WOMEN IN BUSINESS POLICY PAPER 2020 - B20 Saudi Arabia
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WOMEN IN BUSINESS POLICY PAPER 2020
CONTENTS
FOREWORD ................................................................................................................................. 3
EXECUTIVE SUMMARY ............................................................................................................ 4
INTRODUCTION ..........................................................................................................................8
Recommendation 1: Level the Playing Field .................................................................. 11
Recommendation 2: Boost Female Entrepreneurship .............................................. 31
Recommendation 3: Amplify Synergies ......................................................................... 38
ANNEXURE ................................................................................................................................ 43
Abbreviations ........................................................................................................................ 44
Action Council Engagements................................................................................ 44
Distribution of Members ......................................................................................... 44
Action Council Members ......................................................................................... 44WOMEN IN BUSINESS FOREWORD Rania Nashar Chair, Women in Business Action Council CEO, SAMBA One could not have foreseen that the year 2020 would take the turn that it has, serving to become a year of unprecedented social, economic and political challenges in the face of the worst global pandemic in living memory. The Covid-19 pandemic has shone a spotlight on the persistent and often over-whelming obstacles facing women in business globally, many of which have been exacerbated by the crisis. However, it has also raised the profile of women leaders, women front-line responders and women in the community, as we all step up to contribute to the pandemic response in our own ways. I am proud of what women worldwide have achieved in such exceptional circumstances. This policy paper has evolved over the course of the last few months, thanks to the dedication, commitment and valuable input of eight Co-Chairs and 55 Action Council Members. We brought together the best minds across the B20 community, to share ideas and develop solutions to address the persistent and inacceptable underrepresentation of women in leadership roles in business. I am privileged to have participated and witnessed the constructive exchanges and knowledge sharing amongst our Action Council Members, which has contributed to the development of six actionable policy recommendations that advocate and champion Women in Business. The opportunity is now to act for real change in the society, business and politics, on behalf of Women in Business everywhere. I am optimistic that the will and motivation exists, and that by mobilizing all stakeholders we can realize women’s equality, leadership and advancement, in an innovative and sustainable way. This should be the new normal. I thank the Women in Business Action Council members and the Knowledge Partner for their excellent contribution to this policy paper. 3|Page B20 SAUDI ARABIA – POLICY PAPER
WOMEN IN BUSINESS EXECUTIVE SUMMARY It is the responsibility of the government and the business leaders to spearhead a much- needed cultural transformation to drive equal opportunities for all. Certainly, the importance of gender equality has appeared high on the G20 agenda for several years. However, progress has been disappointing. Despite multiple years of discussion, women still face a significant underrepresentation in leadership roles in businesses. Closing the gender gaps that persist in female employment and leadership can only achieve positive outcomes, from boosting productivity and economic diversification to increasing participation in gainful employment and economic decision making. 1 Research shows that a culture of equality is able to unlock human potential and elevate drivers in a workplace culture that allows everyone – men and women – to thrive and progress. In fact, if all organizations globally were more culturally equal, more women would advance to manager positions and women’s pay could increase by 51 percent, equivalent to an additional $30,000 per woman per annum. This would translate to an uplift in women’s earnings of $2.9 trillion.2 However, despite the opportunity and actions taken to date, data indicates that high gender disparities persist in three key areas: employment; professional growth; and advancement. The COVID-19 crisis places new urgency on addressing these issues. Women play an important role in fighting the pandemic. However, women are expected to be hit harder by the economic fall-out. Whilst both officially and unofficially supporting most of the world’s health care provision – women make up 70 percent of global healthcare workers 3 and 76 percent of unpaid caregivers4 and will consequently bear the brunt of the COVID- 19 pandemic’s immediate and long-term impacts. That said, the pandemic may also create an opportunity to make progress in other areas. It will take a collaborative approach to build a clear and achievable roadmap that leads to unlock the advancement and full leadership potential of women and create an inclusive environment within which women in business and entrepreneurship are able to participate and thrive. 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. The scale and rapidly evolving nature of the challenges at play demand concerted collaboration across business, government and † All amounts expressed in U.S. dollars unless otherwise noted. 1 International Monetary Fund (2018). Pursuing Women’s Economic Empowerment. Washington D.C.: IMF. https://www.imf.org/en/Publications/Policy-Papers/Issues/2018/05/31/pp053118pursuing-womens-economic- empowerment 2 Ellyn Shook, Julie Sweet (2018). When She Rises, We All Rise. Dublin: Accenture. https://www.accenture.com/_acnmedia/pdf-73/accenture-when-she-rises-we-all-rise.pdf 3 World Health Organization (2019). Delivered by women, led by men: A gender and equity analysis of the global health and social workforce. Human Resources for Health Observer Series No. 24. https://apps.who.int/iris/bitstream/handle/10665/311322/9789241515467-eng.pdf 4 World Health Organization (2018). Valuing unpaid caregiving to transform women’s lives. Washington D.C. Pan American Health Organization. https://www.paho.org/hq/index.php?option=com_docman&view=download&category_slug=agenda-salud- sostenible-americas-2018-2030-9479&alias=43958-valuing-unpaid-caregiving-to-transform-women-s-lives- 958&Itemid=270&lang=en 4|Page B20 SAUDI ARABIA – POLICY PAPER
