Woman inequality: Are our industries evolving with society’s call to do better?
In honour of International Women’s Day - 8 March, we focus on gender equality - this isn’t just a social issue; it is a business issue. When it comes to women, there is an unmistaken, ongoing gender inequality and underrepresentation in leadership positions across the fashion and retail industries. Although women are the primary consumers of fashion and make up more than half of major retailers’ workforces, less than three percent of these companies have female CEOs, and women only hold a fifth of board seats at S&P 500 retail organisations (Catalyst, “Women in Management: Quick Take,” (2019)). How can retail companies expect to innovate and resonate with the demographic of their customer base without hiring women in management roles? The talent pool is clearly on offer, and there are many women who have the determination and capability of successfully leading big brands in the fashion, retail, e-commerce, design, tech, investment and sustainability sectors. Yet women continue to struggle to gain entrance into the ‘boys club’ and get what they want and rightly deserve, not being afforded equal opportunity as their male counterparts. We at HGA Group believe in encouraging women to embrace ambition, historically seen as a negative trait in women. “When men are ambitious, it’s celebrated. But when that word is used to describe a woman, it’s generally used in a negative way,” (Tory Burch). With Women’s Day approaching, we decided to weigh in on the conversation of disparity in our industry, and recognise who are redefining the status quo to make notable strides towards fostering and shaping a culture that supports women in the workplace. Is this an elusive goal or are we seeing a real shift towards positive change?
Women represent about 51% of the US population (U.S. Census Bureau, “QuickFacts.”). They earn around 60% of all master’s degrees in the United States (National Center for Education Statistics, “Table 318.10: Degrees Conferred by Postsecondary Institutions, by Level of Degree and Sex of Student: Selected Years, 1869-70 through 2028-29,” Digest of Education Statistics, 2018 Tables and Figures (2019)), and contribute an estimated $24.8 billion in labor every day to the nation’s gross domestic product (GDP) (OECD, “Employment: Time Spent in Paid and Unpaid Work, by Sex,” OECD Stat (2019)).
But, despite these overwhelming statistics, fewer women progress up the corporate ranks to fulfil their potential and many senior positions in retail are still dominated by men. Women in business start out equal to men in terms of jobs and pay, but at each level, they disappear (The National Bureau of Economic Research, “Dynamics of the Gender Gap for Young Professionals in the Corporate and Financial Sectors,” (2009)). Only 22 percent of senior vice presidents are women. And of those, just 21 percent have roles related to generating revenue, which generally lead to C-level jobs. The drop-off starts with the first promotion to management: Women are 18 percent less likely to be promoted to manager than their male peers. “We see bright spots at senior levels. But companies need to focus their efforts earlier in the pipeline to make real progress.” (McKinsey & Company, “Women in the Workplace,” (2019)). Over the last couple of years, hundreds of companies have made high-profile pledges to increase gender and racial equity. Accenture, Kering, Yoox Net-a-Porter Group KPMG, Marks & Spencer, and McKinsey & Company are a few of these companies recognised for breaking gender equality boundaries, building gender equality into their business strategies, and committing to empowering women. Public pledges have garnered much public attention, but not enough companies have taken action, with some sectors seeing growth and others declining drastically. The number of women leading the largest companies has always been small, with very few women holding CEO positions. Those numbers seemed to slowly and steadily be climbing over recent years, but they saw a drastic drop by 25 percent in 2018 (McKinsey, “The Number of Female Chief Executives Is Falling” (2018)). There is ample investigation and research presenting the business case for equality, such as gender-diverse teams are more profitable and innovative; organisations that embrace female-specific issues have higher employee satisfaction and less staff turnover and companies that elevate women are more effective in all dimensions (Business insider, “Benefits of Diverse Companies,” (2017)). Yet so many companies still disregard the facts, staying stagnant and refusing to move forward with the times.
