Please see below selected recent intelligence about diversity. This is a synthesis of major recent developments at corporates business schools, thinktanks, media, commentators, and other key influencers.
- Does the gender of executives make a difference to business performance, asked the Financial Times? The evidence is mounting that it does, claimed the FT. In some developing economies, women are joining the top ranks of business management at the same pace as those in western countries. Click here to read more work and careers coverage.
- Investing in access to essential services and reducing the gap in labour-force participation rates could significantly expand the global economy by 2025. The McKinsey Global Institute's 'The power of parity: How advancing women’s equality can add $12 trillion to global growth' report focused on the enormous potential associated with narrowing the gender gap, and found that if every country did so at the same historical rate as the fastest-improving country in its regional peer group, the world could add $12 trillion to annual gross domestic product in 2025. That’s some 11% higher than it would be under the business-as-usual scenario.
- Bain & Company recently launched a study that asked more than 1,000 men and women in a mix of US companies two questions: “Do you aspire to top management within a large company?” and “Do you have the confidence you can reach top management?” Women with two years or less of work experience slightly led men in ambition. But for women who had more than two years on the job, aspiration and confidence plummeted 60% and nearly 50%, respectively. These declines came independent of marriage and motherhood status, and compared with much smaller changes for men, who experienced only a 10% dip in confidence.
- PwC was recognised as a leader in workplace gender equality by being included in The Times Top 50 Employers for Women 2016. The unranked list, which includes public and private sector employers and organisations, was published in The Times, in partnership with Business in the Community. Organisations are reviewed on what they’re doing internally and externally to promote gender equality, create opportunities for women in a wider context, and drive culture change.
- EY announced a strategic alliance with EMC that will focus on hybrid cloud enablement, data centre network virtualisation and segmentation, enterprise mobility management, governance risk and compliance & cybersecurity services. The two firms have already collaborated on projects such as Insurance Nexus, a strategic technology and services offering helping insurance carriers migrate core insurance operations and support functions to the cloud. As part of this alliance, EY and EMC also announced a new cybersecurity offering, Isolated Recovery, which combines cyber, business impact analysis, resiliency services and technology capabilities to secure company data.
- A new paper for the European Corporate Governance Institute warned that diverse boards may mean that diverse individual preferences may fail to univocally aggregate in collective preferences and may consequently lead to arbitrary and volatile decisions. Firms with more diverse boards rend to have greater stock return and fundamental volatility, suggesting that board diversity indeed makes decision-making more erratic. Also, firms with diverse boards have less persistent strategies and analysts make larger forecast errors in predicting their performance supporting the conjecture that board members’ diverse preferences lead to hard to predict decisions. Executive and director turnovers are also higher in firms with diverse boards.
- 40% of today’s global workforce are female yet just 5% of global CEO positions are held by women. Yet when women do reach executive positions they, and the companies they work for, tend to flourish. How can organisations close this gap? Explore PwC's selected insights in Spotlight on Gender Diversity to find out more.
- PwC's research report Modern mobility: Moving women with purpose is based on the findings of research among almost 4,000 working professionals based in over 40 countries (2,285 were women and 1,652 were men), and 134 global mobility executives representing international organisations headquartered in 23 different countries and with a combined workforce of some 4 million employees. It is a very robust and compelling report with a wealth of powerful research insights that we feel will give us a distinctive global diversity and mobility voice this IWD (and beyond). Furthermore, to support our goal of being number 1 for diversity it also features a number of PwC case studies and PwC female role model profiles.
- UK firms that fail to address the pay gap between male and female employees with be listed in new league tables. Companies with over 250 employees will have to publish their gender pay gap under measures being announced by the Government to tackle inequality. The new league tables will also be launched giving details of companies failing to address the problem, but they won't be revealed until 2018.
- In the US, the Executives’ Club of Chicago (EC) announced their new relationship with Deloitte, which works to expand diversity and inclusion awareness, best practices and thought leadership for Chicago’s business community through its newly formed Diversity Leadership Council and programme series. Together with Deloitte, Chair of The Club’s newly formed Diversity Leadership Council, The EC plans to shape conversations, share best practices and stay committed to making diversity and inclusion a priority for Chicago’s business leadership.
- Despite movements like the 30% Club and government action to get more women in leadership in countries ranging from Germany to India to United Arab Emirates, gender parity is actually getting worse, warned EY. When it launched the gender parity countdown clock at Davos last year, it was a countdown from 80 years. That was bad enough. But the World Economic Forum’s latest research - 'Global Gender Gap Report 2015- shows it will now take 117 years to close the gender gap.