This is more
than a story about numbers. However, the numbers are significant -- impressive,
even. And they make a compelling business case for why more women should occupy
the executive suite in companies across the land and hold more seats around
board-of-director tables.
Catalyst, a
non-profit advisory group working toward inclusivity in business, looked at the
relationship between women's representation in corporate-officer positions and
board-of-director positions in the U.S. Fortune 500 companies. The findings
were, well, revelatory.
On average,
companies with the highest representation of women in corporate-officer
positions financially outperformed those with the lowest representation. In
fact, return on equity was 35.1% higher. Total return to shareholders was 34%
higher.
The numbers
jumped for women serving as directors on Fortune 500 boards. On average, return
on equity was 53% higher for those boards with a high representation of women
than those with the least women; return on sales was 42% higher; and return on
invested capital was 66% higher.
"When you
consider these financial implications and the fact women are the single-largest
segment of the talent force, at a time when Canadian businesses are fighting a
war for talent, women become a critical part of the solution for businesses,"
says Deborah Gillis, vice-president of Catalyst
And yet, they
are still under-represented in leadership roles. According to the most recent
data from Catalyst, at the corporate-officer level in
This January,
the third-annual Rosenzweig Report on women at the top levels of Corporate
Canada found that 31 women now hold top-officer jobs in Canada's 100 largest
publicly traded companies; down from 37 last year.
And this is at a
time when women represent about 50% of the labour market overall.
For Ms. Gillis,
it's a no-brainer. Businesses need to recruit and promote more women. "They have
to create an inclusive environment where women can succeed. That means
addressing head-on the perceived barriers women identify in the workplace:
exclusion from networks; lack of role models and mentoring; gender-based
stereotypes."
Thankfully, more
Canadian firms see the writing on the wall and are acting to do just that. This
month, for the first time, Ernst & Young held a women's leadership conference in
"This is a
global priority," says Billie Williamson, Ernst & Young's
Lack of
mentoring is one of the key barriers to the executive suite. "We believe women
don't access the informal networks in the same way as men do," Ms. Williamson
says.
The problem goes
deeper. "People who enter those C-suite positions are pulled from a fairly small
pool," says Fiona Macfarlane, executive sponsor of the firm's Canadian Gender
Equity Advisory Group . "It's the people with operational experience who get
into those roles."
And few women
have that experience. While corporate
In fact, almost
60% of corporate-officer positions were line positions, Ms. Gillis says. Those
roles are often the feeding pool for more senior roles. Women hold less than 10%
of those key line roles in organizations.
Women have a
responsibility to put themselves in those positions, too. "Women have to make
sure they take the risk, and get experiences that are out of their comfort
zone," Ms. Williamson says.
They also have
to speak up about their aspirations, Ms. Macfarlane says. " Women tend to wait
for opportunities, seeing it as recognition for good work done. Men ask. You
miss out if you wait."
While Ernst &
Young has implemented several programs to help level the playing field for both
women and visible minorities, the conference highlighted new ideas.
Some countries
mandate a percentage of women on boards, Ms. Williamson says. "It would be great
to see corporate Canada/America more focused on how many women and visible
minorities are on their boards and in their senior leadership."
She would also
like more companies to look at succession and how they are training women for
operating roles. Perhaps more importantly, Ms. Macfarlane says, "Companies have
to stop focusing on the likely suspects and cast their net wider when it comes
to talent."
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TIPS FOR
COACHING:
Women aren't
being coached to pursue roles that will lead to the executive suite. And there
simply aren't enough women in top jobs to take on all the mentoring. "More
active engagement of all leaders -- men and women --will make the difference,"
Billie Williamson of Ernst & Young says. The firm has put together a tip sheet
to help men reach out to women. - Keep it honest Think hard about treating men
and women the same -- ask yourself if you're unduly worried about hurting
feelings or being "politically correct." - Encourage authenticity Coach women to
capitalize on what they do best and to talk through the benefits of their
strategies for deepening client relationships. Consider ways individuals succeed
with clients and consider together the career moves that build on those
approaches . - Be a mentor Be someone women can talk with about their long-term
view of their careers . Talk about women's ambitions, encourage dreaming big and
compare ideas about what steps one can take to reach specific career goals. -
Define expectations Share tips on how one hits targets and achieves the metrics
that are expected. Identify ways in which expectations can change from manager
to senior leader, including any "unwritten rules." - Leverage relationships
Encourage women to build relationships with their peers and with those at higher
levels so that they develop a broad network. Talk through the strategic
questions they may have and encourage women to bring questions to others. -
Spend the time Ask women to do things with you: lunch, breakfast and other
activities. The more you get to know women on a personal basis, the more at ease
you will be doing business with them, bringing their talents into the mix and
providing them with insights shared by mentors who were critical to you in your
career. - Develop business together Engage women in all aspects of the
business-development process. Include them in key meetings and participate with
them to help them get to know your contacts . Let others know about the specific
talents of women you work with.
Source: Mary
Teresa Bitti, Financial Post