42 PROFESSIONAL WOMANS MULTICULTURAL MAGAZINE WWW.PROFESSIONALWOMANMAG.COM
DIVERSITY
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INCLUSION
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here is no lack of information on the Internet or even in this publication about the need for women in leadership positions and the value they bring to an organization. We know that businesses perform better when women are on the board or in leadership positions. We know that girls benefit when they see their mothers in management positions. We also know that more female leaders in business have a positive economic impact. Even the Pope acknowl- edged this recently when he said, We must promote the integration of women in the places in which im- portant decisions are taken. Significant strides have been made -- including the fact that we have a female vice-president for the first time in U.S. history. This insight would lead us to believe that compa- nies are working hard to promote women, if not for purely economic reasons. Yet, more work remains to be done. Unfortunately, there are many studies conducted by industry think tanks that confirm women are not equally represented in executive positions today. Ac- cording to MSCI ESG Research, women currently make up approximately 47 percent of the workforce but less than half (only 40 percent) of the manage- ment tier. Women continue to be paid less than men in the same positions. In 2019, women were paid an average 22.6 percent less than men after accounting for race and ethnicity, education, age and geographic division. And, compared with Caucasian men, Black and His- panic women are paid 33.7 percent and 33.0 percent less, respectively according to the Bureau of Labor Statistics. On top of it all, the impact of COVID-19 has created increased pressure on working mothers to either quit their jobs or take a leave of absence. At Vaya Group, we partner with executives and senior managers on how to create the leadership of
While Companies Continue to Fall Short, We See a Path for Change
By: Michelle Bush, Ph.D., Head of Consulting, Vaya Group
the future. Sometimes this means a transformation of the culture to create a more agile and growth-focused organization. This culture shift typically includes greater agility, inclusion, always-on learning and, ul- timately, corporate accountability. By strengthening their culture, companies are developing and reinforc- ing talent much earlier in the pipeline where wom- en are often underrepresented. If done correctly and transparently, this change will lead to better represen- tation of women and minorities. We often see diversity and inclusion as a top-five corporate initiative for our clients. For many, it is in the top three - and rightly so. According to a recent study from Goldman Sachs, companies with more women in management and board positions saw their share price outperform by 2.5 percent a year, com- pared with companies with fewer female leaders. Having a greater proportion of women in senior po- sitions is not just a diversity score to target...but is associated with lower cost of equity, stronger share- price performance and lower volatility of shares, ac- cording to Sharon Bell, a Goldman equity strategist.
Could training be the key to rapid change?
Through our years of experience, we have found that companies dont always promote or provide training for those that are truly high-potential, emerg- ing leaders. The selection process is typically based on a subjective preference by senior management, versus an objective, deep review and analysis of those that are a best fit for management - often women and minorities. To level the playing field, we advocate a dedicated leadership training and development pro- gram for high potential employees that demonstrate an aptitude for leadership, with a particular focus on women. According to Womens Access to Leadership Development: A Tale of Two Experiences, by Train- ing Industry Inc., research strongly suggests that one of the major barriers to the advancement of female leadership is the lack of equivalent learning oppor- tunities for both women and men. This gender gap in leadership exists not only at the executive levels in organization, but also across mid-level and emerging leadership. A crucial first step is to start with an unbiased, ob- jective assessment to identify promising candidates early in their careers who are ripe for leadership. Then make talent development opportunities accessible to
Just 21 percent of women hold C-level positions, and a mere 6 percent have CEO titles. They also share a sobering forecast that women are unlikely to comprise 30 percent of directorships (CEO or board level positions) in publicly held companies until 2027.
In a time of great uncertainty, having women in corporate leadership is key to future corporate growth and professional prosperity. Cultivating women can pay dividends in job satisfaction and retention, and can also support sustainable company performance gains and financial success."
all levels within your organization - not just the exec- utive suite. In todays work-from-home environment, a virtual platform that combines personalized, online learning with social interaction, individual coaching and manager involvement is a wise option. The main goal is to provide high employee engagement and nurture long-term habit formation. In a time of great uncertainty, having women in corporate leadership is key to future corporate growth and professional prosperity. Cultivating women can pay dividends in job satisfaction and retention and can also support sustainable company performance gains and financial success.
Dr. Michelle Bush has more than 17 years of experience helping Fortune 500 companies to maximize business results through people. As head of consulting for Vaya Group, Bush leads a team of consultants in building solutions to help organizations grow their talent impact. Bush's greatest passion is helping high potential leaders to accelerate their development and maximize their impact within organiza- tions, creating lasting leadership legacies.
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