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. …

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. Achieving  Gender  Parity       The  impact  of  pregnancy  in  Australia           August  2014        
  • 2. Page  2  of  10   The  business  case  –  more  than  compliance   Countries  and  companies  can  be  compe>>ve  only  if  they  develop,  aAract  and  retain  the   best  talent,  both  male  and  female.     Economic     •  Governments  have  an  important  role  to  play   in  crea>ng  the  right  policy  framework  for   improving  women’s  access  and  opportuni>es.   Civil  society,  educators  and  media  also  have   an  important  role  to  play  in  both  empowering   women  and  engaging  men  in  the  process.     •  Increasing  women’s  workforce  par>cipa>on  in   Australia  by  6%  could  increase  the  na>onal   GDP  by  approximately  $25billion.  GraAan   Ins>tute,  2013)   •  The  most  important  determinant  of  a   country’s  compe>>veness  is  its  human  talent —skills,  educa>on  and  produc>vity  of  its   workforce—and  women  account  for  1/2  the   poten>al  talent  base  throughout  the  world.   Closing  gender  gaps  is  not  only  a  maAer  of   human  rights  and  equity;  it  is  also  one  of   efficiency.  (WEF  Gender  Gap  Report  2013)   •  “At  its  core,  the  case  for  diversity  is  the  case   for  civil  society....There  is  no  civil  economy   without  a  civil  society”  (Hannah  Pieterman,   CEDA  2013)   •  Increasing  women’s  labour  market   par>cipa>on  and  increasing  women’s   earnings  across  the  lifecycle  is  cri>cal  to   closing  the  gender  gap  in  re>rement  savings.   •  Empowering  women  as  economic,  poli>cal   and  social  actors  can  change  policy  choices   and  make  ins>tu>ons  more  representa>ve  of   a  range  of  voices.     •  Increasing  female  par>cipa>on  in  the  workforce   can  have  a  direct  and  substan>al  impact  on   organisa>onal  culture  and  opera>ons.  It  generates   tangible  benefits:  beAer  efficiency,  performance   and  innova>ons;  increased  access  to  female  talent   pool;  and  improvements  to  reputa>on.   •  Firms  with  the  most  gender  diverse  management   teams  have  10%  beAer  return  on  equity,  48%   beAer  earnings  before  interest  a`er  tax  and  1.7   >mes  beAer  share  price  growth  than  average   companies.”  McKinsey,  2007   •  ASX500  companies  with  women  directors  delivered   an  average  ROE  over  3  years  10.7%  higher  (and   over  5  years  11.1%)  than  those  without  women   directors.  Reibey  Ins>tute,  August  2010   •  Women  account  for  85%  of  consumer  decisions   (  US  Census  Bureau  &  Bureau  of  Sta>s>cs)   Social   Business   The  Global  Gender  Gap  2013  report  ranks   Australia  24th  overall:     •   Australia  ranks  13th  on  economic   par>cipa>on  and  opportunity  for  women   •  Australia  ranks  69th  on  health  and   survivorship   •  Australia  ranks  43rd  on  poli>cal   empowerment   •  Australia  ranks  1st  on  educa>onal   aAainment   •  Domes>c  and  family  violence  is  the  principle   cause  of  homelessness  for  women  and  their   children,  cost  to  the  economy  ~$16b  pa   •  In>mate  partner  violence  is  the  leading   contributor  to  death,  disability  and  ill-­‐health   in  all  Australian  women  aged  15-­‐44,  with  one   woman,  on  average,  killed  every  week  as  a   result  of  in>mate  domes>c  violence.   •  One  in  five  experience  harassment  in  the   workplace           White  Ribbon  Founda>on,  2014   •  1  in  2  women  reported  experiencing   discrimina>on  during  pregnancy,  while  on   parental  leave  or  on  return  to  their   workplace  (AHRC  Repor&ng  Parents  2014)   •  Women  comprise  9.2%  of  execu>ves  in  the   ASX  500     •  Only  12  ASX  500  companies  have  female   CEOs   •  Women  hold  12.3%  of  directorships  in  the   ASX  200,  but  only  9.2%  in  the  ASX  500”                               2012  Australian  Census  of  Women  in  Leadership   Scorecard  
