30 July 2018

Nudging women into tech

Where are all the women in tech?

The lack of female representation in STEM and especially in leadership positions is a crucial barrier to gender equality. Women currently hold only 19% of tech-related jobs at the top 10 global tech companies, relative to men who hold 81%. Why do more women and girls not opt into careers in STEM fields, especially emerging tech?

Early engagement with STEM lagging for girls

The proportion of females to males who graduate with STEM-related degrees is out of balance. Cultivating an interest in STEM fields should start as early as possible. From an early age, behavioural design can help through de-biasing classrooms, changing how our children are taught, as well as through celebrating counter-stereotypical role models.

Work-family balance

In the workplace, the ‘leaky pipeline’ can further explain the lack of female representation in STEM jobs. There is a continuous haemorrhaging of women out of work as they exit their careers over time, especially as they become mothers. According to a recent PwC survey of 3,600 professional women globally, 42% feel nervous about the impact that starting a family could have on their career and 48% of new mothers felt overlooked for promotions and special projects upon their return to work. Across sectors and in the tech industry, women are concerned about the implications of motherhood and the flexibility penalty for their careers.

Given the need to foster the participation of women in our workforce, addressing the reasons that cause women to leave their employers, industry or careers more generally is vital. Businesses should support working mothers and nurture their careers through implementing flexible policies, allowing sufficient parental leave (for both parents) and promoting advancement programmes in a way that prevents potential biases and provides organisational solutions that work. To remain relevant, businesses will need to have a clear strategy to retain the right employees, customers, and partners, regardless of gender.

Gender equality is more than a moral imperative

We estimate sizeable economic benefits if we close the gender gap. For example, in South Africa, our calculations suggest economic growth spin-offs of additional 3.2% in GDP growth and a 6.5% reduction in the number of unemployed job seekers by closing the gender gap in both pay and representation by just 10%. Enormous economic opportunity lies in promoting gender workforce equality.

The benefits extend to the emerging tech industry as well. Emerging tech is only as well rounded as the people who teach it. It is a crucial field for women to help shape. If primarily half of the population designs technology, users are missing out on the insights of the other half. Fostering inclusivity will help introduce new viewpoints and new ideas to emerging tech.

What can we do to advance gender workplace equality?

Experts tell us that biases exist in our daily lives and behavioural measures, or ‘nudges’, are one instrument in our collective toolbox to correct for gender imbalances in education and work. They offer low-hanging fruit to promote female representation in emerging tech and establish new foundations for inclusive economic growth.

Nudges in school and higher education

The tech industry boasts many exceptional female leaders. It is crucial to celebrate these role models and bring attention to them, especially for girls at a young age. It is hard for young girls to aspire to something they cannot see, and the mantra applies ‘seeing is believing’.

We can cultivate an early interest in STEM-related fields by bringing attention to female role models in STEM careers. Research shows female learners are more likely to continue their studies in a STEM subject when they had a female STEM teacher. Further increasing the fraction of counter-stereotypical people in positions of leadership solves a chicken and egg problem - it can change men’s and women’s beliefs about what an effective leader looks like and challenge many of the biases that hinder gender equality.

Nudges in hiring

In the hiring process, gendered language in job ads can preselect applicants, denying firms the possibility of exploiting the full potential of the talent pool. A job ad for a teaching role at a primary school that refers to the ideal candidate as ‘warm and caring’ will likely attract fewer male applicants than if the ideal candidate had to offer ‘exceptional pedagogical skills’. The same principle applies to emerging tech jobs. The language used in emerging tech job ads represents a barrier women face in partaking in the emerging tech revolution, as well as derails efforts by organisations looking to benefit from the full breadth of available talent.

The simple solution is to purge gendered language from job ads. First impressions also matter in recruitment sessions, where the presence of women speaking on technical subjects is a crucial driver of female audience engagement. These nudges are especially important as women consider more factors than men when screening jobs – in particular, cultural fit, values, and managerial style.

Nudges in career development and progression

In career development, gender differences in self-confidence play a crucial role. Many firms ask their employees to evaluate themselves and then to share these self-evaluations with their supervisors. Self-assessments entrench gender biases through anchoring, where women will generally underrate their performance, which serves as an unconscious, low reference point for evaluators. The easy solution is to do away with self-assessments wherever possible, or at least to avoid sharing self-assessments with evaluators ahead of performance reviews.

Nudging for prosperity

We can bring more women into tech by realising that an interest in these fields should be cultivated from an early age and understanding why women opt out of careers in STEM. Simple nudges like bringing attention to female role models, purging gendered language from job ads and avoiding self-assessments can change the context in which we make decisions and sustainably correct gender imbalances in the workplace.

The benefits are clear: economies and businesses can thrive by deploying the full potential of their workforce, women and men alike, to drive prosperity in the face of the next digital revolution.

Find out more and explore the full 16 nudges we recommend for more #WomeninTech by downloading our report.

By Maura Feddersen and Nina Kirsten, Economists at PwC, Strategy&

Feddersen Maura Feddersen is an economic consultant with PwC Strategy&. She develops economic tools to help organisations position themselves optimally in relation to continuous shifts in their economic and regulatory environment. Maura analyses economic trends in the global and domestic economy and provides regular media commentary on the strategic implications of these trends. She is passionate about behavioural economics and consumer sciences and their power to improve business success and enhance policy effectiveness. Maura is a co-author of PwC’s thought leadership ‘16 nudges for more #WomenInTech’, where she explores behavioural measures to foster women in emerging tech, and writes regularly on how behavioural economics can solve problems in the public and private sectors.

