Can you and your company afford to not have gender equality?
There is a link between profitability and a diverse workforce in terms of gender, ethnicity and age. Many men in Sweden have a hard time realizing that an equal balance of men and women (in the workplace) lead to increased profitability. If a company does not actively and consciously pursue a gender equal staff, it risks loosing business and negative publicity. This in turn can lead to a reduced market share and a weakened brand. Can a company afford to not have gender equality?
Research in Europe and the United States show the most profitable companies emphasize competence, not gender when hiring.
As you look at the hierarchy in Nordic companies or organizations, you can clearly see how the number of women in decision-making positions diminish the higher up you get. It has gotten “better” but it is still a sad fact that women is falling behind in their careers as well as salaries, especially if the woman stays home with children for a long time.
Some sad facts:
- The 50 largest companies in Sweden 2008: The chairman of the board is in 96% of the cases a man and 2% of the companies have a female CEO/president.
- Senior executives of Volvo Trucks consist of 17 men and one woman. There is no recruiting policy dictating that a candidate should be woman.
- 55 percent of a group of 94 recruitment consultant companies say their clients never or rarely demand that female candidates should be considered. And 29 percent think that it limits their work.
And, Sweden has one of the most gender-segregated labor markets in the world.
Modern leadership depends on the bosses ability to create a mixed workforce when it comes to gender, age and ethnicity. Companies who mirror their market and clients (which in most cases are both men and women, young and old) will survive and evolve and they cannot be run by “middle-aged, white, men”. Sweden and Europe have a long way to go, but more and more companies are getting the point and the debate in Sweden is marked by the lack of women in leadership positions in the workforce. The debate will eventually force companies to change and the next generation of women will demand more space. But it will not happen “by it self” over a night and it will be hard work and a lot of discussions. The good news is that Sweden is getting better and one day it will be natural to look at competence instead of your sex.
Lars Einar Engström has worked in recruiting and business development in Europe for many years. He has lived and worked in Paris and London. Engström has written three books, one of them is translated to English, “Confessions of a sexist”. He is the CEO of the Swedish company Eventum which cooperates with the American company Live Nation. He is on the board of directors for 5 companies, one of them in Atlanta, GA.
Svenska handelskammarens tidning i New York, juni 2009