






































1 

The Role of Signaling When Promoting Diversity and 
Inclusion at the Firm Level: A Financial Advisory 

Professional Case Study 

Kenneth White, Ph.D. 
University of Georgia 

Kim Love, Ph.D. 
K.R. Love Quantitative Consulting and 

Collaboration 

Erin Bruce 
University of Georgia 

Megan McCoy, Ph.D., LMFT 
Kansas State University 

Eun Jin Kwak 
University of Georgia 

John Grable, Ph.D., CFP® 
University of Georgia 

Based on signaling theory and visual perception theory, this study evaluated how financial advisory 
firms depict diversity through online platforms. Signals sent by firms may impact outsiders’ 
understanding of race and gender inclusion at the firm level, which may explain why some struggle to 
recruit and retain a diverse workforce. To evaluate, 1,379 advisor biographies on 73 firm websites 
were analyzed. In this study, 29% of all client-facing advisors with known gender were women; only 
0.5% of those with known race were Black. This is much lower than what other studies, based on 
different industrial codes, have reported. The fact that White males featured predominantly in 
depictions of employees on firm websites may influence who applies for positions in financial advisory 
firms. This signaling pattern may also indicate hiring preferences among firm owners and managers. 
Results have implications for firms that wish to recruit and retain a diverse workforce.  

Keywords: Diversity; Inclusion; Signaling; Perception; Hiring; Black; Women; Financial Planning 

Introduction 
Firms of all sizes and descriptions generally aim to hire the best available applicant for open 

positions regardless of race or gender (Gilbert, Alder, &  McAllister, 2010). Many firms hiring practices 
are also focused on increasing workforce diversity because the role of inclusion is an important human 
resource outcome. The financial advisory profession is one field that continues to face challenges 
related to diversity and inclusion in the workforce. As of December 2017, women accounted for over 
50% of the general population but only 33.5% of all financial advisors. Blacks accounted for 12.7% 
of the total population but only 5.0% of personal financial advisors (U.S. Department of Labor, 
Bureau of Labor Statistics [BLS], 2018; U.S. Census Bureau, 2017). The financial advisory profession 

http://journals.sfu.ca/abr ADVANCES IN BUSINESS RESEARCH 
2019, Volume 9, pages 1-16 



 

2 
 

has cumulatively spent millions of dollars studying why women and Blacks are reluctant to join the 
financial advisor workforce. To date, few comprehensive answers have been identified. 

This inclusion-gap is perplexing. Personal financial advising is a helping profession known for 
high wages, fast job growth, and career satisfaction. Financial advisors are inherently a “client-facing” 
profession, in which the advisor directly and consistently interfaces with the client. Personal financial 
advisors earn median annual wages of $88,890, the highest median pay of all business and financial 
occupations tracked by the BLS Occupational Outlook Handbook (2017a). In addition to high wages, 
personal financial advisors are also one of the fastest growing business and financial occupations with 
a projected 10-year job growth rate of 15% (BLS, 2017a). Furthermore, professionals working in the 
field express a high level of career satisfaction. Financial advisors often state that they obtain high 
intrinsic satisfaction using their financial knowledge to help individuals and families attain short-term 
and long-term financial and life goals (Certified Financial Planner Board of Standards [CFP Board], 
2018a).  

Despite being an occupation with high wages, job growth, and career satisfaction, the 
profession lacks diversity. A high proportion of professionals that work directly with clients (“client-
facing”) are White men. As noted above, historically, women and Blacks have not often occupied 
client-facing advisory roles.  

Diversity issues in the personal financial advising workforce appear to be at a crisis level. A 
recent study conducted by the Certified Financial Planner Board of Standards, Inc. (CFP Board, 
2018a) suggests that rates of client-facing participation for women and Blacks are even lower than 
reported by the Bureau of Labor Statistics, with only 23.4% of women and 3.5% of Black (or Latino) 
advisors serving in this role. The conclusion is a stark one: in a profession whose primary mission is 
to help a cross-section of the population achieve financial goals, the ranks of client-facing 
professionals are not reflective of the U.S. population. Unfortunately, this is not a problem faced only 
by firms operating in the financial advisory space. 
 Even when women and Blacks join the ranks of financial advisory firms, their compensation 
is not representative of universally equal treatment when compared to White males (Lahey & Quist-
Newins, 2011). Among all other business and financial occupations, personal financial advisors exhibit 
the greatest percentage difference in median weekly earnings between men ($1,714) and women ($953) 
(BLS, 2017b). The combination of disproportionate representation (CFP Board, 2018a) and 
unbalanced wages (BLS, 2017b) has led to White men dominating the practice of providing financial 
advice (BLS, 2018), primarily because retention rates for women and Black advisors tend to be quite 
low.   
 The purpose of this study was to analyze information gathered from the websites of financial 
advisory firms to explore the rates of female and Black financial advisors in client-facing positions 
(Heo, Park, Henager, & Grable, 2018). Based on signaling and visual perception theories, it was 
hypothesized that the images used by financial advisory firms on public websites may be one 
explanation for the ongoing lack of representative diversity within the financial advisory field. While 
other studies of representation in financial advising have relied on self-reported data from 
questionnaires, this study is unique in that it used data collected by observing each firms’ online 
presence as a form of signaling to potential new hires. The remainder of this paper is structured as 
follows. The literature review provides more information about diversity within the financial advisory 
field. Signaling theory and visual perception theory are then introduced. The research methodology is 
then presented. This is followed by study results and a discussion of findings. 
 