  • 3. Page  3  of  10   The  gap  -­‐  female  middle  management   The  status  quo  con6nues  to  impose  a  work  penalty  for  women  by  failing  to  acknowledge   the  need  for  support  during  pregnancy  transi6ons,  to  accommodate  flexibility  and  to   address  discrimina6on.  Women  are  therefore  underrepresented  in  the  workforce.   25%   57%   67%   53%   58%   53%   44%   70%   86%   89%   88%   80%   15-­‐19  years   20-­‐24  years   25-­‐34  years   35-­‐44  years   45-­‐54  years   55-­‐64  years   Female   Male   75%   43%   33%   47%   42%   47%   56%   30%   14%   11%   12%   20%   15-­‐19  years   20-­‐24  years   25-­‐34  years   35-­‐44  years   45-­‐54  years   55-­‐64  years   61%   58%   56%   53%   50%   39%   42%   44%   47%   50%   15-­‐19  years   20-­‐24  years   25-­‐34  years   35-­‐44  years   45-­‐54  years   55-­‐64  years   Exhibit  2  |  There  is  a  significant  par6cipa6on  gap  on  a  full-­‐6me   basis  even  though  women  aHain  higher  levels  of  educa6on   Full  6me  employment  by  age  and  sex     Part-­‐6me  6me  employment  by  age  and  sex     Level  of  educa6on  by  age  and  sex  (bachelor,  grad  dip  and  post  grad)     The  average  female  labour  force  par>cipa>on  (FLFP)  remains  low   around  56%    with  levels  and  trends  varying  across  the  age  brackets.     •  Women’s  underemployment  rate  is  almost  twice  that  of  men’s   (7.4%  versus  4.1%)  and  women’s  labour  force    underu>lisa>on  rate   is  considerably  higher  than  men’s  (13.4%  versus  9.8%).     •  Much  of  women’s  employment  growth  has  been  in  part-­‐>me  work   where  career  advancement  opportuni>es  are  limited,  where  wages   growth  is  below  average,  and  where  a  small  but  growing  propor>on   of  women  are  in  fact  underemployed  (that  is,  they  want  to  work   more  hours  and  in  job  classifica>ons  where  they  are  more   challenged  and  where  wages  and  salaries  are  higher)  .     •  Occupa>onal  and  industry  segrega>on  by  gender  persists,  with   women  concentrated  in  a  narrow  band  of  occupa>ons  in  the  service   sector.     •  At  the  point  when  men  and  women  are  entering  junior  to  middle   management  years  (25-­‐34  years)  86%  of  men  work  on  a  full-­‐>me   basis  compared  with  67%  of  women  with  the  gap  widening  as  they   age  with  men  maintaining  88%  full-­‐>me  employment  and  women   reducing  to  53%  -­‐58%.     •  Nega>ve  correla>on  between  part  >me  and  leadership:  only  [5%]  of   managers  work  part-­‐>me  and  less  than  [3%]  of  more  senior   execu>ves  work  part-­‐>me.                  
  • 4. Page  4  of  10   The  real  reason  women  opt  out   For  Australia,  the  Human  Rights  Commission’s  report:  Suppor>ng  Working  Parents,  revealed   that  discrimina>on  against  working  parents  is  where  it  starts.     •  32%  of  all  mothers  who  were  discriminated  against  at  some  point  went  to  look  for  another   job  or  resigned   •  One  in  five  (18%)  mothers  reported  that  they  were  made  redundant,  restructured,   dismissed  or  their  contract  was  not  renewed  either  during  their  pregnancy,  when  they   requested  or  took  parental  leave  or  when  they  returned  to  work   •  91%  of  mothers  who  experience  discrimina6on  do  not  make  a  formal   complaint  (either  within  their  organisa6on  or  to  a  government  agency)   •  Mothers  who  reported  that  their  employer  was  suppor>ve  during  their  pregnancy  were   less  likely  to  report  that  they  experienced  discrimina>on.  They  were  also  more  likely  to   return  to  work  for  that  employer     •  Regardless  of  size,  sector,  industry  or  loca>on  of  the  workplace,  discrimina>on  can   manifest  itself  in  all  types  of  workplaces.    Discrimina>on  was  more  likely  to  be  reported  by   respondents  in  large  workplaces,  and  in  male  dominated  industries   •  Experiencing  discrimina>on  on  return  to  work  was  more  likely  to  be  reported  by  those   who  returned  to  work  in  a  large  organisa>on  (40%)  than  those  who  returned  to  work  in   small  (22%)  and  medium  (31%)  organisa>ons.         ‘Gender  asbestos’  refers  to  the  discriminatory  aRtudes,  stereotypes  and  toxins  that  are   hidden  and  embedded  in  the  walls,  cultures  and  mindsets  of  many  organisa6ons.    
