Closing the Gap for Women in the Workplace

Introduction: Women in the Workplace

Women in the workplace have made immense progress since the turn of the 20th century. Reports, however, indicate that there is still much to be done to close the gender gap.

The benefits of achieving this are clear. For example, according to McKinsey’s report “The Power of Parity”, providing opportunities for women to reach their full economic potential could add $12 trillion to the global GDP by 2025.

To close the gender gap in the workplace, however, organizations first need to understand gender parity, as it is a term often used in discussions about women in the workforce, as well as the current state of gender equality at work.

What is Gender Parity?

Gender parity refers to each gender being equally represented.

It is, according to INSEE: “It is an instrument at the service of equality, which consists in ensuring the access of women and men to the same opportunities, rights, opportunities to choose, material conditions while respecting their specificities.”

Notably, gender parity is generally calculated as the ratio of female-to-male values, as opposed to male-to-female values, which is referred to as the “sex ratio”.

Gender Equality at Work: The Current Landscape

The Gender Wage Gap

The World Economic Forum (WEF) reports that, in 2023, the global gender gap score stood at 68.4% closed. In the US, according to the US Department of Labor (DoL), on average, women who work full-time are paid only 83.7% of what men are paid.

This inequity itself has layers to it, with Hispanic and black women being disproportionately affected. The gap is further affected by age, education, and occupation.

Non-Inclusive or Inappropriate Behavior

According to Deloitte’s “Women @ Work” 2024, women still face exclusive behaviors, which often go unreported to employers. In 2023, 59% of women reported harassment to their employers, and 44% reported microaggressions.

Across Nations & Regions

There are numerous differences in gender parity between nations and regions. For example, according to the (WEF) the lowest levels of parity in participation are in South Asia (34%) and the Middle East and North Africa (30%). North America stands with the highest score (84%), followed by Europe (82%).

Furthermore, in many low- and middle-income economies, people with advanced education are more likely to be unemployed, with women being disproportionately affected. On the other hand, in many high-income countries, people with basic education are more susceptible to unemployment, with the pattern being, again, more pronounced for women.

Senior Leadership

More women in the workplace than ever before are in senior leadership positions (defined as C-suite, director, or vice president). The WEF, however, states that the percentage of women in these positions stands at only 32.2%, which is almost 10 percentage points lower than their overall workforce representation of 41.9%.

This gap is most pronounced in certain industries, such as oil, gas and mining (18.6%), manufacturing (24.6%) and infrastructure (16.1%). Some sectors in which women are more present in senior leadership include education (46%), healthcare and care services (49.5%) and consumer services (45.9%).

How to Close the Gender Gap in the Workplace

There are ways for companies to create inclusive cultures that support women’s careers and their work-life balance.

Closing the gender gap is not – and never has been – a fashionable buzzword, but a vital business strategy. Achieving a truly equitable culture, however, is a challenge that requires more than PSAs and occasional speeches on the importance of inclusion. It requires active engagement and investment.

Below are several strategies that will help companies achieve gender equality in the workplace.

• Focus on Diversity During Recruitment
  
  Closing the gender gap starts during the recruitment process.
  • Develop inclusive job descriptions, conduct fair interviews, and source a candidate pipeline that is gender diverse.
  • Note that, while some questions can be considered unethical to ask during interviews (such as, “Are you planning to get married?”), in various regions and countries, they are illegal. For example, even a seemingly innocuous question such as “Do you wish to be addressed as Miss or Mrs?” is illegal in the US. Regardless of the law, it is prudent to avoid such questions to ensure fairness.
  • Your hiring process should be free of internal bias. This should be ensured at every level of seniority, especially at executive ones. Representational disparity tends to increase at every step up the corporate ladder, particularly for women belonging to other disadvantaged groups. Hiring more senior female workers should be on every business’ agenda.
  • This is relevant beyond itself: according to the WEF, when more women hold leadership roles, more women are hired across the board. Furthermore, this remains true even considering the size disparities of female talent pools across sectors.
• Offer Relevant, Supportive Employee Benefits
  
  Women are more likely than men to report exhaustion, emotional or physical, related to paid work. This can be attributed at least in part to the greater household labor that women are expected to shoulder in addition to their jobs.
  • One way to aid women in the workforce in this aspect is to implement supportive employee benefits and policies. For instance, agile and flexible work can help women be more productive and healthy.
  • This should be supplemented by nurturing a culture of performance rather than presenteeism, as well as effectively communicating with remote workers via regular updates on tasks, collaborative management software, and conducting meetings.
• Ensure Fair Promotion Procedures & Compensation
  • Develop an employee compensation program that is transparent, equitable and fair. Equal pay for equal work should be the rule of the day. Offering competitive pay is also an effective way to attract and retain the best talent.
  • Furthermore, organizations should promote qualified women from within. A standard evaluation and promotion procedure will not only help close the gender gap at work, but also benefit everyone regardless of background.
• Engage With Women at Every Level

  Often, addressing Diversity, Equity and Inclusion (DEI) issues does not require hired experts or elaborate strategies. Instead, organizations can actively engage with women at every level and listen to their wants and needs in safe, judgment-free spaces, and collaborate with them to create plans accordingly.

• Holding Managers & Executives Accountable
  
  Instead of treating gender inclusion and diversity as an option, firms should treat it as a crucial part of their business strategy. Mandy Price, co-founder and CEO of Kanarys Inc., even suggested connecting supervisors’ bonuses with D&I objectives.Tracking and measuring diversity and inclusion efforts, and holding managers and executives accountable for them, are key to closing the gender gap.

The Future of Women in the Workplace

At the current rate of progress, economic parity will take 162 years to achieve. Closing the gender gap overall is set to take 131 years. Firms can play their part in speeding up the process by implementing the strategies above – Silverskills has been doing so for years.

Employees want a fair work environment where they are valued. Focusing on gender equality at work can be key to fostering greater employee happiness and engagement, which can reflect in market share and financial returns.

As the gears of time grind on, gender-sensitive policies and strategies will lead to greater economic stability and resilience, higher growth, and reduced income inequality – not just for women, but across the board.