Gender inequality is a well-known issue in Germany, but how does the German market compare in relation to other geographic locations and what can be done about it?
In this blog I will be conducting this search within a market I specialise within, Investment in Infrastructure and Renewable Energy. The first search I undertook involved looking at the market comparing Analyst level personnel up to C-level/Director level.
Through doing this I found the following data. Of the 8,545 individuals studied only 14% were female.
When conducting the same search but in different geographic areas the following data was found:
Analyst level up to C-level/Director level in the Investment Industry in Germany
This shows that women are clearly not well represented in this market and that the DACH region has the lowest percentages when compared to other European nations. In a prosperous market you would really hope to see the percentage higher especially when compared to similar areas such as Europe and North America.
Unfortunately, when I conducted the same search with senior members e.g. Partners, Directors and C-level personnel the percentages decrease (please see on graph below). Here the DACH results are worryingly low especially in Germany and Austria where the percentage of females employed in the industry is halved.
Senior Professionals in the Investment Industry in Germany
What does this mean for the Industry?
The Investment market is an extremely lucrative sector and with that comes the potential to earn large sums of money, in the form of base salary, huge bonuses and often life changing carried interest. As women are not equally represented within the sector this immediately diminishes their prospects of achieving similar renumeration as their male counterparts. This is demonstrated by the Eurostat board stating that the gender pay gap in Germany stands at a staggering 21%. (Is this one of the links at the bottom?)
Putting this into perspective, using Italy as a comparison. They have a gender pay gap of 8%, in favour of men. This is by no means perfect, but is an achievable target Germany could set itself for the fourth coming years.
One reason for this could be because women are better represented in the higher earning industries, such as the investment market, where individuals such as Anna Maria Reforgiato Recupero, Cristiana Vai and Anna Vigliotti have achieve great success within the industry, hopefully encouraging additional female peers to do the same.
The true reason for a gender pay gap is hard to pin point. However, there are a few suggestions as to why this happens. The EU has written a report, looking at the whole of Europe, and proposed the following points:
- Sectoral segregation: Around 30% of the total gender pay gap is explained by the overrepresentation of women in relatively low-paying sectors, such as care and education. On the other hand, the proportion of male employees is very high (over 80%) in better-paid sectors
- Work-Life Balance: Women spend fewer hours in paid work than men on average but more hours in unpaid work
- The glass ceiling: The position in the hierarchy influences the level of pay: less than 10% of top companies’ CEOs are women
- Discrimination: In some cases, women earn less than men for doing jobs of equal value
In conclusion, there is clearly a large numerical difference between the amount of male and female employees within the investment sector. This is something that should be addressed to encourage successful senior female personal within these businesses.
As in the case of engineering, subjects relating to the industry have been encouraged to female students at a young age, but other more comprehensive steps must be taken to help achieve this goal.
I would really like to hear from you about how you think we could resolve this issue and about your own experience within the industry; whether you are a female that works within the Investment sector or an employer looking to create a more gender diverse workforce.
To get in touch please contact me at firstname.lastname@example.org.