Despite decades of effort, women are still underrepresented in the highest-paying roles within Australia’s finance sector, with limited progress in closing the gender pay gap.
Across major cities like Melbourne, Sydney, Brisbane, and Perth, a recurring issue during recruitment season for investment banks is the struggle to attract talented female candidates. The top women in fields such as finance, law, engineering, and economics are in high demand, so much so that even the biggest financial institutions find themselves competing with other sectors. Private equity, with the promise of unearthing the next major tech giant, and management consulting, where ambitious professionals are encouraged to reshape global industries, often offer more attractive prospects.
For investment banks, hiring promising women early in their careers is crucial. However, many women who are recruited into the industry in their teens or early twenties eventually leave the demanding banking environment. These institutions are aware that the pressure and long hours, while financially rewarding, can lead many to seek a less grueling career path. This trend becomes evident when the gender pay gap is scrutinized, with many banks facing criticism for not advancing more women into senior roles.
According to the Workplace Gender Equality Agency (WGEA), the annual report released this week highlights a 22% pay gap between men and women across the Australian economy. However, within the finance sector, this disparity is particularly noticeable and difficult to ignore. Investment banks, in particular, have distinct characteristics that contribute to this issue, as most women tend to leave the industry long before they can reach the executive levels.
As one former CEO reflected, “It’s a brutal, brutal job. It’s very hard to manage your life with that job.” This sentiment reflects the broader issue of work-life balance, particularly in high-pressure environments like finance, where women make up just 36% of the top-paid quartile, according to the WGEA.
While equal pay has been mandated by Australian law for over 50 years, the financial sector is not accused of paying men more for the same work. Historically, there were instances of gender-based disparities, but those practices have mostly ended. Today, banks are keen to hire female employees, driven by both a sense of fairness and the desire to avoid public scrutiny.
However, the relentless demands of investment banking, including the often grueling seven-day workweeks, take their toll on female staff members. Many women choose to leave for other fulfilling careers that also allow them to balance family life, including raising children. Some opt to exit the workforce entirely, while others continue in less time-intensive roles. For those who remain, it is common to have a non-working partner to manage the household responsibilities.
The question arises: should male bankers dedicate more time to family life? While there is no definitive answer, the reality is that to do so would be seen as a weakness in the fiercely competitive industry. As journalist Annabel Crabb insightfully put it, “Women need wives and men need lives.”
The former CEO further pondered whether it would be possible to implement regular working hours in banking. Unfortunately, the answer is likely no, as long as competitors continue to push the boundaries of work expectations: “As long as the competitors keep fighting as hard as they do, that has to be the case.”
The gender pay gap in finance remains a persistent issue, compounded by the high demands of the industry. Despite some progress, achieving true equality in senior roles continues to elude the sector.
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