On the upside, taking a look at the positive global transformation currently taking place, more and more news and social media are conveying a palpable change in the air, a new zeitgeist of our time. With hashtags such as #TimesUp or #WomenEmpowerment continually trending, it is undeniable that women across all industries are rising up and calling for change and equality. Women are boldly paving the way for themselves, and future generations – an exciting shift to witness. Some frontrunners and changemakers in this sphere are:
CHAMPIONING GENDER EQUALITY IN THE WORKPLACE: CATALYST
‘Catalyst CEO Champions for Change’ is a group of 60+ CEOs pledging to advance more women into all levels of leadership. They are showing that real advancement toward gender equity is possible, believing in the power of diversity and inclusion, and that it is essential to accelerate change, “because progress for women is progress for everyone.” Participating companies are demonstrating both purpose and persistence by taking the lead in actively working to advance women in the workplace, with vigorous progress and action. Representing more than 10 million employees and over $3 trillion in revenue globally, they have demonstrated a vast improvement in their representation metrics in top leadership positions and throughout the pipeline for all women over a five-year period. By standing steadfast by their vision, “Workplaces that work for women, work for everyone”, they have outpaced their global peers in having a higher percentage of women in leadership positions at every level - more women board directors, executives, senior managers, and managers.
CHAMPIONING WOMEN ADVANCEMENT IN THE WORKPLACE: EVERY WOMAN
Every Woman’, the number one gender diversity brand in the UK, is a multifaceted company striving to assist women advance in the workplace. From personal development, to leadership, events and awards programmes, inspiring success and fulfilling potential is the backbone of what they do. Working with both individuals and companies, they celebrate and strengthen gender diversity across business sectors, as well as the wider global economy through various methods and channels. With in-house experts whom understand the challenges women face in leadership roles, and a wealth of development resources, advice and inspiration, Every Woman has a vast network to develop female talent. Through recognising amazing talent, fostering collaborative thinking, and celebrating the value gender diversity brings, this inspiring company is serving to facilitate the growth and change required of our industries.
CHAMPIONING GENDER GAP EQUALITY AS A SOCIETY: ICELAND
With a ‘Global Gender Gap’ report ranking of number one in the world, Iceland approaches this important socio-economic factor through seeing both men and women as equals on all levels, ensuring both genders are treated equally and fairly. The Nordic countries – Norway, Sweden, Finland, Denmark and Iceland – have long been reshaping the workplace environment for their citizens and rewriting the rules that apply across the board. Their work rules promote more family-friendly policies, such as subsidised childcare and paid parental leave for both mothers and fathers, as well many companies offering flexible schedules, work-from-home days and alternative working hours. These enforced rules have had an immense effect on helping both men and women thrive in the workplace. And in terms of making equality a reality? All the Nordic countries frequently top the list of the 144 countries in the World Economic Forum’s annual Global Gender Gap Report (with Iceland ranking highest) (World Economic Forum, “The Global Gender Gap Report 2017,”(2017)). They have some of the highest workforce participation rates for women in the world. And the economy has benefited too: Having more women employed has boosted the GDP per capita by 10 to 20% over the past 40 to 50 years (OECD, “Economic Gains from Gender Equality in Nordic Countries,” OECD Stat (2018)). Forging new pathways and growth for women in the workplace, Iceland has also become the first country in the world to make the gender pay gap illegal (NPR, “New Law in Iceland Aims at Reducing Country’s Gender Pay Gap,” (2018)).
With global progress definitely on the rise, it is still slow and there is much to do to drive deep seated change in building gender equality in the workplace. Yet women are no longer standing by the wayside and waiting for others to lead this revolution to break down the long-standing barriers of their industries - they are asserting their needs and demanding to be a part of the conversation. “Closing the gender gap is critical for companies: No business in the world can succeed without hiring and promoting good employees, and when the numbers are this lopsided, many talented women are being overlooked…Companies should do everything they can to make their workplaces more fair - starting with putting best practices in place to get bias out of hiring and promotions. When you take bias out of the equation, women will finally get the equal chance they’ve always deserved. Everyone will.” (Sheryl Sandberg: The Wall Street Journal, “The Gender Gap Isn’t Just Unfair, It’s Bad for Business,” (2019)). With the power of gender diversity and inclusion finally being addressed, and women beginning to be given an open opportunity to be professionally heard and to contribute at all levels of management in organisations, workplaces and businesses are transforming, evolving and significantly benefitting, seeing improved innovation, increased corporate performance, and motivated employee engagement. Through bringing this necessary dialogue to the front and center, women are redefining societal norms, gender expectations, and the language used to talk about them as leaders. And it is about time for them to take center stage and be recognised for the creativity, intelligence, and hard work they have always displayed.