  • 5. Page  5  of  10   Support  for  female  middle  management   Achieving  gender  parity  has  proved  to  be  a  difficult  and  complex  issue  to  tackle  and   good  inten6ons  have  not  translated  into  beHer  outcomes  for  women.     Change  Management  Effort  Required  Low   High   Individual   Company   Culture   Inadequate  management   of  leadership  pipeline   Lack  of  gender  diversity   awareness  among  management   Work  Family   Incompa>bility   Culture  of  office   presence   Lack  of  on  and   off  ramping   Frequent   men>on   Repeated   men>on   Rare   men>on   1)  Boston  Consul>ng  Group,  2012  ShaAering  the  glass  ceiling  2)  Bain  2013Gender  equality  in  the  UK  3)  Bain  2013  Crea>ng  a  posi>ve  cycle:  cri>cal  steps  to  achieving  gender  parity  in  Australia   4)  McKinsey  2011  Women  in  the  economy:  selected  exhibits  5)  McKinsey  2014  Why  gender  diversity  at  the  top  s>ll  remains  a  challenge     Missing  Technical   know-­‐how   Lack  of  competence   Lack  of  asser>veness   Not  figh>ng  for  power   Lack  of  support   Work-­‐life  balance   Miscommunica>on   Lack  of  CEO  backing   Lack  of  apprecia>on   Lack  of  flexibility   Lack  of  career   mindedness   Male  oriented   selec>on  criteria   Exhibit  1  |  Corporate  Culture  and  Lack  of  Diversity  Management  are   driving  the  underrepresenta6on  of  women1   Boston  Consul>ng  Group  (BCG)  found  several  factors  that  act  as  big  barriers  to   women  becoming  top  leaders  (see  exhibit  1  opposite  –  “large  circle   represents  big  barriers”)     Research  consistently  reveals  that  women  seek  suppor>ve  employers  and   flexible  work  schemes  acknowledge  the  valuable  contribu>on  women  make   both  to  the  workforce  and  in  the  family  unit.       A  key  barrier  is  adequate  off  and  on  ramping  support  through  pregnancy   transi>ons,  a  >me  when  women  are  o`en  in  mid-­‐management  –       “the  issue  is  par+cularly  acute  at  the  transi+on  from  middle  manager  to   senior  manager,  a  point  when  women  have  proven  themselves   professionally  yet  they  dispropor+onately  leave  their  corporate  careers”              (McKinsey  &  Co.,  2011)       Bain  iden>fied  two  barriers2  –  structure  and  style  –  that  make  advancement   difficult.  Whereas  it  is  presumed  that  women  do  not  seek  advancement   because  they  have  family,  Bain’s  research  indicates  that  it  is  more  commonly   because  they  lack  support  or  encouragement  from  their  companies.  As  one   report  said:  “mothers  retain  their  overall  career  ambi>on  but  seAle  in  due  to   the  embedded  ins>tu>onal  mindset  of  corporates”.       Discussion   Relevant  Lever   Relevant  Lever  Less  relevant  lever   Significant  Lever   Lack  of  role  models  
  • 6. Page  6  of  10   Social  Infrastructure  Policy  Framework   The  social  infrastructure  plauorm  that  supports  pregnant  women  in  the  workplace  is  a   combina>on  of  interna>onal  and  na>onal  legisla>ve  policy  and  the  ins>tu>onal   arrangements  and  best-­‐prac>ce  across  organisa>ons.           Interna>onal  Human  Rights  Obliga>ons   Legisla>ve  Framework   Compliance   Framework   Ins>tu>onal   Arrangements   Best     Prac>ce   •  Interna>onal  Declara>on  of  human  rights   •  Sex  Discrimina>on  Act  1984  (Cth)   •  The  Fair  Work  Act  2009  (Cth)   •  Paid  Parental  Leave  Act  (Cth)   •  Work  Health  and  Safety  Act  2011  (Cth)     •  Workplace  Gender  Equality  Act  2010  (2th)     •  ASX  Corporate  Governance  Principles   •  WGEA  Employer  of  Choice  Cita>on   •  Global  Repor>ng  Ini>a>ve   •  Gender  and  Inclusion  Policy   •  Workplace  policies  and  procedures   •  Talent  mapping     •  Flexibility   •  WGEA  Employer  of  Choice  Cita>on   •  Leadership   •  Business  case   •  Diverse  &  inclusive  culture     Recent  developments:   •  Proposed  changes  to  Paid   Parental  Leave  Act   •  Review  of  legisla>ve   framework  in  place  to  protect   working  parents  against   workplace  discrimina>on  
