The Significance of Female Talent and Techniques for Attraction
A third of global businesses currently need more women in senior management roles. In the UK, female representation in senior business positions is dwindling, currently standing at a mere 19%. Similarly, the US has recorded its highest level of business without any women in senior roles since 2011. Across the EU, in major publicly listed companies, women hold only 15% of executive roles and a mere 5% of CEO positions. At the current pace, achieving gender parity in senior management is projected to take until 2060.
Despite these statistics, numerous reports in business research underscore the positive impact of female board members on overall performance. Furthermore, women now constitute the majority in the highly qualified talent pool, with 6 out of 10 university graduates in Europe and the USA being women. This begs the question: why does the underrepresentation of women persist in senior roles, and what steps can businesses take to enhance gender diversity?
A plethora of evidence supports the case for prioritising the hiring of women. Research by Catalyst reveals that companies with the highest percentages of female board directors outperform their counterparts with lower representation, demonstrating a 53% higher return on equity, 4reports2% higher sales, and 66% higher invested capital. Further reports indicate that companies with at least 15% women in senior management are 50% more profitable than those with fewer than 10% female senior managers.
While establishing causation is challenging, a robust correlation exists between corporate financial performance and gender diversity. The more balanced a company and its board, the more positive the outcomes.
Nevertheless, the UK faces the challenge of needing 1.5 million new female managers in the next six years to achieve a 50/50 split of jobs between men and women by the end of 2024. Closing the gender gap is an immense task.
Currently, there needs to be more emphasis on reporting data with sufficient investigation into the underlying reasons. Several factors contribute to the scarcity of women at the board level, many of which can be prevented or altered, yet businesses still need to be made aware of them.
The need for more women at the board level can be attributed primarily to a deficient corporate pipeline. With few females in managerial positions and at lower director levels, the pool of individuals capable of ascending to C-Level is limited. Several factors contribute to this situation, such as the absence of role models, preconceived ideas about potential, biases, discrimination, disparities in pay, gendered behaviours, cultural variations, limited mentoring, caregiving responsibilities, and rigid maternity leave policies. Business stereotypes have resulted in a tangible need for more infrastructure and support for women in senior business roles. It is only recently, with growing awareness of these issues, that companies are implementing measures to encourage women to progress in their careers and attain senior positions as openly as their male counterparts.
As media outlets spotlight these statistics, government initiatives, targets, and programs are emerging to incentivise female talent to pursue top senior roles. Quotas are only sometimes the solution; while seeking more equal representation at senior levels, hires should be based on candidates’ capabilities. A broader cultural shift is needed to encourage more women to ascend to board levels, along with active initiatives providing women with opportunities to reach their full potential.
Reduce the number of criteria in job adverts to increase the number of female applicants.
Avoid stereotypically ‘masculine’ language and use terms more appealing to women.
Highlight equal pay and diversity policies.
Focus on evidence and proof of abilities.
Pay attention to previous references regarding candidates’ self-promotion.
Include at least one female staff member in the interview process.
Implement mentoring schemes and leadership programs.
Encourage young women in their careers and provide guidance on developing necessary skills.
Start such initiatives early, even at school or undergraduate levels.
Engage with non-profit organisations and networks promoting female leadership.
Attend conferences and events held by these organisations.
Network with high-profile women for inspiration.
Promote awareness of Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP).
Offer bonuses for families opting for shared parental leave.
Encourage fathers to take a more active role in childcare.
Value flexibility in work hours and locations.
Permit employees to work from home and adjust hours to accommodate home life.
Improve overall employee retention by implementing such changes.
In conclusion, attracting more female talent is not only crucial for gender diversity but also for overall business success. Adopting these strategies can contribute to a more inclusive and thriving work environment.
