Recruiting Women in Asset Management
September 11, 2024 – As an executive search practice led by women, Jamesbeck has been on the front lines of recruiting qualified, diverse leaders in the investment management industry for the past 22 years. When economic historian and labor economist Claudia Goldin was awarded the Nobel Memorial Prize in Economic Sciences last year for her work on the gender pay gap and women in the workforce, it made Jamesbeck reflect on what they see as the firm interacts with candidates in the market.
Ms. Goldin ties the persistent gender pay gap to specific factors, some of which Jamesbeck’s Ina Dan and Bea Pinoy have highlighted below. Alongside, Jamesbeck has included their own observations and anecdotes.
First, the firm points to the negotiation behaviors of women compared to their male counterparts. “This is a topic that has been discussed at length in many forums,” said Ms. Dan. “However, we continue to see women being more reluctant to push for higher compensation and/or advocate for more prominent roles. There is often a sensitivity to rocking the boat and wanting to be well-liked. While that fear may be warranted, being thoughtful, reasonable, and measured in the ask is the key to success in this negotiation.”
While wages for men and women are relatively similar right out of undergrad, significant disparities in pay and title emerge 10 to 15 years later, typically after children are born, Ms. Pinoy explains. “This gap is tied to women more often taking on the role of primary caregiver and feeling that they need to take a step back or have more flexibility to focus on their families,” she said. “In fields like financial services, the gap is particularly pronounced.”
Ms. Goldin’s finding is an unfortunate truth, and one that we have seen play out repeatedly. “We see female candidates looking for opportunities at less rigorous or fast-paced firms, or transitioning into roles that are not as demanding intending to put their foot back on the gas down the line when they have more bandwidth,” said Ms. Dan.
Related: How HR Can Support Women’s Leadership
“Post-pandemic, we have also seen an increase, specifically from women, in remote or hybrid work arrangements,” Ms. Pinoy said. “We have had female candidates walk away from opportunities that would have been a significant jump in both title and pay due to location or in-office policies. The same can be said about expectations of travel and time on the road away from home.”
ZRG, a global talent advisory firm and portfolio company of RFE Investment Partners, has acquired Jamesbeck, a New York City-based recruitment firm specializing in senior-level talent for the broad investment management community across private market and traditional firms. Hunt Scanlon Ventures, a Greenwich, Connecticut-based human capital M&A advisory firm, served as an advisor to ZRG. “This strategic move aims to establish ZRG’s presence in asset management and will support the firm’s existing private markets clients by adding a new channel for senior roles at the management company level across investments, product, and fundraising,” said ZRG.
“Jamesbeck has been at the forefront of decisive changes that have impacted asset management leadership for more than two decades,” said Scott A. Scanlon, CEO of Hunt Scanlon Ventures. “The firm’s acquisition by ZRG will be beneficial to clients across the global investment management space who have come to rely on its network, judgment and guidance around senior-level leadership talent,” he noted.
While Jamesbeck does see some of these same behaviors and considerations from our male candidates, our experiences align with Ms. Goldin’s, and it’s easy to see how these factors can impact career and compensation growth for women in the financial services workforce.
Related: Executive Women Making Progress Closing Pay Gap
“While it is crucial to understand the barriers women face in the workplace, it is equally important to identify and implement solutions that foster a holistically inclusive and supportive environment,” Ms. Dan said. “By highlighting both the positive and negative examples of workplace culture, we can pave the way for meaningful change.”
Possible Solutions: Moving Beyond the Challenges
To create a more inclusive and supportive workplace, Jamesbeck says that firms can implement several key strategies:
- Transparency Regarding Responsibilities: Clearly define job roles and responsibilities, allowing employees to understand expectations and benchmarks for growth.
- Accommodation Mindset: To the extent possible, foster a culture that values flexibility and understands the diverse needs of its workforce.
- Leave: Provide comprehensive leave policies that support caregivers.
- Career Advancement Opportunities: Ensure that all qualified individuals have access to leadership roles and opportunities for growth.
- Workplace Culture: Cultivate a supportive and inclusive environment that values diversity and encourages open dialogue about work-life balance.
- Diversity in Recruitment: Prioritize diversity in hiring practices to create a more balanced and equitable workforce.
- Support: Develop programs that foster mentorship and sponsorship, providing both support and opportunities for growth.
“Solutions such as these can help companies create a more equitable and supportive environment for all their employees,” Ms. Pinoy said. “While Ms. Goldin’s work focused on women, the real goal should be equality across the board, a goal that we at Jamesbeck have enjoyed partnering with our client firms in driving toward.”
“At Jamesbeck, we make it a priority to empower women by providing them with the tools, resources, and support necessary to negotiate effectively,” said Ms. Dan. “By offering resignation advice and sessions on negotiation, we aim to build confidence and equip women with the skills they need to advocate for themselves in the workplace.”
Jamesbeck specializes in the investment management industry across public and private markets. The firm recruits senior-level talent across investing, distribution, product and C-suite positions on behalf of a range of clients from boutiques to the largest multi-product organizations. Jamesbeck’s Melissa Norris, managing partner, and Beth Rustin, founding partner, are now the co-heads of asset management search at ZRG.
Related: Women Returning to Workforce in Droves
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
