achieving gender parity in australia - the impact of pregnancy - august 2014

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The business case for gender parity is more than compliance. Countries and companies can be competitive only if they develop, attract and retain the best talent, both male and female.

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  • 1.AchievingGenderParity TheimpactofpregnancyinAustralia August2014

2. Page2of10 Thebusinesscasemorethancompliance Countriesandcompaniescanbecompe>>veonlyiftheydevelop,aAractandretainthe besttalent,bothmaleandfemale. Economic Governmentshaveanimportantroletoplay increa>ngtherightpolicyframeworkfor improvingwomensaccessandopportuni>es. Civilsociety,educatorsandmediaalsohave animportantroletoplayinbothempowering womenandengagingmenintheprocess. Increasingwomensworkforcepar>cipa>onin Australiaby6%couldincreasethena>onal GDPbyapproximately$25billion.GraAan Ins>tute,2013) Themostimportantdeterminantofa countryscompe>>venessisitshumantalent skills,educa>onandproduc>vityofits workforceandwomenaccountfor1/2the poten>altalentbasethroughouttheworld. ClosinggendergapsisnotonlyamaAerof humanrightsandequity;itisalsooneof eciency.(WEFGenderGapReport2013) Atitscore,thecasefordiversityisthecase forcivilsociety....Thereisnocivileconomy withoutacivilsociety(HannahPieterman, CEDA2013) Increasingwomenslabourmarket par>cipa>onandincreasingwomens earningsacrossthelifecycleiscri>calto closingthegendergapinre>rementsavings. Empoweringwomenaseconomic,poli>cal andsocialactorscanchangepolicychoices andmakeins>tu>onsmorerepresenta>veof arangeofvoices. Increasingfemalepar>cipa>onintheworkforce canhaveadirectandsubstan>alimpacton organisa>onalcultureandopera>ons.Itgenerates tangiblebenets:beAereciency,performance andinnova>ons;increasedaccesstofemaletalent pool;andimprovementstoreputa>on. Firmswiththemostgenderdiversemanagement teamshave10%beAerreturnonequity,48% beAerearningsbeforeinteresta`ertaxand1.7 >mesbeAersharepricegrowththanaverage companies.McKinsey,2007 ASX500companieswithwomendirectorsdelivered anaverageROEover3years10.7%higher(and over5years11.1%)thanthosewithoutwomen directors.ReibeyIns>tute,August2010 Womenaccountfor85%ofconsumerdecisions (USCensusBureau&BureauofSta>s>cs) Social Business TheGlobalGenderGap2013reportranks Australia24thoverall: Australiaranks13thoneconomic par>cipa>onandopportunityforwomen Australiaranks69thonhealthand survivorship Australiaranks43rdonpoli>cal empowerment Australiaranks1stoneduca>onal aAainment Domes>candfamilyviolenceistheprinciple causeofhomelessnessforwomenandtheir children,costtotheeconomy~$16bpa In>matepartnerviolenceistheleading contributortodeath,disabilityandill-health inallAustralianwomenaged15-44,withone woman,onaverage,killedeveryweekasa resultofin>matedomes>cviolence. Oneinveexperienceharassmentinthe workplace WhiteRibbonFounda>on,2014 1in2womenreportedexperiencing discrimina>onduringpregnancy,whileon parentalleaveoronreturntotheir workplace(AHRCRepor&ngParents2014) Womencomprise9.2%ofexecu>vesinthe ASX500 Only12ASX500companieshavefemale CEOs Womenhold12.3%ofdirectorshipsinthe ASX200,butonly9.2%intheASX500 2012AustralianCensusofWomeninLeadership Scorecard 3. Page3of10 Thegap-femalemiddlemanagement Thestatusquocon6nuestoimposeaworkpenaltyforwomenbyfailingtoacknowledge theneedforsupportduringpregnancytransi6ons,toaccommodateexibilityandto addressdiscrimina6on.Womenarethereforeunderrepresentedintheworkforce. 