Break gender stereotypes, give talent a chance Toolkit for SME Advisors and Human Resource Managers Prepared by the International Training Centre of the ILO in partnership with the Association of European Chambers of Commerce and Industry (EUROCHAMBRES) in the framework of the contract “Raising the awareness of companies about combating gender stereotypes” commissioned by the European Commission, Directorate-General for Employment, Social AffairsandEqualOpportunities. ThispublicationissupportedundertheEuropeanCommunityProgrammeforEmploymentandSocial Solidarity(2007-2013).Thisprogrammewasestablishedtofinanciallysupporttheimplementationof theobjectivesoftheEuropeanUnionintheemploymentandsocialaffairsarea,assetoutintheSocial Agenda,andtherebycontributetotheachievementoftheLisbonStrategygoalsinthesefields. The seven-year Programme targets all stakeholders who can help shape the development of appropriateandeffectiveemploymentandsociallegislationandpolicies,acrosstheEU-27,EFTAand EUcandidateandpre-candidatecountries. Theprogrammehassixgeneralobjectives: (1) toimprovetheknowledgeandunderstandingofthesituationprevailingintheMemberStates (andinotherparticipatingcountries)throughtheanalysis,evaluationandclosemonitoringofpolicies; (2) tosupportthedevelopmentofstatisticaltoolsandmethodsandcommonindicators,where appropriatebrokendownbygenderandagegroup,intheareascoveredbytheprogramme; (3) tosupportandmonitortheimplementationofCommunitylaw,whereapplicable,andpolicy objectivesintheMemberStates,andassesstheireffectivenessandimpact; (4) topromotenetworking,mutuallearning,identificationanddisseminationofgoodpractices andinnovativeapproachesatEUlevel; (5) toenhancetheawarenessofthestakeholdersandthegeneralpublicabouttheEU’s policiesandobjectivespursuedundereachofthepolicysections; (6) toboostthecapacityofkeyEUnetworkstopromote,supportandfurtherdevelopEU policiesandobjectives,whereapplicable. Forfurtherinformation,see: http://ec.europa.eu/employment_social/progress/index_en.html. This publication has been commissioned by the European Commission in the framework of the contract“Raisingtheawarenessofcompaniesaboutcombatinggenderstereotypes”managedbythe InternationalTrainingCentreoftheInternationalLabourOrganisation(ITC-ILO)inpartnershipwiththe AssociationofEuropeanChambersofCommerceandIndustry(EUROCHAMBRES). The contents of this publication do not necessarily reflect the position or opinion of the European Commission.NeithertheCommissionnoranypersonactingonitsbehalfisresponsiblefortheusethat mightbemadeoftheinformationcontainedinthispublication. ISBN978-92-9049-468-3 ©EuropeanCommunities,2008 Reproductionisauthorisedprovidedthesourceisacknowledged. TABLE OF CONTENTS Purpose and scope of this Toolkit.................................................................1 SECTION ONE: RAISING THE ISSUES..........................................................2 Chapter 1. Give Talent a Chance: The business case for gender equality ........................................................2 1.1 Overview..........................................................................................................2 1.2 Thebusinesscaseforgenderequality ..........................................................3 1.2.1 Genderisabusinessissue,notawomen’sissue.....................................3 1.2.2 Sixexcellentreasonsforhavingmoregenderequalityinbusiness..........4 1.3 Business:gendermatters...............................................................................8 1.3.1 “WomenintheExecutiveSuitecorrelatetoHighProfits”(Adler,1998)......8 1.3.2 “TheBottomLine:ConnectingCorporatePerformanceandGender Diversity”,(Catalyst,2004).......................................................................10 1.3.3 “WomenMatter”(McKinsey,2007)..........................................................12 Chapter 2. Do jobs have a gender?.............................................................14 2.1 Overview........................................................................................................14 2.2 Thecurrentsituation......................................................................................14 2.3 Horizontalandverticallabourmarketsegregationandthe “meta-stereotypes”.......................................................................................16 2.4 Thedeconstructionofstereotypes...............................................................19 2.4.1 “Physicaldifferences”..............................................................................20 2.4.2 “Womenandmenhavedifferentcompetenciesandskills”....................21 2.4.3 “Menarenaturalleaders”........................................................................23 2.4.4 “Womenhavetimeconstraintsandreducedmobility”...........................25 Chapter 3. The rules of the game................................................................27 3.1 Overview........................................................................................................27 3.2 TheEUvaluesinaglobalisedworld.............................................................27 3.2.1 GenderequalityasanelementofEurope’scompetitiveadvantage.......27 3.2.2 SMEsattheheartoftheLisbonStrategy................................................31 3.3 TheEUandtheprincipleofgenderequality ................................................32 3.3.1 TheEURoadmapforequalitybetweenwomenandmen.......................33 3.3.2 TheEUsocialpartners“FrameworkofActionsonGenderEquality (2005-2010)”.............................................................................................35 3.3.3 TheEUlegislationonequalitybetweenwomenandmen.......................35 3.4 Theinternationaldimension..........................................................................36 3.4.1 TheConventionontheEliminationofDiscriminationagainstWomen (CEDAW)...................................................................................................37 iii 3.4.2 TheBeijingPlatformforAction ...............................................................37 3.4.3 TheMillenniumDevelopmentGoals........................................................37 3.4.4 TheILODecentWorkAgendaforAllWomenandMen..........................38 Chapter 4. Building gender equality into the Business Model..................40 4.1 Overview .......................................................................................................40 4.2 GenderequalityActionPlans........................................................................40 4.2.1 DevisingagoodgenderequalityActionPlan..........................................41 4.2.2 Trainingandraisingawarenesstohelpeveryoneplaytheirpart............42 4.2.3 AclearGenderEqualityPolicy.................................................................43 4.3 ActionPlanmeasures–Concretesteps.......................................................43 4.3.1 Recruitingandselectingtherightpersonforthejob..............................43 4.3.2 Internalrecruitment–Promotion ............................................................46 4.3.3 Traininganddevelopment.......................................................................47 4.3.4 Jobevaluationandclassification–Equalpay.........................................47 4.3.5 PositiveAction..........................................................................................48 4.3.6 Work-lifebalance–benefitslife,benefitswork!......................................49 4.3.7 Conclusions .............................................................................................50 4.4 Referencesofinitiativesofferingtoolsforgenderequalityplansinenterprise.....50 SECTION TWO: HANDBOOK FOR TRAINERS AND ADVISORS................52 Chapter 1. Workshop overview....................................................................53 1.1 Rationale........................................................................................................53 1.2 AimoftheWorkshop.....................................................................................53 1.3 TargetGroupsProfileandCriteria................................................................54 1.4 Accessibility...................................................................................................55 1.5 LearningApproach........................................................................................55 1.6 Contents........................................................................................................55 1.7 Evaluationandmonitoring.............................................................................56 Chapter 2. Workshop delivery .....................................................................57 2.1 Methodologicalnote......................................................................................57 2.2 DeliveringthelearningUnits:structureandcontents...................................57 DeliveringUnit1:Thebusinesscaseforgenderequality....................................60 DeliveringUnit2:Dojobshaveagender?...........................................................64 DeliveringUnit3:Therulesofthegame .............................................................70 DeliveringUnit4:Buildinggenderequalityintothebusinessmodel...................72 DeliveringUnit5:Genderequality.Plotitinyourworkplan................................77 BIBLIOGRAPHY.............................................................................................78 