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.TRANSCRIPT
Achieving Gender Parity The impact of pregnancy in Australia August 2014
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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
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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.
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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.
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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
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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
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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
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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
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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***
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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 [email protected] or +61 413 886 688
Ben Gilbert, COO & Co-‐founder [email protected] or +61 4 11 022 744