 

Kirsten Nina Kirsten is a Senior Associate at PwC, based in Johannesburg, South Africa. She is an economist in the Economics practice within PwC Strategy&. She has a keen interest in Behavioural Economics and is the co-author of ‘16 nudges for more #WomenInTech’, which explores several behavioural measures that can be employed to bring more women into the field of emerging tech. Through consulting, she dives deep into the cognitive processes that can be leveraged to unlock value within organisations.

09 July 2018

Women in Work Index – what is driving the OECD gender pay gap?

The sixth annual update of the PwC Women in Work Index shows that gains in female economic empowerment have been made across the OECD countries, but the pace of change remains gradual. Our index combines five key indicators of female economic empowerment: the equality of earnings with men; the proportion of women in work, both in absolute terms and relative to men; the female unemployment rate; and the proportion of women in full-time employment.

As in previous years, Iceland, Sweden and Norway remain the top three performers. The largest movers – Poland and Hungary – both saw a rise of three ranks with strong improvements in female participation in the labour force. Most countries have also achieved gains in absolute terms. For example, Spain saw one of the largest annual increases in its index score, due to an increase in the share of women working full-time, while the pay gap and female unemployment has fallen. Looking at longer-term changes since 2000, United States, the largest OECD economy has fallen quite significantly from 9th to 21st position. This is mainly driven by falling participation in the labour market and rising unemployment amongst women over the past decade.

The UK fell from 14th position to 15th as improvements in female labour market conditions were outpaced by other OECD countries. In particular, the UK’s pay gap (defined as the difference in median earnings between males and females) is closing only very gradually and is still slightly above the OECD average, while little progress has been made to improve female full-time employment. There are significant regional variations within the UK. London continues to perform poorly with the largest pay gap, mainly driven by its relatively higher concentration of businesses with high pay gaps such as financial services and professional services.

This year, we conducted an econometrics analysis to investigate the drivers of the gender pay gap across the OECD countries, using a dataset of 35 countries over 16 years. Our results showed that much of the pay gap is explained by structural factors, such as the tendency of women to work in lower paid services sectors or in part-time work and taking time off from work to care for the family, which remain persistent over time. We find that increased government spending on family benefits, such as childcare, can help reduce the pay gap as this can help support women returning to or staying in work. Countries with a larger share of female employers also tend to have lower gaps, which could potentially suggest that female entrepreneurship has a positive impact on gender equality in the workplace.

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Our analysis points towards the important role that government policy can play in creating a more gender neutral workplace. Firstly, enhanced social support for childcare and family support can boost female participation in the workforce, particularly for full-time roles. We also found that generous lengths of paid maternity leave can worsen the pay gap and make it larger. This somewhat surprising result suggests that longer leave periods mean women spend more time outside of work, which could negatively impact their future earnings potential. Policies such as Shared Parental Leave (SPL) aim to correct this by levelling the playing field between parents, and encourages the sharing of caring responsibilities so that women can return to work. Some countries, such as Sweden, have introduced non-transferrable “use it or lose it” quotas for fathers and economic ‘bonuses’ for families that divide parental leave more equally.

Businesses also have a big responsibility to provide both men and women equal opportunities to reach their full potential at work and close the pay gap. The recent introduction of mandatory pay gap reporting in countries such as the UK and Australia helps push businesses in this direction. Early disclosures reveal how far we have to go to close the gap, but greater transparency will hold companies accountable to take action and gradually motivate change. Furthermore, there is a serious need to “fix the leaky pipeline” to improve female representation in senior positions, such as providing more flexible opportunities for women in higher-paying and higher-skilled roles, or encouraging women to return to work following career breaks with “returnship” programmes. This can help build a pipeline of female leaders, with clear benefits: evidence shows that gender-diverse boards representing diversity of views can improve business performance.

The gains to closing the gender pay gap are substantial – US$2 trillion for the OECD – a massive prize to be achieved.

Authors:

Yong Jing Teow 
Economist
Tel: +44 (0) 207 804 4257 

Saloni Goel 
Economist, PwC United Kingdom 
Tel: +44 (0)7730 596332

Swati Utkarshini 
Economist, PwC United Kingdom 
Tel: +44 (0)7843 370811

18 June 2018

We are seeing rising levels of female career ambition – but how can women break the habits that are holding them back

In March, we released our Time to talk research – focused on professional women age 28-40 from across the world, it made one thing clear – we are seeing rising levels of female confidence and ambition.

Women are more confident and ambitious than ever. 82% are confident in their ability to fulfil their career aspirations, 77% in their ability to lead, and 73% are actively seeking career advancement opportunities. Furthermore, they have strong leadership aspirations, with 75% of women saying it was important to them they reach the top of their chosen career, namely obtain a leadership position. Women are confident, ambitious and ready to progress.

Women are also more proactively pursuing their career goals by actively negotiating for raises, promotions and seeking out the experiences seen as critical to career advancement. And our survey shows it is working – there is a strong positive correlation that the women who negotiate are getting what they ask for, in particular with regards to high-visibility projects and stretch assignments.

