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Firms 'miss out on female talent'

2010-03-08 07:55:33

The world's leading companies are failing to make the most of the talents of

their female workforce, the World Economic Forum (WEF) has said.

Women are still failing to break into senior management or onto the board, the

Corporate Gender Gap report said.

The US led the way with the highest percentage of female employees (52%), while

India had the lowest (23%).

To tackle the problem, the WEF urged companies to do more to educate and

utilise female talent.

The report is based on a survey of 600 of the heads of Human Resources at the

world's largest employers across 16 industries in 20 countries.

Gender 'myth'

"The findings of The Corporate Gender Gap Report are an alarm bell on

International Women's Day that the corporate world is not doing enough to

achieve gender equality" said report co-author Saadia Zahidi.

The dearth of women at the top must surely be depriving the UK of incremental

income at a time when we need every penny we can squeeze to pay our way in the

world

Robert Peston, BBC business editor

"While a certain set of companies in Scandinavia, the US and the UK are indeed

leaders in integrating women, the idea that most corporations have become

gender-balanced or women-friendly is still a myth."

The study found that while Norway was leading the way on getting women into top

company jobs - following legislation to ensure that 40% of a public company

board is female - elsewhere female employees tend to be concentrated in entry

or middle level positions.

The average number of women holding the CEO level position was a little less

than 5% among the 600 companies surveyed. Finland (13%), Norway (12%), Turkey

(12%), Italy (11%) and Brazil (11%) have the highest percentage of women CEOs

in this sample.

Most respondents blamed traditional and cultural practices, "masculine or

patriarchal corporate culture" and "lack of role models" for women being unable

to move up the career ladder.

"Women account for one-half of the potential talent base throughout the world

and therefore, over time, a nation's competitiveness depends significantly on

whether and how it educates and utilises its female talent," added Professor

Klaus Schwab, Founder and Executive Chairman of the Forum.

Traditional divides

The services sector employs the greatest percentage of women, and within this

sector Financial Services and Insurance (60%), Professional Services (56%) and

the Media and Entertainment Industry (42%) employ the greatest proportion of

women.

Somewhat unsurprisingly, sectors more traditionally viewed as "male" employed

the lowest percentage of women - automotive (18%), mining (18%) and agriculture

(21%).

The report also highlighted the ongoing issue of the gender pay gap.

Despite almost all countries bringing in measures to tackle the problem - only

Brazil and Mexico have taken no action - a pay divide remains between the

sexes, while most employers (72%) do not attempt to track salary gaps at all.

On a more positive note, 40% said they were taking some kind of action to

improve the participation of women in their workforce such as implementing

targets, quotas or flexible working schemes for parents.

Countries surveyed for the study were Austria, Belgium, Brazil, Canada, Czech

Republic, Finland, France, Germany, Greece, India, Italy, Japan, Mexico,

Netherlands, Norway, Spain, Switzerland, Turkey, the UK and US.