Gold Magazine February - March 2013, Issue 23 | Page 60

OPINION

Femenomics

Inequality between men and women remains
where managerial positions are concerned

I

n the 21st century it is commonly contended
that women’s employment rights are equal to
those of men but this was not always the case.
The improvement in the legal rights acquired
by women in the workplace can be attributed
to the introduction of employment laws in developed
countries. In the UK, for example, the Equal Pay Act
of1970 secured a women’s right to be paid on a par
with men in similar professions. Additionally, the Sex
Discrimination Act of 1975 effected equal treatment
for women. Similar laws were also introduced in
the US, whilst the Pregnancy Discrimination Act of
1978 made it illegal to discriminate against women’s
pregnancy-related factors.
Respective female participation rates have persistently risen throughout our century as public perceptions have shifted, labour mobility has improved, education levels have increased, birth rates have declined
and office jobs have become more widespread.
Women represent 40% of the global workforce
and it is estimated that if female vs. male employment
rates reach parity, the economic benefits will be substantial. Research suggests that this continuing gender
tilt will improve global GDP figures; in the US and
Japan, GDP may rise by 5% and 9% respectively
by 2020. In the US, women represent 46.6% of the
labour force and they outnumber men in middlemanagement level positions. However, inequality in
managerial positions remains with women constituting less than 15% of executives in the Fortune 500
global companies as of 2012.
Moreover, in the developing world, specifically Asia
and Africa, women constitute only 20% of paid nonagricultural workers. Women face additional hurdles
to those in the West. There exists a lack of public
services to support families, education, and there is
not positive perception of “gender diversity” and
employment legislation. In the Middle East, laws do
not permit women to freely work in business environments. Whilst it is a common stereotype that women
exhibit less appetite for risk and are thus perceived
to underperform compared with men in leadership
skills, recent studies suggest that they often surpass
men when it comes to initiative and a drive for delivering results. Moreover, this inclination to risk aversion and the ability to multitask allows female team
members to bring an element of level-headedness and

Female team
members bring
an element
of levelheadedness
and order to
management

By Persella
Ioannides

order to management, often boosting performance in
turbulent economic times.
Additionally, numerous research explanations exist
as to why women are often drastically more motivated
than their male counterparts. One crucial suggestion
is that, due to gender reasons, women often feel that
their appointment is not necessarily as secure and safe
as that of their male colleagues prompting them to self
analyze more frequently and to work harder.
Powerful women that immediately come to mind
these days are leaders such as German Chancellor
Angela Merkel and US Secretary of State Hillary
Clinton. The gender minority trait probably aided
their careers, backed by the influence of respective accompanying political figures such as former German
Chancellor Helmut Kohl, once considered Merkel’s
mentor and Hillary’s husband, the former US
President Bill Clinton. Moreover, their current strong
popularity ratings indicate talent but also prudence
and intuition being exercised in a woman’s arsenal.
During the euro debt crisis, Merkel remained adamant that the eurozone should adopt strict reforms
to achieve targets, simultaneously fighting off ensuing
peer pressure. Only when she deemed that the timing
was right was the ECB allowed increased flexibility
and statements were issued about “preservation of
the euro at any cost”. Clinton on the other hand,
has been praised for her role as US Secretary of State
when a major shift in US economic policy materialized. She utilized diplomacy and charisma to flatter
opposing negotiators and was particularly praised for
achieving targets via smart foreign economic policies
rather than through violent conflict.
A balanced gender ratio in the workforce has
proven successful as the global talent pool expands.
We may especially note exemplary female political
figures but women CEOs such as Pepsi Co’s Indra K.
Nooyi and Hewlett-Packard’s Margaret Whitman are
also worthy examples. However, men continue to significantly outnumber women in the upper corporate
echelons. Moreover, in the developing world, statistics
concerning women in the workforce are dismal. To
manage the improving global economic fundamentals
such as improved GDP figures, necessary employment reforms should continue both in region- specific
legislation and regarding the discrimination of gender
diversity that ensues.

info: Persella Ioannides is a Director of Meritkapital.
58 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

opinion_ioannides.indd 58

01/02/2013 12:39