By Tina Vasquez (Los Angeles)
Those who’ve been immersed in the world of investment banking for years know all too well that it’s an incredibly difficult, demanding, and time-consuming career path that requires making sacrifices on a very personal level. As if that’s not asking enough of one person, some troubling information has come to light thanks to new research by two of the world’s most esteemed economists, Claudia Goldin, the Henry Lee Professor of Economics at Harvard University and director of the National Bureau of Economic Research’s Development of the American Economy program, and Lawrence Katz, the Elisabeth Allison Professor of Economics at Harvard and a research associate at the NBER.
The study, entitled “Harvard and Beyond,” surveyed 6,500 former Harvard and Radcliff students who graduated between the years 1969 and 1992 and essentially, the economists found that women pay an incredibly high price to be in the finance industry, which is now considered a profession more demanding than medicine or law.
On first read, the report almost sounds as though financial services is one industry hell-bent on not letting women have it all. In the survey, Goldin and Katz found that female investment bankers, for example, who made up for the work they missed after taking time off to have a child, still saw the largest pay decreases.
It also indicates that female investment bankers who took a year and a half off made 41 percent less than their counterparts.
Ask-A-Career-Coach: The Versatility of Specific Graduate Degrees
Ask A Career CoachI recently have graduated with my BS in Business Administration, Finance. I’ve been accepted into University of Richmond to study the Masters of HR Management. I find HR very interesting and want to learn about the subject, but what if later on I decide to focus on a career outside of HR? Will this masters degree hinder me? Since my undergrad is in business, I have absolutely no desire to go for my MBA. They seem like a dime a dozen these days. How would the MHRM be viewed to recruiters in terms of managing other areas of a business? Other departments?
If you ask 10 recruiters the same question, you will get a range of answers. Careers are not an exact science and vary based on an individual’s goals, skill set, personality, drive, etc. In this case, the only thing I am sure about is that you will find some recruiters who highly value the MHRM, some who dismiss it and some who will be in-between.
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Championing the Flexwork Initiative at Your Company: How and Why
Expert AnswersLast week U.S. First Lady Michelle Obama opened the White House’s conference on workplace flexibility, a topic near and dear to her heart. She said, “for many years before coming to Washington, I was a working mother, doing my best to juggle the demands of my job with the needs of my family, with a husband who has crazy ideas.”
She told the story of her last job interview before moving to Washington – she was unable to find a babysitter for her daughter, so ended up having to take her along to the interview. The interviewer was understanding, and she got the job. But, she said, she was lucky – many women wouldn’t have had such good fortune.
The conference, hosted by the Obamas, coincided with the release of a new report by the Executive Office of the President Council of Economic Advisers, “Work-Life Balance and the Economics of Workplace Flexibility” [PDF]. The report makes an economic argument for flexible work programs, noting that there are many challenges to instituting such programs – not the least of which is a lack of facts about their actual costs and related benefits.
The Glass Hammer talked with workplace flexibility expert and co-founder of FlexPaths Meryl Rosenthal on why women can benefit from flexible work arrangements, and how they can encourage flexible work programs in their office.
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Paying the Price: Work/life Issues Most Challenging for Women in Investment Banking
Work-LifeThose who’ve been immersed in the world of investment banking for years know all too well that it’s an incredibly difficult, demanding, and time-consuming career path that requires making sacrifices on a very personal level. As if that’s not asking enough of one person, some troubling information has come to light thanks to new research by two of the world’s most esteemed economists, Claudia Goldin, the Henry Lee Professor of Economics at Harvard University and director of the National Bureau of Economic Research’s Development of the American Economy program, and Lawrence Katz, the Elisabeth Allison Professor of Economics at Harvard and a research associate at the NBER.
The study, entitled “Harvard and Beyond,” surveyed 6,500 former Harvard and Radcliff students who graduated between the years 1969 and 1992 and essentially, the economists found that women pay an incredibly high price to be in the finance industry, which is now considered a profession more demanding than medicine or law.
On first read, the report almost sounds as though financial services is one industry hell-bent on not letting women have it all. In the survey, Goldin and Katz found that female investment bankers, for example, who made up for the work they missed after taking time off to have a child, still saw the largest pay decreases.
It also indicates that female investment bankers who took a year and a half off made 41 percent less than their counterparts.
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Voices of Experience: Janet Thomas, Director, Citi FX Prime
Voices of Experience“Foreign Exchange is exciting,” says Janet Thomas, Director at Citi Foreign Exchange Prime. “The pace of change is so fast that trading takes place in microseconds.”
Thomas has played a key role expanding the business from a start-up to being ranked a key global FX Prime of strategic importance to clients. “The relationship I have with clients is one of the most rewarding aspects of my position,” she says. “Some clients have expanded their business through acquisitions as unprecedented market conditions presented once in a life time opportunities; others have devised pioneering new models of business and substantially increased their profits.”
Thomas joined Citi FX Prime in 2006, and was very excited about the challenges ahead – and economically it has been an interesting time since then. She believes that the foreign exchange market has been incredibly resilient during the credit crisis which has decimated other business areas in financial services. “It’s at the epicentre of any political, economic and social change and these factors impact the market immediately,” she says.
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Top Five Body Language Tips to Earn Your Next Promotion
Expert AnswersBody language and wining trust with our nonverbal signals are some of the most important gestures in business.
