Initiatives to improve representation of women in leadership are failing to make inroads, according to a recent research report into workplace diversity, which found that only one third of organisations with such programs in place meeting their set targets.
Just over half of HR hiring managers reported that increasing diversity is a strategic objective of their organisation. Yet only one third of these, or one in five of all employers surveyed, have specific initiatives in place to improve representation of women in leadership.
Of this group only 36 per cent reported that their organisation’s initiatives are meeting or exceeding set targets.
“It comes as no surprise that many diversity programs fail,” said Simon Moylan, executive general manager, talent management Asia Pacific at Hudson, which conducted the research report.
“Rather than aligning to the company strategy and supporting long-term outcomes, initiatives are often run in isolation with vague targets and little measurement.”
“Any organisation that fails to optimise this talent pool is destined to fall behind its competitors”
If diversity was put aside for a moment, Moylan said the two long-term challenges facing businesses in Australia are having enough of the right talent to deliver what an organisation needs to achieve, and growing inclusive, collaborative leaders to transform organisations at the pace the market is changing.
“Increasing women in leadership roles meets both of these objectives in terms of the size of the talent pool and the unique skills and style they bring to leadership roles. Any organisation that fails to optimise this talent pool is destined to fall behind its competitors,” he said.
The Hudson research supports other data which has found that women in leadership directly contribute to an organisation’s bottom line.
Research from McKinsey, for example, has shown that companies with the most gender diverse management teams outperform their peers, with a 48 per cent average increase in earnings and 10 per cent average return on equity.
Despite this, and despite women comprising 46 per cent of the working population, ABS data has found that only one-third of Australian management positions and 9 per cent of executive management positions in ASX 500 companies are held by women.
“Rather than aligning to the company strategy and supporting long-term outcomes, initiatives are often run in isolation with vague targets and little measurement”
Development of diversity policies have increased since the Equal Opportunity for Women in the Workplace Agency (EOWA) guidelines were set by the Federal Government in 2012 and the ASX Corporate Governance Council. These require organisations to adopt and disclose diversity policy and measurable objectives relating to gender, or explain why they have not done so.
While the Hudson research highlighted many diversity programs are not meeting targets, not all are doomed to fail, Moylan said.
“For those organisations looking to enhance their promotion of diversity internally, the creation of a talent pipeline to identify, support and secure women in leadership is critical.
“Research shows that women often minimise their own contributions and this, combined with a greater focus on their family, can result in women choosing to opt out of a business career.
“Organisations should take a strategic approach and introduce targeted development programs which incorporate detailed analysis of the challenges and aspirations of their existing talent.”
By working carefully with employees and implementing development programs which provide a well-defined and transparent career path, Moylan said organisations can help remove barriers for women leaders.
“The incorporation of mentoring programs with a specialist focus on networking and coaching are also highly effective in supporting women into leadership positions,” he said.
