Inspiring Inclusion: Women in Finance on International Women’s Day 2024

As we celebrate International Women’s Day 2024 with the theme ‘Inspiring Inclusion’, Carnegie Consulting delves into the progress and ongoing challenges for women in finance. We reaffirm our commitment to fostering an inclusive environment, recognising women's crucial role in private equity, wealth management, HR, hospitality, real estate, business support, and insurance.

The Current Landscape: McKinsey’s recent findings paint a mixed picture. While women in financial services are promoted at a rate of 86 for every 100 men in Northern America, the scenario is less encouraging for women of colour. Despite this, the financial sector has shown resilience in supporting women, especially during the pandemic. 59% of women in financial services reported increased support in the past year, compared to 47% in other sectors.

Leadership Roles: A Glass Ceiling? Deloitte Insights reported in 2023 highlights a modest rise in women’s representation in leadership roles within financial services firms, from 22% to 24%, with an expected growth to 28% by 2030. However, progress towards gender parity remains slow, underlining the need for strategic actions to promote gender equity.

Senior Finance Positions: A Stark Reality A BCG global study reveals significant underrepresentation of women in senior finance positions. Despite gender parity in finance functions, women hold only about one-third of these roles. The scarcity of women in top finance roles like CFOs, which stands at just 13%, points to systemic issues including a lack of diversity commitment, role models, and inclusiveness in work activities.

The Global Perspective: The International Monetary Fund (IMF) emphasises the need to close gender gaps in finance. It underlines the benefits of diversity in leadership roles and calls for more inclusive practices in the sector. EY reports that all European financial services businesses monitored have female representation at boardroom level, with the current gender split of board members across all businesses standing at 58% male and 42% female.

Busting Myths Around Women in the Workplace: The 2023 Women in the Workplace report by McKinsey and LeanIn.Org sheds light on several crucial aspects of women’s experiences and career progression in corporate America. Despite significant strides in senior leadership, women, particularly women of colour, remain underrepresented at all corporate levels. Women constitute about one in four C-suite leaders, with women of colour accounting for only one in sixteen.

Ambition and Flexibility: Contrary to the myth that women are becoming less ambitious, the report finds that women’s ambition has grown since the pandemic. Flexible working arrangements offer advantages like better work-life balance and reduced burnout to all employees.

Conclusion: True inclusion goes beyond numbers. It’s about creating an environment where diverse talents can thrive, addressing specific challenges faced by women in the workplace, and inspiring inclusion. Carnegie Consulting believes in the power of diversity to drive innovation, resilience, and performance in the finance sector. Join us in this journey towards a more inclusive finance sector.

Let’s work together to celebrate the achievements of women, break down barriers, and create opportunities for all. On International Women’s Day and every day, let’s commit to ‘Inspiring Inclusion’.