Getting to Gender Diversity Survey
Introduction: Getting to gender diversity in 2014 In a recent survey we asked a selection of Australian People & Culture leaders to comment on what their focus is in 2014 for improving gender diversity in their organisations. We asked them to share their plans, what s worked in the past, what s not worked (and why) and to provide some frank and honest feedback about what they see as the biggest challenges in increasing the participation of women in the workforce at all levels graduate through to senior leadership. The questions we asked are supplied on the following page. The findings from the gender diversity survey are steeped in one overriding truth complex challenges require complex solutions. The people and culture leaders who answered our questions have had mixed experiences with the seemingly endless array of solutions for increasing the participation of women in the workforce particularly at senior levels. And their focus for 2014 and beyond reflects this. Fifty-nine percent of respondents believe there is a gap between formal statements and intentions in leadership statements and actual practice. Too much talk and rhetoric and not enough action. The reasons for this are not clear. Most likely the change process is more complex than organisations imagined it would be. And that change takes time. The findings conclude the barriers to effecting change are centred around: Empty pipelines Lack of leadership commitment HR championing the cause and not business lines An inability to move from awareness to action, and Resistance to changing long held workplace practices. Twenty-two organisations participated in the Macfarlan Lane Gender Diversity survey and we thank them for their input and candour. 2
1. Does your organisation have a diversity and inclusion policy? 2. Does your organisation have a diversity and inclusion council or equivalent? 3. Does your organisation have one or more diversity champions? 4. If yes, what role level are they? 5. Has your CEO (or equivalent) made a public statement or taken a public position about gender diversity in your organisation? 6. If yes, in what forum did the statement take place (e.g. media interview, annual general meeting etc.) 7. What is the percentage of women in your organisation? 8. What is the percentage of women in senior leadership roles in your organisation? 9. Has your organisation set any targets for gender diversity? 10. If yes, what are they? 11. What are the top five ranking initiatives your organisation is implementing or continuing to implement over the next twelve months to improve gender diversity? a. Unconscious bias awareness training b. Programs targeted specifically at women s skills development c. Mentoring programs for women d. Gender neutral talent development programs e. Required level of female participation in talent development initiatives f. Formal selection of and investment in high performing women g. Incentive and/or penalties directed at gender diversity targets or activities h. Others (please name) 12. Do your people managers have gender diversity improvement figures and/or activities formally included in their KPIs or other performance measures? 13. If yes, what are they? 14. What has worked to improve gender diversity in your organisation and why? 15. What hasn t worked and why? 16. Does your organisation distinguish between full time flexible working arrangements (full time hours spread flexibly in terms at time at the office), part-time working arrangements (less than 38 hour standard working week) and part-time flexible working arrangements (less than 38 hour standard working week spread flexibly in terms at time at the office)? 17. What is the single biggest barrier to gender diversity in your organisation today? 18. On a scale of 1 to 10 (1 being no importance 10 being business critical) how important do you think improving gender diversity is to your organisation s future? 19. What ranking would your CEO/MD give to question 18? 20. Do you perceive a gap between formal statements and intentions in leadership statements and actual practice? 3
The basics Fifty percent of our survey respondents have a workforce of more than 5,000. Typically organisations of this size have evolved workplace policies and practices. Seventy-three percent of respondent organisations have a diversity and inclusion policy. However, forty-five percent have no formal diversity and inclusion council or equivalent. Interestingly this number jumps back up again for diversity and inclusion champions with seventy-three percent of organisations having one or more diversity champions. 4
Role level of diversity champion 5
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Women and women in leadership The diversity results we see in the press on a regular basis were reflected in the results of our survey. Nineteen of our surveyed companies answered this question. The results are consistent with market numbers with parity close in only two organisations. As can be seen in the graph one responding organisation has a workforce of sixty percent women with less than five percent in senior leadership roles. 7
Targets for gender diversity? Where a surveyed organisation is setting targets for diversity sixty four percent of respondents the measures in place include: Anywhere from 10% to 50% at senior leader level Anywhere from 40% to 50% at Board level Graduate intake measures In one case senior leaders are required to have at least one woman on the direct reports team within eighteen months 8
