What’s the current state of play in how companies are measuring gender parity?
As we emerge from two years of disruption to the workforce, gender parity in the workplace is now more important than ever. The business benefits of a more diverse and equal workplace have been well documented: organisations which enable individuals of different gender, ethnicity or other identities bring diverse perspectives which enhance creativity and lead to better decision-making and stronger business performance. But despite the strong incentive for tackling the problem, gender inequality in the workplace persists.
At the current rate of progress, it will take 99.5 years to close the global gender gap, meaning there is an urgent need for action in this area.
Certainly, gender parity is on the corporate agenda for many companies, however research from ManpowerGroup reveals that while 85% of companies in the UK are measuring gender parity, 46% are looking purely at pay equity (often driven by regulation), with far fewer measuring the number of women in traditionally male-dominated roles or the number of women in senior leadership positions. In short, a lot remains to be done.
Gender inequality in the workplace can take on many different forms, however the gender pay gap is perhaps the most universally cited example. In our recent research, we found 38% of UK companies have a defined target for greater pay equity and the same percentage have set a timeframe for greater pay equity by the end of 2023. Of these sectors, Construction, Public Sector and Hospitality are the most focused on achieving these.
Equally visible, gender balance at the board and executive level is highly unequal between men and women, with only a third of companies in the UK regularly measuring the number of women in senior leadership positions. The sectors tracking this the most are Primary Production such as Energy and Utilities (41%), Banking & Finance (40%), and Not-for-Profit (35%).
A third of UK companies surveyed have set 2022 as the timeframe in which they need to increase the number of women in senior leadership positions. Will they achieve this? This all depends on whether companies are to be held accountable for reaching this target. Just over a third of those surveyed said their organisation’s leaders are held accountable through either Board reporting, reporting to employees, or inclusion in the annual report. A quarter are held accountable by shareholders. Only 4% of companies are not held accountable at all, which is an encouragingly low percentage, but less encouraging is the finding that 15% of companies surveyed do not track gender parity at all.
Mentoring and coaching appears to be the most popular way that UK companies are using to achieve their gender parity goals, with 31% of respondents using that method.
Just over a quarter (28%) are promoting flexible working policies, which seems to certainly be the most attractive working arrangement for women with 13% wanting to be fully flexible, either working in the office or home as suits their needs.
This doesn’t mean, however, that women want to work fully remotely. In fact, only 10% of women we surveyed for International Women’s Day want to do just that, and only 9% want to work fully in the workplace.
These results are clearly telling us that employers need to be more flexible with their expectations around place of work, offering a flexible hybrid model in order to attract and retain female talent.
Employers that are mindful of these expectations around location for work are more likely to succeed in retaining their talent. Overall, women are looking to feel motivated and passionate about the work that they do and being recognised by management for their work, with 69% of respondents reporting both of these as extremely important to them. By ensuring the female workforce feels valued and doing meaningful work, employers can support women in the workplace.
Although there are no quick fixes to these challenges, at ManpowerGroup we are committed to closing the gender gap and nurturing a culture of conscious inclusion where everyone is included and all opinions are valued. We have made great improvements, and we’re proud of how far we’ve come to date.
Our work doesn’t stop here though – in our 2021 ESG report, we initially made the commitment that by 2024 40% of all leadership positions would be held by women. After successful achievement of this commitment in many countries, we have recently revised this goal to achieving 50% of all leadership positions to be held by women by 2025.
We can be proud of where our organisation is at today and we are relentless in our pursuit of progress. We are committed to goalsetting and metrics – because we know what is treasured is measured. That’s why I am proud to announce that this year our ambition has reached new heights: we have set a new goal of reaching 50% women in leadership by 2025.
In conclusion, there is work required to create a workplace where all women feel valued – work that starts at the top of an organisation and filters down. There is a need to recognise and reward the women who are doing work that they feel passionate about.
Companies also need to create a culture that fully leverages the benefits of a diverse workforce — one in which women, and all employees, feel comfortable bringing their unique ideas, perspectives and experiences to the table. There is a clear path forward for employers: when women are respected and their contributions are valued, they are more likely to be happy in their jobs and to feel connected to their co-workers.
View the key global findings from our 2022 Gender Equity research in our infographic.
