WORKING WOMEN
An Economic Necessity
Amena Arif elaborates on why gender equality is more than just a moral need
On a scale of 1 to10, Amena Arif scores gender equality in the workplace as 10/10 simply because “ignoring half of the world’s workforce means that we’re realising only half of the world’s economic potential.”
The Country Manager of IFC Sri Lanka and Maldives elaborates: “Gender equality is more than just a moral need; it’s an economic necessity and is good for business. Consider the facts – if the global gender gap were to be reduced by 25 percent by 2025, it could add US$ 5.8 trillion to the world economy. But only about half of working age women are employed globally. The more we ignore this, the more we lose.”
In Sri Lanka, the gap is even starker with only a third or so of working age women employed. So taking decisive action to increase women’s economic participation will be beneficial in the long run, she urges.
Arif notes that women’s participation in our labour force has stagnated at 30-35 percent over the past two decades: “The latest percentage is 34, which is less than half that of men. This is staggeringly low given the progress on a range of other gender and human development metrics. Women in the 20-40 age group are the most disadvantaged with only 30 percent of jobs in the private sector.”
This reflects women’s increased care responsibilities that are associated with marriage, childbearing and other entrenched social norms.
While Sri Lankan law requires employers to provide 84 days of maternity leave, this is fully funded by employers without any contribution from government. There are also certain legal constraints that limit women’s full participation in the economy.
Restrictions on women’s ability to work at night in some industries, and on the types of jobs they can do in industries such as mining and factories, are among the constraints. In addition, the law does not mandate equal pay for equal work.
The SheWorks Sri Lanka partnership – a two-year initiative by the IFC-DFAT Women in Work programme with 15 of the country’s largest employers – clearly showed how company policies in advancing gender equality can improve business outcomes.
Arif reveals that “at the end of the two years, there was a 12 percent increase in the number of women in the workforce – which equates to 12,000 more women employed…”
Companies that started providing childcare for their employees helped more working parents to stay employed, which was one of the top three reasons for both women and men leaving the workforce two years ago. Moreover, establishing policies covering respectful workplaces, and addressing bullying and harassment, are essential, she notes.
Arif believes that women business leaders bring a plethora of diverse skills, perspectives and experiences. It’s a proven fact that diversified boards take better decisions, which leads to better financial returns.
Companies with more women in senior management and board positions better reflect the profiles of their customers and employees, she avers, adding that such diversity helps improve access to markets and can even enhance corporate reputations.
She says that “gender diverse boards generate a higher return on equity than those without. In Sri Lanka, IFC’s research highlighted that the top 30 Colombo Stock Exchange (CSE) listed companies with higher gender diversity perform better on financial metrics.”
One important action is ensuring that there’s a mandatory quota for women on boards. In Sri Lanka, the government has announced progressive quotas for women on the boards of listed companies. “This will help accelerate the pace for gender parity on boards,” she notes.
“IFC, together with the CSE, developed a directory of women who have the skills and aptitude to become board members – of which there are many. This helps ensure that companies can find women with the profiles they need on their board; so now it’s up to Sri Lankan businesses to utilise them,” concludes Amena Arif.