There are some fundamental pieces of nonverbal communication that you can use to better control a conversation, command attention and convey the right messages, because they are fundamentally about our cultural shared physicality – regardless of gender. Here are the top five tips body language tips from my new book Winning Body Language (McGraw-Hill 2010).
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Gender parity in the workplace: Is it only a matter of CEOs believing the business case for change?
Featured, Industry Leaders, LeadershipYes and no. Yes we need all CEO’s to understand the bottom line impact of this productivity issue on their businesses. However that is only part of the solution as strategic plans must be designed and implemented with some sort of a target attached and consequences if targets are continually missed- like any other business function.
The 2010 Catalyst awards dinner showcased their latest research Pipeline’s Broken Promise, which is an excellent piece of work. The new study highlights that men have higher starting salaries in their first post-MBA job than women even after taking into account number of years of prior experience, time since MBA, first post-MBA job level, global region, and industry. These salary differences are not due to different aspirations or parenthood.
Career profiles were examined from 9,927 alumni who graduated between 1996 and 2007 from MBA programs at 26 leading business schools in Asia, Canada, Europe, and the United States. As the Catalyst report points out, the premise of the promise of gender parity occurring sooner rather than later is that the pipeline for women into senior leadership is robust. After all, over the past 15 years, women have been graduating with advanced professional degrees in record numbers – often equal to or even surpassing the rates for men, swelling women’s representation in managerial ranks. Concurrently, companies implemented diversity and inclusion programs to eliminate structural biases and foster women’s full participation in leadership. However the percentage growth of women in senior leadership positions would suggest otherwise. Hence the promise is broken that there is a pipeline of women coming up through the ranks.
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Movers and Shakers: Shamina Singh, Chief Operating Officer, Global Community Relations, Citi
Movers and Shakers“Courage, I think, is something that is cultivated,” said Shamina Singh, Chief Operating Officer, Global Community Relations at Citi.
After spending 15 years working in high profile public sector jobs – Senior Advisor to Nancy Pelosi, Speaker of the House of Representatives; President Clinton’s U.S. Department of Labor’s Congressional Liaison on health care issues, and Deputy Executive Director of America Votes to name just a few – Singh found the courage to take a dramatically different route.
She said, “I was ready for a change and wanted to explore new opportunities while leveraging the experience I had built in the public sector. …after learning about [Citi] and the potential to move the needle on global issues, I realized it was the right fit for me.” Singh was also recently named to the Young Global Leaders program of the World Economic Forum – another opportunity to expand her global outreach.
“We can’t afford not to be talking to each other across the world,” she said.
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New Morgan Stanley Program Focuses on Diversity – Despite Tough Economic Climate
Industry Leaders, LeadershipAs we recently learned from the new Accenture study focusing on women leaders and resilience, despite a rough economic climate many companies are not only choosing to keep women’s initiatives and leadership programs, but in many cases they are expanding them and creating new ones altogether.
In December of last year, Morgan Stanley did just that by announcing its new Emerging Manager Program (EM Program), which, according to the company, “seeks to identify and provide capital, as well as strategic advice and infrastructure solutions to emerging asset managers.” What’s impressive is that the program will place a specific emphasis on including minority and women-owned asset managers.
The EM Program will be headed by Carla Harris, a 23-year veteran of Morgan Stanley. Currentlya Managing Director in Morgan Stanley Investment Management (MSIM), and chair of the Firm’s Private Placement Commitment Equity Committee, Harris was a logical choice as champion of the program due to her long tenure in the industry and as a high profile successful minority player. The actual manager participants themselves will be overseen by an investment committee comprising representatives and senior management from across Morgan Stanley.
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Aspire: The Leadership Advantage
News“This new century needs a new generation of leaders who are more transformational and embrace their feminine qualities,” says Dr Samantha Collins, Founder of Aspire, an executive coaching and leadership development consultancy that has recently released a report into successful leadership styles. “The old school style of many politicians and corporate CEO’s is on the way out and transformational leadership behaviours are on the way in.”
“In this latest research it appears that the financial and political events at the end of the last decade have given us pause for thought,” says Catherine Shovlin, Director at Customer Interpreter, a strategic research consultancy which co-produced the report.
The report, Tearing up the Rule Book: A New Generation of Leaders for 2010, introduces the new measure of Leadership Intelligence (LI). LI measures rate your ability to be a successful leader, and what makes a successful leader in today’s economy is not what you would necessarily expect.
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Voice of Experience: Wanda Eriksen, Partner, Assurance, PricewaterhouseCoopersAG
Voices of Experience“I see myself riding a wave,” explained Wanda Eriksen, Assurance Partner at PricewaterhouseCoopers’ Zurich office and founder of its Women’s Initiative. “I think that I’m really part of the change. Looking back, I’m going to be in that group to really have more opportunity.” Eriksen sees a shift in attitudes regarding women in the workplace – an acceptance that grows larger with each generation.
She recalled how she had been approached to spearhead the Women’s Initiative for PwC Switzerland. “Until about four years ago, I was not even remotely informed about gender issues. I was like, ‘I don’t want to start any trouble!’” she joked. “In the beginning I needed to be convinced. [In Switzerland], we were probably about 10 years behind the U.S.,” regarding gender activities.
“I don’t want to say there are barriers… there aren’t a lot of women in leadership positions,” Eriksen explained, attributing this to the “little me” syndrome, in which leaders (usually men) promote people who are like themselves or take someone similar to themselves under their wing. “It’s more related to behavior than barriers,” she said. “I also see that things are changing, solely through the increasing volume of women choosing to have a career.”
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