WOMEN IN BUSINESS civil society. In the spirit of constructive collaboration, the Action Council has worked with key constituents, including but not limited to the L20, the W20, and the OECD. This policy paper is the culmination of research and discussions with the members globally. While this policy paper reinforces and builds on recommendations made in previous B20 Summits, what is unique is the clear focus on action-oriented policies: specific, pragmatic and actionable policy recommendations and actions that seek to address the challenges identified for Women in Business are proposed by the Action Council for consideration and implementation by the G20 Leaders. The primary recommendation is to accelerate government action to secure gender parity in business, and for women to be equal business partners. Overall, recognition and subscription to the principle that women need to be in power, and not simply ‘empowered’, is required to unlock real transformation. Achieving this will require both tangible actions but also real cultural transformation and an environment where women and men support equality in leadership. The efforts of the Action Council aim to support the fulfilment of the UN Sustainable Development Goals (SDGs), most notably SDG 5 on Gender Equality, and SDG 8 on Decent Work and Economic Growth. The recommendations and actions also support important progress on SDG 9, Industry, Innovation, and Infrastructure, especially with regards to women’s agency and economic participation in industry and emerging fields. Successful adoption of recommendations will also ultimately support the achievement of SDGs 1 and 10 related to No Poverty and Reduced Inequalities, respectively. The Women in Business Action Council proposes to the G20 to encourage tangible national action plans and a framework for implementation across the G20 Members. Three priority themes guided the inception of our work as an Action Council: Leveling the Playing Field Boosting Female Entrepreneurship Amplifying Synergies 5|Page B20 SAUDI ARABIA – POLICY PAPER
WOMEN IN BUSINESS
Across these three priority themes, the Action Council proposes three policy
recommendations supported by relevant research, along with specific policy actions to
bring those recommendations to fruition:
Overview: Policy Actions Needed to Address these Issues
The G20 Members should unlock the advancement and full
leadership potential of women, by driving reforms,
Recommendation 1
fostering an inclusive environment, ensuring fair and equal
pay, and encouraging new ways of flexible working.
The G20 Members should evaluate and amend national
Policy Action 1.1 policies on equality to ensure they protect the rights and
equal opportunities of women.
The G20 Members should prepare and implement a
comprehensive Women in STEM roadmap with the strategic
Policy Action 1.2
objective of increasing the pipeline of women in high-skilled
jobs.
The G20 Members should implement policies for employers
that set goals and transparent disclosure requirements to
Policy Action 1.3
increase women in leadership positions and related matters of
gender pay gap.
The G20 should promote female business ownership and
Recommendation 2 create an enabling environment for female-founded start-
ups and businesses.
The G20 should eliminate barriers to access to expertise and
finance for women-owned/led micro, small and medium
Policy Action 2.1 enterprises as well as informal entrepreneurs and women-
founded start-ups through affordable legal support, increased
financial literacy and a range of financial instruments.
The G20 should apply a user-centric approach to
Recommendation 3
policymaking and create synergies between stakeholders.
The G20 should include a diverse cross-section of women at all
Policy Action 3.1
stages of policy decision-making and implementation.
The G20, in partnership with the UN and other relevant
Multilateral Organizations, should create a user-centric policy
Policy Action 3.2 design and learning centre, to build capacities of national
governments and their agencies, study and share good
practices across governments.
Further, the ambition of the Women in Business Action Council is to become a
permanent feature of the B20 in order to continue advocating for Women in Business
and to achieve impact over subsequent B20s. The Action Council is keen to track and
measure the progress on the implementation of the policy actions provided to the G20.
The Action Council strongly recommends the establishment of an index alongside a
scoring mechanism that would facilitate both the evaluation of the current state of each
G20 Member as well as the relative progress and impact achieved by each country in
implementing the Action Council’s policy actions over forthcoming B20s. Such a
reporting and tracking mechanism could be supported by annual disclosures and would
6|Page B20 SAUDI ARABIA – POLICY PAPERWOMEN IN BUSINESS serve as both a showcasing mechanism for more advanced and impactful initiatives as well as providing best practices to inspire other countries. A heat map tracker corresponding to each metric tracked could be an effective visual tool to assess both the G20 Members’ starting points, as well as progress achieved over time according to a supporting framework that establishes what success looks like. Technology and digital platforms could also play a role in supporting the self-reporting by countries on a regular basis. The G20 has also done this previously in other domains: in follow up to the 2017 G20 Digital Roadmap for Digitalisation: Policies for a Digital Future, the G20 Members participated in a voluntary stocktaking of national practices that bridge the digital gender divide, providing an overview of ongoing digitally enabled policy initiatives working to reduce the gender gap, showcasing best practices and providing policy directions for consideration by the G20 Members.5 The International Labour Organization could be a suitable multilateral to oversee the administration and publication of such an index. The success of new indices rests on these being achievable for countries to participate in alongside the generation of original and comparable data sourced from participating nations directly. In order to optimize the buy-in to a new index, the Action Council would recommend maintaining a relative simplicity to the initial data coverage, tracking a small base set of metrics in the first instance and expanding these over subsequent presidencies as the index proves its’ value and viability. As a first suggestion, the Action Council would consider metrics related to equal pay, women in leadership and women’s advancement in business a suitable and valuable foundation upon which to build. Further consultation will be required into what these metrics should be and how they can best serve international comparisons between member countries. 5 OECD (2018). Bridging the Digital Gender Divide. Paris: OECD. http://www.oecd.org/internet/bridging-the- digital-gender-divide.pdf 7|Page B20 SAUDI ARABIA – POLICY PAPER
WOMEN IN BUSINESS
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
6
The World Bank (2019). Labour force participation rate, female (% of female population ages 15+) (modelled ILO
estimate). Washington D.C.: The World Bank. https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS
7
International Labour Organization (2019). World Employment Social Outlook Trends 2019 Executive Summary.
