Why Corporates Must Address the Gender and Racial Pay Gap as Part of Diversity Efforts
February 12, 2025
In the previous article, we have already seen how reinsurance policies are generally priced and what factors are taken into account while pricing them. There are certain specific methods and approaches which have been used by reinsurance companies across the globe for many years. These methods or approaches have now become a standard that is […]
Employees are the building blocks of an organization. Organizational success depends on the collective efforts of the employees. The employees will collectively contribute to organizational growth when they are motivated. Below mentioned are some tips for motivating the staff/employees in an organization: Evaluate yourself- In order to motivate, encourage and control your staff’s behaviour, it […]
Value at Risk (VaR) is the most prominently used methodology when it comes to gauging and mitigating the market risk. Over the years, this methodology has been extensively used by financial as well as non-financial organizations. It has also been extensively used and recommended by academicians and researchers. The immense popularity of the value at […]
In the present competitive scenario, modern organizations are faced with several challenges from the external environment which are political, social and economic in nature. Along with the pressures of such factors, the organizations have to compete by coping up with the challenges posed due to globalization, technological innovation, changes in the preferences/lifestyle changes, acute skill […]
Public Speaking is defined as the process of communicating with a large group of audience. Let us understand the meaning of public speaking with the help of a very simple example: Tim was the managing director of XYZ industries. Tim wanted to circulate the company policies to all his employees and everyone directly or indirectly […]
Statistics show that only 49 percent of all Fortune 1000 companies have women on their senior management and that too restricted to one or two of them. This is also the case with 45 percent of boards that have minimal presence of women on the boards.
However, recent cutting edge research has shown that the situation is likely to improve in the future because of some trends that are emerging.
This article discusses some of the lessons that this research from the McKinsey Global Institute has uncovered and which can be put to use in organizations wishing for greater diversity.
The research by the McKinsey Institute has shown that diversity is encouraged in those companies where the top management and the senior leadership shows a high level of commitment towards women empowerment and enabling women to perform according to their potential.
There is also a cascading effect where having managers who are personally inclined to promote women often encourage women rather than those managers who have personality issues with respect to women.
In short, diversity is encouraged in companies where the personalities of the managers are such that they often have firsthand experience of women playing a prominent role as opposed to managers who have chauvinistic attitudes towards women.
Apart from the other aspects, the organizational culture and organizational DNA play an important role in promoting diversity as organizations that have embedded women’s representation and women’s empowerment as part of their organizational culture often seem to promote more women in the workplace as opposed to organizations that do not have a culture of respecting women.
In brief, the core values and attitudes that these organizations and their founders instill in the employees plays a major role in ensuring greater representation of women at all levels.
Further, it is not enough for organizations to have gender diversity programs where the initial enthusiasm fades and reality bites if the culture and the core values that the organization lives with are not taken into account. This means that the vision and the mission that the company has and the push given to it by the founders matters a lot more than having diversity programs alone.
Change is glacial and systematic change is more so. This means that there is a need to undertake multiyear diversity promotion programs that yield results after a few years instead of instantaneously.
This also means that the gender diversity encouragement must be from all levels instead of just at a particular level and it must also be geared to ensure that the whole gamut of diversity promotion spanning all activities must be done.
In other words, there needs to be a systemic effort to promote diversity and not individual contributions alone. This calls for an approach that spans divisions and levels and ensures that the message is sent out organization wide instead of being targeted at the micro level alone.
The research has shown that diversity is “pushed” from above meaning that in those companies that have a higher proportion of women at the top, there tends to be greater involvement in encouraging diversity at all levels.
Of particular importance is the fact that in those companies that have women board members, there are greater chances of the diversity culture percolating to the middle and bottom tiers as the women at the top take steps to ensure that women down the hierarchy are given a chance to progress.
Moreover, women board members and in senior positions often mentor women at the lower levels leading to greater diversity all around.
Though the statistics are gloomy and paint a rather sorry picture of the current state of diversity programs, the research by McKinsey points to the future as being better in terms of diversity. This is because many organizations are applying these lessons in their internal processes and this means that going forward, we can expect more diversity in organizations.
Your email address will not be published. Required fields are marked *