Based on historical growth, women will occupy less than a third (28%) of the leadership roles in the financial services companies by 2030, according to the latest edition of Deloitte report ”Leadership, representation and gender equity in financial services”.
This projection shows that the number of women leaders will slowly grow by 4% in the following eight years but will still remain below parity. The Deloitte report is developed in collaboration with 100 Women in Finance, a global organization aiming to empower women in the financial industry. Additionally, the report underlines that this projected growth falls below the target threshold of representation within a group, as a 30% share is considered the minimum tipping point to enact change and to make a difference within a broader group, according to the academic research on diversity and leadership.
The report also highlights that the multiplier effect applies to financial services, too, that is the impact the number of women in the C-suite has on women’s promotion in senior leadership. The key takeaway is that, if companies do not make additional efforts in recruitment, retention, succession planning and return-to-office work arrangements, the gap between women in the C-suite and women in senior leadership roles might widen from a share of 9% in 2021 to 14% in 2030.
”Women’s presence in the C-suite is frequently seen as a beacon of inspiration, but it also generates the multiplier effect phenomenon. In Europe, for instance, Deloitte analyses show that for every woman added to the C-suite three women rise to the senior leadership ranks, so, in order to have a diverse workforce, companies can start by improving diversity at the top,” stated Alexandra Smedoiu, Partner, Deloitte Romania, and coordinator of the SheXO Club Program.
Among the initiatives that financial services companies should consider in order to retain and recruit women leaders, the report points out the use of hybrid work models. For many women, returning to the office either full-time or in a hybrid mode might come with challenges in terms of childcare availabilities or even career advancement opportunities. Therefore, financial services companies should be aware of the potential disadvantages of the hybrid work models and should clearly communicate expectations and parameters within these new working models, the report recommends.
Moreover, so-called restart programs can become an even more powerful tool to attract and retain women, according to the report, given that 43% of women leave their jobs after having a child and more than a half of Millennials anticipate pausing their careers at some point.
The latest edition of Deloitte report ”Leadership, representation and gender equity in financial services”, developed in collaboration with 100 Women in Finance, is based on Deloitte Center for Financial Services’ proprietary analysis and custom segmentation of more than 100 US public financial services institutions’ data.
The SheXO Club, a global Deloitte initiative launched in Romania in 2012, aims to nurture a community of business women that can network, grow and thrive, through the creation of a platform for experience sharing. Throughout its business meetings, market research and publications, the club expands knowledge in the areas of leadership, economics, global trends and business models, while sharing best practices in the field of diversity and inclusion.