TAKING PAYMENTS ECOSYSTEM CAPABILITIES TO THE NEXT LEVEL- FOCUS ON DIVERSITY Payments New Zealand- November 2016 PRESENTED BY: KRISTY DUNCAN WOMEN IN PAYMENTS, FOUNDER & CEO
PRESENTATION OVERVIEW Where are we now on gender diversity? Why is diversity & inclusion important? Where are the opportunities? 2
WE HAVE MADE PROGRESS Payments NZ 2016 women comprise: 30% of attendees 23% of speakers First NZ woman to run large public company in 1999- Theresa Gattung (Telecom) First Australian woman CEO was in 2002 (Gail Kelly appointed to head St George Bank; later headed up Westpac) 3
PROGRESS TO THE TOP VERY SLOW Gender diversity in the C-Suite has improved, but we are a long way from parity 4
WHY IS DIVERSITY IMPORTANT? Many strands of diversity- thought, gender, ethnicity, experience, skills, age Diversity has a positive impact on an organization s performance Win the war for talent Strengthen customer focus Match employee profile to reflect customer profile Increase employee satisfaction Improve decision making Raise image of organization 5
EQUAL OPPORTUNITY- RIGHT OR PRIVILEGE? 6
WHY GENDER DIVERSITY? A 2014 study by Credit Suisse found a 27% higher ROE and 42% higher dividend payouts in companies where women comprised at least 10% of the top operational roles vs 5% McKinsey & Company found in a 2014 study 15% higher financial returns for companies with higher gender diversity at the leadership level (at least 22% of the leadership team) A 2015 study by Quantopian benchmarked Fortune 1000 companies with women CEOs against S&P performance between 2002 and 2014, and found equity returns for the 80 firms with female CEOs were 226% better than the S&P 500 performance 8
HOW CAN WE, AS LEADERS, PROMOTE DIVERSITY? Strategies for Success Rethink the way we work (fix the industry, not the women) Adopt family-friendly practices for everybody- more flexibility benefits all Sponsor from the top Measure and track progress for all strands of diversity Number interviewed and hired, by diversity strand, at all stages of the hiring process (both new employees and internal hires) Compensation and promotion rates, by diversity strand, at all levels Attrition- numbers leaving and why Employee engagement levels; perception of meritocracy and work/life balance 9
ADDRESSING UNCONSCIOUS BIAS Identify and interrupt gender bias (4 key areas) Likeability- success and likeability are positively correlated for men, but negatively correlated for women If a woman is competent, she seems less likeable If a woman is nice, she seems less competent Assertive women are perceived as aggressive and ambitious Assertive men are perceived as confident and strong Performance Evaluation Bias One study cited 66% of women receiving negative feedback during performance appraisal on their personal style, such as You can sometimes be abrasive. Less than 1% of men received similar feedback. Performance evaluation bias is more pronounced when review criteria are unclear, and evaluators rely on gut feelings and personal inferences. Training to recognize and counteract 10
ADDRESSING UNCONSCIOUS BIAS (CONTINUED) Maternal Bias- Mothers are assumed to be less competent and less committed to their careers Held to higher standards and presented with fewer opportunities Next Generation Research in many countries shows children of involved fathers are healthier and happier, and have fewer behavioural problems A study by University of British Columbia found that when fathers share equally in housework, their daughters are less likely to limit their aspirations to typically female jobs. When children see both parents pursuing careers AND sharing housework, they are more likely to carry gender equality forward to the next generation; benefits entire society We need training to recognize and counteract unconscious gender bias 11
BRINGING DIVERSITY TO PAYMENTS HM Treasury in the UK, the world s largest exporter of financial services, published a report in March this year, entitled Empowering Productivity: Harnessing the Talents of Women in Financial Services Recommendations include: Reporting- Every financial services firm operating in the UK is encouraged to publish its own inclusion strategy and targets annually, and to report progress against targets Executive Accountability- The strategy should be owned and driven by a senior member of the Executive Committee (preferably from a business line role), who is responsible and accountable for the strategy s design, execution, and success Remuneration- Success against internal measures of the organization s gender balance strategy should form part of the annual bonus of all senior executives 12
ELEPHANT IN THE ROOM: GENDER PAY GAP 13
GENDER PAY GAP According to New Zealand Ministry for Women, in 2016 the gender pay gap in NZ was 12%, down from 16% in 1998; compares to European average of 16% in 2014 15
GENDER PAY GAP- HOW TO FIX Two solutions to eliminate the gender pay gap today: 1. Implement pay transparency 2. Eliminate negotiation 16
WHERE TO FROM HERE? We have an opportunity to use different strands of diversity to drive equality in the payments industry Harnessing the talents of women will help increase competitiveness, innovation, financial performance As leaders, we need to make diversity a priority, develop strategies to achieve it, and track our progress against measurable targets 17
THANK YOU Kristy Duncan kristy@womeninpayments.org