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Momentum Is Building For Workplace Gender Parity: Here's Why And How

Forbes Human Resources Council
POST WRITTEN BY
Kathleen Duffy

If it seems we've been talking about gender equality for decades — centuries, even — it's because we have.

Future First Lady Abigail Adams launched the discussion in March 1776 as the Continental Congress was crafting the U.S. Constitution. "Remember the ladies," Adams implored her husband, John. "If particular care and attention is not paid to the ladies, we are determined to foment a rebellion, and will not hold ourselves bound by any laws in which we have no voice or representation."

Fast forward nearly 250 years, and glacial progress has been made. With 2018's election or appointment of a record 117 women to Congress and four women running for the Democratic presidential nomination, a rare flash of momentum and opportunity is upon us. For the first time in history, women occupy one in five seats on corporate boards across Russell 3000 companies in the United States.

The Case For Justice

But more breakthroughs are needed, especially in equal pay and gender parity issues. Specifically:

• According to Payscale's 2019 report, women earn only 79 cents for every dollar earned by men, which represents a 1% improvement from 2018 and 5% from 2015.

• Women earn 57% of undergraduate degrees and 59% of master's degrees, and more than half of all management- and professional-level jobs. Yet, despite earning 48.5% of all law degrees and 47.5% of all medical degrees, women represent only 22.7% of partners in private law firms and 16% of permanent medical school deans, according to data gathered by the Center for American Progress.

• Diversity among IPOs remains disappointing, with women holding only 9.2% of board seats in 2017's top 25 IPOs companies.

The Case For Business

We've learned a lot about the benefits of gender-balanced boards, from improving boardroom dynamics and reducing governance-related controversies to lowering volatility and achieving better financial performance. Women bring a diversity of thought, perspectives and decision-making about issues facing corporations today. Women are the primary purchasers of consumer products and 41% also are the main breadwinners for their families. Diverse workplaces also claim competitive advantages in thriving in a rapidly changing global economy, and its members bring myriad essential skills.

It's just common sense that boards of directors should be representative of their employees, customers and shareholders. Corporations lacking these consumer voices and leadership skills are missing out.

The proof: When Fortune 500 companies were ranked by the number of women on their boards, those in the highest quartile in 2009 reported a 42% greater return on sales, according to a report by Harvard University's T.H. Chan School of Public Health. Companies with more women on their boards also reported a 53% higher return on equity than those with fewer or no women at all.

The Case For Change

Consumers, investors and governments are largely responsible for recent improvements to gender equality in the workplace. In October, Melinda Gates pledged $1 billion to promote gender equality, identifying three changes to take place:

• Dispelling barriers women face at work.

• Creating opportunities to scale to leadership positions.

• Making sure businesses are held accountable for fostering gender equality.

A new law in California requires all public companies operating in the state to have at least one woman on their boards by the end of 2019. Illinois passed a similar law this year, requiring all publicly traded companies based in the state to disclose the gender and racial diversity on their boards.

If this issue speaks to you — and don't we all want our mothers, wives, daughters, sisters and nieces to succeed? — engage in a conversation with leaders and stakeholders in your community. If you're interested in putting yourself out there for a board position, think about who you know and how your work aligns with your passions. Consider nonprofit organizations — they need solid boardroom skills, and the work is rewarding. And think about your skills, from big-picture thinking to fiduciary expertise to IT wizardry.

If you know a woman who'd be a great board candidate, support and encourage her.

According to the 2018 Glass Ceiling Index, "fewer Republican senators are women than men named John — despite the fact that Johns represent 3.3 percent of the male population, while women represent 50.8 percent of the total population. Fewer Democratic governors are women than men named John." It makes you wonder what Abigail Adams would say. 

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