Equal and yet not equal
More than half of the world’s population is female. However, this is far from being reflected in the occupation of top positions in the economy. On the contrary, there is clearly an imbalance here. According to the World Economic Forum*, the gap in the case of economic participation by women and equal opportunities is at 42%. If one applies the current rate of change at which the gap has been narrowing recently, it would take a further 267 years until the gap disappears completely. Austria’s achievements are downright catastrophic in this subindex of the Global Gender Gap Index, as it ranks 88th (out of 156 countries).
One obvious reason for this performance is the underrepresentation of women in top positions at Austrian companies. The Austrian Traded Index (ATX), as the most important index of the Vienna Stock Exchange, contains 20 companies, of which only two (VIG and CA Immo) have female management board chairpersons, while 15 companies do not have any women in their management boards at all. In the case of the Vienna Stock Exchange Index (WBI), which contains 60 companies and thus all of the companies listed on the Vienna Stock Exchange, there is only one further chairwoman (at BKS Bank). Consequently, Austria is in second-to-last place within Europe. Here, an urgent need arises for a legal minimum quota for the representation of women in management positions.
However, which measures for the promotion of actual equality between women and men are already in place? One needs to differentiate between the large-scale measures of governments and international organisations on the one hand, and the small-scale measures on the other, which, if one thinks it through to the end, must lead to cultural change.
Examples of international and national resolutions and framework legislation:
Organization for Security and Co-operation in Europe (OSCE): Decision No. 638 – 2004 OSCE Action Plan for the Promotion of Gender Equality
European Union: Gender Equality Strategy 2020–2025 of the European Commission
Republic of Austria: As per Article 7 Paragraph 2 of the Austrian Federal Constitutional Law (Bundes-Verfassungsgesetz), the Austrian Federal Government, the Federal Provinces of Austria, and Austria’s municipalities are committed towards actual gender equality
The topic is of such great importance for the European Union that it founded a dedicated agency, the European Institute for Gender Equality (EIGE), all the way back in 2006. The institute is meant to assist institutions and EU member states in achieving gender equality. EIGE is therefore a pioneer in the development of reliable findings as it collects and makes available data in addition to exchanging useful experiences and specialised knowledge.
Examples of concrete measures for the promotion of women in the economy:
Assessment of work that is free from discrimination, i.e. counteract gender-related clichés in career choices. For example, studying STEM* subjects has good future prospects and well-paid jobs follow
Promotion of education and financial training. This will also subsequently reduce the disadvantages in retirement planning
Nationwide childcare, even in rural areas
Compatibility of career and family, thus ensuring better career prospects and earning opportunities for women. Part-time work has been shown to be detrimental to one’s career – less than 10% of managers are part-time employees
Gender-neutral recruitment and job application processes
Key performance indicators for management with a focus on gender equality
Salary transparency in order to improve wage negotiations and to see how far a company has progressed in terms of gender equality. A matter of interest in this regard is a study by Zoë Cullen* which shows that salaries decrease on average when disclosed
Women as role models and mentors
Media design, because language and images can serve a key purpose
Shaping opinions and forming attitudes at an early age with the help of trained educators
And, lastly, an obligatory quota for management positions
Companies should strive for gender equality in companies, including in higher positions, for very pragmatic reasons. A balanced composition of staff has a positive impact on management style and group dynamics, as was discovered by a Norwegian study. Furthermore, numerous studies have revealed again and again that companies with mixed management teams are more successful. One example that illustrates this is a 2020 study by Boston Consulting Group. It is important to note at this point that such statements cannot be proven in reality.
Summary
Gender equality has shifted much more into the centre of attention in recent years. Much has already been achieved, but much more, in particular in terms of changing mindsets (and attitudes), still has to be done.
And in case you are interested to know whether you are prejudiced regarding gender equality at the workplace, please take a look at the following YouTube video from 5 March 2020: “International Women’s Day – Can You Solve the Riddle? (Mindspace)”.
MMag. Ingrid Szeiler
Head of Investment Raiffeisen Kapitalanlage GmbH
*) Explanations and sources:
World Economic Forum: Global Gender Gap (weltweite Geschlechterkluft) Report 2021.
STEM stands for science, technology, engineering, and mathematics.
Cullen, Zoë B., and Bobak Pakzad-Hurson: Equilibrium Effects of Pay Transparency. NBER Working Paper Series, No. 28903, June 2021. (Revise and Resubmit at Econometrica).