Addressing Employment Discrimination in the Financial Sector

In recent months, news out of corporate America hasn’t been pleasant. In fact, the tech sector can be pointed to when discussing workplace animosity and discrimination against employees. With a movement to hold those accountable who have committed harassment still in play and a push by company leaders to be more transparent and fair, like Uber, all industries are having to reassess the way they hire and treat employees, including the financial sector.

Discrimination in Financial Services

It’s no secret that women have had a tougher time breaking through to professional success than men, especially in the financial services sector. Banking, investing, fintech⁠—all have been male-dominated in the historical sense. But when women have been let into the offices of banks and other financial institutions, they haven’t been able to operate without a level of harassment from their peers and/or discrimination when it comes to discipline.

Researchers out of the University of Chicago, Stanford, and the University of Minnesota collectively found that women in the financial services sector are three times less likely than men to commit errors, but still receive harsher treatment when they do make a mistake. Women are fired or quit about 55 percent of the time following a mistake compared to 46 percent of men. And when it comes to severance packages, women receive lower benefits altogether.

But not all discrimination in the workplace is geared toward women, and not all of it has to do with hiring, firing, and discipline. Whether it’s visible to the naked eye or hard to interpret or prove, discrimination comes in a number of ways that can still have a major effect on someone.

Here are some other examples:

  • Sexist and harassing behavior
  • Pay inequality
  • Title inequality
  • Retaliation for reporting illegal conduct
  • Hostile work environment
  • Implicit bias
  • Not hiring someone based on age
  • Preferential treatment toward someone younger

Fighting Discrimination and Harassment from All Angles

Harassment and discrimination come in different ways, as you can see above. However, employees are finding just as many ways to fight back against these instances and find the law and support on their side when they make claims.

If something is happening to one employee, it’s more than likely happening to another. Companies are finding that they have no other choice but to address these issues head-on, working alongside feedback from employees to find the best results. One way companies are protecting themselves is through certain bankers professional liability insurance protection that can provide coverage when claims are made. Another way is through opening up discussions with employees as well as providing ore transparent behavior from the top-down.

Employees are also finding support through legal help, bringing claims against banks and playing hardball when they feel they have to. While this isn’t a route that anyone wants to get to and go down, it does help to understand that the law is on the employee’s side.

No one should have to feel they need to put up with certain actions, attitudes, and unfair treatment. By creating an accountable corporate culture and working with employees on how to address these issues honestly and fairly, employees can have a better work environment and banks and financial institutions can see their operations and business turn into respectable places to work.

About Financial Guaranty Insurance Brokers

Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.