News
VersaFi CEO wants to make the financial sector more inclusive
“I had a conversation with a woman… in finance who is the managing director of an organization and runs an office,” van Biesen said. “Her husband is a director, who is inferior, in another organization, and does not manage a desk. Same deal. And he pays more than she does.
The current pay gap is depressing, but van Biesen, who in January was named president and CEO of what was previously known as Women in Capital Markets, focuses on the possibilities.
“I am in this role because I am an optimistic person,” she said. “And I believe in the power of this industry to make change.”
Additionally, the financial services sector has a “tremendous opportunity” to drive change, she said, “because we see this huge wealth shift” in favor of women, given factors such as longevity and divorce.
Van Biesen brings a lot of relevant experience as Women in Capital Markets changes name to VersaFi and continues to promote inclusion in the financial sector. Prior to joining the organization, she was managing partner, director and CEO succession at global consultancy Korn Ferry, where she advised on leadership decisions and advocated for inclusion.
Prior to that, she served in executive roles across the Canadian and global arms of Catalyst, a non-profit organization focused on advancing women and underrepresented groups in the workplace. And a decade and a half ago, she established the diversity practice for the Canadian financial services practice of global leadership consultancy Spencer Stuart, focusing on women on boards.
“I do this work because the financial sector is fundamental to this economy,” said van Biesen. “I want to see women fully represented in the most critical part of our economy, because that’s where all the important decisions are made.”
Securing the corporate ladder
Representation requires a strong pipeline of talent and women are increasingly entering the sector. “The intake valve — we really addressed that,” van Biesen said, noting that institutions now hire female graduates as often as men. On this front, VersaFi’s offerings include skills development; professional development programming, including for students; coaching and mentoring; and networks.
In addition to acquiring skills, van Biesen suggests that women surround themselves with the right people: “Look for great organizations, great mentors, great sponsors and, as far as possible, great bosses.”
It also encourages risk-taking as a path to growth. When women misjudge themselves as underqualified, “we are doing ourselves a disservice,” she said.
But women doing their part to be great hires is just one part of the equation. Organizations must create a system that supports women’s growth and development, said van Biesen: “Too often, we see women who are placed in situations that we affectionately call the glass cliff” – a life-or-death job, without the support to have success.
An organization that supports success, she said, systematically accommodates career breaks for caregiving, something many women will need at some point. It is also transparent about pay and creates gender-balanced teams, which signal to women – both financial advisors and clients – that the company values the richness that comes from diverse talent, she said: “There are many of these interventions that we can look at. to the.”
However, she said persistence is key to addressing gender and pay gaps because “the minute you take your eye off the ball, you’re going to roll over backwards.”
Fixing the Broken Step
VersaFi aims to address what has been called “the broken rung”: after seven to ten years of career success, women begin to leave their careers at a disproportionately higher rate than men. And when women don’t advance mid-career, they don’t reach the top of the ladder. “We are stuck at the executive level,” said van Biesen.
She made it clear that women do not leave simply because they are starting a family, but because they do not feel valued at this stage of their career. They may not see opportunities for advancement or believe that taking a leave of absence will mean losing customers. “If we could take a marathon view instead of a sprint view and create… bridges so that we can smooth these things out, we would make enormous progress,” she said. For example, a team approach to counseling clients allows clients to feel connected to more than one team member, she said.
Cultural challenges must also be addressed, van Biesen said: “There is still a lot of inappropriate exclusionary behavior that happens in the brokerage business, in the consulting business… that we are not addressing.” For example, traditional ways of entertaining customers – weekend sporting events, for example – do not create opportunities to “bring more people into the fold.”
Likewise, female clients may feel like outsiders whose concerns will not be acknowledged or addressed. Once, when van Biesen found herself listening to an investment proposal while she and her husband sat at a table in front of an all-male advisory team, she thought, “I’m not going to buy it.”
But his optimism persists: “Canadian financial services are innovative and can make changes and solve these issues.”
For example, large companies are improving their parental leave policies and programs, she noted, with 25 having signed the VersaFi Parental Leave Pledge as of March 27. The commitment includes a promise to provide paid leave, clearly communicate leave policies, and analyze leave-related data.
“In wealth consulting, they are trying to take a hard look at how they can create these on and off ramps for their female wealth advisors,” she said. “This requires really intentional leadership from the administration.”
Industry companies that have signed the pledge include Aviso Wealth Inc., Canaccord Genuity Corp., Desjardins Group, IG Wealth Management, Investment Planning Counsel, Manulife Financial Corp., Raymond James Ltd.
Leading the climb
Innovation is also underway at VersaFi, which changed its name on June 4.
“The industry has changed a lot since 1995” when the organization was founded, van Biesen said. “This name [VersaFi] it is a reflection of the diversity and dynamism of the industry and the women who work in it.”
While the organization has always represented women from diverse backgrounds, “we will be much clearer about this going forward,” she said.
VersaFi “will support and advocate for women and gender diverse individuals in the financial sector from all backgrounds,” a statement said, and will focus on the buy-side, sell-side and fintech.
Van Biesen said his vision is “to be a much bigger voice in the stock conversation in the financial sector across the country.” That means talking about the broken steps phenomenon, bringing more research into the conversation and making sure leaders and organizations walk the talk, she said.
It tells the story of a financial services professional – a woman – who goes through a stressful day at work. It’s the kind of day where you feel like you’re failing at work, failing in your personal life, and might as well throw in the towel.
But the boss says everything will be fine; that this too shall pass. He wants you to stay, he says, because you have a great future.
“That’s leadership,” van Biesen said. “Diversity, inclusion, equity – we call it all. But it’s fundamentally about good leadership.”
This article appears in the June issue of Investment Executive. Subscribe to the print edition, read the digital edition or read articles online.