Women blocked by glass ceiling in South African business environment

28 July 2017 Consultancy.uk

Women looking to reach the boardroom in South Africa face discrimination, harassment and cultural stigmas on the way, a study into gender disparity has found.

The ‘Gender (Dis)Parity in South Africa: Addressing the heart of the matter’ study from Bain & Company has explored the current conditions faced by women in organisations across South Africa. The report focuses both on identifying key trends affecting both male and female workers in the African nation, based on a survey of people across the country's business spectrum.

Women face ascension challenges in the business environment of South Africa, and while women in the country tend to be aspirational and confident about making it to the executive, Bain & Company’s research finds that few do - 31% of corporates have no women in senior leadership positions. Discrimination at the social level, as well as harassment and implicit barriers continue to hold women back. The findings are part of a global trend, which Big Four firm PwC recently also reported means women have more obstacles to becoming senior managers than men.

The background statistics regarding the current climate for women in corporate environments across South Africa are relatively stark. A startling 31% of companies in the region have no women at all within their senior leadership, while a report from the Businesswomen’s Association of South Africa found that of board level positions, 22% of board directors are women, with 7% found to be executive directors.

Around 2.2% of the CEOs from companies listed on Johannesburg Stock Exchange were women, while across South Africa the number increased slightly to 10%. Little has changed in the statistics, with on average representation of women in senior leadership positions increasing slightly from 26% in 2004 to 28% in 2017. It is worth noting the global average according to Grant Thornton's latest study on the matter, which found the CEO role was held by women in 12% of cases, followed by 9% for the COO.

Company advocacy in South Africa varies by gender and race

To better understand the relationship surveyed employees had with their employer, Bain's research meanwhile set out to measure their employee net promotor score (eNPS). The measure included a range of possible factors that influence whether someone would promote a company to a friend (8-9), be neutral about a company (7-6), or talk negatively about a company (0-6).

When taking an aggregate result, the research found that women tend to be net detractors when recommending an employer to a female friend, compared to men (-4 and 8 respectively). Particularly junior staff (female -17, male 3) and Broad-Based Black Economic Empowerment (female -16, male 6), had strong negative associations with their employers.

Women aspiration are slightly higher than men

Women also tend to be relatively ambitious at start of their careers, with around 58% of women in non-management positions saying that they aspire to reach a top management position, which increases to 68% in junior/management and 82% in senior management. Women are also relatively confident that they can reach the top, with similar trends in terms of number as those reflective of aspiration.

While women tend to be aspirational and confident about their ability to get to the top, the numbers, with regard to those that actually do get to the top, show a clear contradiction between reality and expectations. According to the study, the number of women entering the business environment in the country is relatively on par with men, at 46% and 54% respectively. The number of women in senior leadership positions stands at around 29%, with those in CEO positions at 2.2% for listed companies on the country’s main exchange.

12 factors, women negatively affected

The research also explored (out of 12 factors) the factors women and men employed at the organisations see as negatively impacting their work environment.

The top most cited factor for women was social norms around their role within wider society. While liberalisation has taken place in the country, the research still found discrimination was a factor affecting success. Among social factors noted, gender role expectations, particularly around caring and housework, tended to also negatively affect the wider work situation.

Women are more likely to finds themselves held back

Other areas in which women noted considerable negative effect were in terms of promotion fairness and resources and initiatives to promote gender equality, with many women believing (rightly in all likelihood) that equal opportunities for promotion exist in the firm – in part from poor training for promotion, unfair evaluations, etc. Inspirational leadership and senior advocacy were other areas in which women feel disadvantaged.

Inspirational leadership was found wanting by respondent women, as were senior advocates supporting women to pursue career advancement. Furthermore, women noted that they were not convinced, on average, that men and women have equal opportunity to be promoted on the same timeline.

Both genders have negative experiences

The research also found a number of troubling statistics, largely around harassment, exclusion and disrespect – all factors that can significantly influence the everyday experience of a person, their ability/willingness to perform as well as wider mental health and physical health.

