Location: Home > Publications >The leadership Challenge: Women in Management (Hannah Piterman © March 2008)
5. Strategies for Change
5.1 The business case for diversity
Contemporary business literature provides a compelling case for diversity in the workplace. A considerable body of evidence demonstrates that increased female participation at senior levels can enhance organisational capacity to respond to key shifts in the economy. A report by Catalyst suggests a strong correlation between the number of female executives and the performance of Fortune 500 companies between 1996 and 2000 (The Economist, 2005).
A critical mass of women at senior levels has been shown to impact positively on an organisation's communication and decision-making processes, broadening awareness of stakeholder interests and encouraging thorough investigations of problems (Konrad & Kramer, 2006; Chesterman, et. al., 2005).
The trend towards outsourcing at all levels of commercial enterprise is also encouraging the adoption of management styles that facilitate and support shortterm partnerships. Within this environment, stereotypically female skills such as strong communication and collaboration are valued over traditionally male management styles that are felt to promote individualism and competition (Sands, 1996; Hampden-Turner, 1994). Businesses that tap into the large pool of female talent are increasingly seen to have a distinct competitive advantage in a tight and highly competitive labour market (Hewlett & Luce, 2005).
While the business case for diversity has been acknowledged within corporate Australia, its translation into business practice has yet to be taken up across the board. A small number of leading organisations have adopted strategies to promote and retain female talent (EOWA, 2006b; Beck & Davis, 2005; Palermo, 2004). Flexibility, meritocracy, and transparency are the key drivers of this response.A review of Australian 'employers of choice' reveals that companies are improving the delivery of flexible work options and employing contemporary human resources (HR) practices to encourage level playing field dynamics around recruitment and promotion.
5.2 Contemporary human resources
Contemporary HR practices reflect a growing appreciation of the difficulties women face gaining visibility and recognition in male-dominated work environments (EOWA, 2006b;Thomas & Graham, 2005). HR initiatives prioritise transparency and encourage level playing field dynamics around selection and promotion practices.
5.2.1 Transparency
Values of transparency and accountability underpin selection and promotion criteria.These can include gender proofing assessment processes to avoid emphasis on mathematical and analytical 'male' competencies or a 'left brain bias'. Group selection processes are also encouraged to ensure greater accountability.
Case study: Department of Education, Science and Training (DEST)
In 2001, DEST introduced a workforce planning process to help recruitment better respond to key business needs.The process requires an annual round table discussion between the department's people management branch and key business group leaders to identify current staff issues, supply and demand needs, and workforce gaps.This group discussion and planning process informs recruitment strategies over the short and medium-term. As part of this process, a 'Get It Right Selection & Recruitment Kit' was designed as a support tool for management.
Between 2003 and 2004, DEST achieved an 8 percent increase in women at senior executive level. By 2005, the proportion of women at executive level had risen to 57 percent.
In 2006, 35 percent of federal public service senior executives were women, and proportion was higher at DEST. This relatively high proportion of female executives has been partially attributed to a transparent group selection process instilled, supported, and driven by leadership in the APS and at DEST (Burgess, 2006).
5.3 Selection quotas
Selection quotas and dedicated attempts to recruit female talent aim to create a critical mass of women employed in an organisation.
Case study: Insurance Australia Group (IAG)
According to IAG's recruitment policies, shortlists for vacant positions must include at least one female candidate. The company also encourages recruitment agencies to search beyond their regular networks to identify appropriate female candidates for vacancies.
In 2004/05, 71 percent of promotions at IAG were awarded to women. A female CEO was appointed in 2003 and a third of the current group executive is made up of women (EOWA, 2006b).
5.3.1 Talent development and promotion
Talent promotion programs aim to demonstrate the business case for increased female participation at the senior level.They encourage the identification of potential female talent for specific management training and career development opportunities. Many programs are designed to address issues such as the low level of line management experience of female managers.
Case study: IAG
As part of its women's strategy, designed to 'increase the number of women in senior management positions, and especially in line management roles', IAG has established a Chief Executive Women Talent Development Program.This innovative program incorporates a range of career development opportunities for 'high potential staff ' including a 'managed career growth opportunity' for participants. During the pilot program, all participants made a beneficial career move.5.4 Mentoring and networking
Dedicated mentoring and networking schemes encourage and train women in career development strategies within a supportive environment.They can provide mentoring opportunities to high performing women.A growing number of business leaders are publicly mentoring female candidates for executive and boardroom appointments.Women's networks are also a popular element of diversity strategies.
Case study: Deloitte
Deloitte offers 10 networking forums a year for employees. Forums and workshops give participants the opportunity to seek out official mentorship and develop key networking and career development skills. The CEO mentors five female partners and believes mentorship and networking are vital to successful career development.