  • 7. Page  7  of  10   Market  update   Increasing  female  par>cipa>on  in  the  workplace  and  gevng  more  women  into  senior  posi>ons  is  on   the  agenda  of  the  Produc>vity  Commission,  Human  Rights  Commission,  Parliament,  Australia’s  peak   Gender  Equality  Agency  and  every  listed  company  in  Australia  and  more.   Human  Rights  Commission  report  into   pregnancy  related  discrimina6on   The  AHRC  has  conducted  a  na>onal  review  on  the  prevalence,  nature   and  consequences  of  discrimina>on  in  rela>on  to  pregnancy  at  work  and   return  to  work  a`er  parental  leave.    The    Discrimina>on  in  the  workplace   against  mothers  is  pervasive  with  49%  of  mothers  experiencing   discrimina>on  at  some  point  during  pregnancy,  parental  leave  or  on   return  to  work   Commission  Reports   Background   Implica6on  for  corporate  Australia   Produc6vity  Commission  report  into  Early   Learning  and  Childcare   The  government  is  seeking  to  establishing  a  sustainable  future  for  a  more   flexible,  affordable  and  accessible  child  care  and  early  childhood  learning   market  that  helps  underpin  the  na>onal  economy  and  supports  the   community,  especially  parent’s  choices  to  par>cipate  in  work  and   learning  and  children’s  growth,  welfare,  learning  and  development.   Paid  Parental  Leave  legisla6on     Publicly  financed  parental  leave  schemes  can  help  parents  reconcile  work   and  family  life  and  maintain  their  connec>on  to  the  workforce  through  a   guaranteed  return  to  their  jobs.    The  PPL  proposes  full  pay  for  26  weeks   capped  at  $100,000  and  includes  superannua>on  contribu>on  which  will   go  some  way  to  reducing  the  reliance  on  government  pensions  for   re>red  Australian  women.     1   2   3   Family  Payment  Reforms  –  Limit  family   Tax  benefit  B  to  families  with  children   under  6  years  of  age   This  is  a  policy  ini>a>ve  designed  to  return  mothers  to  the  workforce  4   Legisla>on   Background   Implica6on  for  Corporate  Australia   Pregnancy  related  discrimina>on  nega>vely   impacts  business  efficiency  &  performance,   staff  reten>on  –  par>cularly  where  60%  of   graduates  are  women  –  and  reputa>on.   “The  AHRI  has  es>mated  the  cost  of   turnover  to  Australian  business  to  be  at   $20billion  annually”   Likely  to  incen>vise  stay-­‐at-­‐home  mothers   consider  returning  to  work.   Workplace  Gender  Equality     -­‐  Procurement  Procedures  and  User   Guide   -­‐  Employer  of  Choice  Cita6on   All  suppliers  tendering  for  Australian  Government  work  will  need  to   comply  with  the  obliga>ons  imposed  by  the  WGE  Act  (2012)  as  part  of   the  governments  effort  to  ensure  women  receive  social  and  financial   recogni>on  for  the  work  they  do  and  the  contribu>on  they  make  to   Australian  society.    This  came  into  effect  on  1  August  2013.   125  Australian  organisa>ons  are  currently  WGEA  employers  of  choice  for   women.  New  accredita>on  requirements  require  organisa>ons  to  have   on-­‐boarding  programs  for  women  through  pregnancy  transi>ons.     5   Changes  to  make  compliance  with  WGE  Act   more  onerous  comes  into  effect  as  of  1  July   2014.       Employer  of  Choice  Cita>on  requires   employers  to  exhibit  best  prac>ce  across  all   areas  of  business.  It  will  provide  a  significant   advantage  from  a  reputa>on  perspec>ve  if   aAained.   Dra`  report  released  by  Produc>vity  commission.  It   recommends:  Government  should  remove  eligibility  for   FBT  concessions  for  employer  provided  ECEC  services   and  retain  right  for  businesses  to  purchase  access  rights   for  children  of  employees  without  this  being  considered   an  expenditure  subject  to  the  FBT     Employers  required  to  pay  1.5%  levy  to  fund   PPL  scheme,  if  passed,  need  to  revisit  their   exis>ng  schemes  and  consider  impact  of   addi>onal  corporate  payment  on  a  working   mother’s  return  to  the  workplace  
  • 8. Page  8  of  10   Recent  Developments  -­‐  PPL   A  federally  funded  and  managed  scheme  serves  to  address  the  causes  of  discrimina>on   because  these  schemes  are  perceived  as  a  cost  to  business  and  mostly  paid  to  mothers     Current  Scheme   Proposed  Scheme   Length  of  payment     18  weeks   26  weeks   Amount  of  payment   Na>onal  minimum  wage  (NMW)   Higher  of  replacement  or  NMW   capped  at  $100k   Superannua>on     No   9.25%   Eligibility   Worked  at  least  10  of  13  months   prior  to  birth  or  330  hours   Same   Paternity  Leave   2  weeks,  NMW   Up  to  2  weeks  at  the  greater  of   actual  or  NMW   Employer  Impact   Employer  paid  PPL  is  tax   deduc>ble   1.5%  on  taxable  income  for   companies  >  $5m  income  