But we aren’t quite there yet. When promotion opportunities arise, women still have big strides to make in actively pursuing such opportunities and making their career aspirations known. In fact, 44% of women would expect their hard work to be recognised as a symbol of their promotion aspirations and for their employer to approach them about the promotion. This is all well and good, but working hard and being really good at your job does not necessarily ‘a-promotion-tap-on-the-shoulder’ make.

This approach leaves a number of women open to getting stuck in their career risks. For example, assumption risks, the assumption that they are happy and content in their role and as they’ve never vocalised it are not interested in progression. Or not being front of mind risk. If Peter, Michael, John and Elizabeth have all been in the boss's office vocalising their desire to progress, then right or wrong, despite Anne’s perhaps equal or better performance and potential, it will often be the case that she is simply not the first name that jumps to the boss's mind when a promotion opportunity arises.  

Femaleambition

Furthermore, a substantial 39% of women said they would apply for the promotion, BUT only if they met all of the job criteria. This insight is not news.  I’m sure we’ve all had personal experiences where we’ve been hesitant to put ourselves forward or say yes to an opportunity because we don’t feel we quite tick all of the boxes required. Or perhaps we’ve seen this manifest in the workplace with women providing the ‘I’m not sure I’m ready response’ while men on the other-hand tend to be much more brave in saying, yes ‘I’ll give that a go’ or ‘I don’t meet all the role criteria but I know I can do it’.

A mind-set shift is required, a promotion in itself means you are progressing, that you’ll be doing new things and developing new skills. So why would you wait until you could do it all already before putting yourself forward. I call on women not to think about the ‘well I’ve no experience in certain areas’ factor that is holding them back, and instead to think ‘oh great – they’ll be the new areas I’ll get to develop and I know I have the potential to do it well’.

The Time to talk research shows a much smaller margin of women, 17%, would put themselves forward for the role even if they didn’t meet all the criteria. Vocalising career aspirations and removing the expectation that you need to be 100% job-ready for a more senior role are two career tips for women that will hopefully help this 17% figure rise.  

PwC’s Time to talk report shares an ecosystem of three elements which are crucial for organisations to create an inclusive working and talent environment where both women – and men – can succeed. But achieving career potential is a two-way street, with an onus on both the employer and the employee to play their part.

For more tips on how women can change their behaviours and habits to support their career progression aspirations tune in to the strategy+business recent podcast featuring Marshall Goldsmith and Sally Helgesen discussing how female professionals can change self-limiting career behaviours. Take it from me, it is well worth a listen. You can also find out more by checking out their How Women Can Succeed by Rethinking Old Habits book excerpt.

Let’s all play our part in making this rising female career ambition less career aspiration and more career reality.  

Aoife

Aoife Flood, PwC

Based in Dublin, Ireland, Aoife Flood is Senior Manager of the Global Diversity & Inclusion Programme Office for PwC with responsibility for the development and implementation of our network-wide global Diversity & Inclusion strategy.

She is a proud PwC female millennial and lead researcher and author of our ‘Time to talk: What has to change for women at work’, ‘Women unbound: Unleashing female entrepreneurial potential’, ‘Winning the fight for female talent’, ‘Moving women with purpose: Creating gender inclusive global mobility’, ‘The female millennial: A new era of talent’, and 'The PwC diversity journey: Creating impact, achieving results’ thought leadership publications. Most recently Aoife also co-authored PwC’s crowdfunding focused Women unbound publication.


Aoife is also co-author of our Global Gender Agenda blog. You can learn more about Aoife here or find her on twitter: @AoifeRFlood.

08 March 2018

Women today: Confident, ambitious and ready to progress

Did you know we’re seeing a tidal wave of organisations across the world injecting greater urgency into their efforts to tackle gender imbalances in the workplace? But with progress so slow, what has to change for women at work and how can organisations deliver diversity strategies that will drive real progress?

To celebrate International Women’s Day this year, PwC is releasing our new research publication Time to talk: What has to change for women at work, as we aim to help answer this challenging question, shape the debate, and help accelerate change – both at PwC and in business at large.

The report shares the views of over 3,600 professional women working in 27 different industry sectors and from over 60 countries around the world.  And specifically focuses on women in the pipeline, age 28-40, because it’s at this stage that we start to see female representation gaps widen and the challenges of combining personal and career priorities increase.

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Two clear messages shine through, firstly: that women are more career confident and ambitious than ever, they are ready to progress, and secondly: that employers still have a lot of work to do to capitalise on this female potential and drive change.  

 Rising female confidence and ambition

Women are more confident and ambitious than ever. 82% are confident in their ability to fulfil their career aspirations, 77% in their ability to lead, and 73% are actively seeking career advancement opportunities. Furthermore, they have strong leadership aspirations, with 75% of women saying it was important to them they reach the top of their chosen career, namely obtain a leadership position. Women are confident, ambitious and ready to progress.

Women are also more proactively pursuing their career goals by actively negotiating for raises, promotions and seeking out the experiences seen as critical to career advancement. And our survey shows it is working – there is a strong positive correlation that the women who negotiate are getting what they ask for, particular with regards to high-visibility projects and stretch assignments.