Geneva: ILO. https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---
publ/documents/publication/wcms_670554.pdf
8
Cuberes, D., & Teignier, M. (2016). Aggregate Effects of Gender Gaps in the Labour Market: A Quantitative
Estimate. Journal of Human Capital, 10(1), 1–32.https://doi.org/10.1086/683847; Ferrant, G. and A. Kolev (2016), Does
gender discrimination in social institutions matter for long-term growth?: Cross-country evidence. OECD
Development Centre Working Papers, No. 330. Paris: OECD Publishing: https://doi.org/10.1787/5jm2hz8dgls6-en
9
Accenture (2017). Getting to Equal 2017, Closing the Gender Pay Gap. Dublin: Accenture.
https://www.accenture.com/_acnmedia/PDF-45/Accenture-IWD-2017-Research-Getting-To-Equal.pdf#zoom=50
10
World Economic Forum (2019). Global Gender Gap Report 2020. Geneva: World Economic Forum.
https://www.weforum.org/reports/gender-gap-2020-report-100-years-pay-equality
8|Page B20 SAUDI ARABIA – POLICY PAPERWOMEN IN BUSINESS 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 socio- economic 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 11 Accenture (2017). Getting to Equal 2017, Closing the Gender Pay Gap. Dublin: Accenture. https://www.accenture.com/_acnmedia/PDF-45/Accenture-IWD-2017-Research-Getting-To-Equal.pdf#zoom=50 12 Bureau for Employers’ Activities International Labour Office (2019). The business case for change. Geneva: ILO. https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/--- publ/documents/publication/wcms_700953.pdf 13 Grant Thornton (2019). Women in business: building a blueprint for action. London: Grant Thornton International Ltd. https://www.grantthornton.global/globalassets/global-insights---do-not-edit/2019/women-in- business/gtil-wib-report_grant-thornton-spreads-low-res.pdf 14 Claire Zillman (2019). The Future 500 has more female CEOs than ever before. New York: Fortune. https://fortune.com/2019/05/16/fortune-500-female-ceos/ 15 Silicon Valley Bank (2019). Women in Technology Leadership 2019. Santa Clara: Silicon Valley Bank. https://www.svb.com/globalassets/library/uploadedfiles/content/trends_and_insights/reports/women_in_technol ogy_leadership/svb-suo-women-in-tech-report-2019.pdf 16 Eleanor Steafel, Ashley Kirk, Claire Cohen (2018). Two-thirds of British female business owners say they are still not taken seriously by investors, Telegraphy poll reveals. London: The Telegraph. https://www.telegraph.co.uk/women/business/two-thirds-british-female-business-owners-say-still-not-taken/ 9|Page B20 SAUDI ARABIA – POLICY PAPER
WOMEN IN BUSINESS What impact does this have? Such low representation of women in senior roles and amongst business founders speaks to the many missed opportunities for women in work more broadly. Fewer women in leadership positions exposes organizations to miss out on talented brainpower and new ideas that comes from diversification in leadership. Research from Accenture shows that in equal, empowering work environments, not only are women four times more likely to advance, but men benefit and rise faster too. 17 The potential boost for global GDP through equal participation of men and women entrepreneurs amounts to an approximate increase of three to six percent, an addition of between $2.5 trillion to $5 trillion to the global economy. 18 Overall, recognition and subscription to the principle that women need to be in power, and not simply ‘empowered’, is required to unlock real transformation. Achieving this will require both tangible actions but also an environment where women and men support women in leadership. 17 Ellyn Shook, Julie Sweet (2018). When She Rises, We All Rise. Dublin: Accenture. https://www.accenture.com/_acnmedia/pdf-73/accenture-when-she-rises-we-all-rise.pdf 18 Shalini Unnikrishnan, Roy Hanna (2019). The Trillion-Dollar Opportunity in Supporting Female Entrepreneurs. Brighton, Mass.: Harvard Business Review. https://hbr.org/2019/10/the-trillion-dollar-opportunity-in-supporting- female-entrepreneurs 10 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E R
WOMEN IN BUSINESS
Recommendation 1: Level the Playing Field
The G20 Members should unlock the advancement and full leadership potential of
women by driving reforms, fostering an inclusive environment, ensuring fair and equal
pay and encouraging new ways of flexible working
The recommendation on unlocking women’s potential, fostering an inclusive
environment and ensuring fair pay and flexible working is primarily aligned to SDG 5.1
‘End all forms of discrimination against women and girls everywhere’ and SDG 5.C
‘Adopt and strengthen sound policies and enforceable legislation for the promotion of
gender equality and the empowerment of all women and girls at all levels’.
Further, it fundamentally underpins SDG 8.5 ‘By 2030, achieve full and productive
employment and decent work for all women and men, including for young people and
persons with disabilities, and equal pay for work of equal value’. It also resonates with
SDG 5.4 ‘Recognize and value unpaid care and domestic work’ in consideration of
women’s responsibilities which can hinder their economic participation and
progression.
Further, the recommendation reinforces SDG 5.5 ‘Ensure women’s full and effective
participation and equal opportunities for leadership at all levels of decision-making in
political, economic and public life’, with special consideration of the proportion of
women in managerial positions. Finally, increasing women’s participation in STEM and
digital fields supports SDG 9.5 ‘Enhance scientific research, upgrade the technological
capabilities of industrial sectors in all countries, in particular developing countries’.