25% 57% 67% 53% 58% 53% 44% 70% 86% 89% 88% 80% 15-19years 20-24years 25-34years 35-44years 45-54years 55-64years Female Male 75% 43% 33% 47% 42% 47% 56% 30% 14% 11% 12% 20% 15-19years 20-24years 25-34years 35-44years 45-54years 55-64years 61% 58% 56% 53% 50% 39% 42% 44% 47% 50% 15-19years 20-24years 25-34years 35-44years 45-54years 55-64years Exhibit2|Thereisasignicantpar6cipa6ongaponafull-6me basiseventhoughwomenaHainhigherlevelsofeduca6on Full6meemploymentbyageandsex Part-6me6meemploymentbyageandsex Levelofeduca6onbyageandsex(bachelor,graddipandpostgrad) Theaveragefemalelabourforcepar>cipa>on(FLFP)remainslow around56%withlevelsandtrendsvaryingacrosstheagebrackets. Womensunderemploymentrateisalmosttwicethatofmens (7.4%versus4.1%)andwomenslabourforceunderu>lisa>onrate isconsiderablyhigherthanmens(13.4%versus9.8%). Muchofwomensemploymentgrowthhasbeeninpart->mework wherecareeradvancementopportuni>esarelimited,wherewages growthisbelowaverage,andwhereasmallbutgrowingpropor>on ofwomenareinfactunderemployed(thatis,theywanttowork morehoursandinjobclassica>onswheretheyaremore challengedandwherewagesandsalariesarehigher). Occupa>onalandindustrysegrega>onbygenderpersists,with womenconcentratedinanarrowbandofoccupa>onsintheservice sector. Atthepointwhenmenandwomenareenteringjuniortomiddle managementyears(25-34years)86%ofmenworkonafull->me basiscomparedwith67%ofwomenwiththegapwideningasthey agewithmenmaintaining88%full->meemploymentandwomen reducingto53%-58%. Nega>vecorrela>onbetweenpart>meandleadership:only[5%]of managersworkpart->meandlessthan[3%]ofmoresenior execu>vesworkpart->me. 4. Page4of10 Therealreasonwomenoptout ForAustralia,theHumanRightsCommissionsreport:Suppor>ngWorkingParents,revealed thatdiscrimina>onagainstworkingparentsiswhereitstarts. 32%ofallmotherswhowerediscriminatedagainstatsomepointwenttolookforanother joborresigned Oneinve(18%)mothersreportedthattheyweremaderedundant,restructured, dismissedortheircontractwasnotrenewedeitherduringtheirpregnancy,whenthey requestedortookparentalleaveorwhentheyreturnedtowork 91%ofmotherswhoexperiencediscrimina6ondonotmakeaformal complaint(eitherwithintheirorganisa6onortoagovernmentagency) Motherswhoreportedthattheiremployerwassuppor>veduringtheirpregnancywere lesslikelytoreportthattheyexperienceddiscrimina>on.Theywerealsomorelikelyto returntoworkforthatemployer Regardlessofsize,sector,industryorloca>onoftheworkplace,discrimina>oncan manifestitselfinalltypesofworkplaces.Discrimina>onwasmorelikelytobereportedby respondentsinlargeworkplaces,andinmaledominatedindustries Experiencingdiscrimina>ononreturntoworkwasmorelikelytobereportedbythose whoreturnedtoworkinalargeorganisa>on(40%)thanthosewhoreturnedtoworkin small(22%)andmedium(31%)organisa>ons. GenderasbestosreferstothediscriminatoryaRtudes,stereotypesandtoxinsthatare hiddenandembeddedinthewalls,culturesandmindsetsofmanyorganisa6ons. 5. Page5of10 Supportforfemalemiddlemanagement Achievinggenderparityhasprovedtobeadicultandcomplexissuetotackleand goodinten6onshavenottranslatedintobeHeroutcomesforwomen. ChangeManagementEortRequiredLow High Individual Company Culture Inadequatemanagement