Literature Review 
 Although the problem of representative diversity has been identified as a universal human 
resource issue, diversity and inclusion research pertaining to the financial advisory and financial 
services profession is still in an infancy stage. There have been numerous studies conducted to learn 



 

 

3 
 

about women and Blacks’ use of financial advisory services, but few of these studies have addressed 
the disparity in gender and race within the profession, especially among those in client-facing 
positions. Even fewer studies have provided firm-specific or policy recommendations to help improve 
workforce inclusion.   
 The primary source for workforce inclusion data and insights related to financial advisory 
services comes from the CFP Board. CFP Board released two comprehensive studies on the issue in 
2014 and 2018. These reports made two observations: first, White men tend to be predominately 
involved in client-facing roles, and second, women and Black financial advisors face challenges in the 
recruiting, hiring, and retention process due to perceived hiring and promotion biases at the firm level 
(Zhang et al., 2017). Whether these takeaways are an artifact associated with historical advisory 
recruitment practices, cultural awareness of financial advisory services as a profession, or a (the) result 
of systematic firm preferences in the hiring process is worthy of future study. The first step in 
addressing diversity questions is to determine the extent to which advisory firms are signaling, in the 
public domain, who has client interfacing responsibilities at the firm level. These signals are, either by 
serendipity or by design, intended to inform potential clients, and by default potential new hires, who 
will be providing advice and counsel on a day-to-day basis. 
 
The Role of Black Financial Advisors 
 The United States has a diverse population that varies by race and ethnicity; however, the 
financial advisory profession does not reflect this racial diversity (MacBride, 2015). Research funded 
by the CFP Board (2018a)1 indicates that there are three factors that contribute to the lack of racial 
diversity in the financial advisory profession. First, the face of the financial advisory profession has 
historically been White men. A majority (59%) of respondents in a 2018 CFP Board study described 
the primary image of a financial advisor as a White man, whereas 3% of respondents described 
financial advisory work as being something done by Black men (CFP Board, 2018b). Second, hiring 
preferences by firms has limited the number of Blacks that work in advisory roles. A CFP Board 
(2018b) study revealed that 56% of financial professionals agreed that Whites are more likely to be 
hired than Blacks, even though 78% of financial professionals thought no difference in skills exists 
between Whites and Blacks. The reasons for this, according to CFP Board (2018a), are due to the fact 
that (a) predominantly White clientele prefer working with advisors with a similar cultural/ethnic 
background; (b) firms hire employees from existing social networks, which tend to be White; and (c) 
firms equate “fit” and “existing corporate culture” with being a White male. Although the scarcity of 
minority financial advisors makes it difficult for clientele to engage the services of a non-White advisor 
(Eisenberg, 2018), which itself is problematic, CFP Board’s study hinted at the possibility that ongoing 
hiring biases reinforce racial discrimination (CFP Board, 2018a). Third, on-boarding and retaining 
practices in firms tend to be unfavorable for Blacks due to lack of representation, opportunities for 
professional and career development, and subtle forms of racist biases at the office level (CFP Board, 
2018a).2 Historic perceptions of financial advisor identity, hiring preferences, and unfavorable on-
boarding and retaining practices reinforce racial disparities in the field. When viewed holistically, 
Blacks may not think of a career as a financial advisor primarily because the cultural signals sent by 
firms operating in the space have, intentionally or otherwise, presented a cultural image that is foreign 

                                                 
1 The 2018a CFP Board study was based on an online survey of professionals at financial firms responsible for 

recruiting and hiring financial advisors, current Black CFP® professionals, other CFP® professionals, consumers with 

investable assets or income of $100,000 or more who were working with a financial advisor at the time of the survey, 

Black and Latino business professionals, and students between the ages of 20 and 54. Additional insights were based 

on qualitative interviews and focus groups with the same constituent groups. A sample of 2,276 adults from the United 

States participated in the study. 
2 Many of the diversity hiring initiatives undertaken within financial advisory firms have occurred at the corporate and 
non-client-facing level, with most client-facing hiring decisions being made at the local office level.  



 

4 
 

to non-Whites. Signaling and cultural factors are similar to those that inhibit women from entering 
the profession. These are reviewed below. 
 
The Role of Women Financial Advisors 
 Over the past decade, financial advisory regulatory and certification boards have taken notice 
of gender discrepancies in the financial advisory profession. In April 2017, for example, the CFP 
Board launched the “I am a CFP Pro” media campaign to encourage young people, women, and 
people of color to become financial advisors. Moreover, CFP Board’s Women’s Initiative (WIN) has 
operated since 2013 to support women in pursuing careers in the financial advisory profession.  

Despite efforts by CFP Board and other organizations, nearly all diversity studies, in the 
domain of the financial advisory profession, reveal aspects of gender discrimination. Consider a 2014 
study commissioned by CFP Board.3 A large percentage of study participants (41%) believed that men 
were more likely to exhibit attributes of financial advisor success compared to women (Blayney, 2016; 
CFP Board, 2014). This misperception impacts hiring procedures. The financial advisory profession 
was built on creating and maintaining relationships with clients (Kurlowicz, 2014). Although women 
financial advisory professionals tend to demonstrate more strengths, compared to men, in relation to 
building and maintaining healthy relationships built on trust and commitment (i.e., women are more 
likely to act as caregivers) (Domski, 2018; Garmhausen, 2016; Kurlowicz, 2014), 43% of male and 
40% of female financial advisory professionals in the surveys believed that men were favored over 
women when it came to hiring (CFP Board, 2014). Some research has even suggested that firms are 
reluctant to hire women because of childbearing or family issues and that firms have not yet overcome 
organizational attitudes that favor men and minimize the career trajectory of female employees (Bisco, 
Gradisher, & Mulholland, 2018; CFP Board, 2018a). Once hired, women often face a work culture 
that caters to male colleagues. More than half of the financial professionals in the 2014 CFP Board 
study noted that lack of mentoring and role model programs designed for female financial advisory 
professionals, male-centered training systems, and production-based assets under management 
(AUM) pay models contribute to a work culture more conducive to men (CFP Board 2014; Domski, 
2018). These perceptions may be a legacy of a culture established by senior leaders who are older, 
White, men from similar socioeconomic backgrounds (Jaekel & St-Onge, 2016). 
 
