HR Policy: Why Promote Gender Diversity to Top Management?

Are you trying to convince board members that levelling the male to female ratio in top management is not just about portraying gender equality and equal opportunity? Or considering the promotion of gender diversity to top management in your own company, but not certain how much resource you can ‘afford’ to use on the change? Then this factsheet on why promoting gender diversity to top management may be just what you need!

Just diversity?

A socially diverse team is more likely to question and amend ideas to suit more types of people before releasing a more effective ‘finished product decision’. As with including any social diversity in a team, including both males and females brings together a wider range of knowledge, skills and points of view and so improves team abilities, especially in the case of the decision making process. A ‘culture club’ management team (of very little social diversity) may come to a decision very quickly but with very little distance between the original idea and the ‘finished product decision’ it is likely to fall short of the success it could have made with more varied input. However, having a ‘token’ female on the management team is not enough, as including females in top management is not ‘just’ about social diversity, some other factors to consider follow.

Understanding Important Players:

p>The two main groups (important players) that top management teams need to understand are the customers and the employees; how best to communicate with them, engage and persuade them. To best understand a target audience, and how to effectively complete the tasks above, the team should either mirror the audience demographic or include individuals with strong empathy skills. Looking at the statistics for these important players; 50% of workers are females and 70% of household purchasing decisions are driven by females (TCAM 2009), therefore a management team of 50-70% females would be expected to be more successful than other management teams. Similarly, when looking at studies of female/male empathy skills, generally females show a higher competency than males, concluding that a management team with a higher percentage of females is more likely to be successful.

Complementary Gender Skill Sets:

It’s not just empathy skills that generally differ between males and females. A recent study (2012) showed that males and females generally have polar opposite leadership strengths and weaknesses suggesting that the natural styles of males and females are complementary.

The female leadership style has been shown to be more social with stronger interpersonal leadership competencies: scoring higher in planning, managing and organizing activities, respect & empathy for others and personal responsibility. The study also showed that generally females are good at prioritising and multitasking, tending to meet deadlines and deliver on promises, and are socially-sensitive and good listeners.

The male leadership style was shown to be more strategic and visionary: scoring higher in strategic vision, commercial focus and personal impact. The study also showed that males are generally good at making a strong first impression, expressing views with confidence, being visible across the organisation and making their presence felt. Less socially-sensitive, males tend to be more focused on the rational, practical and commercial aspects of achieving results.

By creating a management team with a more even split of males and females, a balance of the general strengths and weaknesses of the male and female leadership styles can be reached, ensuring effective team performance in all leadership areas.

Brand Image:

More social awareness and higher empathy levels brought to top management through a higher percentage representation of females can have a further knock-on positive effect on brand image. While males are more likely to focus on the profits that can be made by an idea with a mind to put in place corrective measures if problems occur, presence of females beyond the token sense in top management would mean the team is more likely to take into account risk assessment and prevention before passing a decision. This in turn reduces the negative impacts that the company has on the environment and communities within which the company functions improving the brand image.

The Bottom Line:

The real business savvy question is of course, does putting time and effort in to introduce HR Policies to increase the percentage of females in top management really make a difference to the bottom line figures? Some may say that the current setup has always worked, and is still working just fine. However, empirical studies over the last few years are showing results worth making a fuss over; showing a strong correlation between business performance and female participation in top management:

  • Studies 2007: Companies with more females on the board and in top management showed considerably higher return in sales (+42%), on invested capital (+66%) and on equity (+53%) – Catalyst, and had a higher chance of gaining strong stock market growth among European companies – McKinsey&Company.
  • Study 2009: Companies with at least one female on the board cut the chance of going bankrupt by 20%; having two or three females lowered the chances even further – Leeds University Business School.
  • Studies 2011: Companies with 19-44% females on the board had higher return on invested capital (+26%) than companies with zero females – Catalyst. Companies with females on the board had higher operational profits (+56%) than those without – McKinsey.

So with all this evidence pointing towards needing more females in top management why are they not making it through?