iv PURPOSE AND SCOPE OF THIS TOOLKIT The Toolkit is designed for trainers and advisors, human resource managers, and in generalforallthosewhoworktoimprovequalityandcompetitivenesswithinSMEs. It offers information and practical guidance on how SMEs can reap the benefits of overcoming gender stereotypes on optimizing human resource management practices andtappingthefullpotentialofalltheiremployees,bothwomenandmen. Its contents can be used in various ways: to set up an awareness-raising workshop, to enrich and complement training programmes on human resource management and businessorganisation,andtogivepracticalideasonhowasmallandmediumenterprise canundertakegenderequalitymeasuresandrationaliseitsworkorganisationsystems. Section1,RaisingtheIssuesisdividedinto4Chaptersandbringstogetherarguments, evidence,tipsandgoodpracticeexamples. Section2isaHandbook,whichgivesguidanceonhowtousetheinformationprovided to set up training and advisory sessions, or to introduce human resource management practicestoovercomegenderstereotypes. This Toolkit was produced in the framework of the Contract “Raising the awareness of companies about combating gender stereotypes” commissioned by the European CommissiontotheInternationalTrainingCentreoftheInternationalLabourOrganisation (ITC-ILO) in partnership with the Association of European Chambers of Commerce and Industry(EUROCHAMBRES).1 Furtherinformationandresourcesin14EUofficiallanguagesareavailableat www.businessandgender.eu. 1 Countriesincludedare:Bulgaria,theCzechRepublic,Estonia,France,Germany,Greece,Hungary,Ireland, Italy,Malta,Poland,Portugal,Romania,Slovenia,Spain. 1 SECTION 1 RAISINGTHEISSUES SECTION ONE: RAISING THE ISSUES Chapter 1. Give Talent a Chance: The business case for gender equality 1.1 Overview “Womenhavebecomeprobablythegreatestneglectedresourceinbusiness,bothin theirmarketpotentialasconsumersandintheirproductivepotentialasemployees. (...) It is a fundamental weakness of business models that were designed for a male-dominatedworld.(…)Weneedarevolutioninthinking.” TheFinancialTimes–26thFebruary2008 Today, all the key players in the economic and political world stress the importance of women as essential economic actors. Their role and status as citizens, consumers, leadersandemployeesisanindicatorofwelfare,maturityandeconomicviability. InEurope,women’sgrowingparticipationinemploymentisofferinganimportantsolution to the challenges of an ageing workforce, declining birth rates and skill shortages.2 Countriesandcompaniesareinurgentneedofconcretepoliciestoenablewomentofulfil theirpotential. Leading investment banks such as Goldman Sachs have come to using the term ‘womenomics’,torefertowomenasoneofmainenginesofgrowth.Manyeconomistssay thatwomenareoneofthethreeemergingforcesshapingthe21stcentury,thethree“Ws”: Weather,WomenandtheWeb.3 Yet,businessremainslargelyaworldcreatedbymalesformales.4Womenrepresentonly 10% of board members of the largest companies listed on the stock exchange, a figure which falls to 3% for women at the very highest decision-making level in these companies.5 This chapter brings together the evidence that proves the business case for gender equality. It presents the arguments and supporting research which demonstrate that betterdiversificationofwomenandmeninoccupationsandanenhancedgenderbalance indecisionmakinginSMEscanbringcompetitiveadvantage,improvestaffproductivity andcreativity,andattractmorecustomers. 2 Carone,C.,Costello,D.,“CanEuropeAffordtoGrowOld?“,FinanceandDevelopment,September2006, No.43. 3 Quotedin:Wittenberg–Cox,A.,Maitland,A.,Whywomenmeanbusiness:Understandingtheemergenceof theneweconomicrevolution,Wiley&Sons,Chichester,2008. 4 AsstatedbyJeremyIsaacs,ChiefExecutiveOfficer,LehmanBrothersinEuropeandAsia,attheOpening SpeechoftheLehmanBrotherResearchCentreforWomeninBusiness,LondonBusinessSchool,January 2006.Moreinformationat:http://www.london.edu/womeninbusiness.html. 5 Datasource:EuropeanCommission,WomenandMenindecision-making2007.Situationandtrends.Can befoundat:http://ec.europa.eu/employment_social/publications/2008/ke8108186_en.pdf. 2 CHAPTER CHAPTER CHAPTER CHAPTER 1 2 3 4 Givetalentachance: Thebusinesscaseforgenderequality 1.2 The business case for gender equality 1.2.1 Gender is a business issue, not a women’s issue. “Theoptimisationofwomen’stalentswillboostbusinessperformance.Takingaction to achieve this will require sustained courage and commitment from today’s corporateleaders.Thisisanopportunitynottobemissed.ItistimeforCEOstoget seriousaboutsex.” Whywomenmeanbusiness.Wittenberg–Cox&Maitland,20086 Setting aside for a moment due considerations of equal opportunities, why should we radically enhance women’s