Women in Financial Services: Is 50% a Realistic Target?

   “I do not think we are ever going to end up with 50 per cent men and 50 per cent women in financial services and we have to accept that”

The above quotation is from Nicola Horlick.  As the debate about gender diversity in the financial services industry continues, it’s refreshing to hear the thoughts of one of the UK’s most well-known financial services entrepreneur.

I am a great admirer of Nicola. She was a stellar high-achiever in the male-dominated world of asset management before becoming a serial entrepreneur. She is a risk-taker and a truly independent thinker.  In an interview with my colleague, Vanya Damyanova at AltAssets, Nicola points out that the demands of a job in the financial services industry need to be considered when setting expectations for how many women get to the top.  She offers great advice to young professional women building their careers in financial services: be well prepared before you start; get support from an influential senior person in your organisation; and maintain a ‘can-do’ attitude throughout.

I have published the complete interview below. (Please note: Nicola Horlick is one of the keynote speakers at this years Women's Private Equity Network Summit on 7 June in London). 

Gender equality in financial services doesn't mean a 50/50 split at senior levels

There are never going to be equal numbers of men and women at senior levels in the financial services industry as the nature of the work simply does not appeal to them, says Nicola Horlick, head of Money & Co.

The heavy male-domination of the industry and gruelling long hours have created an environment in which many young men thrive - but many young women find they are quickly keen to move on from.  Horlick said, “I do not think we are ever going to end up with 50 per cent men and 50 per cent women in financial services and we have to accept that."

“It is always going to be a male-dominated environment and it has nothing to do with being a mother or having children. The nature of the work is just not appealing to a lot of women.  They do not find coming to work at 7 am and going home at midnight a very compelling way to live, whereas young men seem to thrive in such an environment.”

Women cannot be forced to stay in unwanted jobs

Financial services and even fund management can be unappealing to many women, chasing the bulk of graduates away after just a few years. Horlick believes that there is little that employers can do as women cannot be forced to do jobs that they don’t enjoy.

She said, “There are still not enough women in financial services and not much has changed since I first came into the City 33 years ago. When I was in charge of large fund management businesses I used to always employ an equal number of men and women at graduate level."

 “After about two or three years, most of the women had left and gone to other industries such as publishing, PR, journalism etc. This environment is very intense and stressful, and most of the people work really long hours."

“On the other hand, the situation is different in fund management which is where I have always operated. The lending business I’m doing now, is also similar. You do not have to stay up all night or work all weekend. This environment is much more conducive to having female engagement and involvement."

“However, even in fund management it is more stressful than people often understand because you are being measured against an index the whole time. If you have not performed very well then you get grief from clients and many women do not like to be in uncomfortable positions where they have to defend their performance. The firms themselves cannot really do much to change the situation because it is the nature of the work.”

A career in finance does not come easy, so be well prepared

Young women set on a career in finance should know what they are up against before they commit to it. They need to do their research and meet with people from the industry, Horlick advises.

 “Young women should be encouraged to plan ahead. This can be difficult at 22 or 23 when you are just leaving university and are not going to think about having children probably for another ten years. However, now it is much easier to get information with the internet and funded internships, which were not there at the time I was starting out."

“Today, you can learn a lot about the different industries and understand what people do by simply going online. Or you can go work in a bank for a while to see what it is like. It is very important for young women to do all that: do their research, meet with people, take up summer internships.”

Support from powerful people is key to climbing the career ladder

Working hard is essential but it is not enough because nobody in this sector pays attention to silent efforts. Speaking out about your achievements is a must but so is getting the support from a person in power, Horlick says.

“Once they make the decision to jump into a financial career, women have to throw everything into it, work really hard and do as well as they can. In very large organisations the only way to really get onto the fast track is to make sure that you have a sponsor, somebody in authority who has power and really believes in you."

“Financial organisations work in a very particular way and nobody is going to notice if you are just sitting in a corner working really hard. Men are very good at telling everybody how well are they doing and women often assume people are going to notice which is not always the case. Self-promotion is important but on the flipside people do not like very pushy women who over-promote themselves so it is a difficult balance. That is why having a person who has authority and power as your sponsor is key to getting up the career ladder.”  

A ‘Can-do’ attitude always wins all prizes

Women are naturally more cautious investors and men like to take more risks. Both genders achieve the same results over time though. What really makes a difference is taking a more American view to life, Horlick says.

“Women are naturally more cautious and less inclined to take risk. They are more conservative investors than their male colleagues but achieve the same overall results in the long term. This has been proven by studies. To be a successful dealmaker you have to be decisive, committed and enthusiastic, which means you need to have a 'can-do' attitude."

“People who are too negative can never achieve anything in the City. Those who have achieved the most are the ones who always say ‘We can make that happen’.”