Untapped Female Resource:

There isn’t a shortage of female talent in the UK: – At the moment, six out of ten university students are female and females are consistently showing better grade averages. However, while 50% of the UK workforce is female, they make up less than 15% of top management. It appears that currently a large pool of female talent is being largely unused. Many companies are already taking steps to improve their male to female ratio in top management. Don’t get left behind! Make sure potential female candidates in your company for top management are not being over-looked or left behind due to inappropriate incentives; bring their skills and knowledge to top management before a competitor steals them!

Check our factsheet paired with this on for more information on How to Promote Gender Diversity to Top Management in HR Policy.

Factsheet: HR Policy: Why Promote Gender Diversity to Top Management?
This information is provided for reference only – no liability accepted. All registered trademarks recognised. E&OE.

HR Policy: How to Promote Gender Diversity to Top Management

During the 15months since the Lord Davies Report in 2011 the percentage of female non-executives on FTSE 100 boards increased from 15.6% to 22.4% while the percentage of female executives is still abysmal at 6.6%! While it appears that companies are finding it relatively easy to outsource to bridge the female gap in non-executive board positions, the ability to find and nurture female talent up through top management to executive positions appears to be lacking.

Not certain why gender diversity in top management is important? Check out our other factsheet HR Policy: Why is Gender Diversity Important in Top Management? Continue reading for how HR Policies can help to improve your company at promoting gender diversity up to top management.

Create an effective HR Policy Plan:

To be effective at promoting gender diversity the HR Policy Plan needs to work from three directions:

  • Monitoring and periodic evaluation of the gender equality and diversity in the company from entry level to on the board; identifying where gender diversity is going awry and the causal inequality barriers, measuring the effect of current and any additional HR policies employed and ensuring that good HR policy is kept and ineffective HR policy is improved.
  • Building and delivering the case for gender diversity to ensure that adjusting the gender balance is not approached as a numbers game of filling quotas but as an opportunity and requirement to diversify the abilities of the top management team.
  • Take action and make policies that break and overcome the inequality barriers causing the gender in-balance starting at the most damaging barriers within your company indicated by the monitoring and evaluations.

Monitor & Evaluate the Effects of current and additional HR Policy on Gender Equality & Diversity:

The only way to understand when, where and what the most damaging barriers are against gender diversity in your company is to monitor the progress of gender diversity and equality within your own business. Following this, as HR Policy is put in place or changed to improve the situation, monitoring needs to continue so that the ‘improvements’ can be evaluated to ensure they are doing their job or if further tweaking is required. Although not an exhaustive list, a few suggestions for factors to consider for monitoring (and why) follow.

  • The ratio of males/females at each level of progression through the company structure from entry level to senior management – This can help to identify where gender diversity is dropping in your company and so where the most damaging barriers to success are acting.
  • The gap (if there is any) between male and female approximate pay/hour for similar levels of job responsibilities (disregarding the amount of hours per week total worked as this has no leverage on the value of the work done per hour) – This can help to identify where/if the company pay scheme may be unfair and a possible cause of the loss of gender diversity.
  • The ratio of male to female applicants for new positions – This can help to identify if jobs are appearing more attractive to one gender than another.
  • Gauge existing opinions towards gender roles and abilities in management and/or barriers to gender diversity in top management (maybe through anonymous questionnaires) – Although the opportunity to do this well would be reliant on company size, this can help to identify any existing bias that the case for gender diversity needs to address and may also shine light on specific barriers that are the most felt in your company against gender diversity.

Build & Deliver the Case for Gender Diversity in Top Management:

Magical Quotas:Before putting in place magical quotas to aim for gender equality in top management it is extremely important that these quotas are not seen as free ride tickets for females to the top, or as a requirement for filler positions for conformance with equality laws. In either of these cases the females that do make the cut to management may be undervalued by their peers and subordinates losing the positive effect being aimed for and ensuring that the business is not improved by the efforts made to diversify. Another three fold division of labour is needed here as employees, managers and share holders all need to be convinced that the changes are for business improvement and not for token equality measures to ensure that the change is most effective.