Top ranking gender diversity initiatives Respondents named the top diversity initiatives for 2014 as: 1. Gender neutral talent development programs (and ensuring programs had 50% gender balance) 2. Mentoring programs for women 3. Unconscious bias awareness training 4. Programs targeted specifically at women's skills development 5. Required level of female participation in talent development initiatives 6. Formal selection for an investment in high performing women 7. Incentive and/or penalties directed at gender diversity targets or activities 9
Key Performance Indicators Less than fifty percent of respondents have diversity targets embedded in Key Performance Indicators (KPIs). Those who do this measure a variety of data including: Measures for each business unit related to talent identification, participation in talent programs, headcount, hires, turnover etc. Ratio of males to females in the professional roles Percentage of females in a business unit and percentage of female leaders Targets for retention of identified talent Not less than a two percent increase in representation of women for the divisional heads and other group executive members 10
What has worked to improve gender diversity in your organisation and why? All of our surveyed organisations, bar one (who responded: it's not working ) have seen some initiatives make some improvement in gender diversity. Here s a snapshot of where they see the most traction: Targets, Data and Measurement the old adage you can t manage what hasn t been measured rings true the only way to know if progress is being achieved is to have a start point, implement targets and measure outcomes. Leadership Commitment anywhere an organisation s CEO/MD and executive leadership team (as well as line managers) are wholeheartedly on board and actively promoting the criticality of gender diversity will enjoy greater change. Awareness Raising ensuring the whole workforce (men and women) understand their own natural biases and the context and reality in which women are excluded. Mentoring and Other Development Programs there is an absolute need for gender specific programs which support skills development, confidence and strategy building. Grass Roots Engagement rather primarily focussing on women beginning to progress to leadership positions, effective outcomes are seen when companies are focusing on their graduate intakes and junior women. There is a place for all these approaches in fact an integrated approach is essential implementing any of these in isolation will not effect change. 11
What hasn t worked and why? There is no magic silver bullet mix of programs, culture and initiatives which automatically result in greater gender diversity. Inevitably there are failures. Listed below are what our surveyed respondents view as the most common failings of gender diversity initiatives. Funding commitment lack of financial input in to creating an integrated approach to improving gender diversity. Leadership and Management Disinterest a gender diversity program cannot hope to succeed if an organisation s leadership group is not on board. Simple. Lack of Commercial Business Case the argument for the economic imperative for organisations to be gender diverse needs to be made especially to the bean counters and other senior leadership. Until the economic argument as well as the moral argument is won there can be little progress. Inflexible Work Practices traditional workplace rules need to be thrown out the window and new and innovative practices tried and tested. They won t all work, but if we keep doing the same thing, we ll keep getting the same results. Hope this one s a doozy, because if wishes were horses, there d be a quid to be made in chaff these days. Aspirational statements not backed with real commitment does not work. Gender Specific Programs a controversial entry in to this list. Sometimes a circuit breaker is providing effective career development skills specifically in selected cohorts of women. Targeted Recruitment in isolation this tactic lacks results. The inflow of talent may be matched with an outflow of talent. 12
Flexible working arrangements Our survey respondents are offering flexible working arrangements as demonstrated below. 13
What is the single biggest barrier to gender diversity in your organisation today? Five clear themes emerged in the answers to this question. Pipeline many organisations want to appoint women to roles but they simply cannot find them. For example, engineering degrees still only have 10% enrolments from women 1. Leadership commitment the visible hearts and minds determination from the top to effect change is still not apparent. HR vs The business HR can provide skilled advice and talent development ideas, but senior line leaders need to own the diversity objective: it cannot be handed to HR. Unconscious bias although awareness training has been de rigueur for many companies over the past few years taking the next step to implement practical initiatives to combat that implicit thinking hasn t taken place. A need to change the rules flexible, progressive working arrangements cannot be formed with a cookie cutter. Not all scenarios and situations are right for all people or all organisations. Until we can understand the barriers we cannot hope to create the solutions. 1 http://www.catalyst.org/knowledge/women-australia 14
Alignment Real and long lasting change comes from the top. If the leaders in these organisations are not on board hearts and minds then progress will continue to stall. The sentiment in the final two questions of our survey was revealing. First responses showed that generally gender diversity is seen as important to future of organisational success. Most organisations rated its importance as between seven and ten. Many organisations guessed their CEOs would rate about the same. Alarmingly though there were a significant percentage (almost 50%) who stated their CEO would give gender diversity lesser importance in several cases by a significant proportion. 15