More work to do: An ecosystem for change

And while there is a lot to be positive about, this is not yet translating into the levels of advancement it should and there is a huge amount of work employers still need to do. The report identifies an ecosystem of three elements which are essential to creating a more inclusive working environment where women – and men – can succeed. But these won’t be effective in isolation. Organisations need to focus on all three elements simultaneously to create real change. These are:

  • Transparency and trust matter. A lot.
  • Support networks and advocacy go a long way. Women need strategic support.
  • Life, family and work. There are grave concerns regarding flexibility and motherhood penalties.

We’d like to invite you learn more about what has to change for women at work, the career aspirations of women and the ecosystem for progress by visiting www.pwc.com/timetotalk.

10 October 2017

This World Mental Health Day I’m sharing my personal story….

Today is World Mental Health Day and in the spirit of advocating for this day, and for greater awareness and de-stigmatising of mental health every day, I am choosing to share my personal experiences with a global audience both inside and outside of PwC for the first time via our Global Gender Agenda blog. 

My name is Anna – I live in the UK with my husband Mark, my 3 year old son William and a very crazy puppy called Rosie. I am a Partner in the Assurance practice in the UK, a mental health advocate and I had post-natal depression after my son was born. My experiences with mental health illness started before then – as my Dad was unwell when I was young and my sister suffers from anxiety. In my client-facing work I also work with many mental health care providers so it touches both my personal and professional life and it is something I am extremely passionate about.

It probably goes without saying that having my son William was life changing – in so many wonderful ways (he has a wonderful cheeky personality that always makes me smile!) but it has also been incredibly challenging. For a long time I thought I was just sleep deprived (William is a terrible sleeper) but once he got to 18 months old and I still wasn’t feeling ‘normal’ I knew something more was probably not right – but it took several discussions with a wonderful member of the coaching team at PwC to really get me to realise I needed some help. For me, not ‘normal’ was waking up in the night despite being very tired all the time, not being able to concentrate due to what I describe as ‘brain fog’ in addition to physical symptoms such as achy arms and legs. Over the past year I have had lots of support from my GP, a psychiatrist, a psychologist and a coach at PwC – and everyday it gets a little better!

My role as a mental health advocate in the firm has played a really important role in my recovery – it gives me an opportunity to support others, listen to them, and signpost how they can get help to get well again. For me it means something good has come from the challenges that I have personally faced.

People often ask for my advice on how to manage mental health but the truth is I am not expert on managing mental health – I only know what works for me. What I have learnt over the years is that it is different for everyone and it changes over time. What works for one person may not work for another. For me it's lots of sleep, making plans to take time away from the everyday (getting on a plane for a holiday is really important for me, as is sunshine!), lots of laughter, and cuddles with William - and reading trashy novels. For others its exercise, hobbies, or spending time with friends.

My only piece of advice for anyone who reads this, is to work out what works for you – just one small thing – and to build that into your day to day life. Plan it and commit to it – we all have mental health and we can protect it.

For me the most important thing organisations (including PwC) can do to support employees with mental health is to talk about it – so eventually mental health is considered in the same way as physical health. The stigma associated with mental health means people are reluctant to ask for help or talk to their friends or colleagues – fearing that they will be seen as ‘not being able to cope’ or ‘crazy’. If we could change this – I believe people would ask for help sooner and get better quicker. We would all ask for help if we broke our leg – having a mental health illness is no different and let’s face it – we employ people for their brains!

At PwC UK, all of our mental health advocates are Partners, with first-hand experience of mental health problems, who want to make a difference to the way we think, feel and talk about mental health in the firm. I believe this approach means we can make a real difference to our people. What I think our people want more than anything is to know that they ‘aren’t the only one’, that they’re ‘normal’ and that ‘it will get better’, and I promise – all of those things are true!!

I know this isn’t an easy topic and not everyone is comfortable talking about it – but my plea is that if you are willing to share your experience – then please do in whatever ever way works for you – as you will have a massive impact on those around you.

Click here for background on our mental health and wellbeing agenda in PwC UK: https://www.pwc.co.uk/who-we-are/annual-report/stories/green-light-talk-mental-health.html

Anna-Blackman Anna Blackman is Partner at PwC, based in Southampton in the UK. She joined the company in 2001, following studying for a degree in Geography at the University of Portsmouth.

Anna specialises in providing assurance and accounting services to public sector organisations - with a particular focus on the health sector. She leads the statutory audits of a number of Foundation Trusts and CCGs as well as working in the role of Head of Internal Audit for two Foundation Trusts. Alongside assurance services, Anna supports public sector organisations with business planning, long term financial modelling, accounting advice, due diligence, clinical data quality, and board/organisational development.

03 October 2017

When it comes to diversity, silence says something

Sitting with my team in an auditorium in New York just over a week ago, I was proud, surprised, frustrated, inspired and humbled by the words spoken at HeForShe’s third anniversary event.  And I wasn’t the only one.  The first words, PwC’s Global Chairman, Bob Moritz, uttered when he stepped on stage recognised the work put in by many teams across PwC; “I am simply the voice to describe what we’ve done and humbly, we have much more to do.”  We have come a long way since aligning our existent diversity strategy with HeForShe three years ago, but there is still a journey ahead.  

