Jim McElwain is the executive director of Infinz,a professional association of individual members working in finance roles
OPINION
Three of the four largest banks have female CEOs. The Minister of Finance and the Opposition spokeswoman for Labour for finance are female, as are the CEO of the Financial Markets Authority and The Secretary of the Treasury. We should celebrate this success.
However, while at least half of the workers in the financial and professional services sector are female, only 25-40 per cent are typically in the most senior roles and this is a key driver of the sector’s gender wage gap where median hourly rates for women are often 15 per cent less than that for men.
And Māori and Pasifika are under-represented within the industry’s workforce. Despite comprising some 20 per cent of the nation’s workforce, Māori and Pasifika comprise only around 10 per cent of the employees within our industry and because they are even less likely to be in senior roles, there is a significant ethnic wage gap, especially for Pasifika employees.
Addressing these inequities is not only important to assist in fulfilling the industry’s social licence, but it is also good business as we would then draw from the widest talent pool and better understand our customers. So, what can be done to address these inequities?
INFINZ Initiatives
Enhancing diversity in financial services is one of Infinz’ key strategic initiatives, along with building the capability of the industry in sustainable finance. These initiatives are being undertaken to fulfil our mission to empower a more prosperous, inclusive and sustainable Aotearoa New Zealand. We seek to achieve this by improving the capability and effectiveness of the financial sector ecosystem and of our members within it.
For example, some six years ago we entered into a partnership with the Young Women in Finance group in Auckland and have supported their entry into the Wellington market. Women now comprise 39 per cent of our membership compared to 29 per cent five years ago and 19 per cent 10 years ago. Our board has a 50/50 gender composition.
To inform our future activity directed at enhancing diversity, we have commissioned a major report from consultancies SHIFT Advisory and Cogo. Earlier this year, Cogo/SHIFT conducted interviews with over 50 stakeholders seeking their views on what were the barriers to progress and what measures could be taken across the sector to enhance diversity. We will be publishing this report next month and sharing it widely with stakeholders in the industry, as it will require collaboration across the sector to make a difference.
Partnering with the First Foundation
In terms of collaboration, we will seek to amplify the good work being done by other groups. One of these difference-makers is the First Foundation, which facilitates scholarships for those seeking to undertake tertiary study who are the first in their family to attend university. Whilst financial assistance is helpful, the key to success is the support that the First Foundation facilitates in terms of wraparound support and the provision of a mentor. The scholarships also provide paid internships so rangatahi also receive valuable in-work experience.
Māori and Pasifika are much less likely to go to university and within that smaller cohort are less likely than the average to undertake commerce-related studies that would facilitate employment in financial services. It is for these reasons that Infinz is supporting the work of the First Foundation, including funding two scholars itself, who are of Māori and Pasifika descent and studying commerce-related subjects.
Jess Vandermeer.
We also promoted the excellent work of the First Foundation to our stakeholders at our sold-out black-tie awards dinner in Auckland last night. Our guests heard from Jess Vandermeer, a 2019 Spark NZ-funded First Foundation scholar. Jess became the first in her immediate family to attend and graduate from university, earning a Bachelor of Commerce with majors in Strategy and Entrepreneurship and Marketing and a minor in Business Sustainability.
Hailing from Kiribati, a nation severely impacted by climate change, Jess’ journey from a small island in the Pacific to becoming a climate change and sustainability advisor at KPMG is nothing short of inspiring.
Independent director and Infinz distinguished fellow Mary-Jane (MJ) Daly said the First Foundation is a remarkable charity.
“I sponsored a young student through their programme while I was with Fonterra, which provided work experience and funding, and I found it to be an incredibly fulfilling and positive experience,” Daly said.
This brings to mind the whakatauki “Ehara taku toa i te toa takitahi, engari he toa takitini” – success is not that of the individual, but due to the collaboration of the many.