Policy Actions
The G20 Members should evaluate and amend national
Policy Action 1.1 policies on equality to ensure they protect the rights and
equal opportunities of women.
The G20 Members should prepare and implement a
comprehensive Women in STEM roadmap with the strategic
Policy Action 1.2
objective of increasing the pipeline of women in high-skilled
jobs.
The G20 Members should implement policies for employers
that set goals and transparent disclosure requirements to
Policy Action 1.3
increase women in leadership positions and related matters of
gender pay gap.
11 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E RWOMEN IN BUSINESS
Context
At the turn of a new decade, efforts to remove barriers for women and create an equal
environment need to be redoubled. The G20 Members have been at the forefront of
gender equality initiatives, but there is scope to do more. The goal committed to by the
G20 Leaders at the 2014 G20 Presidency to reduce the gender gap in labour force
participation by 25 percent by 2025 needs to be pursued with renewed commitment and
made real across all countries. Many G20 Members are still struggling to reach this goal. 19
Implementation of policies has not been fulfilled. The time-bound numerical targets that
have been set by various countries need to be assessed for effectiveness and impact.
Ensuring that women have equal access to employment and advancement will lead to
positive results for business and the economy, not only in terms of increased economic
output but by unlocking access to a wider talent pool and enhanced innovation and
productivity for businesses. Studies indicate that there is a strong correlation between
female employment ratios and GDP growth20, with improved business outcomes
(including productivity, profitability and innovation) where there is representation of
women in the workplace. Applying the G20 target “25 by 25” to all countries and reducing
the gender gaps in the labour market could boost global employment by 5.3 percent (189
million, holding unemployment rates and male participation rates constant), which could
consequently increase global GDP by 3.9 percent or $5.8 trillion.21
Encouraging the participation of women in the labour market needs to be accompanied
by support for work-life transitions and reducing enduring barriers to employment.
Gender bias – whether overt or unconscious – persistently inhibits women from entering
gainful, formal employment, advancing their careers to more senior positions once in
work, and excludes women from certain sectors that are predominantly male-oriented.
While limiting social and cultural norms will take time to change, there has to be legal,
societal, infrastructural and skilling support for women to return to work after childbirth
or caring responsibilities in the short-term. The business case for flexibility in helping
women be in work, stay in better-paid work, and to advance to senior roles and leadership
positions is evident. Flexibility – for both men and women - is essential to offset the often-
hidden pressure that social and cultural norms put on working women. This will however
require a paradigm shift and holistic change in mindset to achieve. The COVID-19 crisis
has instigated this shift as more businesses move to remote working in order to continue
business operations, household work has often been shared more equally between
couples and remote work has proven just as productive. It is necessary to take the
opportunity to sustain this new way of working and instigate permanent changes to the
‘new normal’.
Closing the gender pay gap remains a major objective around the broader theme of
achieving gender equality as part of the Sustainable Development Goals by 2030. 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
19
ILO (2019). Women at Work in G20 countries: progress and policy action. Geneva: ILO.
https://www.ilo.org/wcmsp5/groups/public/---dgreports/---cabinet/documents/publication/wcms_713373.pdf
20
See Council of Economic Advisers (2019). Relationship between female labour force participation rates and
GDP. Washington D.C.: White House. https://www.whitehouse.gov/articles/relationship-female-labour-force-
participation-rates-gdp/ and footnote #7
21
ILO (2017). World Employment and Social Outlook: Trends for women 2017. Geneva: ILO.
https://www.ilo.org/wcmsp5/groups/public/---dgreports/---inst/documents/publication/wcms_557245.pdf
12 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E RWOMEN IN BUSINESS home an average of just $73.22 Certainly, a large contributor to the gender pay gap is due to women occupying lower paid and more junior roles to men and taking time out of the workplace for maternity leave and childcare responsibilities. The prevalence of part-time working amongst women is also higher, which contributes to the pay gap and women advancing through their career at a slower rate than 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.23 Even with greater scrutiny and the measures introduced by governments so far, pay discrimination against women continues to be a reality, meaning women often do not receive equal pay for equal work. In most cases, the lack of transparency around pay makes it difficult to detect and address this discrimination. The principle of equal pay for equal work between women and men needs to be applied to all sectors and in all countries. Encouraging full transparency, eliminating all legal restrictions, and continuously evaluating progress will help make pay parity a reality across all the G20 Members. Arriving at a common definition of women in business, women entrepreneurs and women-led/owned businesses could be useful to promote a shared understanding across all the G20 Members and to enable the development of metrics that track progress on the fronts of female participation, advancement to leadership and ending the gender pay gap with transparency. Policy Action 1.1: The G20 Members should evaluate and amend national policies on equality to ensure they protect the rights and equal opportunities of women Implement - where not already in place - legislation that eradicates all forms of discrimination and mitigate unconscious bias in recruitment, pay, training and advancement, flexible working, maternity and paternity leave, adoption/foster leave for adoptive/foster parents - subject to local regulations and requirements, accompanied by mechanisms to boost transparency on implementation levels and address shortcomings. Female Labour Market Participation Female labour force participation is an important driver of economic growth and social development.24 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.25 The participation of women in the labour