PwC-at-HFS-event

It was my first time attending a HeForShe event since becoming Global Diversity and Inclusion Leader this year.  And I was reminded of a great piece of advice I was lucky enough to receive very early in my career.  When I was an intern, my manager advised me to “always speak the truth.”  As an auditor, even the smallest inaccuracy or untruth, can hurt a client relationship and the integrity of your work. 

On the face of it, this sounds simple. For me, truth and trust go hand in hand.  Applying this advice, has been a necessity to develop strong and lasting relationships in every area of my life - with clients, colleagues and friends. 

However, ‘truth’ is not the most powerful part of this advice, neither is it the most challenging.  The power lies in the action of ‘speaking.’

When it comes to diversity and inclusion, saying nothing is saying something and it’s the wrong thing.  HeForShe reminds us of the power of speaking up and the deafening impact of silence.

At the event, the HeForShe 10x10x10 IMPACT Champions used their voices to collectively speak up about the barriers to global gender parity, share what they’re doing to address these barriers in education, businesses and societies around the world, and celebrate individual and collective successes.

At PwC, we’re focused on having all of our people around the world work in an inclusive environment that encourages them to speak up and be themselves.  We’re developing a strong pipeline of diverse talent so that we can build on the gender parity achieved in the Global Leadership Team, and reflect our truly diverse network in all facets of the organisation.

To echo Bob and a number of the IMPACT Champions, we have made progress, but we have much more we want to do.  I for one, am excited about the challenge.  Little did I know as an intern, that the advice I received would stand me in good stead throughout my career.  And all these years later sitting in New York would once again spring to mind! 

Each and every one of us can have a positive impact by making the HeForShe commitment.  I’m happy to say, in just four days leading up to the event, almost 1,600 PwC people made theirs.  We can also create impact by proactively recognising and increasing our ‘gender IQ’ with our free Building Gender IQ online course, which takes only 35 minutes to complete.

So, I encourage you all to speak up and make your HeForShe commitment to be inclusive and value differences, because when it comes to diversity, silence says something.

Click here to watch the full HeForShe third anniversary event.

Follow Sharmila for more diversity insights and news: @sharmilaakarve

 

Sharmila-karve.jpg.pwcimage.200.252 As PwC's Global Diversity and Inclusion Leader, Sharmila drives the firm’s global D&I strategy. She is passionate about creating a truly inclusive working environment across the PwC network, where everyone can bring their whole selves to work.

Based in Mumbai, Sharmila is also an Assurance partner with the India firm and has served as Assurance Leader and Risk and Quality Leader. In her free time, she enjoys spending time with her husband and daughter, practicing yoga and travelling.

24 August 2017

Creating sustainable movement – How to embed diversity and inclusion (D&I) within your talent decisions

Authored by Stefanie Coleman

There’s little denying the benefits of D&I. With volumes of research promoting the gains of a diverse and inclusive workforce, it’s no surprise we’re seeing more and more organisations invest in D&I to achieve heightened innovation, improved financial performance and to attract top talent.

Why is it that despite these investments, many organisations are not seeing results? For example, PwC’s global D&I survey indicates that while 87% of participants identify D&I as a strategic priority, almost half (42%) still consider it a barrier to progression (for diverse employees). The answer to achieving results is to create sustainable movement, and this means:

  • D&I strategy alone is not enough -- it is brought to life through investments across the talent lifecycle. From workforce planning to offboarding -- and everything in between.
  • To generate a true culture of D&I, broad consideration of the concept is key -- it's not simply a matter of gender, race or age. But in addition, includes diversity of thought, experience and perspective.

While the answer is simple to say – it is harder to achieve. For example, PwC’s global D&I survey shows that of organisations assessing themselves against PwC’s D&I maturity model 40% rate in the lowest maturity category for creating sustainable movement and only 15% rate in the highest.

The talent lifecycle can be leveraged to cultivate a diverse and inclusive workforce, culture and mindset. And based on my experience consulting with clients in a number of industries and across multiple locations, I want to share some examples of how:

Talent Lifecycle

Plan & Execute – one global company has incorporated D&I targets into the design of their workforce plans – key to this was the cultivation of an age-diverse workforce in response to a retiring baby-boomer population.

Recruit & Select – some firms have leveraged technology to root out unconscious bias – 28% use a performance audition platform where candidates participate in a challenge and selection is solely based on performance. In the Middle East, like in other “ex-pat cultures”, it is common to recruit through global channels to attract a diverse workforce – in particular, where talent is imported from international markets and offered customised total reward packages (e.g., allowances, ex-pat benefits, etc). Despite these examples, PwC’s global D&I survey indicates that only 46% of respondents have adopted targeted programmes to recruit diverse candidates.

Develop & Deploy – in some firms (such as PwC), investments in targeted development programmes to further diverse populations is the norm – for example, leadership development programmes for high performing women or ethnic minorities. However, this is not reflective of the general trends where only 40% of participants in PwC’s global D&I survey have instituted programmes to develop a diverse pipeline of leaders, and just 45% provide targeted development opportunities to diverse employees. 

Measure & Manage – it is not unusual to see executives held accountable for D&I performance though executive scorecards. A number of publicly listed companies across the US, Brazil, and Australia are disclosing D&I objectives and progress in their annual reports. You can learn more about PwC’s scorecard, The Inclusion Index, in our Diversity journey publication.