Share Holders: Obviously if you want to fix this age old problem successfully it is going to take resources, and your share holders are going to want to know that these resources are being used for a reason they like. The bottom line (in our ‘why’ promote diversity factsheet) may well be the fastest and most effective reason to convince this group that the resources are most certainly worthwhile.

Managers: Your managers are your eyes and ears for searching for new talent to come up through the ranks. As such you need to ensure that they are on board with your plan of change and improvement for the future. As discussed in our why promote diversity (complementary gender skills), male dominant abilities tend to give them an advantage for being noticed in the company as achievers whereas more female dominant abilities (that are also important for management) can be easily overlooked. Based on this it is important that your managers understand all the skills and abilities that they need to be looking for in candidates to help to make sure that they are not overlooked so easily.

Employees: The questionnaires may help to bring to light some of the bias present in your employees towards gender diversity in management that may need to be combated subtly to ensure that male and female management figures are taken seriously with equal importance. It is also important to educate all employees of all the skills wanted from candidates for management as many females in your employment may be management material but don’t know it and so won’t apply for the positions. With very few role models about to show the more dominantly female management skills in action it would be easy for a female to feel that she is not up to the task of applying for management as they do not have the skills seen in the current male dominated management.

Take Action and Create HR Policy to Break and Overcome Gender Diversity Barriers

Now you have everyone reading from the same page it may be useful to set your company a target to meet for improving the male to female ratio in your top management so that you have something to work towards. More importantly though is to look to barriers beyond existing bias among your company members, barriers in place by your own HR Policy. The questionnaire may bring to light some barriers that are of poignancy in your own company but even without a questionnaire some things that come up regularly in the papers and gender equality blogs may be things to look at within your company. The following list, again not exhaustive, contains some of the areas in which you may be able to help even the playing field between males and females to help promote gender diversity through to top management:

  • Equality of pay/hour for similar work responsibilities (regardless of hours per week worked) – as females regularly have to take part-time work to be able to work around child responsibilities that aren’t expected of males. Being paid less for the same work means you are more likely to change jobs until finding a company that shows your skills are valued rather than the time per week you can give.
  • Availability of flexible work hours or work from home where possible – again this would help for females where certain shifts are impossible around child responsibilities leaving females no choice other than to move job. It has also been shown in polls and studies that employees would be happier and more productive with flexibility in shift hours and/or the possibility of some work from home so this arrangement could be a double edged winner!
  • Improve handling of maternity leave, for example treating it more like a sabbatical or long term sickness rather than a ‘lack of commitment’ to the workplace – maternity leave is said to have two effects: Firstly, females coming back from maternity leave are can be either not ready to jump in at full speed at first and may crumble if put under too much work pressure or on the flip side may feel undervalued for their capabilities if they are left out of the loop with activities as employees have adapted to not using them as a ‘go to’ while they were absent. In both these cases sufficient support is needed to ensure that on returning the employees re-integrate comfortably with the company (so they do not feel the need to leave) and continue their progress as high as they can get in the company (especially as working mums are likely to be improving their management skills in their free time almost constantly with children and a household to look after).
  • Use your advertising for top management to create attainable role models for female management traits. Maybe even set up a campaign within your company to find candidates and train them for fast track to the management positions they should already have made it to if the company had fixed the issues sooner! – You may not be able to provide female-dominant-trait role models right away for females to aspire to and recognise their leadership qualities through, but by being a bit clever when you advertise your top management positions you can create a visible attainable role model in theory at least, and with a bit of fast track training for top candidates you may even get the ball rolling a little faster with real role models.

Be Proud!

As a very final point, I feel it’s important to mention that (although in the UK we are still way behind many countries in our gender diversity in top management) taking on this age old issue is something to be proud of: It not only improves your company but helps to increase equality in society and that is something worth shouting about! So it makes perfect sense to make sure that you are open about your efforts to improve your company’s gender diversity in top management and to release your successes in the matter and make sure everyone knows that you are getting ahead of the game!

Factsheet: HR Policy: How to Promote Gender Diversity to Top Management
This information is provided for reference only – no liability accepted. All registered trademarks recognised. E&OE.