Explanations for a Lack of Diversity and Inclusion 
 While much of the literature on racial/ethnic and gender trends in the financial advisory 
profession point to systemic barriers that limit hiring and promotion opportunities for Blacks and 
women, other explanations have been proffered to explain the relatively low numbers of non-Whites 
and women serving in client-facing roles. One explanation stems from research conducted on the 
ways corporate leaders create and use social networks (James, 2000; Murrell & James, 2001). A 
network is a “fabric of personal contacts who will provide support, feedback, insight, resources, and 
information” (Ibarra & Hunter, 2007) to one or more people. Given that historically there have been 
relatively few Blacks or women in positions of power in financial advisory firms, and concurrently few 
Blacks or women in client-facing roles, there may be few social networks to help promote the financial 

                                                 
3 CFP Board “conducted an extensive literature review, commissioned two original research projects, and included 
questions in a separate consumer research project on the issue of gender preference for advisors.” The purpose of the 
study was to (a) identify the reasons for the underrepresentation of women in the profession and (b) explore strategies to 
increase the number of women CFP® professionals. The first stage of research involved 1,792 qualitative interviews with 
firm executives, academics, and students. The second stage of research was based on analyzing data from online surveys 
that was designed to identify differences between male and female financial advisors. Data were obtained in 2012 and 2013 
from 1,100 U.S.-based financial advisors. CFP Board also obtained data from a 2014 Economics of Loyalty survey. The 
survey was designed to identify (a) the role of gender in choosing a current advisor, (b) the role of gender in choosing an 
advisor to work with, (c) the perceived attributes that describe a financial advisor, and (d) the reasons for preference for 
one gender over another. The survey included 1,229 respondents. 



 

 

5 
 

advisory profession among underrepresented populations. Closely linked within this concept is the 

issue of cultural awareness (Rew, Becker, Cookston, Khosropour, & Martinez, 2003; Smith‐Miller, 
Leak, Harlan, Dieckmann, & Sherwood, 2010). Without appropriate role models, those pursuing a 
college education, and those considering a career change, may overlook the financial advisory 
profession (Almquist & Angrist, 1971; Flouri & Buchanan, 2011; Gibson, 2004; Karunanayake & 
Nauta, 2011; Quimby & DeSantis, 2011; Rivera, Chen, Flores, Blumberg, & Ponterotto, 2007). This 
can reinforce the perception that the profession is unfriendly towards people of color and women.  
 It is also possible that young people—those contemplating attending college and those making 
degree and career choices— don’t view financial advisory work as a viable career option. This 
perception may have nothing to do with hiring and promotional biases, but rather, thoughts about the 
career in general. Stated another way, the pipeline of new advisors may not be large enough to make 
an impact on hiring outcomes (Ezzedeen, Budworth, & Baker, 2015). Consider a typical large financial 
advisory firm. Assume the firm needs to hire 1,000 people to fill open positions. To maintain 
representation with the U.S. population, the firm would need to hire approximately 150 Black 
candidates. A key question is whether the firm could find this number of qualified candidates. When 
multiplied across the profession, there simply may not be enough people studying financial planning 
and advisory services at the college level to fill open positions. 
 There is another explanation, one that may be at the root of diversity and inclusion issues 
facing the financial advisory profession. The profession may be inadvertently sending cues and signals 
to potential new hires (i.e., college graduates and career changers) that financial advisory services are 
primarily designed to meet the needs of a White male clientele, with limited opportunities for those 
who are Black or female. This hypothesis is founded on the simple notion that people consider visual 
cues presented by firms operating in a sector of the marketplace when deciding to pursue a particular 
career. If the cues are skewed towards an image that creates cognitive dissonance, a potential new hire 
will shy away from the career option. 
  This hypothesis is supported by two theories: signaling theory and visual perception 
theory. Signaling theory describes how financial advisory firms (signalers) communicate information 
(signals) about operating procedures through one or more public platforms (e.g., an online presence) 
(Spence, 1973). Potential employees often check firm websites to collect information about work 
culture to determine if working for the firm will be a “good fit.” If a firm’s website(s) shows that the 
majority of current employees are a certain race and gender, this may signal the firm’s hiring 
criteria. Potential employees may then believe that the firm’s culture—by design or by chance—is 
hostile to non-White male employees. The informational value of a website comes from the idea that 
potential employees believe a firm’s online presence is positively associated with the firm’s culture 
where non-Whites and women will struggle to fit in. Based on signaling theory, a firm’s online 
presence enables potential employees to obtain cues about a commitment to diversity and inclusion.     
 Visual perception theory also suggests that people form perceptions of a task, behavior, or 
entity by receiving information from the environment through the physical sense of sight (Gibson, 
1966; Gregory, 1970, 1974). According to Gibson (1972), perceptions are direct sensations that imply 
‘what you see is what you get.’ In the context of the present study, what one sees on firm websites 
tends to be White men (both as advisors and clients). Visual perception theory leads one to the 
following conclusion: based on what a firm presents, the firm should expect to receive exactly what is 
presented. In this case, by presenting images of White men, it is reasonable to expect White men to 
apply for positions in the profession. As noted by Gibson (1966, 1972), perceptions influence reality. 
Perceptions and reality can, therefore, be explained by means of the sensory environment.  
 While there are numerous possible reasons why the financial advisory profession has 
historically experienced a lack of diversity and inclusion, moving forward, it is important to accumulate 
data on the reasonable explanations for diversity challenges. Results from such studies can be used to 
help solve diversity and inclusion shortfalls in other professions as well. The current study was 



 

6 
 

designed to examine dominant signals and visual environments presented by and resulting from 
perceptions of financial advisory firms. If potential new hires and the general public (observers) see 
dominant images of White males as the primary client-facing professionals in a firm (environment), it 
is reasonable to hypothesize that this may create the perception that companies prefer to 
hire primarily White male applicants. Once potential employees perceive a representative firm 
employee as White and male, they may come to believe this race and gender to be preferred regardless 
of ability. By evaluating the online cues sent by financial advisory firms it may be possible to provide 
one explanation as to why qualified minority applicants are often discouraged in seeking a career as a 
financial advisor. 
 

