Female adviser retention needs a re-think

Yasmine Raso

Senior Journalist, Financial Newswire

24 March 2023

A networking event for female advisers has brought to light the persistence of systemic barriers for women to enter the wealth management industry and suggested several initiatives to better attract and retain women in the profession.

Hosted by LGT Crestone and the Stockbrokers and Investment Advisers Association’s (SIAA’s) Diversity and Inclusion Working Group, the event called for commitment from employers to introduce initiatives that would increase female participation and gender diversity in the industry.

“LGT Crestone is working with industry participants to ensure women are involved in wealth management and that workplaces reflect both societal and client expectations,” Michelle Inns, Chief Operating Officer at LGT Crestone, said.

“While 50% of all other roles are held by females, like others in the industry, our proportion of female advisers is much lower.

“Over the last three years we’ve doubled our female advisers through various initiatives, including enshrining flexible workplace policies, providing 16 weeks of paid primary carer leave (or 32 weeks half-pay), generally enhancing diversity in the workplace, but most importantly setting female hiring targets.

“While it’s going to require sustained focus and time to get anywhere near parity, if we get our policies right, wealth management can be a fantastic career path for women.”

Inns also said it was important to confront cultures and gender biases that are intertwined with recruitment practices and workplaces, agreeing with SIAA chief executive Judith Fox that while firms have indicated their interest in developing career pathways for women more concrete action is needed.

“Now is the time for wealth firm leaders to innovate and develop strategies and pathways to encourage a greater number of women to become wealth professionals. Males are overrepresented in both stockbroker and financial adviser roles,” Fox said.

“Women make up just 13% of SIAA’s membership and investment advice remains one of the most male-dominated professions in Australia. Yet research shows that many women prefer to deal with a female investment adviser.

“Women make up around half of Australia’s population and they can offer a perspective that men can’t. With more women in the wealth management workforce, there is a greater diversity of skills, perspectives, and experiences, which can lead to increased innovation, creativity, and productivity, which will benefit clients and help to promote wealth creation overall.

“SIAA and LGT Crestone believe that greater female participation in the wealth management workforce could contribute significantly to the nation’s economic prosperity and the growth of client wealth.”