Reward & Recognise – in the US, UK, Switzerland and Australia, pay gap analysis is increasingly common. This is often driven by legislative requirements such as the California Equal Pay Act and Australia’s Workforce Gender Equality Act (among others). In addition, several organisations perform D&I assessments on performance and compensation outcomes to detect and remediate potential patterns of inequality. Despite pressure and some evidence of D&I assessments, only 42% of organisations participating in PwC’s global D&I survey believe fairness is demonstrated in their performance and compensation decision-making.

Review & Transition –globally, the percentage of employees within large organisations participating in global mobility programmes has grown 25% since the turn of the millennium. We see several clients, across sectors, harness global mobility to foster D&I. PwC, as well, adopts a similar strategy. Separately, some organisations seek employee feedback from diverse talent upon their departure in order to better understand any unique retention considerations that may be relevant and insightful.

Engagement – the existence of affinity/employee resource groups (e.g., women’s networks, LGBT groups, or veteran communities) is commonplace in large, Western, organisations. These play an important role in the “I” of D&I, inclusion, by creating personal networks and a sense of belonging. PwC’s Diversity Journey highlights that our own experiences with LGBT+ networks (GLEE) have enhanced access to talent, developed more inclusiveness, enhanced engagement and built stronger relationships – but despite this, only 25% of participants in PwC’s global D&I survey are using these groups to support these outcomes. 

The return on investment in D&I has great opportunity through integration with business strategy and programmes across the talent lifecycle. When effectively integrated, D&I can be more than aspiration, but an enabler to organisational performance.  

Find out how your organisation’s D&I programme compares to other organisations in your industry and region by completing the survey. You’ll be joining over 800 organisations who have already taken part.

Stefanie Coleman is a director with PwC US’ Financial Services Advisory Practice. She has spent the last ten years advising clients on HR issues in North America, Europe, Australia and the Middle East. She currently advises clients within the financial services industry from PwC in New York City. Stefanie is both personally and professionally passionate about diversity and inclusion. Connect with her on LinkedIn (https://www.linkedin.com/in/stefanie-coleman-85299bb/).

13 July 2017

Seed crowdfunding: Unleashing female entrepreneurial potential

I am so excited to share that this week PwC together with The Crowdfunding Centre launched our joint report, Women Unbound: Unleashing female entrepreneurial potential. This report explores the experience of women in achieving finance raising success through seed crowdfunding compared with more traditional finance raising routes.

The report brings to the fore a lot of powerful and scary insights and opportunities. For example, while challenges like the gender leadership gap and the gender pay gap receive widespread media attention, the barriers that female-led businesses and entrepreneurs face in accessing finance have been much less visibly reported. For me personally being part of this research process was certainly somewhat of a rude awakening.

The fact is most decision makers in the venture capital industry are male, and research shows that male entrepreneurs are 86% more likely to be venture capital funded than their female counterparts, and 59% more likely to secure angel investment. Meanwhile, a $300 billion financing gap exists globally for formal, women-owned small businesses, and 70% of women-owned small and medium sized enterprises have inadequate or no access to financial services.

One thing is clear, female entrepreneurs receive less than male entrepreneurs through traditional funding channels and this funding gap is a missed opportunity. Investing in or supporting women-led business has the potential to deliver some of the highest-returns – for investors and societies. Take for example the UK, if they could match US levels of female entrepreneurship they could potentially add £23 billion gross value add to their economy.

What the data in this Women unbound report shows clearly is that when women choose to access crowdfunding they are more than capable – and very often more capable than men. Thanks to crowdfunding, female entrepreneurs can now access the market directly – and this makes a huge difference because when they do, female crowdfunders are 32% more successful than their male counterparts.

The report analysed data from over 450,000 seed crowdfunding campaigns, from nine of the largest crowdfunding platforms globally over a two year period.

What the analysis told us is that men clearly crowdfund more than women, 72% of crowdfunders globally were male compared with 28% who were women. Yet, globally, women are more successful at crowdfunding than men: 22% of campaigns led by a women reached their target, compared to 17% of those led by men. And this is not a collective anomaly, women-led campaigns performed better (in terms of securing their funding goals) than campaigns led by men when we segregated the data for every sector and every territory.

Even in what are considered more masculine sectors, for example technology where just one in every ten crowdfunders is female, 13% of women were successful in achieving their funding goal compared to just 10% of men.

Women Unbound

So despite their clear underrepresentation, women are more successful at crowdfunding than men. But why is this?

The main factor seems to be because crowdfunding attracts, enables and empowers far more female decision makers as project backers. In essence, just like the dominance of male representation in traditional financing channels can create barriers for women, the more gender-level playing field of the crowd provides one explanation for why women are more likely to succeed at crowdfunding than men.

Female crowdfunders also tend to use more emotional and inclusive language in their videos and pitch descriptions than men.  This language is more appealing both to female and to male backers and positively correlated to funding success. While the use of business language, the style typically favoured by male crowdfunders, has been shown to be negatively correlated with money raised irrespective of what product or service is being pitched.

Yet, while women are outperforming men in achieving their funding targets across the board, the fact remains that significantly more men are crowdfunding than women, and as result, men raise substantially more finance via this channel. Men are also more ambitious in establishing higher funding goals than their female counterparts and we see them dominate in the highest funded campaigns by sector.

