,» Agreus indicated.
Given the fact that more wealth will be transferred to women in the future, «it is crucial» for family offices to embrace diversity, and to ensure that the same values are passed down to the next generation of family members and investors.
Recruitment Challenge
Part of the problem is that there appear to be cultural, structural and recruitment-related challenges that limit gender diversity in family offices.
«A significant factor is the tendency to recruit from specific talent pools, such as financial services, investment management, and banking, where historically there has been lower female representation. On top of that, recruitment biases, such as a preference for familiar networks, can hinder diverse hiring practices and perpetuate existing imbalances,» Agreus indicated.
More Proactive
The perception that an all-out 24/7 is required was also seen as a potential hindrance to employees, particularly those with maternal or familial responsibilities.
The sector, however, needs to become more proactive and more inclusive to address these deficiencies.
Wider Pool
«This includes expanding talent searches beyond their own networks to reach a wider pool of qualified female candidates. Implementing policies that support work-life balance for all employees, such as flexible work arrangements and better support for those who have maternal responsibilities, is also crucial,» Agreus stated.
A Grant Thornton report also pointed out a worrying trend. If women are in senior positions and they depart, there is usually no female replacement for them.
Planning Necessary
«This flaw in succession planning is hindering progress, and it is clear that more gender-diverse succession planning is necessary, not just in Family Offices but across all sectors,» Agreus maintained.
The recruiter believed that it was essential for family offices to have better female representation at senior levels and in investment committees.
Taking a Step Back
Ahead of celebrating International Women’s Day this weekend, it clearly encouraged the sector as a whole to think about gender representation while adopting more inclusive hiring, leadership development and flexible work policies, if they have not already.