force varies considerably across the G20 Members. Even with the increased discussion and scrutiny around this topic, the number of women in the workforce has reduced in some countries (see Exhibit 1). The situation has deteriorated further during the Covid-19 pandemic. Analysis by the Institute for Women’s Policy Research finds that 58.8 percent of job losses in the US in the period 22 Accenture (2017). Getting to Equal 2017, Closing the Gender Pay Gap. Dublin: Accenture. https://www.accenture.com/_acnmedia/PDF-45/Accenture-IWD-2017-Research-Getting-To-Equal.pdf#zoom=50 23 International Labour Organization (ILO) (2019). World Employment Social Outlook Trends 2019 Executive Summary. Geneva: ILO. https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/--- publ/documents/publication/wcms_670554.pdf 24 Sher Verick (2018). Female labour force participation and development. Bonn: IZA World of Labour. https://wol.iza.org/articles/female-labour-force-participation-and-development/long 25 The World Bank (2019). Labour force participation rate, female (% of female population ages 15+) (modelled ILO estimate). Washington D.C.: The World Bank. https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS 13 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E R
WOMEN IN BUSINESS
February to March 2020 were occupied by women, and women’s job losses exceeded
men’s in almost all sectors.26
Exhibit 1: Female to male labour force participation rate
Ratio of female to male labour force participation rate (%)
2009-2019
Argentina 65.9
69.7
Australia 81.3
85.1
Brazil 71.0
73.2
Canada 86.2
87.6
China 82.1
80.3
European Union 76.6
79.9
France 81.9
84.7
Germany 78.9
83.0
India 27.0
33.1
Indonesia 60.9
64.8
Italy 63.9
69.1
Japan 67.2
74.0
Korea, Rep. 68.2
72.4
Mexico 54.0
56.3
Russian… 80.3
78.0
Saudi Arabia 23.3
28.2
South Africa 74.8
79.1
Turkey 36.9
46.9
United Kingdom 80.6
84.6
United States 82.2
82.3
2009 2019
Source: The World Bank. World Development Indicators, Female to Male Labour Force Participation Rate,
modelled ILO estimate series, Washington D.C.: The World Bank, April 09. 2020
26
Institute for Women’s Policy Research (2020). Quick Figures: Women lost more jobs than men in almost all
sectors of the economy. Washington D.C.: IWPR. https://iwpr.org/wp-content/uploads/2020/04/QF-Jobs-Day-
April-FINAL.pdf
14 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E RWOMEN IN BUSINESS
Exhibit 2: G20: Unemployment rate, by gender in 2019
Source: World Bank data; Unemployment, male (% of male labour force) (modelled ILO estimate),
Unemployment, female (% of female labour force) (modelled ILO estimate), 1 March 2020.
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.
What further exacerbates the gender gaps in labour force participation is the fact that
when women do participate in the labour market, they are less likely to have the job they
want. Research from the World Bank Group shows that over 2.7 billion women are legally
restricted from having the same choice of jobs as men, with exclusion from certain
sectors such as manufacturing, construction and transportation.27
The governments need to remove structural barriers to female labour market and
industrial participation: legislation that prohibits female participation in certain sectors
and roles should be withdrawn if the G20 Members are to address structural inequality
and further the professional advancement of their female labour force.
27
The World Bank (2019). Despite Gains, Women Face Setbacks in Legal Rights Affecting Work. Washington D.C.:
The World Bank. https://www.worldbank.org/en/news/press-release/2019/02/27/despite-gains-women-face-
setbacks-in-legal-rights-affecting-work
15 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E RWOMEN IN BUSINESS Informal Working Informal working is a problem for many women that is often overlooked. Informal work is frequently driven by necessity and the absence of other viable income streams, and does not afford fair pay or any work-based social protection. The issues go beyond a secure and reliable salary, as informal work does not provide sick leave, paid annual leave, other benefits or social security contributions made by an employer on behalf of the employee. Informal workers are typically poorer and more vulnerable than workers in formal employment and are generally excluded or even punished by existing legal and regulatory frameworks due to their informality. Data from the ILO shows that informal employment is higher for men than women at the global level (63 vs 58 percent), on analysis of more than 100 countries representing more than 90 percent of the world’s employed population aged 15 years and over. The percentage of female workers in informal employment in developing countries accounts for 92 percent, compared to 87 percent for men. Furthermore, in the majority of countries (56 percent), the proportion of female workers in informal employment exceeds that of male workers.28 The informal economy is a major challenge to workers’ rights, social protection, decent working conditions and inclusive development. Policymakers need to address the barriers that prevent informal workers transitioning to the formal economy and the factors that informalize previously secure jobs. As articulated in the SDG 8, encouraging the formalization and growth of micro and small-medium sized enterprises will foster progress towards achieving inclusive and sustainable economic growth and employment.29 Means for the G20 Members to achieve this include: creating more and better formal jobs; providing higher quality, better paid and more sustainable jobs; reducing the costs of registering firms; improving access to business services and formal markets; and promoting labour law reform including requiring all employers and employees to sign a labour contract.30 Interventions such as sector based licensing could be explored. Availability of Flexible Working Forms Flexibility for all workers is an imperative for future-ready organizations to thrive, attract and retain talent, and guarantee business continuity. Many women however end up leaving the workforce to accommodate care responsibilities outside work, given a lack of flexible working arrangements currently. According to a study by Werk, a people analytics 28 Florence Bonnet, Joann Vanek, Martha Chen (2019). Women and Men in the Informal Economy: A Statistical Brief. Geneva: ILO. https://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/--- travail/documents/publication/wcms_711798.pdf Note: This however does not raise the global averages due to higher shares of informal employment for men versus women in emerging countries with large populations, such as Russia and China, as well as low female labour force participation rates in some countries limiting the effect of high female unemployment rates in global and regional estimates. 29 United Nations (2019). Sustainable Development Goals 2019 Report. New York: United Nations. https://unstats.un.org/sdgs/report/2019/goal-08/ 30 Juan R. De Laiglesia (2017). Policy pathways for addressing informality. Paris: OECD. https://oecd- development-matters.org/2017/10/18/policy-pathways-for-addressing-informality/ and OECD (2007). Removing Barriers to Formalisation", in Promoting Pro-Poor Growth: Policy Guidance for Donors. Paris: OECD. https://doi.org/10.1787/9789264024786-8-en. 16 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E R
