Imagine trying to live without balance.
It would be nearly impossible to do some of the most basic tasks such as carrying a glass full of water or even walking. We recognize that balance is a key, if often overlooked, aspect of life and we’d argue the same can be said about gender balance in the workforce.
That may be why “balance” is the focus for this year’s International Women’s Day under the hashtag of “balance for better”. It is an initiative to put this usually forgotten—but crucial—aspect into focus. But here at DWS, “balance for better” isn’t just a hashtag; we are trying to do more as part of our own “Striving to do Better” initiative.
A number of local events are planned to build on our commitment to increasing gender diversity. For instance, our Chicago office is hosting a Women of Wall Street Chicago discussion. Using a TED-talk style format, a panel and attendees will spark a robust dialogue exploring how workforce diversity isn’t just the right thing to do, but it’s also important to the bottom line
This may be especially the case when you consider that, for many businesses, the competition for the best talent is heating up. Recent data shows women in the workforce are an overwhelming boost to our record recovery since the Great Recession. Since 2008, women have paced the decade long job market recovery. Across all ages, but particularly among prime-age workers, females have led the resurgence in U.S. labor force participation.
Note: Seasonally adjusted
Source: Bureau of Labor Statistics
This surge in economic output proves greater balance isn’t a women’s issue, but a business value issue. The race for gender-balanced boardrooms, gender-balanced governments, and gender-balanced opportunities of all varieties underscores the growing importance #BalanceforBetter plays in shaping our communities, culture and economic prosperity.
It’s hard to believe Fearless Girl was introduced just two years ago. The image of a 50 inch girl staring down Charging Bull sent shockwaves across Wall Street and beyond. Since, she’s been reproduced in Oslo, Cape Town, and just last week, Melbourne, Australia. Her growing global appeal highlights more than just the social benefits of diversity for cultural reasons, but how the diversity of thought improves performance outcomes as well. Research by Morningstar underscores a growing trend throughout the asset management industry: funds with higher concentrations of female managers can do better than funds run exclusively by men or by mixed gender groups2.
With ESG (Environmental, Social, and Governance) moving from the niche to the mainstream, retail and institutional investor alike are reexamining the drivers of investment value. Investors tailoring their portfolios to drive positive social and environmental change continues to gather momentum. This is carrying over into specific programs to foster greater gender diversity. This diversity isn’t the promotion of one gender over another, but rather, the exploration of how genders—through a balance in representation and inclusion—can expand points of view and add value in a range of contexts.
The past two decades have seen the industry take meaningful strides in reaching for #BalanceforBetter. Today, according to Mercer, women make up nearly 46% of financial services employees. While Morningstar estimates less than 5% of investment funds are run by female managers, as of this February, three of the world’s top 15 asset managers are now led by women. Workplace diversity and equality gaps remain, but progress is being made.
Women are now the primary breadwinner in a record 40% of U.S. households with children. Be it the labor market, office, or home front, women are a force of positive change. The micro and macro business case for gender diversity is only going to grow louder. Professional investors and everyday savers are both positioning their strategies to tap the gender advantage. Regardless of your motivation for considering gender diversity, evidence is increasingly pointing to the many the social and economic benefits of expanding opportunities to all genders.
For more market trends, visit ETF Trends.