Methods 
Data Collection and Coding 
 The data collected and analyzed for this research were obtained from the publicly available 
websites of the largest financial advisory firms in 2016 as listed in Financial Planning Magazine. Financial 
Planning Magazine is a widely distributed and read publication serving employees and managers of small, 
mid-size, and large financial advisory firms operating in the United States. The firms in the report were 
listed from largest to smallest based on assets under management (AUM). The study used data from 
73 of the largest firms. The choice of the firms was dictated by the availability of photographs and 
advisor biographical information on each firm’s website. Each firm’s website was viewed to acquire 
preselected items of information about the firm’s advisory staff. Data on support staff (i.e., human 
resources personnel, receptionists, etc.) were not collected.  
 Biographies of advisors were also reviewed for the following information: AUM by advisor, 
home office location, advisor first and last name, advisor’s title at the firm, whether or not the advisor 
was client-facing, the advisor’s gender, whether or not the advisor was Black (if photo available), the 
advisor’s academic degree and level of education, the advisor’s certifications and designations (e.g., 
CFP, CFA, CPA, etc.), and social networks (i.e., the type of volunteer work performed by the advisor).    

Once advisor data were gathered from each firm’s website(s), each firm and advisor were 
assigned a unique identification number. Personal identifiers were removed from the dataset. Codes 
were assigned for each region of the country (Northeast, South, West, Midwest, and Pacific) and for 
advisor education (no degree, bachelors, master’s, and terminal). Each advisor’s information was then 
coded based on the region and education codes. Firms with no websites, websites with no advisor 
photos, and advisors with no biographies were excluded from the dataset. 
 Though only advisors with biographies were included in the dataset, some biographies 
excluded desired information. When this occurred, the advisor was still included in the study, but 
omitted information was coded as missing. Every advisor was assigned a region, but not every advisor 
was reported as having an academic degree. If no degree or school was listed in an advisor’s biography, 
it was assumed the advisor had no degree. Race was determined by visual analysis (by the research 
team) of photos on each firm’s website; triangulation among the research team was a prerequisite prior 
to race coding. The final dataset included 1,379 advisors.  
 
Dependent Variable 

The dependent variable was whether or not an advisor was client-facing (1 if individual is 
client-facing; 0 otherwise). The determination of client-facing status was made primarily from the 
context of each financial advisor’s biography and secondarily by the advisor’s job title.  
 
Independent Variables 
 Gender (1 if individual is a female; 0 otherwise) and race (1 if individual is Black; 0 otherwise) 
were the primary independent variables used in this study. Differences between men and women, and 
Blacks and non-Blacks, were tested. Gender was determined by triangulating each advisor’s 
biographical photograph, the advisor’s first name, and pronouns from the biography. Race was 



 

 

7 
 

assumed to be Black or non-Black based on available photographs. Black was the only race 
distinguished in the data. 

Covariates included advisor region (Northeast = 1, South = 2, Midwest = 3, or West = 4, 
determined by the address of the firm’s home office), education (no degree = 0, bachelor’s = 1, 
master’s = 2, or doctoral = 3), Certified Financial Planner (CFP) status (1 if individual is a CFP; 0 
otherwise), Chartered Financial Analysts (CFA) status (1 if individual is a CFA; 0 otherwise), Certified 
Public Accountant (CPA) status (1 if individual is a CPA; 0 otherwise), number of other designations 
(0 to a maximum of 4), and volunteer status (1 if individual volunteers; 0 otherwise), determined by 
whether the advisor explicitly stated that they volunteer in their community or profession). It is 
important to note that education and professional designations were considered proxies for human 
capital, while volunteer status was considered a proxy for social capital (González-Romá, Gamboa, & 
Peiró, 2018). Interaction terms between gender and each covariate were also estimated.  
 
Method of Analysis 
 The statistical analysis was designed to achieve two research objectives. The first objective was 
to determine how gender is related to the covariates included in the data, as well as how gender is 
directly related to the probability of being in a client-facing position without accounting for covariates. 
This analysis used a series of chi-square tests and gamma statistics to measure those associations. The 
second objective was to determine how gender is related to the probability of being in a client-facing 
position in the context of the covariates. This analysis used a multivariate logistic regression model 
Significant results were further examined using post-hoc pairwise comparisons, when appropriate. 
Note that although descriptive statistics are provided for race as well as gender, statistical tests were 
not run for race due to the very small number of Black advisors in the data set. 

 
Results 

Differences by Gender and Race 
 Table 1 summarizes the gender and race frequency distributions in the dataset. Out of 1,379 
advisors in the dataset, 29% with known gender were women, only seven advisors (0.5% of those with 
known race) were Black, and only one individual was both a woman and Black. Note that statistical 
tests of race-related differences in advisors were hampered by the very small number and proportion 
of Black advisors in the dataset, although this serves to highlight the paucity of Black advisors visible 
to the public through website information. 
 
Table 1. Summary of Advisor Gender and Race Characteristics 

 

Trait 
Number in 
Category 

Number Non-
Missing Percent 

Female 395 1361 29.0% 

Black 7 1356 0.5% 

Female and Black 1 1346 0.1% 

  
Table 2 summarizes the distribution of other variables categorized by gender. Table 2 includes 

chi-square tests and gamma test statistics. There were statistically significant differences at the p < 0.05 
level of significance for client-facing roles (80.0% of men and 73.5% of women were in client-facing 
roles), firm region (men in the sample were more likely to work in the South compared to women, 
while women in the sample were more likely to work in all other regions), education (women were 



 

8 
 

more likely to be less educated), and CFA (men were more likely to hold the CFA certification). There 
were no statistically significant differences between CFP or CPA status, the number of other 
professional designations held, or volunteer status. 
 
