On the heels of International Women’s Day on March 8 and Women’s History Month in March, I want to celebrate all the women financial advisers who work in our industry. It’s also a great time to give a special shout-out to all the women who work in support positions at their firms and are so instrumental in their teams’ success.
These talented, hard-working women have made a tremendous impact, but they are still a minority in this profession — Barron’s estimates only 20% of financial advisers are women. Just imagine what bringing more women into the fold could do!
I want to speak to all the young women out there who are thinking about their futures and urge them to consider a career in financial services. (Feel free to forward this article to potential candidates!) We know that women are outstanding at this profession, and as an industry, we need to do more to promote this career path to women.
So here are a just a few reasons women make great financial advisers — and why this can be such a rewarding career choice for the next generation.
A natural fit. Korn Ferry data show women are 45% more likely to demonstrate consistent empathy than men and bring a different perspective to professional discussions. These emotional and social competencies are essential for financial advisers, as they often have tough conversations with clients and handle delicate situations. During the pandemic, I heard from women advisers who mourned with their clients over the death of a loved one but were also there to celebrate weddings, graduations and other milestones. None of that has anything to do with wealth building or compound interest, but everything to do with taking care of the client.
Strong leadership. According to an analysis from Harvard Business Review, women outscored men on 17 of the 19 capabilities that differentiate excellent leaders from average ones. The glass ceiling is all too real, so it’s not surprising that many women financial advisers choose the independent route and start their own firms.
Meaningful work. As a financial adviser, you can truly change someone’s life for the better and successfully prepare them for life’s major events. You’ll help clients who don’t have a financial plan, who aren’t saving enough for retirement or who are investing too aggressively (or too conservatively). Your expertise can help protect families’ financial well-being now and for the generations that follow.
Work-life balance. Since women still bear the disproportionate responsibility of raising children, work-life balance is crucial. Most financial advisers schedule their days to fit in both client meetings and school-related events. One adviser I know leaves at 3:00 P.M. every day so she can be home when her children get off the bus. Another adviser strategically plans her year so she can be with her kids and travel during the summer. With Zoom proving its effectiveness during the pandemic, there’s now more flexibility for advisers to meet with clients at a time that works for everyone.
Unlimited earnings potential. In many industries, women encounter obstacles early in their careers that prevent them from realizing their full potential in terms of roles, promotions and salary increases. According to data from the Bureau of Labor Statistics, in 2020, women’s annual earnings were 82.3% of men’s, and the gap was even wider for women of color. But independent financial advisers can work and grow their practice their way. At Commonwealth, our women advisers’ average production in 2021 was over $800,000. And if they hold a CFP certification? That number increased to almost $950,000. And three of our top 10 advisers ranked by AUM are women, too!
A community of support. As a financial adviser, you can expect to receive support at every stage of your career. At Commonwealth, we strengthen our adviser community through dedicated conferences, such as our Summit for Women Advisors. We’ve also established an all-women advisory board and created mentoring programs, study groups and networking opportunities. We want women advisers to feel empowered to speak on panels and at industry events, so that the impact of women in our industry is seen and felt everywhere.
If you agree that more women advisers would benefit our current firms, then join with me in encouraging young, future professionals to pursue careers in financial services. As they bring their unique perspectives, ambitions and abilities to the table, we’ll all have reason to celebrate!
Kristine McManus serves as chief advisor growth officer at Commonwealth Financial Network.
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