ofleadershippipeline Lackofgenderdiversity awarenessamongmanagement WorkFamily Incompa>bility Cultureofoce presence Lackofonand oramping Frequent men>on Repeated men>on Rare men>on 1)BostonConsul>ngGroup,2012ShaAeringtheglassceiling2)Bain2013GenderequalityintheUK3)Bain2013Crea>ngaposi>vecycle:cri>calstepstoachievinggenderparityinAustralia 4)McKinsey2011Womenintheeconomy:selectedexhibits5)McKinsey2014Whygenderdiversityatthetops>llremainsachallenge MissingTechnical know-how Lackofcompetence Lackofasser>veness Notgh>ngforpower Lackofsupport Work-lifebalance Miscommunica>on LackofCEObacking Lackofapprecia>on Lackofexibility Lackofcareer mindedness Maleoriented selec>oncriteria Exhibit1|CorporateCultureandLackofDiversityManagementare drivingtheunderrepresenta6onofwomen1 BostonConsul>ngGroup(BCG)foundseveralfactorsthatactasbigbarriersto womenbecomingtopleaders(seeexhibit1oppositelargecircle representsbigbarriers) Researchconsistentlyrevealsthatwomenseeksuppor>veemployersand exibleworkschemesacknowledgethevaluablecontribu>onwomenmake bothtotheworkforceandinthefamilyunit. Akeybarrierisadequateoandonrampingsupportthroughpregnancy transi>ons,a>mewhenwomenareo`eninmid-management theissueispar+cularlyacuteatthetransi+onfrommiddlemanagerto seniormanager,apointwhenwomenhaveproventhemselves professionallyyettheydispropor+onatelyleavetheircorporatecareers (McKinsey&Co.,2011) Bainiden>edtwobarriers2structureandstylethatmakeadvancement dicult.Whereasitispresumedthatwomendonotseekadvancement becausetheyhavefamily,Bainsresearchindicatesthatitismorecommonly becausetheylacksupportorencouragementfromtheircompanies.Asone reportsaid:mothersretaintheiroverallcareerambi>onbutseAleindueto theembeddedins>tu>onalmindsetofcorporates. Discussion RelevantLever RelevantLeverLessrelevantlever SignicantLever Lackofrolemodels 6. Page6of10 SocialInfrastructurePolicyFramework Thesocialinfrastructureplauormthatsupportspregnantwomenintheworkplaceisa combina>onofinterna>onalandna>onallegisla>vepolicyandtheins>tu>onal arrangementsandbest-prac>ceacrossorganisa>ons. Interna>onalHumanRightsObliga>ons Legisla>veFramework Compliance Framework Ins>tu>onal Arrangements Best Prac>ce Interna>onalDeclara>onofhumanrights SexDiscrimina>onAct1984(Cth) TheFairWorkAct2009(Cth) PaidParentalLeaveAct(Cth) WorkHealthandSafetyAct2011(Cth) WorkplaceGenderEqualityAct2010(2th) ASXCorporateGovernancePrinciples WGEAEmployerofChoiceCita>on GlobalRepor>ngIni>a>ve GenderandInclusionPolicy Workplacepoliciesandprocedures Talentmapping Flexibility WGEAEmployerofChoiceCita>on Leadership Businesscase Diverse&inclusiveculture Recentdevelopments: ProposedchangestoPaid ParentalLeaveAct Reviewoflegisla>ve frameworkinplacetoprotect workingparentsagainst workplacediscrimina>on 7. Page7of10 Marketupdate Increasingfemalepar>cipa>onintheworkplaceandgevngmorewomenintoseniorposi>onsison theagendaoftheProduc>vityCommission,HumanRightsCommission,Parliament,Australiaspeak GenderEqualityAgencyandeverylistedcompanyinAustraliaandmore. HumanRightsCommissionreportinto pregnancyrelateddiscrimina6on TheAHRChasconductedana>onalreviewontheprevalence,nature andconsequencesofdiscrimina>oninrela>ontopregnancyatworkand returntoworka`erparentalleave.TheDiscrimina>onintheworkplace againstmothersispervasivewith49%ofmothersexp