  • 9. Page  9  of  10   Addressing  Discrimina>on   Transforma>ve   change  strategy   to  achieve   gender  parity   Create  a  posi>ve   vision  of  possibility   Empower   individuals  to  grow   through   par>cipa>on  in  the   transforma>ve   change  strategy   Implement  the   change  strategy   through  social   diffusion   Create  a  support   system  for   individuals   par>cipa>ng  in  the   transforma>ve   change  ini>a>ve   What  we  place  our  aAen>on  on  grows   Social  science  research  tells  us  that  the  most  effec>ve  way  to  further  social   change  is  to  iden>fy  those  recep>ve  to  this  change,  known  as  “early   adopters”  and  help  them  to  spread  it   Program  1  |  Leadership:  Cra`ing  a  transforma>ve  vision     Program  2  |  Empowering  working  mothers   Gender  parity  strategies  are  social  change  ini>a>ves:  more  than  a  change  management  program   ***Audit  your  organisa>on  to  appreciate  avtudes  and  prevalence  of  pregnancy  discrimina>on***  
  • 10. Page  10  of  10   About  us   We  provide  consul&ng  &  coaching  solu&ons  to  achieve  gender  parity   Prue  brings  over  15  years'  experience  in  compliance,  senior  business  leadership  and  strategy,  specifically  in  the  disciplines  of   diversity  compliance,  gender  equity,  reputa>on  and  risk,  and  discrimina>on.       In  2010,  Prue  founded  Prue  Gilbert  Consul>ng  to  advise  CEOs  and  Boards  on  gender  balance  strategies.  Leveraging  her  unique  skill   set  as  a  compliance  and  diversity  prac>>oner,  she  empowers  organisa>ons  to  create  working  environments  that  are  fair  and   flexible,  promote  personal  and  professional  growth,  capitalise  on  the  capabili>es  and  leadership  of  a  gender  diverse  and  inclusive   culture  which  necessarily  enhance  the  boAom  line.       Prue  is  a  member  of  Jesuit  Mission  board,  and  has  held  non-­‐execu>ve  posi>ons  on  other  not-­‐for-­‐profit  boards.  She  is  a  member  of   key  professional  bodies,  including  Governance  Ins>tute  Australia  and  Law  Ins>tute,  Victoria.       Prue  has  a  Bachelor  of  Arts  &  Law,  a  Graduate  Diploma  in  Applied  Corporate  Governance,  and  is  a  qualified  Execu>ve  Coach  with   IECL.  Her  MBA  with  AGSM  was  interrupted  to  welcome  3  small  children.       Ben  has  over  20  years  experience  in  corporate  finance  and  strategy  roles,  gained  from  previous  posi>ons  within  public  and   private  companies  across  regulated  and  deregulated  industries,  including  most  recently  at  global  engineering  services  company   Sinclair  Knight  Merz  (SKM).       Ben's  strengths  lie  in  developing  and  implemen>ng  strategy,  building  and  developing  profitable  businesses  across  different   markets  and  sectors  leveraging  his  extensive  management  experience  across  commercial  management,  strategy  and  business   development,  business  evalua>on,  M&A  and  joint  ventures.       Ben  joined  Grace  Papers  in  February  2014  a`er  7  years  with  SKM  where  he  was  most  recently  in  the  role  of  Group  Manager,   Strategy,  with  responsibility  for  building  strategies  across  markets  within  the  global  business,  engaging  stakeholders  to  buy-­‐in   and  working  with  them  to  execute  the  strategy.       Prior  experience  has  been  gained  working  in  the  telecommunica>ons  and  u>li>es  industries  across  a  sales,  marke>ng,   commercial  and  strategy  roles.  Addi>onal  roles  within  industry  have  provided  a  thorough  knowledge  of  the  technologies  and   opera>onal  issues  facing  large  telecommunica>on  companies  in  areas  such  as  sales,  marke>ng,  engineering  and  IT.     Ben  holds  a  Bachelor  in  Arts  (B.A.),  Masters  in  Business  Administra>on  (MBA)  and  Masters  in  Applied  Finance  (MAppFin)   Prue  Gilbert,  CEO  &  Co-­‐founder     Prue.gilbert@pgconsul6ng.net.au  or  +61  413  886  688   Ben  Gilbert,  COO  &  Co-­‐founder   Ben.gilbert@pgconsul6ng.net.au  or  +61  4  11  022  744