integration into the business world, in both management positionsandnon-conventionaljobs? Thereasonisthatbusinesscompetitivenessisatstake. SMEs in Europe are the main engine of growth and employment and they harbour enormouspotentialforjobcreation.Thereare23millionSMEsinEurope,accountingfor morethan75millionjobsandover80%ofemploymentincertainsectors,suchastextiles, constructionandfurniture.7 Globalisation,thereorganisationofthevaluechain,increasedcompetition,liberalisationof markets, demographic changes, the ever-growing demand for better skills and qualificationsaresomeofthedrivingforcestowhichSMEsmustbeabletorespond. These are major challenges for SMEs today, particularly for the smallest, which have limited financial and human resources. SMEs more than anyother need to be able to recruitpersonnelwhoseskillsbettermatchtheirneedsandwhowillbemoreproductive andcapableofadapting,resultinginincreasedinnovationandcompetitiveness. Genderstereotypesarepre-conceivedgeneralisationsonwomen’sandmen’ssupposed lesser or better professional abilities or ambitions. Some employers may think it safe to rely on stereotypical judgements about women and men when hiring new employees, re-structuringordecidingapromotionon. But reality is different: many of the “old” myths about women’s supposed inabilities in certainjobs,lackofleadership,lowtechnicalcompetenceorscarceloyaltytoworkhave beenwidelyproventobewrongandoutdated. Onthecontrary,womentodayare: (cid:2) muchofthetalent–womenrepresentupto60%ofuniversitygraduatesinEurope; (cid:2) much of the market – women make up to 80% of consumer goods purchasing decisions,includingon“traditionallymale”goodssuchascars; (cid:2) an ingredient for profitability – companies with higher gender balance in leadershipoutperformthosewithfewerwomenatthetop; (cid:2) crucialtodemographicchallenges–countrieswithpoliciesthatsupportwomen’s worktendtohavehigherbirthratesandhighergrowth. Thefollowingsectionwillprovideevidencethatachievingabettergenderbalance,bothin managerialjobsandwithinoccupations,makesgoodbusinesssense. 6 Source:Wittenberg–Cox,A.;Maitland,A.(2008). 7 Source:EUROSTAT,EuropeanBusiness:FactsandFigures,2007edition,OfficeforOfficialPublicationsof theEuropeanCommunities,Luxembourg,2007.Availableat:http://epp.eurostat.ec.europa.eu. 3 SECTION 1 RAISINGTHEISSUES 1.2.2 Six excellent reasons for having more gender equality in business8 Reason 1. Accessing the full talent pool ThefirstreasonforaSMEtolookcarefullyatgenderissuesisself-interest:howtowinthe fiercecompetitionfortalentedpeople. "SMEscapacitytoinnovateandsucceeddependsonacomplexpaletteofskills,networks and processes. To innovate, SMEs need more than ever to pool their resources, create networksandcooperateatlocalorbranchleveltoestablisheffectivepoliciestodevelop their human capital” – said EU Commissioner Vladimir Spidla during a recent forum for EuropeanSMEs.9 The shortfall of European workers is expected to increase in the coming decades, especially for the most highly-qualified jobs. Europe can expect a shortfall of 24 million people in the active workforce by 2040; if, on the other hand, the female rate of labour participationcanberaisedtothesamelevelasthatofmalesif,thentheprojectedshortfall dropsto3million.10 Inrecentyearsgirls’educationalattainmentshavetendedtooutperformboys’,andmore and more young women are graduating in technical and scientific subjects. Studies on leadership behaviour found that, despite some differences in leadership styles and practicesbetweenmaleandfemalemanagers,genderdifferencesdonothaveanimpact onoverallleadershipefficiencycapacities.11 Tappingtheunderutilisedpoolofskilledwomen(andolderpeople)canthusplayamajor role in the “war for talent”. Hiring women as managers or in non-traditional positions allows companies to use the knowledge, experience and creativity of all the population, ratherthanjusthalfofit. 8 Theclassificationintosixreasonsisdrawnfromtheresultsoftheproject“WomentotheTop”(W2T)funded bytheEuropeanCommissionwithintheframeworkoftheEUProgrammerelatingtotheCommunity FrameworkStrategyonGenderEquality(2001-2005).Moreinfo:http://www.women2top.net. 9 “AdaptationofSMEstochange”.-SpeechgivenbyVladimírSPIDLA,memberoftheEuropean Commissionwithresponsibilityforemployment,socialaffairsandequalopportunities,duringthe “Restructuring”Forum:Brussels,26November2007(SPEECH/07/746).Moreinformationat: http://www.europa.eu. 10 McKinsey&Co.,Womenmatter:Genderdiversity,acorporateperformancedriver,2007.Canbe downloadedat:http://www.mckinsey.com. 11 Peters,H.,Kabakoff,R.,Anewlookattheglassceiling:theperspectivefromthetop,MRGResearch report,2002.Canbefoundat:http://www.mrg.com. 4
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