Women Unbound

In fact, while there were 63 campaigns that raised over $1 million, only seven of these were led by women (11%), with the most funded campaign created by a woman placing number 18 on the list. However, progress is being made, 2014 data illustrates that only 7% of campaigns raising over $1million were led by women, and the most funded campaign created by a woman placed 37 on the list. On another positive note, on average female-led campaigns receive 5% more per individual pledge globally than male-led campaigns.

Despite this, significant opportunity still remains for women to become more active and represented in crowdfunding and to be more ambitious when establishing their finance raising goals.

I truly hope that the success of female crowdfunders highlighted in this report inspires and motivates more budding and established female entrepreneurs to explore crowdfunding.

Overall, the findings of our Women unbound report pose a strong challenge to existing entrepreneurial and business norms by seriously questioning whether there are deep-rooted biases that are preventing greater access to funding  by female entrepreneurs. It is extremely positive to see that the growth and global reach of seed crowdfunding presents several major opportunities, each with the potential for major social and economic impact. Including the understanding and acceptance that seed crowdfunding is now a well-established environment through which women can thrive.

Learn more about these opportunities by reading our Women unbound report or visit our data explorer to check out the geographical and sector crowdfunding trends for yourself.

Aoife

Aoife Flood, PwC Based in Dublin, Ireland, Aoife Flood is Senior Manager of the Global Diversity & Inclusion Programme Office for PwC with responsibility for the development and implementation of our network-wide global Diversity & Inclusion strategy.

She is a proud PwC female millennial and lead researcher and author of our ‘Winning the fight for female talent’, ‘Moving women with purpose: Creating gender inclusive global mobility’, ‘The female millennial: A new era of talent’, and 'The PwC diversity journey: Creating impact, achieving results’ thought leadership publications. Most recently Aoife also co-authored PwC’s crowdfunding focused Women unbound publication.

Aoife is also co-author of our Global Gender Agenda blog. You can learn more about Aoife here or find her on twitter: @AoifeRFlood.

12 June 2017

PwC marches with Pride

This June, literally millions of people in countries across the world will be celebrating Pride and we are pleased to share that PwC leaders and employees will be amongst them. PwC will be marching with Pride as we actively sponsor buses, boats, floats and banners in Pride parades across the world, for example, in: Australia, Canada, Germany, the Netherlands, the UK and the US. And here in my native Ireland we’ll be sponsoring the Pride parades in Dublin and Belfast for the first time, which is very exciting.

We’ll also be profiling some of our fantastic out leaders and role models to create awareness of the value that difference, being yourself and inclusiveness all bring.  Why not check out the career experiences and advice of just some of our gay female leaders: Susan Siegmund, Audit Partner with PwC US, Janet Visbeen, Tax Partner with PwC Netherlands and Jennifer Johnson, Risk Assurance Services Leader, PwC Canada. And watch this space as we’ll be sharing the experiences of Liesbeth Botha, Digital Transformation Leader, PwC Africa and Ruth Punter, Employment Tax and Strategy Director, PwC UK later this month on The Glass Hammer.

In the meantime, we’d like you to learn more from Laura Hinton, PwC Head of People and [email protected] Ambassador for PwC UK, on why sponsoring Pride in London is important to our UK firm.

Enjoy!

Aoife

  PwC_Pride

Why sponsoring Pride in London is not just the right thing to do – but great for our business, our people and our clients

By Laura Hinton, PwC Head of People and [email protected] Ambassador

On 8th July, tens of thousands of people will join the Pride in London parade – and up to a million more will take to the streets in celebration – as London comes together to voice its support for diversity and inclusion in general, and the LGBT+ community in particular.

Pride in London is a fantastic event that gets bigger and better every year. It’s now one of the largest Pride celebrations worldwide and among the biggest annual events in London. And at this year’s Pride in London parade, PwC will not only be represented by many of our people proudly walking the route, but we’ve also become of a major sponsor for the first time.  I know that our people take great pride and encouragement in such public demonstrations of the firm’s commitment to LGBT+ inclusion.

What’s more, our involvement with Pride in London is only one part of our support for the Pride movement across the UK. This year we are also marching in the Pride parades in Leeds and – for the first time – Belfast, and in May marched in Birmingham Pride. At every event, we’re proud to be demonstrating our commitment to the values at the heart of Pride.

In fact, those values are closely aligned with the values that lies at the heart of PwC. And as well as being the right thing to do, supporting Pride also makes good business sense – generating benefits that flow through to all our people, our clients, and our success as a firm.

Why? Because the whole inclusivity agenda is absolutely critical to what we’re all about, both individually and collectively. It goes to the core of who we are and our ability to deliver on our purpose – “To build trust in society and solve important problems.” And it’s in looking to build this trust that Pride and PwC are closely aligned.

Let me explain. We’re living in an era when society at large has lost trust in business – particularly big business. But even as a big business, PwC is really a collection of humans living and working in our communities. There’s a widespread perception that big businesses like ours are siloed from the rest of society, but that really isn’t the case: we’re part of our communities, and our goal is to be every bit as diverse and inclusive as they are.