Sexual harassment was found to be a significant issue for women, with around 17% of those surveyed affected at least one per quarter, and 6% at least once per month. 37% of female respondents noted feeling uncomfortable with inappropriate conversations, while 47% of female respondents said that they feel excluded from organisation networking events. 54% of women also said that they feel a lack of respect or acknowledgement.

“Our findings suggest that women continue to bear a disproportionately heavy burden when it comes to balancing professional aspirations with deeply embedded societal norms, which continue to dictate that women should be the primary caregivers in the home,” said Catalina Fajardo, co-author of the report. “As a result, many women feel they are ‘going against the grain,’ when they opt for a career.”

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Women remain underrepresented in UK's hospitality industry leadership

12 April 2019 Consultancy.uk

Female engagement at the top level of the UK hospitality industry is still lagging, with the vast majority of decision-making roles continue to be held by men. Only 7% of the industry’s FTSE 350 CEOs are women; however, the pay gap in hospitality and leisure is far better than in other industries, at a median of approximately 7%.

The hospitality, travel and leisure (HTL) sector is one of the UK’s largest employers, with 3.2 million people working in its segments. Despite a poor 2018 in terms of tightening consumer spending, the industry is still one of the top sectors in terms of economic activity, hitting £130 billion last year – besting the UK’s automotive, pharmaceutical and aeronautical sectors’ combined activities.

While the industry is one of the country’s largest employers, it still faces considerable issues around diversity at the top. New analysis from PwC has explored the matter, as well what initiatives the industry has engaged to open up its top ranks to a more diverse background.

Female representation at board level for UK companies and HTLs

According to a survey of CEOs, Chairs or HR Directors of over 100 of the most significant leisure businesses across the UK, the hospitality industry has a relatively male-dominated top level. This lags behind the FTSE 100, where companies have female board level representation at 32.2%. Meanwhile, the figure for the combined executive committee and direct reports stands at 28%. This is well above FTSE 250 levels, where female board level representation stands at 22.4% and executive committee & direct reports stand at 27.8%.

For the hospitality industry as a whole, board level representation came in at 23.6%, with FTSE 350 for the industry performing slightly better at 25.1%, while non-listed companies performed considerably worse at 18.2%. The firm notes that the figures hide that while some companies are making strides to improve equality, others are not moving forward – with the positive result reflecting more often the good work of some, while others are not taking the issue seriously in their agenda setting.

Blind spot

The study states, however, that while the overall numbers are relatively strong, the industry has a number of acute weaknesses. These include CEO numbers, with only 7% of HTL FTSE 350 companies helmed by women and 11% of non-listed companies led by female CEOs. Meanwhile, female chairs at FTSE 350 companies for the sector stand at zero. In terms of wider diversity representation, only 1 in 33 leaders at industry companies is from a BAME background.

Pay gap for HTL and hospitality

The report noted discrepancies between FTSE 100 companies and FTSE 250 in terms of improving the number of women at executive level. The majority have met the Hampton-Alexander Review target of 33% women at board level, up from around 25% in 2016. However, the remaining ~40% are not on target, and are unlikely to meet the target by 2020. A similar trend is noted when it comes to executive committee and direct reporting numbers.

Jon Terry, Diversity & Inclusion Consulting Leader at PwC, said, "To make real progress in diversity and inclusion, businesses need to elevate it onto the CEO’s agenda and align diversity & inclusion strategy to the fundamentals of the business."

Tracking progress FTSE 250 level

However, one area where hospitality travel and leisure companies are outperforming other companies in the wider UK economy, is the mean and median pay gap between men and women. PwC found that the median of the wider UK economy comes is approximately 14% – with upper quartile companies noted for a gap of low 20%, and lower quartile companies noted for differences of around 2%.

The median pay gap for HTL comes in at well below 7%, with the median close to parity. There are considerable differences, however, with hospitality at 7%, while travel comes in considerably higher, at 22%. The latter figure reflects fewer women in higher paid pilot and technical positions within the industry.