DESPITE FOCUS ON DIVERSITY AND INCLUSION, LESS THAN HALF OF ORGANIZATIONS HAVE A STRATEGY TO IMPROVE GENDER EQUALITY
Source: Mercer’s When Women Thrive 2020 Global Report
Despite progress and good intentions, gender equality in the workforce is still a long way off. According to Mercer’s When Women Thrive 2020 Global Report, the majority (81%) of organizations worldwide claim that improving diversity and inclusion (D&I) is important, yet less than half (42%) have a documented, multi-year strategy for achieving gender equality.
In tandem with this finding, only 40% of the global workforce is female, up slightly from 38% four years ago. Additionally, while representation of females in senior leadership roles is improving (up three percentage points at the top two levels), it decreases as career levels advance. Mercer’s research finds that women make up 47% of support staff and 42% of professional level positions, but only 29% and 23% of senior and executive level positions, respectively.
“Gender equality has evolved into a global imperative, and organizations are taking actions to make a difference,” said Martine Ferland, President and Chief Executive Officer of Mercer. “However, as women continue to face challenges of unequal senior level representation and limited opportunities for career development and advancement across industries and geographies, there is still much work to do to achieve gender balance.”
As organizations around the world pay more attention to gender equality, despite slow and uneven movement, there are bright spots showing forward momentum and progress with lasting impact. According to Mercer’s research, rates for hiring, promoting and retaining women are now comparable to rates for men, which is an improvement from four years ago (see Figure 1).
Additionally, organizations globally are adopting more disciplined methods for analyzing pay equity as well as implementing measures to take accountability. Mercer’s research finds that almost three-fourths (72%) of organizations have teams dedicated to conducting pay equity analysis, up from 45%, and more than half (56%) use a robust statistical approach to conduct their pay equity analysis, up from 35%.
Another positive aspect advancing workforce gender parity is the involvement of leadership. According to Mercer’s research, two-thirds (66%) of organizations report senior executives are actively engaged in D&I initiatives and programs, up from 57% in 2016, and more than half (57%) report the same for Boards, up from 52% in 2016.
“Slowly, but surely, organizations are enabling women to step in and step up,” said Samuel Lisse, Partner and CEO at Mercer Switzerland. “It’s good to see how Diversity and Inclusion evolve from a promise to real actions. Change will only happen if this culture of inclusion really comes alive. In the end, we all benefit when mixed and diverse teams become the norm: It is a positive sign for employees, it is a positive sign for the markets, and it improves performance.”
- Globally, organizations are optimistic about their ability to hire, promote and retain women. Less than one- third report challenges with attracting (32%), advancing (32%) and retaining (20%) women.
- Half (50%) of organizations around the world do not have staff exclusively dedicated to D&I.
- Just 64% of organizations worldwide track gender representation and even fewer analyze hires, promotions
and exits by gender.
- Despite the importance of employee wellbeing and financial wellness, only 25% of organizations globally track gender-specific health needs and 9% track gender-specific financial wellness.
“No senior leader wants to take decisions that are not based on data and analytics. It is alarming that many companies still do not collect and analyze data regarding gender-specific challenges their employees might face” continues Lisse. “Topics such as hiring, promotions, total rewards or talent and career development need to be professionalized further and based on a robust foundation of data in order to identify and address inequalities.”
Mercer’s When Women Thrive 2020 Global Report, the most preeminent of its kind, shares insights from senior HR and business leaders from 1,157 organizations in 54 countries and six regions, representing seven million employees. The research covers policies and practices related to diversity, inclusion and gender equity, including issues pertaining to accountability, leadership engagement, pay equity, career development, health and wellbeing and financial wellness.
Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s more than 25,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a business of Marsh & McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 76,000 colleagues and annual revenue of $17 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment.
For more information, visit www.mercer.ch