Table 2. Distributions of Study Variables within Gender 
 

  Gender     

    Male n (%) Female n (%) χ2 df γ P 

Client-Facing 
Yes 748 (80.0%) 277 (73.5%) 6.694 1  0.010 

No 187 (20.0%) 100 (26.5%)         

Firm region 

Northeast 183 (18.9%) 87 (22.0%) 17.203 3  0.001 

South 311 (32.2%) 84 (21.3%)     

Midwest 275 (28.5%) 122 (30.9%)     

West 197 (20.4%) 102 (25.8%)         

Education 

None 91 (12.2%) 56 (17.9%)     -0.113 0.049 

Bachelor's 382 (51.1%) 154 (49.2%)     

Master's 241 (32.3%) 92 (29.4%)     

Doctoral 33 (4.4%) 11 (3.5%)         

CFP 
CFP 408 (42.3%) 173 (43.8%) 0.264 1   0.608 

No CFP 557 (57.7%) 222 (56.2%)         

CFA CFA 172 (17.8%) 36 (9.1%) 16.358 1   < 0.001 

No CFA 794 (82.2%) 359 (90.9%)         

CPA 
CPA 103 (10.7%) 38 (9.6%) 0.325 1  0.569 

No CPA 861 (89.3%) 356 (90.4%)         

Number of 
Other 
Designations 

0 740 (76.6%) 310 (78.5%)   -0.058 0.392 

1 170 (17.6%) 68 (17.2%)     

2 43 (4.5%) 14 (3.5%)     

3 9 (0.9%) 0 (0.0%)     

4 4 (0.4%) 3 (0.8%)         

Volunteer 
Yes 262 (27.1%) 91 (23.0%) 2.434 1  0.119 

No 704 (72.9%) 304 (77.0%)     

  



 

 

9 
 

Table 3 summarizes the distribution of other variables by race categories. Table 3 does not 
include statistical tests due to the small number of Black advisors in the dataset. From the percentages 
alone, it is possible to conclude that the majority of Black (71.5%) and non-Black (78.9%) financial 
advisors were client-facing. For both Black and non-Black advisors, slightly less than half were CFP 
certificants. No Black advisors held a CFA or CPA or another professional designation. Of the seven 
Black advisors in the dataset, four (57.1%) worked in the South, as opposed to 29.0% of non-Black 
advisors. 
 
Table 3. Distributions of Study Variables within Race 

  Race 

    Black n (%) Non-Black n (%) 

Client-Facing 
Yes 5 (71.5%) 1024 (78.8%) 

No 2 (28.6%) 276 (21.2%) 

Firm region 

Northeast 0 (0.0%) 269 (19.9%) 

South 4 (57.1%) 391 (29.0%) 

Midwest 1 (14.3%) 394 (29.2%) 

West 2 (28.6%) 295 (21.9%) 

Education 

None 0 (0.0%) 149 (14.2%) 

Bachelor's 3 (75.0%) 527 (50.1%) 

Master's 1 (25.0%) 333 (31.7%) 

Doctoral 0 (0.0%) 42 (4.0%) 

CFP 
CFP 3 (42.9%) 575 (42.7%) 

No CFP 4 (57.1%) 773 (57.3%) 

CFA 
CFA 0 (0.0%) 207 (15.3%) 

No CFA 7 (100.0%) 1142 (84.7%) 

CPA 
CPA 0 (0.0%) 141 (10.5%) 

No CPA 7 (100.0%) 1205 (89.5%) 

Number of Other 
Designations 

0 7 (100.0%) 1041 (77.2%) 

1 0 (0.0%) 238 (17.6%) 

2 0 (0.0%) 54 (4.0%) 

3 0 (0.0%) 9 (0.7%) 

4 0 (0.0%) 7 (0.5%) 

Volunteer 
Yes 2 (28.6%) 346 (25.6%) 

No 5 (71.4%) 1003 (74.4%) 



 

10 
 

Gender and Client-Facing Roles 
 A logistic regression to determine if an advisor occupied a client-facing role was conducted, 
with gender as the primary independent variable. The purpose of this test was to determine how 
women differ from men with respect to being placed in client-facing roles. Covariates included firm 
region, education, CFP status, CFA status, CPA status, number of other professional designations, 
and volunteer status, as well as interactions of each covariate with gender (n = 1008). The results of 
the test are provided in Table 4. 
 
Table 4. Overall Results of Logistic Regression Model Estimating Probability of Client-Facing Role 

Variable Wald χ2 df p 

Gender 2.234 1 0.135 

Firm region 40.51 3 < 0.001** 

Education Code 4.477 3 0.214 

CFP 32.946 1 < 0.001** 

CFA 2.08 1 0.149 

CPA 0.02 1 0.888 

Other Designation 0.085 1 0.771 

Volunteer 3.52 1 0.061 

Gender * Firm region 0.588 3 0.899 

Gender * Education Code 14.479 3 0.002** 

Gender * CFP 0.837 1 0.360 

Gender * CFA 0.232 1 0.630 

Gender * CPA 0.027 1 0.870 

Gender * Other Designation 2.966 1 0.085 

Gender * Volunteer 2.922 1 0.087 

       * = 0.05 level of significance, ** = 0.01 level of significance 
 

As shown in Table 4, gender was not statistically significant in the model, but there was a 
statistically significant interaction between gender and education. Post-hoc pairwise comparisons are 
provided in Table 5. There was a statistically significant difference between men and women who did 
not have a degree, with 87% of men and 54% of women being in client-facing positions. There were 
no other significant differences between men and women. Figure 1 shows the probabilities of men 
and women being in client-facing roles by education level. 
 