WOMEN IN BUSINESS platform company, 70 percent of women who dropped out of the workplace said that they would still be working if they had flexibility. 31 Caring for families mostly falls on women, limiting their ability to pursue a career. According to a UN’s report in its ‘The World’s Women’ series, when both paid and unpaid work such as household chores and caring for children are taken into account, women work longer hours than men – 30 minutes a day longer on average in developed countries and 50 minutes in developing countries. 32 Women are subsequently inhibited to take power and reach higher salaries. During the Covid-19 pandemic, women took on a heavier domestic care burden as a result of lockdown and quarantine policies; one survey in Indonesia found 63 percent of women feel exhausted due to the increased domestic burden caused by the pandemic. 33 When it comes to paid time-off for maternity leave, the amount of time off offered and salary paid whilst on maternity leave varies amongst countries. Time-off, however, tends to be short, averaging 18 weeks across the OECD and 22 weeks across the EU in 2016. Time off for paternity leave is also not as widely available as maternity leave and tends to be shorter (usually just one to two weeks), although it is often paid at a higher rate. Where fathers are offered paid leave, many do not take it. Japan is the only country that offers at least six months fully paid paternity leave for fathers, however just 1 in 20 took paid leave in 2017. The US by contrast is the only country with no national paid leave policy for either mothers or fathers.34 High costs and low availability of childcare are also significant deterrents to employment, especially when deducting for taxes and social security contributions on typically lower salaries of women. Many couples find it is therefore not always financially sustainable for both parents to work where take-home pay does not compensate for the cost of childcare. In this instance, mothers tend to opt out of the workforce and typically stay at home, or else take on part-time working arrangements to minimize childcare costs. A study by the OECD found that 33.8 percent of net family income in the UK is spent on childcare.35 Family income is stretched even further in single-mother households, making returning to work after having children for single mothers unsustainable. Many women value flexibility in their working patterns in order to achieve a better work life balance and invest in themselves and their personal interests, whether in the context of health and well-being, or personal and professional development such as improving her skills or networking. Achieving such flexibility requires a two-pronged approach: further government investment and planning for nationwide digital infrastructure will be required, as well as business planning for access to hardware (such as laptops and associated peripherals) that would facilitate flexible and remote working. Solutions such 31 Anna Auerbach, Annie Dean, Leslie Caputo (2019). The Future is Flexible, The Importance of Flexibility in the Modern Workplace. New York: Werk.co. https://werk.co/documents/The%20Future%20is%20Flexible%20- %20Werk%20Flexibility%20Study.pdf 32 United Nations (2015). The World’s Women 2015 Chapter 4 Work. New York: United Nations. https://unstats.un.org/unsd/gender/chapter4/chapter4.html 33 Sebastian Partogi (2020). Women still bear heavier domestic burden: survey. Jakarta: The Jakarta Post, print edition, Wednesday June 24, 2020. 34 Unicef (2019). Sweden, Norway, Iceland, Estonia and Portugal rank highest for family-friendly policies in OECD and EU countries. New York: Unicef. https://www.unicef.org/press-releases/sweden-norway-iceland-and-estonia- rank-highest-family-friendly-policies-oecd-and-eu 35 Emma Luxton (2016). These are the countries where parents spend the most on childcare. Cologny: WEF. https://www.weforum.org/agenda/2016/12/childcare-cost-oecd/ 17 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E R
WOMEN IN BUSINESS
as paying an allowance for “extra care” at home may be considered to support women
choosing to work from home in the long-term.
Exhibit 3: Case Study Right to Request Flexible Working
The Working Hours Adjustment Act in the Netherlands gives workers in businesses
with at least 10 employees, the right to choose their working hours. Employers have to
consent to employee requests unless they can provide compelling management or
business reasons to deny the request. Since 1 January 2016, the Flexible Working Hours
Act extends employees’ rights by making it possible to also request a change to
working times and the workplace (e.g., work from home).
Source: OECD (2016). Be Flexible! Background brief on how workplace flexibility can help European
employees to balance work and family. Paris: OECD. https://www.oecd.org/els/family/Be-Flexible-
Backgrounder-Workplace-Flexibility.pdf; and Workplace Gender Equality Agency (2018). Workplace
Flexibility. Sydney: WGEA. https://www.wgea.gov.au/topics/workplace-flexibility
Exhibit 4: Case Study Family Friendly Workplaces
In 2011, the German Federal Government and social partners signed the “Charter on
Family Oriented Working Hours” calling on all “stakeholders to actively pursue the
opportunities of family-oriented work hours and innovative working-hour models in
the best interest of the German economy”. The signatory stakeholders and the
employers’ association (BDA) followed up in 2015 with the “Neue Vereinbarkeit
Memorandum” (New Reconciliation Memorandum) on ways to balance work and
family life. The new reconciliation memorandum was developed within the company
network known as “Erfolgsfaktor Familie” (Family as Success Factor) and co-funded by
the European Social Fund. The network shares information and best practices among
family-friendly businesses and other stakeholders and holds competitions and events
to raise awareness on family-friendly workplace issues. The network connects more
than 1,200 businesses.