Pride in London and other events could become even more important to individuals and corporates that want to stand up for diversity. As such, this year’s Pride in London in July could see even greater numbers of participants and visitors to the Parade, as well as more vocal support from corporates.

Our support for Pride helps us demonstrate our commitment to being inclusive, by developing a working environment where difference of all types is truly valued. Our determination to create such as workplace is embedded in our people strategy. We aim to empower our people to be the best they can be and realise their full potential. But we know they’ll only be able to do those things if they can truly be their real selves at work.

If people are working in an environment where they can be open about who they are and what’s happening in their life at home, then they’ll be happier at work. Happier employees are more productive, more engaged, and more likely to go the extra mile for our clients – in turn improving our client delivery and relationships.

The benefits of a diverse and inclusive workplace go further. Having a diverse range of views and perspectives makes for better decisions. Inclusivity brings us more vibrant teams, richer debates, and better answers to the problems we’re looking to solve for clients. Which makes us a better business.

Put all this together, and the benefits that spring from inclusivity add up to a pretty compelling list. Making better decisions. Enabling our people to fulfil their potential. Connecting more deeply with our communities. And strengthening the vital trust with society that we – in common with all other businesses – depend on.

Our support for Pride helps us achieve all these things. Sure, it’s the right thing to do. But it’s also much, much more than that.

05 May 2017

Women in Work – The potential $2 trillion prize from closing the gender pay gap

Authored by Yong Jing Teow and Shivangi Jain

The fifth annual update of the PwC Women in Work Index shows a continued positive trend towards greater female economic empowerment across the OECD. Our index combines five key indicators of female economic empowerment: the equality of earnings with men; the proportion of women in work, both in absolute terms and relative to men; the female unemployment rate; and the proportion of women in full-time employment.

Half of the countries on the Index have maintained their position in the rankings from the previous year. Some have made significant improvements – Poland in particular, stands out for having achieved the largest annual improvement, rising from 12th to 9th place. This was driven by a falling female unemployment rate and increasing share of women in full-time jobs. While Norway has retained its position amongst the top 3, an increase in female unemployment has meant that its absolute Index performance has slipped.

One key area critical to achieving gender parity is the gender pay gap. Our research finds that the gender pay gap across the OECD is gradually closing, from 19% in 2000 to 16% in 2015. However, there is still a lot more progress to be made – a simple extrapolation of historical trends suggests that the gender pay gap across the OECD might not close fully for almost a century, with some countries achieving parity earlier than others.

Figure 1: Time to close the gender pay gap

Figure1

 

Source: PwC analysis using OECD and Eurostat data

What are the causes of the pay gap? Although direct discrimination (women getting paid less than men for the same work) is a factor, it does not fully explain the global gender pay gap. A study by Glassdoor showed that once the unadjusted pay gap (ranging 10-20% for a sample of advanced countries) is controlled for occupation, education, experience, location and company, the resulting adjusted pay gap falls to less than 10%. This global study shows that although direct discrimination is nevertheless an important factor driving the pay gap, other factors are also at work, namely the lack of female representation in higher paying jobs and industries.

Policies that directly address these factors can therefore have a substantial impact on the gender pay gap. For example, increasing the availability of affordable childcare can help narrow the gap by enabling greater female participation in the workforce. We show that higher performing countries are also associated with lower costs of childcare. Encouraging greater sharing of caring responsibilities, such as shared parental leave can also help more women return to work earlier following the birth or adoption or a child. Countries like Sweden have also taken it a step further by introducing “use-it-or-lose-it” entitlements, which have greatly increased take-up by fathers.

However, government policy alone cannot solve the problem, and must be supported by on-the-ground action by the business community to create change. Creating flexible working opportunities and making them more widely available can enable employees to manage their family commitments around work. This can also open up channels for female career progression where traditionally performance is measured based on inputs such as working hours, rather than outcomes. “Returnship” programmes also help women as well as men transition back into the workplace post-career break (for example, to care for children).

Many studies have already highlighted the benefits from increasing diversity in leadership positions. To reinforce the business case, our analysis has identified substantial economic gains from closing the global gender gap: achieving pay parity across the OECD could increase total female earnings by almost US$2 trillion. The multiplier effects from this additional spending could generate an even larger boost to GDP. With such a large prize on offer, there is a clear incentive for governments and businesses to work together to address the deep-rooted causes of the global gender pay gap.

For details on our analysis and full report, please go to our website: pwc.co.uk/womeninwork

Teow Yong Jing Teow is an economist in the Economics & Policy practice within PwC Strategy& where she specialises in measuring economic impacts and advising clients on the impact of public policy. As a young female professional, she has a close personal interest in ensuring that all professional women are able to achieve their career ambitions and realise their full potential. She is the lead author of the Women in Work Index, PwC’s annual assessment of female economic empowerment across OECD countries, where she applies her impact assessment experience to articulate the gains from improving economic empowerment for women.
Jain Shivangi Jain is an economist in the Economics & Policy practice within PwC Strategy&. She has experience in macroeconomic analysis and in economic impact assessment and public policy development across a range of sectors including transport and health. She has co-authored the latest two annual editions of the PwC Women in Work Index. She believes that while opportunities for women in the workplace have been growing, albeit more rapidly in some countries than in others, there is still a long way to go in achieving gender equality in the workplace. This can be advanced through further research in this area.