A case for more females up the corporate ladder (part 2))

By Patrick Mayoh

Following from last week, this will be the second part of my entreaty to have more women up the corporate ladder

Why women matter

There are three reasons why women do matter in our society. Integrating more women not only into corporate quarters but also within the workforce is likely to deliver the following benefits:

1) Averting the scarcity in the workforce in Europe especially

2) Generating a better understanding of households purchasing decisions in the world

3) Improving the corporate image of an organization

The study from MC Kinsey mentioned in the previous post outlines some interesting statistics about the shortfall likely to affect Europe in the future. If the figure were to remain the same in Europe in terms of labour or the workforce, then the continent risks losing 24 million active workers by 2040. However if the number of women in the workforce could be raised to the same level as for men, the expected shortfall will only amount to 3 million. I have already indicated that European Universities produce more female than male graduates. Assuming more women had access to employment, the potentials for a workforce shortfall will be substantially less than they could be in the future. Such a compelling figure in itself is enough to bolster initiatives regarding gender diversity in corporations across the many businesses in Europe. Keeping the big picture in mind that could mean encouraging gender diversity not only in Europe but across the world. It is not guaranteed that the workforce shortage experience in Europe will not occur in other parts of the world like China whose one child policy might be detrimental to its economy in the future.

Secondly and very interestingly women seem to influence purchasing decisions in many households in fact according to the MC Kinsey study women alone account for 70% of purchasing decisions in Europe. It would be therefore precarious for a Multi National Corporation in Europe not to include a female in its board. More females in corporate quarters would mean a better and more accurate understanding of consumer behaviour and elicit better customer relationship management programmes across organizations. The old cliché holds that men are usually the master, dominating and imposing decisions in all areas of household management. But this figure alone suggest that this old pattern of thought is completely depassé and is clear enough to indicate the fact that with more women at the top corporations could rip more benefits. Understanding customers is definitely central to marketing and branding. More interestingly MC Kinsey went further to reveal that women influence purchasing decisions even in industries that are predominantly dominated by male like the car or computer industry. 60% of car purchases in Japan are influenced by female and 47% of computer users in Europe are women.

Lastly although it might seem obvious to some, increasing access to corporate quarters for women is likely to improve if not change the traditional perceptions external stakeholders have about different organizations. According to a study by the European Commission in 2003 on "cost and;effectiveness of diversity"; companies that have implemented gender diversity across their boards have ripped substantial benefits in such areas as motivation with 58% of organizations acknowledging the fact that gender diversity had generated more motivated employees across the organization. Also 57% thought gender diversity had a direct impact on customer satisfaction while 69% noted a real improvement in their corporate image.

Next week I will be looking at the correlation the MC Kinsey study established between gender diversity and financial performance across different organizations. Also I will be suggesting some thoughts on how to design and implement a gender diversity programme within an organization. CIAO

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A case for more females up the corporate ladder (part 1)

By Patrick Mayoh

This will be a three articles about "why we need more women at the top". It is a case for female empowerment within the business world and especially how this can concretely take place within the business world today.

A research paper by MC Kinsey in 2007 indicates a correlation between financial performance and the presence of more women on corporate boards. In other words, those organizations that champion gender diversity, design and implement policies that make it more possible for female workers to occupy top positions within corporations will likely generate greater financial returns than those who do not.

In “coaching women to lead” by Averill Leimon, Francois Moscovici and Helen Goodier a book released just a few weeks ago, the authors argue that a more male-female balance could make companies 11% better off.

Although women account for a larger portion of university graduates in European Universities, they only make up 21% of the workforce of European companies. In addition women only make 11% of the number of board members of corporate boards of all European corporate listed companies.

Those two pieces of information and research are enough in themselves to make a case for new corporate ladder. One in which women will be able to compete with their male counterparts to grab top positions on corporate boards. With 15 female CEOS on the list of Fortune 500 companies, more could still be done in terms of helping women to have easier access to spots on the corporate boards.

The present situation

Firstly according to the study by MC Kinsey—which will be referred to a lot in this article—the present corporate ladder advocates extreme flexibility and availability. This in a nutshell means those that are likely to be promoted are usually ready to assume virtually all assignments and are able to demonstrate multi-tasking skills while being flexible in terms of work hours and job locations. A prospect that is highly disadvantageous to women who bear the largest share of the burden in terms of domestic duties and activities. Women continue to contribute twice the number of hours men contribute to domestic duties in certain countries like Italy. In France 96% of female graduates from Business School admit childcare and rearing is a major obstacle to career advancement while 62% of US female graduates complain that building a family and other personal duties are hurdles to overcome for promotion. Given those conditions alone, it is easier to understand why the corporate ladder as it is applied in most corporations today seems hostile to women’s progress to top positions on corporate boards.

Secondly and not the least the fact that they are just very few examples of females’ success stories up the corporate ladder convey the feeling especially to women that accessing top positions within their respective corporations is a far-fetched dream. With just 11% of female on corporate boards in European companies and just 15 female Ceos at the helm of fortune 500 companies. The image which easily comes across seems to indicate that women are unlikely to make it to the top or that doing so will usually requires more sacrifices or concessions than male counterparts. This might mean choosing to remain single or childless to name just a few.

Part II next week hopefully will look at some of the benefits attached to women empowerment within the corporate world and provide a roadmap for this to effectively happen.

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