Women And Finance

Whilst society is striving to overcome gender inequality in many aspects of life, when it comes to money, women are still at a significant disadvantage to men.

The gender pay gap in the UK, for instance, means that the average woman earns 9.4% less than the average man in the same company. Women are also more likely to switch to part time working or take career breaks to care for children and sick or elderly relatives. As a result, as well as lower earnings, women’s careers tend to be more disrupted, they can experience slower career progression, and ultimately, they face significant disadvantages when it comes to achieving financial stability and security.

But it doesn’t stop there. Research shows that women generally have less confidence than men when it comes to money and find pension and savings communications more confusing. This can manifest in several ways, including avoiding financial decisions or relying on others to manage their finances. Women are also less likely than men to invest in the stock market or take financial risks, which means that even when they do manage to build savings and plan for retirement, their savings are likely to grow at a much slower rate than they would for a man.

And then there is the menopause. This natural and inevitable stage in every woman’s life is often accompanied by physical and emotional changes that can sometimes be overwhelming. Unfortunately, it's a stage of life that many employers still don’t fully understand or appreciate, and women are not always given the support in the workplace they should get. Instead, all too often, employees confuse the symptoms of menopause as women showing a lack of commitment, becoming less productive or becoming difficult to work with and as a result many women leave work at this time of their life due to feeling isolated, anxious, and insecure in their jobs.

To address the financial inequality faced by women, concerted efforts are required from businesses, policymakers, and society as a whole. However, there are steps that both employers and employees can take to help narrow the gender finance gap.

Employers

1. To ensure that there is no gender pay gap within the organisation conduct regular pay audits to identify and address any discrepancies.
2. Create clear and transparent pay scales and salary bands to promote fairness and prevent bias in pay decisions.
3. Encourage a diverse and inclusive workplace that supports the advancement and promotion of women. Provide opportunities for women to take on leadership roles.
4. Offer flexible working arrangements, such as remote working or flexible hours, to help employees, especially women, balance work and family responsibilities.
5. Organise financial education workshops and seminars, specifically tailored to women, to improve financial confidence and decision-making.
6. Establish formal mentoring programs to support women's career development and provide guidance in navigating the workplace.
7. Implement family-friendly policies, such as parental leave, cheap childcare, and the option of a phased return after maternity leave, to help women manage their family responsibilities without hindering their careers.
8. Create a supportive environment for women going through the menopause, including providing information, flexibility, and understanding to accommodate their needs during this life stage.

Employees

1. Encourage and support efforts within your organisation to create a diverse and inclusive workplace. Advocate for policies and practices that ensure equal opportunities and treatment for all employees, regardless of gender.
2. Be an ally to your female colleagues by offering mentoring and networking opportunities and promote female colleague’s achievements and capabilities.
3. Encourage your organisation to have transparent salary policies. Transparency can help identify and address gender pay gaps, and ensure all employees are paid fairly for their work.
4. Advocate for family-friendly policies like flexible working hours, parental leave, and cheap childcare. These policies can benefit all employees but especially women who frequently have to balance work and family responsibilities.
5. Engage in conversations and help educate others about the gender finance gap and the impact of financial disparities on women.
6. Seek out workshops, seminars and courses that promote financial education with a particular focus on empowering women when it comes to their finances. Ask your human resources department if it is something they can provide – companies are increasingly recognising the benefit of financial education in the workplace. If they can’t, look online.
7. Keep track of your organisation's efforts to address gender finance disparities and hold leadership accountable for acting and making improvements.

It is important to remember that it will require a long-term commitment, systemic changes, and a collective effort to successfully address the gender finance gap. However, by working together, employers and employees can have a significant positive impact and can start to create a more equitable and inclusive financial landscape for all.

Remember, your investments can go up and down and you could end up with less than you started with. Past performance does not guarantee future results. The information provided is financial guidance and should not be considered financial advice.