Gender advancement in workplace worsens in past decade
Women hold less than a quarter (23%) of senior management positions at South African companies and 39% of local businesses do not have any women at all in leadership positions‚ according to a new research report released on International Women’s Day on Tuesday.
Internationally‚ Russia is the country that is closest to achieving gender parity while Japan and Germany fare the worst.
Tax and assurance company Grant Thornton said its research highlighted that very little progress has been made globally to grow gender diversity in business leadership‚ despite concerted efforts in many parts of the world.
“We are beginning to lose a very important battle. The gender diversity issue has been on the South African agenda for many years but we’re clearly not making any headway here‚” says Lee-Anne Bac‚ director: Advisory Services at Grant Thornton.
“The new research reveals that the percentage of women in senior management positions now is down from 27% last year‚ and it’s even dropped to below the average of 26% achieved between 2004 and 2015. This does not bode well for the advancement of women at all.”
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The commercial benefits of women in leadership are well-established‚ Grant Thornton siad. According to the 2016 Women in Business report‚ “recent research highlights how companies with diverse boards among the largest listed companies in the UK‚ US and India are outperforming their male-only peers to the tune of $655 billion annually.”
“Within the context of increased uncertainty and complexity‚ firms need to resist group-think and welcome a range of perspectives in order to grow‚” says Bac. “This is particularly relevant in a rapidly changing global business environment when a wide range of perspectives is critical to navigating new landscapes.”
The report‚ titled "Women in business: Turning promise into practice"‚ is based on the annual Grant Thornton International Business Report (IBR) which surveys 5‚520 businesses in 36 economies‚ with research conducted from July to December 2015 (Q3 and Q4 2015). In South Africa‚ 200 businesses were surveyed for the 2016 report.
Globally‚ there has also been little progress. The level of women in senior roles has risen just three percentage points in the past five years. The report adds that‚ at this rate‚ it will be 2060 before gender parity is achieved.
While the Women in Business survey reveals that worldwide there is a slight upturn in the number of women in senior management positions over the last year‚ from 22% to 24%‚ one in three businesses worldwide‚ has no women in senior management positions‚ a figure which has changed little over the past four years.
The G7 region of countries is among the worst performing regions‚ with just 22% of senior roles occupied by women and 39% of companies with no women in senior roles.
Two of the poorest performing individual countries are Japan‚ with just 7% of senior roles held by women‚ and Germany‚ with 15%.
Meanwhile Eastern Europe and ASEAN regions report the highest proportions of women in leadership at 35% and 34% respectively‚ and just 16% and 21% of firms with no women in senior management respectively.
Russia tops the list of individual countries with 45% of senior roles held by women‚ followed by the Philippines at 39%‚ where only 9% businesses have no women in senior management.
Commenting on how companies could attracting women into senior roles‚ Grant Thornton said there is a disconnect between how companies approach leadership and what motivates female leaders. To get more women into senior management roles‚ companies should recognise the need for collaboration and dialogue.
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“Firms also need to reassure women that they will be able to make a real difference if they reach the top and‚ critically‚ that their efforts will be recognised and appropriately rewarded‚” says Bac. “The proper mechanisms to ensure that leadership is compatible with family commitments also need to be in place.”
The Grant Thornton report supports the findings of an earlier South Africa survey conducted by the Businesswomen’s Association of South Africa (BWASA) last year. The 2015 South African Women in Leadership Census found that women are still excluded from the most important key decision-making positions within organisations and that SA is still without adequate representation of women in JSE-listed corporations.
“Fewer women are being more thinly spread across director positions‚ impacting their overall effectiveness and efficiency‚” according to the BWASA. “Instead of exploiting the full depth of women talent in the country‚ organisations are recycling the same talent. This is a huge concern because it means the country and corporations are missing opportunities to empower and develop a wider population of women talent.”
Bac said: “Today‚ more than ever‚ SA requires diverse leadership teams for businesses to compete and grow. We need to create an environment that attracts and develops women leaders. Businesses have talked the talk on diversity in leadership for long enough – it’s time to take action and deliver results.”