Workforce Diversity

 Workforce Diversity


 By Patricia A. Milligan

Texas’s business leaders should ask themselves if they have adequately addressed the issue of gender equality and are on a path to building greater workforce diversity – tomorrow’s workforce is taking shape today. Everyone can learn from the example set by one prominent Texas corporation.

Despite years of progressive policies, current female hiring, promotion, and retention rates are simply insufficient to dramatically improve gender representation over the next decade. Fortunately, the risk of an inadequately diverse global workforce can be met by proactive leadership.

The World Bank recently reported that global labor force participation rates for women ages 15–64 have actually declined over the past two decades. And The Human Capital Report, released by the World Economic Forum in 2013, found that only 60-70 percent of the eligible female population participates in the global workforce – compared with male participation well above 80 percent.

And while talent flows will move more women into senior roles globally, equal representation is still far off. Unless organizations focus on gender-based equity in promoting employees, progress – particularly in the United States and Canada – could stagnate. Those forecasts reflect recent data on workforce representation and “internal labor market” flows (e.g., hires, promotions, and terminations) submitted by 164 companies in 28 countries covering 1.7 million employees – including more than 680,000 women.

The resulting report, “When Women Thrive, Businesses Thrive,” challenges today’s corporate leadership with finding fresh solutions beyond the traditional leave and flexibility programs long viewed as progressive, since the status quo is clearly insufficient to drive improved outcomes.

These programs are associated with unintended consequences, especially in the absence of leadership engagement and manager training on inclusion. Texas companies need to ensure they steer clear of unconscious bias and provide effective career coaching to employees taking advantage of such opportunities.

In fact, the research calls for more dynamic approaches that go beyond the broad brush of flex time and family leave. Executives need to champion innovative programs targeting women’s unique health and financial needs. For example, gender-customized retirement solutions geared toward women’s savings behaviors, especially given differences between women and men in longevity – can create a differentiating value proposition.

A few leading companies have figured out how to implement effective customized gender diversity strategies and are seeing the results. In Texas, one notable example of such success is Irving-based Kimberly Clark Corporation, which has undertaken a very focused and aggressive approach to increasing diversity in its leadership ranks. Through a combination of hands-on leader engagement and reliance on a rigorous analysis of talent flows, the company has moved the needle dramatically and in very short order. In fact, Kimberly Clark’s achievements with respect to gender diversity earned the company an award from the women’s advocacy group Catalyst in 2014.

As reported in the April 21, 2014, issue of Agenda , published by the Financial Times, figures from Catalyst showed that from 2009 to 2013, Kimberly Clark increased the percentage of women in director roles or higher to 26 percent, from 19 percent. Internal promotions of women to director-level jobs or higher increased to 44 percent, from 19 percent; and by 2014 the board was composed of 25 percent women, from 16.7 percent in 2009.

Educational programs geared to promote women’s unique health needs are also part of the solution. Strong programs to promote gender pay equity, especially the alignment of robust, proactive checks on compensation levels with the annual compensation calendar, are associated with improvements throughout the system, including better levels of female representation.

If anything, the research suggests that a siloed approach to gender diversity is counter-productive. Analysis of the data shows that organizations focusing on holistic approaches to support female talent have more comparable talent flows for women and men than those that do not.

Such a broad focus should include consideration of compensation and benefits, as stated above, but can only be optimally configured through a disciplined, statistical review of an organization’s own employment data, which might show, for example, the value of exposure to supervisory and/or critical roles, the importance of internal mobility, or a need to eliminate bias in performance review processes.

Executives need to admit there is a problem — but acknowledge and embrace the opportunity. Organizations should then base their gender diversity strategies on robust workforce analytics, identifying the drivers of and barriers to gender equality. From there, diversity strategy should be aligned with talent strategy, so that gender diversity programs don’t run counter to how talent is managed, included whether the firm tends to “build” or “buy” talent.

Importantly, gender diversity programs should only be implemented in the context of an enabling environment, one that actively encourages women to effectively utilize available programs and benefits in the context of their overall career development.

Collaboration will also have a positive impact on the female talent pipeline. Leaders can position their organizations for success through alliances with other key stakeholders to influence the supply of female talent — including schools, governments, public health organizations, industry groups, and NGOs.

To ensure tomorrow’s global business success today, organizations need a mix of different skills. A truly gender-diverse workforce is a vital key to that success. Ultimately, optimal gender diversity takes more than having a standard diversity policy and traditional programs.

Patricia A. Milligan is a Mercer senior partner and Global Leader, Multinational Client Services. Previously, she served as President of Mercer’s North America region from 2012 until 2015. Prior to that, she was the President of Mercer’s Talent business segment and led the human capital, information solutions, and workforce communication and change businesses. She currently serves on the World Economic Forum Global Agenda Council.

Learn more about Mercer’s groundbreaking study, “When Women Thrive, Businesses Thrive.”



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