Since 2003, female partners at Deloitte have increased from 5 percent to 15 percent. Marked achievements in the retention and promotion of women have saved the organisation more than $250 million in hiring and training costs.
5.5 Raising awareness
Practical initiatives are often complemented by awareness- raising programs that educate managers on the principles and benefits of achieving greater workforce diversity. Initiatives range from mandatory diversity courses for all levels of management to diversity councils that provide executives with an opportunity to oversee the implementation of strategies for cultural change.
Case study: Coles Group
In 2004, Coles established a diversity team of key executives.As part of this process,'high potential team members' participated in leadership programs for women and fed data on issues facing women back to the business. In 2006, a diversity council, comprising the CEO and other executives, began working on the organisational challenges to diversity. Facilitated by the diversity manager, the council focused on unspoken rules and stereotypes that exclude women. Coles set targets for increasing the percentage of women leaders and followed up with a mentoring program for women executives. Between 2004 and 2007, the percentage of executive level women rose from 16 percent to 22 percent.
The council is widely understood to give the organisation's leadership the opportunity to gain a working appreciation of the need for diversity and get it in their hearts that this stuff matters. (Female manager)
Diversity manager, Dr Katie Spearritt said:
The most important thing for me is to make sure we've got those key executive champions. That's one reason I wanted to see a diversity council set up pretty quickly.We had compelling business reasons with the majority of retail customers being women.
5.6 Childcare
Work-based and subsidised childcare facilities not only acknowledge the parenting responsibilities of many employees but directly address common problems in accessing childcare that is affordable, accountable and local.
Case study: Westpac
In 1996,Westpac opened its first childcare centre in Adelaide. By 2007, the number of centres has grown to 11 across the country. Three hundred and fortyseven families use the bank's onsite care facilities and can pay for the service with pre-tax dollars.
The bank's former New Zealand CEO, Anne Sherry, was a driving force behind the establishment of childcare services for staff.
When we build big facilities we put the childcare centres in. It's a marginal cost when you're spending potentially tens of millions of dollars in capital, and has fantastic outcomes. (Sherry, 2002)
In 2006, 25 percent of the bank's board directors and 22 percent of executive managers were women. Since 1994 the number of women in management positions at Westpac has increased by 200 percent.
5.7 Infrastructure supports for parents
Some organisations have introduced infrastructure support initiatives for working mothers including mothers' groups, breastfeeding rooms and kids' days.
Case study: Monash University
Monash University has established a family and children's services co-ordinator role. The co-ordinator helps the university provide referral and advisory services concerning family life resources and childcare matters to employees.
5.8 Flexible work opportunities
Since the early 1990s, the range of flexibility options and family support offered by both public and private sector organisations has increased. By 2007, 131 organisations had received the Federal Government Employer of Choice for Women Award.This citation is widely considered an important response to women's experience in the workplace and the provision of initiatives and policies designed to encourage and retain female talent.
Common initiatives include part-time and job share arrangements, flexi-time and working from home afforded by technology such as telecommuting. Strategies incorporating a range of flexible work arrangements are designed to allow women and men to maintain and develop their working lives without neglecting key family and personal responsibilities.
Case study: The Commonwealth Bank
The Commonwealth Bank has instituted flexible work options including part-time work, job sharing, purchasing extra leave and working from home.
Between 2004 and 2006 the bank recorded an 85.5 percent increase in the number of senior executives, executives and managers working part-time. Of the estimated 7000 part-time employees, 89.6 percent were women.
Case study: Freehills
Freehills has named 'recruitment of a flexible workforce' an essential part of its strategy to attract and retain women.The firm offers flexible work opportunities such as paid parental leave, job share, variable hours and working from home. All requests for flexible work conditions are considered. Currently 13 percent of the firm's female lawyers are taking up flexible work options.The industry average is 10.9 percent.
5.9 Leave entitlements
The range of paid and unpaid leave options is also growing. Many organisations offer schemes that provide leave purchasing, additional unpaid annual leave for caring and family purposes, and paid maternity/paternity leave.Within the private sector, there is a notable trend towards the provision of paid parental leave schemes and some evidence of improved post-maternity retention rates as a result.
Case study: St George Bank
In July 2007, St George received the National Work and Family Gold Award for the private sector in recognition of its industry leading parental leave initiatives, including 13 weeks paid parental leave and 12 months grandparental leave.
Case study: AMP
AMP introduced paid parental leave in 1995.The rate of return to work from maternity leave increased from 50 percent in 1992 to 90 percent in 1997, saving the company between $50,000 and $150,000 for each woman who returned.