HR Policy: Change Management Check List

change management spider: data, plan, team, engage, execute, measure success and improve

The following information can be used as a checklist to help ensure your policies and procedures for change management makes the most out of the changes you implement for your company, and overcomes the negative emotional hurdles on the way to success.

Planning

Before beginning a change to the company, whatever it is, small or large, it is important to work out the Who, When, Where, How, Why and What about it. The plan doesn’t have to be concrete, it is much better to have a plan that needs reviewing then to have no plan to refer back to.  Your Human Resources Policy should stipulate that a plan is needed for all changes that are to be implemented.

Know the Laws: Some laws need to be taken into account when planning for company change. A couple of examples are ICE and TUPE regulations. ICE, Information and Consultation of Employees regulations, states that employees can request that arrangements are set up to inform and consult with them about issues with the organisation. Although these regulations only apply to businesses of 50 or more employees the guidelines set out in these regulations can be useful to aid transition for any business.

Resources: Without the right resources available at the right time a change can become a disaster field. Plan what resources are needed and when, and what extra resources may be needed to ensure any negative impacts during the transition are reduced:

People: Who is required to make the change run smoothly, do you need to bring in someone to oversee the changes (or maybe someone for health and safety or HR consulting etc.) or is there someone who can fill these caveats already in your company? Which employees will be required, and when, to receive information/training about the changes? Who needs to be involved with the planning/consultation phase of the changes?

Company ‘systems’: Which systems, and how will they be involved with the change and when? Does the change have knock effects to other systems that are not directly being changed?

Communication services: How will the change information be given to employees, customers and suppliers? What communication services will be needed to perform the task?

Time/timing: How much time is required for the change to take place? Will extra man hours be required to reduce the impact of employees learning new processes and knowledge? When would be the best time to make the change to avoid ‘busy trading periods’ to reduce negative impacts or to have the improvement in place in time for an event for better publicity?

Training/Education: What extra training and education will be required, for who and when, to ensure that everyone knows what is expected of them during the change. How will the training/education be supplied?

Change monitoring systems: How will you know if the changes are effective, what data needs to be collected before during and after the change?

Building a Vision/Value for the change: To be able to sell the change to your employees and customers as a move towards a better company, service or product a case for the changes needs to be built, a vision of the change value. Why is the change needed and how does the improvement outweigh the resources and possible negative impacts endured on the way? If a strong case cannot be made for the change in light of the resources required then the change should be reconsidered before continuing!

‘Communication/Training – Action – Auditing’ Circle

Once the planning is as far as it can go without action and you’ve decided the change is definitely to go ahead, it is easy to forget that the change management is not finished at just writing the policy and processes. The policies and processes cannot just sit hidden in a book on a shelf; the circle of effective ‘communication/training, action and auditing’ needs to be implemented. It may be pertinent to address in your policies and procedures not only that the circle of ‘communication/training – action – auditing’ is required, but what best practice should be used at each stage for the company to gain the most from each change.

‘Communication/Training

Effective communication is required both internally for employees and externally to suppliers and customers to ensure negative effects can be minimised or planned around and that the positive effects can be accentuated as a selling point for the company.

Instruction/Training: For employees to effectively action the change they need to be aware of the change and have the knowledge of how and when they are involved. Provision of appropriate communication of the instructions or training is required as well as enough time to take on board the knowledge ready for use.

Leadership/Team Motivation: How willing an employee is to put in the extra effort involved in dealing with change is greatly affected by the perceived value of the effort. Sharing the aim/vision that the change is working towards and the value of the change with the employees can help to motivate them. How and who you choose to deliver the information and lead the change is important to ensure that the messages keep the employees both positive and engaged with the change. Any form of change can lead to disruption, concern and take people out of their usual ‘comfort zone’. It is too easy for change to be seen only as something negative, resulting in loss of morale and productivity. Be aware of supporting employees with the extra resources they need to achieve the change you want to see; to listen to concerns and suggestions for improvement; and to promote the positives to them, not just the company. How you manage the change with your employees will be the difference between a positive improvement that is achieved efficiently and with good results, or a slog to try to reach whilst battling the negativity of the people involved.

