7 ways to encourage women to pursue financial advisory careers

I recently participated in Commonwealth’s annual Summit for Women Advisors in California, and it was incredible to spend time in the company of so many talented women financial advisors. The event took place in Santa Barbara during its historic rainfall and flooding. Still, not even the airport being closed for two days and the entire town losing electricity for a full day was enough to dampen spirits during the conference. When you bring so many wonderful women together, something magical happens.

These advisors had the chance to network with each other, solve problems, and share ideas. They learned from experienced speakers and industry experts and took efficiencies back to their practices. And while the group learned about varietals through a professional wine-tasting event, they really learned more about each other through these shared experiences.

Financial services has changed quite a bit over time for both women and men. But one of the questions that still arises is why more women don’t seek careers as financial advisors. Most women agree that it’s a fantastic profession with great upside opportunities for flexibility, advancement, ownership, and compensation.

With that type of value proposition, you’d think the number of women entering the profession would be staggering, but unfortunately, that’s not the case. According to the CFP Board, only 23 percent of certified financial planner professionals are women – and that statistic has been flat for the past decade. Women comprised only 32.6 percent of financial advisors overall, according to 2023 data from the U.S. Bureau of Labor Statistics.

So what can we do to encourage more women to pursue financial advisory careers? Let’s dive in.

1. Talk to your daughters, sisters, nieces, and neighbors who have talent and concern for others, and explain how they would make great financial advisors. Too many young women don’t know the career opportunities available to them in financial services, but you can change that.
2. Start the conversation early on. High school is a great time to encourage young women to explore financial advisory careers. College-age women who are trying to determine a future career path are great candidates, too. If you have an opportunity to participate in a career night or a job fair, take it.
3. Emphasize the flexibility factor during the recruitment process. Research shows that women still bear the brunt of household and childcare responsibilities. So, not surprisingly, flexibility is a top factor in women’s career decisions, according to Deloitte’s Women at Work study. You can highlight the flexibility your firm offers, particularly in the independent channels. Allowing women to manage their time more efficiently is a win-win for everyone.
4. Focus on the sense of purpose and meaning that comes with being a financial advisor. Our business is all about helping people through planning, listening, leading, and collaborating, and those things are more likely to resonate with women than thinking they need to compete for alpha-based investment returns.
5. Demystify the common misconception that a degree in economics, finance, or math is required. This isn’t true and may be off-putting for creative women who are more right-brained than STEM. We often hear that advisors serve as “therapists” to their clients, and behavioral finance clearly indicates the important role of emotions in decision-making. So candidates with degrees in psychology, history, marketing, or communication could make excellent financial advisors.
6. Discuss the numerous benefits of pursuing a financial advisory career, including compensation, advancement, and controlling your own schedule.
7. Set goals to attract more women advisors to your firm. We know that firms benefit from different points of view and diversity; if women are underrepresented on your team, take steps to change that.

With Women’s History Month on our minds, let’s take a moment to appreciate the many women in the financial services industry who support our work. They’re all around you – advisors and paraplanners, portfolio managers and traders; CEOs, CFOs, and COOs; accountants, office managers, and administrative assistants – the list is long. So remember to say thank you to an amazing woman in the financial services industry who helped you make it to where you are today!

Kristine McManus serves as chief advisor growth officer at Commonwealth Financial Network.