Source: OECD (2016). Be Flexible! Background brief on how workplace flexibility can help European
employees to balance work and family. Paris: OECD. https://www.oecd.org/els/family/Be-Flexible-
Backgrounder-Workplace-Flexibility.pdf
Overt & Unconscious Gender Bias and Inclusion & Diversity
Women are often subject to gender bias, both overt and unconscious, which manifest
into hidden challenges for labour market participation and career advancement. When it
comes to trying to enter employment, women are often on the back foot: research reveals
that women are, on average, 30 percent less likely to be called for a job interview than
men with the same characteristics.36 Even getting a foot in the door can therefore be a
significant hurdle for many women wishing to participate in the workforce.
Workforce culture also typically leans towards the male perspective and male needs.
Studies show that 74 percent of female employees feel that their workplace culture
36
Universitat Pompeu Fabra Barcelona (2019). Women are 30 percent less likely to be considered for a hiring
process than men. Isle of Man: Science X. https://phys.org/news/2019-03-women-percent-hiring-men.html
18 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E RWOMEN IN BUSINESS
makes it more challenging to advance their careers than it does for men. 37 Lopsided
workplace design and culture has much to do with the fact that most were designed for,
and by, men. Accenture Research looked at 9,500 businesses founded since the year 1900
and found that nine out of ten were established without a single woman amongst the
founders. Since 1970, that figure has only changed by three percentage points. Diversity
has a tangible beneficial effect: inclusive teams make better business decisions up to 87
percent of the time.38 A study by the International Labour Organization (ILO) shows that
when enterprises have inclusive and gender diverse business cultures and policies, they
are likely to achieve a 62.6 percent increase in profitability and productivity; 59.7 percent
enhancement in the ability to attract and retain talent; 59.1 percent greater creativity,
innovation, and openness.39 However, the World Economic Forum (WEF) finds that a lack
of progress in closing the economic participation and opportunity gap leads to the time it
will take to close the gap being extended; calculating at the slow speed observed
between 2006-2020, it will take a further 257 years to close this gap. 40 A lack of
management commitment to enhance women’s capacity and confidence in their
organizations is a barrier to overcome and requires intentional, long-term planning.
The lack of diversity and consideration for female workers creates an unequal
environment that impacts everyone. Equal cultures are those that: offer an empowering
environment where employees are trusted and given the freedom to be creative and
work flexibly; are led by a diverse leadership team that sets and measures equality targets
openly; and where policies and practices are family-friendly, supportive of all genders and
bias-free to attract and retain people. As an example, employees’ innovation mindset –
that is, their willingness and ability to innovate – is six times higher in the most equal
cultures than in the least equal ones. Pursuing unequal workplaces leaves significant
value on the table: if the innovation mindset in all countries were raised by 10 percent,
global gross domestic product would increase by up to $8 trillion by 2028. 41 The benefits
would be felt individually as well: in more equal organizations, women are 35 percent
more likely to advance to manager level, but men are also 23 percent more likely to be
promoted to manager. When it comes to senior manager/director level promotions,
women are 280 percent more likely to rise in more equal environments, as are men at 118
percent more likely.42 With these opportunities up for grabs, workforces would benefit
from men becoming greater advocates of advancing gender equality, inclusiveness and
the mechanisms required to enable women to rise (flexible working models, greater
domestic support by men in the home and with caring responsibilities etc.). The Male
Champions of Change initiative in Australia is an example of senior male leaders
collaborating and committing to achieving improvements in gender equality in their
organizations (see Exhibit 5).
37
Women in the City (2019). Workplace culture bigger barrier for women than work-life balance. Brackley:
Women in the City. https://www.citywomen.co.uk/workplace-culture-bigger-barrier-for-women-than-work-life-
balance/
38
Ellyn Shook, Julie Sweet (2018). When She Rises, We All Rise. Dublin: Accenture.
https://www.accenture.com/_acnmedia/pdf-73/accenture-when-she-rises-we-all-rise.pdf
39
Bureau for Employers’ Activities International Labour Office (2019). The business case for change. Geneva: ILO.
https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---
publ/documents/publication/wcms_700953.pdf
40
World Economic Forum (2019). Global Gender Gap Report 2020. Cologny: World Economic Forum.
http://www3.weforum.org/docs/WEF_GGGR_2020.pdf
41
Ellyn Shook, Julie Sweet (2019). Getting to Equal 2019: Creating a culture that drives innovation. Dublin:
Accenture. https://www.accenture.com/gb-en/about/inclusion-diversity/gender-equality-innovation-research
42
Ellyn Shook, Julie Sweet (2018). When She Rises, We All Rise. Dublin: Accenture.