 
 



 

 

11 
 

Table 5. Post-hoc Pairwise Comparisons of Males and Females within Education Levels 

    
95% Confidence 
Interval 

  

 

Education Gender Est. Prob. Std. Error Lower  Upper Wald χ2 df P 

No Degree 

Male 0.87 0.048 0.74 0.94 

6.307 1 

0.012 

No Degree 

Female 0.54 0.120 0.32 0.75 

  

  

Bachelor’s Male 0.76 0.038 0.68 0.83 0.274 1 0.601 

Bachelor’s Female 0.80 0.059 0.66 0.89     

Master’s Male 0.84 0.021 0.77 0.89 0.376 1 0.540 

Master’s Female 0.80 0.058 0.66 0.89     

Doctoral Male 0.83 0.066 0.66 0.93 2.541 1 0.111 

Doctoral Female 0.54 0.174 0.23 0.82    

 

 
 
Figure 1. Probability of Client-Facing Role by Education, Men v. Women (with 95% confidence 
intervals) 
 

There were also statistically significant effects associated with firm region and CFP status. 
Table 6 provides the proportions of client-facing advisors in each region. Advisors from the Midwest 
were less likely to be client-facing when compared to all other regions (58% client-facing, while other 
regions were 78% to 84% client-facing). Table 7 provides the proportion of client-facing advisors by 
CFP status. Advisors with who held the CFP certification were more likely to be client-facing (85% 
versus 65%). 
 
 

0.

0.25

0.5

0.75

1.

No Degree Bachelor's Master's Doctoral

P
ro

b
ab

ili
ty

 o
f 

C
lie

n
t-

Fa
ci

n
g 

R
o

le

Education

Men

Women



 

12 
 

 
Table 6. Model-Estimated Probability of Client-Facing Role by Firm region 

   95% Confidence Interval Regions with same 
letter not significantly 
different (p < 0.05) 

Firm region Est. Prob. Std. Error Lower  Upper 

Northeast 0.78 0.051 0.66 0.86 A 

South 0.80 0.041 0.71 0.87 A 

Midwest 0.58 0.057 0.47 0.69 B 

West 0.84 0.037 0.76 0.90 A 

 
Table 7. Model-Estimated Probability of Client-Facing Role by CFP Status 

   95% Confidence Interval 

CFP Est. Prob. Std. Error Lower  Upper 

CFP 0.85 0.032 0.77 0.90 

Non-CFP 0.65 0.048 0.55 0.74 

 
 

Discussion 
 Results from the analysis illustrate that the public image, presented by financial advisory firms 
through public online venues, of client-facing financial advisors tends to be primarily that of a White 
male. Given the small percentages of women and Blacks at firms, it is possible, that potential new 
hires form a perception that financial advisory firms—and the larger financial advisory profession—
do not value or promote a culture of diversity and inclusion. Regardless of perceptions, the results 
suggest certain messages or signals are being transmitted to the public. It is possible, as posited by 
signaling theory and visual perception theory, that Blacks and women are internalizing these images 
and drawing conclusions about the cultural integrity of some financial advisory firms. The most overt 
signal presented to someone who casually glances at the websites of the firms included in this study 
would be that there are very few Black advisors working in client-facing positions.  
 It may be that Blacks, in client-facing positions, are more prevalent in smaller firms (based on 
assets under management) or working as sole-practitioners. If the statistics presented by the Bureau 
of Labor Statistics and CFP Board are to be believed, this must be the case.  
 The situation among the largest financial advisory firms appears better for women when 
compared to Blacks. As shown in this study, there was a higher percentage of women working in 
client-facing positions among the firms included in the study. Even so, the rate of women’s 
participation in the largest firms was still only around 29%, despite making up half of the general 
population (U.S. Census Bureau, 2017). In addition, the statistics related to education and gender are 
very telling. Without higher education, it appears women face barriers to career growth, while their 
male counterparts somehow find a way to succeed with less education.  
 Before moving on to this study’s implications, it is important to note a few limitations 
associated with the study. Data were gathered using website photos. The research team evaluated each 



 

 

13 
 

photograph. It was possible that classification of race was mis-coded in some instances due to 
inaccurate observations, although this was unlikely due to the coding procedure. Even if this occurred 
frequently, the results remain robust. This study was not focused on discovering the exact or correct 
number of Black financial advisors but rather what messages each firm’s website was transmitting to 
outsiders about the rate of Black (and female) financial advisors working in client-facing positions at 
the firm. Also, there may have been a confounding aspect that was unmeasurable in the study. 
Specifically, firms with more resources may have devoted more funds to build a better online presence 
with greater opportunities to highlight Black and female financial advisors. Another limitation, in 
terms of statistical analyses, was that it was not possible to conduct a regression test due to the low 
number of Black financial advisors in the sample. 
 
Implications 
 Results from this study lead to one general conclusion: firms operating in the financial advisory 
space continue to exhibit a lack of diversity and inclusion messages in websites. Firms should consider 
ways to improve the representation of minorities and women in client-facing positions if, as a 
profession, financial advisory firms wish to increase minority and female recruitment and retention. 
This is true both in terms of current employees and overall commitment to diversity and inclusion at 
the firm and profession level. Actionable steps include highlighting diversity through feature stories 
or spotlights about financial advisors that are Black and/or female. Firms can also add a tab to their 
website titled “Diversity” that expresses a commitment to creating a supportive and inclusive culture 
for all employees and clientele. 

Firms can (and should) also take steps outside of online platforms to encourage Black and/or 
female financial advisors to present at conferences, network in the name of the firm, and promote 
career opportunities available to those in client-facing roles. This goes back to the notion of creating 
networks and promoting a culture of inclusion. Television is also an effective medium to help shift 
cultural norms (King & Multon, 1996). For example, some large financial advisory firms have taken 
steps to include people of color as advisors and clients in advertisements. This visualization approach 
is one way to send cues that financial advisory work is something valuable regardless of socioeconomic 
status, cultural background, or previous financial experience. Fostering heterogeneity in real-world 
contexts is critical as a step in changing perceptions of the financial advisory profession.  

