Gender inequality throttles entrepreneurial vibrancy and stifles economic growth. With the global asset and wealth management industry predicted to grow in value to 145.4 trillion dollars by 2025, businesses will need to innovate to take advantage of new opportunities, including how they recruit talent.
The OECD estimate that if women participated in the economy identically to men, an additional $28 trillion, or 26%, would be added to the annual global GDP by 2025. This highlights the untapped potential and the importance of finding, nurturing and retaining the right people as the industry reinvents itself after the COVID-19 pandemic.
In recognition of International Women’s Day, investors may be surprised to discover how directly they can contribute to closing the gender gap and foster equality. Learn more in this week’s blog.
Gender considerations – still relevant in 2023
Even though society has progressed in leaps and bounds, women continue to be underrepresented in the investment world, both as portfolio managers and equity analysts.
During the pandemic, this discrepancy intensified, with women being disproportionately impacted in terms of employment and career progression.
The coronavirus crisis caused a global job loss of 64 million women, which is twice the number of men who lost their jobs. According to the United Nations, in 2021, there were 118 women living in extreme poverty for every 100 men aged 25 to 34. Furthermore, it is expected that 435 million more women and girls will fall into extreme poverty, resulting in an increase in the existing gap.
According to the World Economic Forum, 64 million women lost their jobs globally due to the coronavirus crisis. Estimations from the UN also revealed that in 2021, for every 100 men aged 25 to 34 living in extreme poverty, there were 118 women. This equates to 247 million women living on less than 1.90 U.S. dollars per day. Sadly, the gender poverty gap is expected to widen by 2030 with women will still comprising the majority of the world’s extreme poor.
Access to mentorship/sponsorship
How exactly can businesses instigate change? Companies need to create conditions for success – the best place to start is the creation of formal sponsorship and mentorship programs. These will help expose junior level candidates to role models in senior positions.
Not only will this provide opportunity for those starting out on the career ladder, but also those at every level. Reverse mentoring could also help to share lived experience; this will give more senior executives a one-on-one understanding of a particular issue, such as diversity or generational differences.
Reverse the gap in the promotion rate
Women are 24% less likely to attain their first promotion than their male peers, even though they request promotions at similar rates. This creates an ambition gap, with only 26% aiming for top executive positions, compared to the 40% of their men.
This needs to change. The way to do this is to break the pay barriers and remind female employees that they can achieve the same as their male counterparts.
Advance gender diversity via target setting and measurement
Companies need to establish clear and appropriate metrics regarding the recruitment, retention, advancement and representation of women among both business units and support functions – alongside equal pay. Across all five areas, they need to focus on the right interventions and measure their progress over time.
The rewards of gender diversity are clear. It’s time for businesses to take decisive action to capture those rewards, just as they would for any other strategic imperative.
Applying a distinctive vision to property since 1992; Targetfollow are constantly seeking new innovations to further distinguish ourselves in the sector. In obtaining this; we understand the importance of diverse perspectives and allowing talented visionaries to lead us into the future.