Talking to Financial Advisor magazine, Diane Bourdo, CFP®, Private Wealth Advisor at Treehouse Wealth Advisors, shares her thoughts on Diversity, Equity and Inclusion issues in the financial services industry.
Bourdo discussed her experience as President of an all-women wealth management firm that had recently interviewed several candidates for an opening with their team. She found that although a large number of female applicants were knowingly over-qualified, they were “happy just to find a non-toxic work environment.”
This issue extends from working as an advisor in the industry to the clients they serve. Bourdo warns that women clients don’t want a male advisor who “doesn’t listen fully, doesn’t ‘get’ them, and isn’t attuned to their needs, wants, perspectives and challenges.” She expresses surprise that the “dominant culture hasn’t gotten the message that they need to listen more – a lot more.”
The article explores whether the financial advisory industry is achieving more than the basic lip service to diversity, equity, and inclusion. While progress is acknowledged compared to 30 years ago, it is slow. While some firms can demonstrate a higher than average diverse personnel, there often remains a lack of promotion for diverse candidates. Barriers cited include:
- lack of flexible work schedules
- not enough investment in coaching, training, and mentoring of new hires
- no mentorship or internship programs at the undergraduate level to show the career choices that are available in the industry
However, it is not all bleak, as many firms fund scholarships for women and minorities, and the Center for Financial Planning is working on a long-term initiative to raise awareness about underrepresented groups within the industry. Everyone agrees, however, that this will all take time to make a significant impact, so not surprisingly, many women and minorities are starting their own firms instead. The article notes that as society becomes more diverse, so do the demographics of the industry’s client base, and it faces the challenge of keeping up with our changing world.
Financial Advisor Magazine provides essential market information and strategies that advisors need to succeed in their increasingly complex environment. FA focuses on sophisticated planning and investment strategies to help advisors better serve their affluent clients, as well as practice management ideas to help advisors build their firms. FA magazine has been ranked first as the most-read publication for financial advisors for 4 consecutive years by Erdos & Morgan’s Financial Advisor Media Usage Outlook Study.
Treehouse Wealth Advisors is a fee-only wealth management firm based in the San Francisco Bay Area, serving innovators, legacy builders, and impact makers. The firm provides personalized financial planning, investment management, and wealth advisory services, helping clients navigate significant life changes while working toward fulfilling and meaningful lives.