The need to address diversity and inclusion is not unique to the work of financial advisors. 
When facing a lack of male teachers in K-12, Marygrove College founded the GRIOT program in 
1998 to increase the number of African-American male teachers working in schools in the Detroit 
area and nationwide. Facing racial homogeneity in business management, the KPMG Foundation, 
Citi, AACSB, and GMAC started The PhD Project in 1994. The vision was to create a significantly 
larger talent pipeline of African-Americans, Hispanic-Americans, and Native Americans for business 
leadership by increasing the diversity of business school faculty who encourage, mentor, support, and 
enhance the preparation of tomorrow’s leaders. Within ten years of the implementation of this 
program, the number of individuals studying for a doctorate increased from 294 to 746 (Milano, 2005). 
To address similar issues in the actuarial profession, the Society of Actuaries provides waivers of exam 
fees for underrepresented students taking actuarial exams. A recent study has shown that this has not 
been as impactful in terms of increasing the diversity found in the actuary field (e.g., there are other 
obstacles that need to be addressed simultaneously), but the action still sent a message that actuaries 
were serious about moving towards inclusivity (McKeown, 2014). As these examples illustrate, small 
steps forward to increase diversity and inclusion can have long-term effects on recruiting, hiring, and 
retention.  

Educational programs that train financial advisors can learn from other professions that have 
faced diversity issues in the past. One solution to help address the shortage of qualified women and 
Blacks in the pipeline for positions in the financial advisory profession is to hire more women and 



 

14 
 

Blacks as faculty in the education programs that train financial advisors. Women and Black faculty can 
play a critical role in attracting underrepresented students and creating an inclusive classroom 
environment (Sánchez et al., 2017).  
 In addition to changes within firms, more research on the topic of diversity and inclusion in 
the financial field is needed. Specifically, research on the signals female and Black financial advisory 
students receive during their education and throughout the hiring process, and how these signals either 
help or hinder feelings of inclusion, are needed. In addition, more studies on the differences in 
opportunities for women and Blacks at large firms, compared to smaller firms, are needed. It is 
possible that some firms have achieved minority and female staff representation. Models of inclusion 
should be shared broadly to improve diversity issues across the profession.   
 

Conclusion 
 While some steps have been taken to improve diversity and inclusion among those working 
as financial advisors, the low numbers of Black and women client-facing advisors found in this study—
and similar data (e.g., BLS 2018)—make it clear that current initiatives are not enough. Financial 
advisory educational programs and financial advisory firms need to commit to the ideals of diversity 
and inclusion. This study highlights how current optics actually may be hindering progress in terms of 
diversity and inclusion. Financial advisory professionals and educators need to understand that 
improving diversity within the profession is related to championing diversity outside the profession. 
Diversifying the office environment can start by diversifying a firm’s website. To change the reality, 
firms can start by changing the imagery. 

 
References 

Almquist, E. M., & Angrist, S. S. (1971). Role model influences on college women's career 
aspirations. Merrill-Palmer Quarterly of Behavior and Development, 17(3), 263-279.  

Bisco, J. M., Gradisher, S., & Mulholland, B. S. (2018). Women and diversity – Why the 
conversation must continue in financial services. Social Science Research Network. 
doi:10.2139/ssrn.3229284 

Blayney, E. (2016). What is the future of women in financial planning. Journal of Financial Planning, 
22(9), 32-33. 

Certified Financial Planner Board of Standards, Inc. (2014). Women’s initiative: Making more room for 
women in the financial planning profession. Retrieved from https://www.cfp.net/docs/about-cfp-
board/cfp-board_win_web.pdf?sfvrsn=2 

Certified Financial Planner Board of Standards, Inc. (2018a). Racial diversity in financial planning: Where 
we are and where we must go. Retrieved from https://centerforfinancialplanning.org/wp-
content/uploads/2018/10/Racial-Diversity-in-Financial-Planning.pdf 

Certified Financial Planner Board of Standards, Inc. (2018b). Removing barriers to racial and ethnic 
diversity in the financial planning profession. Retrieved from 
https://centerforfinancialplanning.org/wp-content/uploads/2018/05/Diversity-Research-
Full-Report.pdf 

Domski, S. M. (2018). Pipeline or waterslide: Advancing women into executive positions in  
business and financial planning. Celebration of Learning. http://digitalcommons.augustan 
a.edu/celebrationoflearning/2018/presentations/24 

Lahey, K. E., & Quist-Newins, M. (2011). Do commissions level the playing field for female 
producers in the financial services industry? Financial Services Review, 20(3), 217-236. 

Eisenberg, R. (2018, June 12). Why minority financial planners are nearly nonexistent-and how to fix 
it. Forbes. Retrieved from https://www.forbes.com 

https://www.cfp.net/docs/about-cfp-board/cfp-board_win_web.pdf?sfvrsn=2
https://www.cfp.net/docs/about-cfp-board/cfp-board_win_web.pdf?sfvrsn=2
https://centerforfinancialplanning.org/wp
https://centerforfinancialpl/
https://centerforfinancialplanning.org/wp-
https://digitalcommons.augustana.edu/celebrationoflearning/2018/pre
https://www.forbes.com/


 

 

15 
 

Ezzedeen, S. R., Budworth, M., & Baker. S. D. (2015). The glass ceiling and executive careers: Still 
an issue for pre-career women. Journal of Career Development, 42(5), 355-369. 
doi:10.1177/0894845314566943 

Flouri, E., & Buchanan. A. (2011). The role of work‐related skills and career role models in 
adolescent career maturity. The Career Development Quarterly, 51(1), 36-43. doi:10. 1002/j.2161-
0045.2002.tb00590.x 

Garmhausen, S. (2016, June 4). Challenges Facing Female Financial Advisors. Barron’s, Retrieved 
from http://www.barrons.com 

Gibson, D. E. (2004). Role models in career development: New directions for theory and 
research. Journal of vocational behavior, 65(1) 134-156. doi:10.1016/S0001-8791(03)00051-4 

