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Diversity and equality have become increasingly popular corporate buzzwords over the last two decades. However, with gender pay gaps still being self-reported by the largest tech firms, and only 10% of Fortune 500 companies being led by a female CEO, there is still a long way to go.
Before we look at how far organisations have come and ways in which you can look to overcome gender inequality in your workforce, it helps to understand why it’s such a critical issue - for employees and employer.
Why is gender equality at work important?
First, and categorically, because it’s the right thing to do, organisations large and small have a responsibility to treat all employees (and other stakeholders) fairly and without bias - including on gender but also faith, race, physical and cognitive ability, age, education, and upbringing.
But there are tangible and proven benefits to improving gender equality in the workplace too.
First, and especially in Western nations, women now out-educate their male counterparts, and the talent pool of the future will continue to become even more diverse.
Second, companies with more women in leadership positions enjoy 30% higher profit margins.
And third, more diverse and gender-equitable workplaces see lower levels of staff churn. This is especially true with younger generations who expect their organisations to treat all employees fairly.
Increased job satisfaction, more creativity, a healthier workplace culture and improved employer branding are just some of the other tangible benefits of pursuing better gender equality at work too.
How far have workplaces come?
An increased focus on gender equality in the workplace has shone a light on how much needs to be done. But the upshot of the differences between how different genders are treated at work has helped move things forward too.
For example, in 2018, just 5% of Fortune 500 CEOs were women. However, we know from the before-mentioned research that in 2022 at least, that figure has more than doubled. The percentage of women working in STEM sectors is also slowly rising, from 21% in 2016 to around 28% today.
But big challenges remain. In the UK for example, the gender pay gap actually increased last year from 7.7% to 8.3%, in part driven by changes in the composition of the workforce throughout the pandemic, with a disproportionate number of young women placed on furlough compared to male counterparts.
McKinsey data highlights how just four in 10 leadership positions are held by women too, and the higher up the corporate ladder you look, the smaller that percentage gets.
There are intersectional issues at play here too, with just two of the world’s largest 500 firms being led by black women.
Improving gender equality in your organisation
Progress? Yes. A long way to go? Absolutely.
A focus on gender equality in any organisation is both a morally and strategically beneficial investment. Here are some key factors to consider in your organisation.
Decide if you want equity or equality
Often intertwined and interchanged, the two terms have big strategic and end-goal differences.
As Feminism in India explains:
“Gender equity means fairness of treatment for all genders according to their respective needs. It strives to bring all the genders to an equal playing field. Gender equity doesn’t equate one gender with another, instead, it attempts to facilitate equal opportunities for all genders to overcome their historical and social disadvantages by ensuring fairness and justice in the distribution of resources to all genders.”
Though true gender equality may be the end goal, pursuing a strategy built more on gender equity may be the only way in which it can be achieved.
Train people leaders and hiring managers
Much of the gender inequality seen in the workplace is the result of unconscious bias. These biases are learned as we grow and are influenced by the world, we see around us and, as a result, are hard to negate.
But they’re important to address. Unconscious (and sometimes conscious) bias in recruitment can lead to the selection of more male candidates to interview. Biases can also influence how in-situ staff are viewed, including their viability for a promotion or delegation of work - no matter their previous performance versus male peers.
Diversity and inclusion training for management is the only real ‘fix’ for these issues in a corporate setting. Through education, organisations can help people leaders to spot when their own biases may be seeping through into their decision-making and help them make more equitable decisions moving forward.
Diverse voices in leadership positions
Creating policies and workforce planning strategies in a bid to improve gender equality, can’t feasibly be created without those who innately understand the experience of non-male workers in the workplace having a leading say.
More women at C-suite level also leads to an increase in women getting promoted to management positions within the organisation too.
Adopt policies and working practices that support a more equitable workplace
One in three women in work consider downshifting their careers or leaving the workforce entirely due to post-pandemic burnout.
Data like this highlights the importance of flexible and supportive employee benefits that consider the needs of all genders within the workforce.
Ground-breaking schemes such as the four-day work week, as well as work-from-home and truly flexible working hours, increase the ability for employees of all situations to be able to apply, be considered, and positively contribute in any role.
One very evident area where these schemes are needed surrounds parents and the so-called ‘parent trap’ where low/stagnant pay, combined with the eye-watering cost of childcare, is financially locking parents out of returning to work.
In the US alone, it’s estimated there are 1.4 million fewer working mothers than before the pandemic. A lack of flexible work options, few companies offering on-site childcare facilities and biases in recruitment, are just three of the factors at play.
Use software to assist your gender equality efforts
The right software can help to analyse, understand, and report on the current gender gaps in your organisation and support efforts to improve them.
Recruitment software can support in running blind CV appraisals, so hiring managers can’t make unconsciously biased decisions on who to offer interviews to. Meanwhile, employee feedback systems can empower minorities within the workforce to speak up if they notice a problem (relating to gender or otherwise).
Integrated HR and payroll systems are a fantastic tool in a corporation’s arsenal to understand trends relating to gender pay gaps, workforce make-up, gender representation within leadership positions, and identify any trends in staff churn and wider recruitment.
At Phase 3, we can help support your gender equality efforts from a technical standpoint by helping to implement the right software that fits your HR, finance and payroll requirements.
Our technology experts not only help identify the perfect HR tech for the day-to-day running of your organisation, but they can also work with you to uncover the software providers who also offer the data capabilities needed to grasp the effectiveness of your culture, engagement, and diversity initiatives.