External Change Promotion: Allowing suppliers and customers to find out about the changes through firsthand experience, and allowing them to guess the reason for delays or changes in expectations from the company can lead to the wrong message being sent out of incompetence and poor management. Instead anyone who could be affected by the change during the transition period should receive timely notification of the possible negative effects to allow them to minimise the effect it has on them. The same communication can be used to promote the efforts being made by the company and how it aims to improve products or service to replace the negative feelings towards the effects with positive feelings towards the effort for a better product or service in the future.

Problem Solving: Open communication lines both externally and internally should be maintained to ensure that any problems that may occur can be caught as early as possible and dealt with. Ask your employees what they think of the change, and really listen. Employees are a great source of ideas for processes that they deal with every day so they may catch something you missed before it becomes an issue! Getting your employees involved with the evolution of your company not only ensures that you make the best choices but gives your employees a greater feeling that their knowledge and skills are valued.

Action

Keeping on Track: Monitoring the progress of the change is important to ensure that the transitional phase is as quick and painless as possible. Any barriers impeding the change should be identified and eliminated as soon as possible. Appropriate levels of priority need to be given to the change or it will fall to the way side in favour of ‘business as usual’; if sufficient priority is not being given because productivity level cannot be held satisfactorily at the same time it may be necessary to rethink the plan to involve more man hours or to implement a work around to get the change fitted in.

Evolving the Plan: As stated near the beginning, the plan does not have to be concrete, in fact it is actually helpful if it is not set in stone. Refinement of the plan should be possible at any time to put into play any ideas that can improve the smooth transition or indeed the end point of the change. Also, amendments may need to be added to avoid, or minimise any problems that are only found during the implementation stage of the change. And of course, for all additions to the plan all necessary personnel need to be informed of the changes, the where, when and why so that everyone is working from the same script and can act accordingly on it.

Continued Motivation and Leadership: Communicating the successes of the change and acknowledging the individuals involved with the success can keep the positive vibe about the change pumping and keep employees motivated to push through to get the change in place where they may be currently sliding back. Getting top management involved with the acknowledgements even if just in name can also have a real impact on adding value to the change and improving employee motivation. Having management available on the ‘shop floor’ to help, not only identify change barriers, but to aid productivity during the transition where employees are struggling can show a greater understanding of the effort involved physically and mentally during a change creating a stronger bond between staff and company leadership also improving employee motivation.

Auditing and Continuation of the Circle for Change Management

Auditing is essentially monitoring the success of the changes so that planning for future improvement and communicating of the progress to the company vision can continue. Policy and processes should be audited regularly: Are the policies being followed? Are changes working to improve the company? Can the policies be improved? Audits may lead to policy/process improvement or retraining of specific staff, or may prove that the set up is currently working. Appropriate actions indicated by the audit should be made and the chain starts again with communication/training of necessary staff about any amendments and communication of results achieved by the company. It is good practice to audit all policies and procedures including the auditing procedures themselves regularly, it may be useful to include a time table for auditing in your Human Resource Policy to ensure nothing gets overlooked.

Building for Future Change

Managing change well not only improves the company due to the change itself but also improves the company image subsequently helping to increase the company’s market base. Also, following a well managed change employee pride in their work is higher leading to higher levels of motivation and employees are likely to be more open to future change given success in previous change.

For more information on HR policies and procedures for change management see ACAS.

Factsheet: HR Policy: Change Management Check List
This information is provided for reference only – no liability accepted. All registered trademarks recognised. E&OE.

Human Resources Factsheet: Grievance Flowchart

  • Ensure grievances are given importance and investigations are carried out promptly to lessen the likelihood of hearsay and facts becoming blurred.
  • Let the person raising the grievance know the outcome and be given the chance to appeal what has been decided.
  • Timescales will differ from case to case, ensure sufficient time is taken to confirm the facts and investigate properly.
  • Inform the person raising the grievance of the delay if the process is running longer than expected. Do not let the process slip just because other tasks have taken unnecessary priority.

informl and formal grievances: meetings to investigations to reports and resolutions

Factsheet: HR – Grievance Flowchart
This information is provided for reference only – no liability accepted. All registered trademarks recognised. E&OE.