Gibson, J. J. (1966). The senses considered as perceptual systems. Boston, MA: Houghton Mifflin. 
Gibson, J. J. (1972). A theory of direct visual perception. In A. Noe & E, Thompson (Eds.), Vision 

and mind: Selected readings in the philosophy of perception. (pp. 77-91). London: MIT Press. 
Gilbert, J., Alder, G. S., & McAllister, D. (2010). Rights and Duties of Employers and 

Applicants. Advances in Business Research, 1(1), 73-81. 
González-Romá, V., Gamboa, J. P., & Peiró, J. M. (2018). University graduates’ employability, 

employment status, and job quality. Journal of Career Development, 45(2), 132-149. 
doi:10.1177/0894845316671607 

Gregory, R. L. (1970). The intelligent eye. New York, N.Y.: McGraw-Hill Book Company. 
Gregory, R. L. (1974). Concepts and mechanisms of perception. New York, N.Y.: Charles Scribner’s Sons. 
Heo, W., Park, N., Henager, R., & Grable, E. J. (2018). What do financial planning organizations 

communicate to stakeholders and consumers? An empirical narrative analysis. Financial 
Services Review, 27(2), 115-131.  

 
Ibarra, H., & Hunter, M. (2007). How leaders create and use networks. Growth, 35(1), 101-103. 
Jaekel, A., & St-Onge, E. (2016, October 25). Why women aren’t making it to the top of financial 

services firms. Harvard Business Review. Retrieved from https://hbr.org 
James, E. H. (2000). Race-related differences in promotions and support: Underlying effects of 

human and social capital. Organization Science, 11(5), 493-508. doi:10.1287/orsc.11.5. 
493.15202 

Karunanayake, D., & Nauta, M. M. (2011). The relationship between race and students' identified 
career role models and perceived role model influence. The Career Development Quarterly, 52(3), 
225-234. doi:10.1002/j.2161-0045.2004.tb00644.x 

King, M. M., & Multon, K. D. (1996). The effects of television role models on the career aspirations 
of African American junior high school students. Journal of Career Development, 23(2), 111-125. 
doi:10.1177/089484539602300202 

Kurlowicz, A. (2014). Women in financial planning. Journal of Financial Service Professionals, 68(3), 56-
62 

MacBride, E. (2015, December 14). A diversity problem. Investment News. Retrieved from 
https://www.investmentnews.com 

McKeown, B. (2014, April). Diversity in the actuarial profession. Society of Actuaries. Retrieved from 
https://www.soa.org 

Milano, B. J. (2005). The PhD Project: Filling the academic pipeline with minority professors. The 
Diversity Factor, 13(3), 30-33. 

Murrell, A. J., & James, E. H. (2001). Gender and diversity in organizations: Past, present, and future 
directions. Sex Roles, 45(5-6), 243-257. doi:10.1023/A:1014393312588 

 



 

16 
 

Quimby, J. L., & DeSantis. A. M. (2011). The influence of role models on women's career 
choices. The Career Development Quarterly, 54(4), 297-306. doi:10.1002/j.2161-
0045.2006.tb00195.x 

Rew, L., Becker, H., Cookston, J. C., Khosropour, S., & Martinez, S. (2003).  Measuring cultural 
awareness in nursing students. Journal of Nursing Education, 42(6), 249-257. doi:10.392 

            8/0148-4834-20030601-07 
Rivera, L. M., Chen, E. C., Flores, L. Y., Blumberg, F., & Ponterotto, J. G. (2007). The effects of 

perceived barriers, role models, and acculturation on the career self‐efficacy and career 
consideration of Hispanic women. The Career Development Quarterly, 56(1), 47-61. 
doi:10.1002/j.2161-0045.2007.tb00019.x 

Sánchez, N. F., Hunter. N. P., Spencer, D. J., Ray, E. L., Alexander, A., Holaday, L., Greene, M. S., 
Sánchez, J. P. (2017). Attracting diverse talent to academia: Perspectives of medical students 
and residents. Journal of Career Development, 45(5), 440-457. doi:10.1177/          
0894845317709997 

Smith-Miller, C. A., Leak, A., Harlan, C. A., Dieckmann, J., & Sherwood, G. (2010). Leaving the 

comfort of the familiar: Fostering workplace cultural awareness through short‐term global 
experiences. Nursing Forum, 45(1), 18-28. doi:10.1111/j.1744-6198.2009.00163.x 

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355-74. 
doi:10.2307/1882010 

U.S. Census Bureau. (2017). 2017 American Community Survey, S0101-Age and Sex. Retrieved from 
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid= 
ACS_17_1YR_S0101&prodType=table 

U.S. Department of Labor, Bureau of Labor Statistics. (2017a). Occupational outlook handbook 2017-18. 
Retrieved from https://www.bls.gov/ooh/business-and-financial/personal-financial-
advisors.htm 

 
U.S. Department of Labor, Bureau of Labor Statistics. (2017b). The economics daily: Women’s median 

earnings 82 percent of men’s in 2016. Retrieved from http://www.bls.gov/ 
  opub/ted/2017/womens-median-earnings-82-percent-of-mens-in-2016.htm 
U.S. Department of Labor, Bureau of Labor Statistics. (2018). Household data. Retrieved from 

https://www.bls.gov/cps/cpsaat11.pdf 
Zhang, L., Lee, E. S., Kenworthy, C. A., Chiang, S., Holaday, L., Spencer, D. J., Hunter, N. P., 

Sánchez, J. P. (2017). Southeast and East Asian American medical students’ perceptions of 
careers in academic medicine. Journal of Career Development. doi:10.1177/0894845317740225 

https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=%20ACS_17_1YR_S0101&prodType=table
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=%20ACS_17_1YR_S0101&prodType=table
https://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm
https://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm
http://www.bls.gov/
https://www.bls.gov/cps/cpsaat11.pdf

