B20 Saudi Arabia is committed to generate robust policy recommendations
For the first time, the B20 has convened an Action Council focused on issues and challenges around Women in Business, comprising a Chair, several co-chairs, and around 60 members of the global business community.
INTRODUCTION
Despite the opportunity and actions taken to date, data indicates that high gender disparities persist in three key areas: employment; professional growth; and advancement.
Female Employment
Female labour force participation globally in 2019 was 48 percent, some 27 percentage points behind male labour force participation which was recorded at 75 percent.6 In 2018, in addition to the unemployed, 140 million people were classed as being in the “potential labour force” and are consequently under-utilized labour. People in this group are either looking for a job but are not available to take up employment, or are available for work but are not looking for a job. This group constitutes many more women (85 million) than men (55 million). The corresponding rate of labour under-utilization is, as a result, much higher for women at 11 percent, compared to 7.1 percent for men. Whilst women are also more likely to self-select for part-time work, a significant proportion would prefer to work more hours than they currently do.7 What impact does this have? Diverse labour markets have been shown to increase both economic and business growth. Studies indicate that there is a strong correlation between female employment ratios and GDP growth, with improved business outcomes (including productivity, profitability and innovation) where there is representation of women in the workplace. Barriers to employment that hinder women entering the workforce increase unemployment and poverty rates and can have an adverse effect on economic output and growth. Research from the OECD estimates that the gender gap costs the economy some 15 percent of GDP.8 Female Professional Growth Similarly, when it comes to professional growth, women face significant challenges and are often burdened by extra commitments that hold them back from progressing in their careers. The gender pay gap is one of the most pressing and discouraging disparities: worldwide, women continue to earn less than men do. For every $100 a man earns, a woman takes home an average of just $73.9 Women are less present in jobs of the future: There is a major underrepresentation of women in classic ‘STEM’ (science, technology, engineering and mathematics) fields, with less than 20 percent of roles in cloud, engineering, data and AI occupied by women.10
This inequality is observed in other professional development opportunities: inherent biases, such as the view held that women will drop out of employment once they start a family, leads to women often being passed over for training and promotion within organizations. Family and other caring commitments, which tend to fall predominantly on women, also manifest in unequal opportunities for women and limit their ability to pursue a career. For example, women carry out 76.2 percent of all unpaid care work hours performed globally (more than three times more than men), with women’s unpaid work valued at up to 39 percent of global GDP.11
What impact does this have?
The impact that barriers to progression have on female achievement, business outcomes and the broader economy are significant. Research shows that a culture of diversity and equality is a powerful multiplier of innovation and growth: three in four businesses say gender diversity initiatives deliver profit increases of 5-20 percent12, leaving value on the table in less diverse organizations. From a socioeconomic perspective, the gender pay gap deepens already entrenched social inequality, which, if left unaddressed, could further impact consumer and business development. Employment conditions and cultures often discourage women to remain in work, with many leaving the workforce to fulfil care responsibilities. This diminishes the pool of valuable talent and skills from which employers can draw.
Female Advancement
When it comes to women’s advancement in economic society, data shows a significant gender gap. Female representation in top roles continues to make slow progress: the proportion of women in senior management globally has increased by only around 8 percent, from approximately 21 percent in 2012 to 29 percent in 2019, and still falls short of the 30 percent tipping point expected to begin achieving gender parity.13 In 2019, there were just 33 female CEOs in the Fortune 500 list.14 Women are also less likely to become start-up entrepreneurs – just 28 percent of start-ups were founded by a woman according to a report from Silicon Valley bank.15 Adverse culture and gender bias again appear to hinder female entrepreneurship: a Telegraph poll found that two-thirds of 750 British female founders felt they were not taken seriously when pitching to investors and banks and that they were treated differently to male counterparts.16