https://www.accenture.com/_acnmedia/pdf-73/accenture-when-she-rises-we-all-rise.pdf
19 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E RWOMEN IN BUSINESS Exhibit 5: Male Champions of Change Male Champions of Change (MCC) Institute is an Australian organization that works to redefine men’s role in actions to combat gender inequality. The organization convenes groups of influential male leaders and supports them to step up beside women and drive change across the private sector and government. The first peer group began in 2010 with eight Australian leaders and now numbers 30 CEOs, Board Directors, and leaders from Government Departments, Universities and the Military. The MCC now includes 15 groups and more than 230 leaders across Australia from more than 200 organizations and representing 1.6 million employees globally. All leaders meet four times a year, agree on shared purpose and priorities and make a public commitment to advance gender equality. Commitments include changing working conditions, cultures and mindsets to enable men and women to advance equally within their organizations, increase the number of women on their boards, executive committee and management, recruiting and developing diverse candidates, share strategies across corporate, government and community sectors to advance gender equality and publicly report on individual and collective progress. In 2019, 81.5 percent of the coalition have achieved or improved gender balance overall and 82.9 percent have rates of women’s promotions that are either gender-balanced or greater than women’s representation overall. Source: Male Champions of Change (2020). https://malechampionsofchange.com/ Sexism and sexual harassment in the workplace are associated with male-dominated and hostile or isolating organizational cultures, a fact which many women feel resigned to accept, especially if they wish to progress to managerial roles. Many women do not feel empowered to raise issues of sexism or sexual harassment to superiors or HR functions, especially where they are employed in precarious employment arrangements and contracts, or where they fear their progression could be hindered as a result.43 In fact, a study of workers in the US, Japan and Sweden found that women in positions of power are no less likely to experience sexual harassment, and may even be more vulnerable to it; women in supervisory positions were more between 30-100 percent more likely to experience sexual harassment in the workplace.44 Organizations must be clear that harassment will not be tolerated and they must deal with any form of alleged sexual harassment seriously, fundamentally because people have the right to be treated with dignity and respect in the workplace, but also since it can lead to legal implications and under-performance.45 As the data shows, achieving ‘diversity’ in the gender makeup of the workforce is not enough, equal environments that foster the inclusion of women are required for women to take power and advance through the ranks and unlock benefits for all – it is about fixing the system, not women, to achieve gender equality. The G20 Members should start by setting a strong example within government and the public sector for both, female representation overall and at senior ranks and leadership roles, committing to a publicized robust Inclusion & Diversity Strategy for government to 43 Laura Jones (2019). Women’s Progression in the Workplace. London: Government Equalities Office. https://www.kcl.ac.uk/giwl/assets/womens-progression-in-the-workplace.pdf 44 Folke, Rickne, Tanaka, Tateishi (2019). Sexual Harassment of Women Leaders. Daedalus 2020 149:1, 180-197. Posted Online December 27, 2019. https://doi.org/10.1162/daed_a_01781 45 CIPD (2019). Sexual harassment in the workplace. London: CIPD. https://www.cipd.co.uk/knowledge/fundamentals/emp-law/harassment/sexual-harassment-work-guide 20 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E R
WOMEN IN BUSINESS unlock gender equal governance that achieves better policymaking for women’s interests. Policy Action 1.2: The G20 Members should prepare and implement a comprehensive Women in STEM roadmap with the strategic objective of increasing the pipeline of women in high-skilled jobs Promote the adoption of technologies to give women more access to knowledge, vocational training and life-long learning opportunities, articulated in a STEM roadmap with the objective of developing digital skills, obtain and stay in better-paid jobs and progress to leadership positions, and address the ‘leaking pipeline’. Women’s Representation in STEM Fields and Industries Another area where this gap needs immediate action is the representation of women in emerging fields. Female participation in STEM careers lags behind that of men. According to the World Economic Forum’s Global Gender Gap Report 2020 report, just 12 percent of professionals in cloud computing are women, and in engineering and data and AI fields, the numbers are 15 percent and 26 percent respectively. 46 The UN found that the global average percentage of female researchers in 2018 was 28.8 percent and only 35 percent of all students enrolled in STEM-related fields of study are women. Further, it finds that despite recent small improvements, women occupy a small minority of top-level positions and only 20 women have been awarded a Nobel prize in a scientific discipline to date.47 Persistent female underrepresentation in STEM careers may then be a result of other root causes, such as psychological and cultural barriers, even potentially a lack of natural interest in the fields. As the labour market is going through an intense period of change, there is an opportunity to embed parity in the future by balancing efforts between the increasing growth of such roles on the demand and the supply side of future ready skills. 48 These issues could be overcome by education, media and more effective marketing strategies. However, there are 104 economies globally that have labour laws restricting the types of jobs women can undertake, and where and when they are permitted to work. This is estimated to affect the employment choices of 2.7 billion women. 49 The first step for the G20 Members to address this is to evaluate whether any law exists that limits the access and progress of women in education (example, to develop STEM skills) and employment, and to subsequently eliminate this. An assessment of STEM supply by gender, level of education, and seniority is critical to understand where in the pipeline women drop out of STEM industries and to then focus policymaking to address the leaking pipeline accordingly. Such an evaluation will require collaboration with educators and businesses. 46 World Economic Forum (2020). Mind the 100 Year Gap. Cologny: World Economic Forum. https://www.weforum.org/reports/gender-gap-2020-report-100-years-pay-equality 47 United Nations Educational, Scientific and Cultural Organization (2018). Telling SAGA: Improving Measurement and Policies for Gender Equality in Science, Technology and Innovation. Paris: UNESCO. https://unesdoc.unesco.org/ark:/48223/pf0000266102 48 World Economic Forum (2019). Global Gender Gap Report 2020. Cologny: World Economic Forum. http://www3.weforum.org/docs/WEF_GGGR_2020.pdf 49 World Economic Forum (2018). 104 countries have laws that prevent women from working in some jobs. Cologny: World Economic Forum. https://www.weforum.org/agenda/2018/08/104-countries-have-laws-that- prevent-women-from-working-in-some-jobs/ 21 | P a g e B 2 0 S A U D I A R A B I A – P O L I C Y P A P E R
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