Gender Equality: Economic Tool for Addressing Labor Market Inequality

Abstract

The issue of gender imbalance at workplace was first published by scholars in 2007. During this time the researchers conducted a research in the business sectors and realized that there was a great gap between the number of male and females employed to undertake various duties in the government corporations. The study compared the performance of companies where women were given chances in the managerial roles and realized a great improvement and through that it is realized that gender equality is not only a legal right but also a tool for improving economic performance and organization profitability. Gender equality policy is a strategy for enhancing social justice in the society and a strategy by firms to facilitate recruitment from a wide pool of talent and abilities, improving talent retention and enhancing effective decision making and corporation management. A number of organizations that were facing financial crisis due to low consumers turn out and poor marketing strategies adopted the gender equality policies that enabled them to attain great heights of competitive advantage through positive consumer experiences as observed in Scotland. The business sector has attain an international recognition through embracing equality economic strategy through maximization of women’s potential in economic performance by developing policies for equal opportunities for promoting business growth and success.  The enactment of business pledge and partnership act for change that will ensure equal share in the economy by 2020 has encouraged a number of organizations to understand the benefits associated with gender equality and diversity in the in business success. The government involvement in the campaign for gender equality in the election positions through creation of gender based position and election guidelines has also been approve that inclusivity is not only a tool for injustice but also a technique for economic improvement and a way for preventing gender violence that deters economic performance in the business sectors.

Introduction

The relationship between gender equality and profit maximization in the business was first published in 2007 under the topic close the gap. The research collected and analyzed a number of statistical data collected from various organizations in Scottish business economy. When the equality is achieved at the micro level of the economy it will results into a great benefit not only to the private and individual organization effectiveness, efficiency and profit increment but also create economic advantage at the macro level. In order to ensure gender equality in both micro and macro-economic level gender based policies, regulations and standards must be formulated, legislated and implemented in the various sectors. Gender based policies borrows from stakeholders procedures and guideline in the economy to ensure that any sort of conflict is eliminated (Badal, & Harter, 2014). Borrowing from international researchers in the role of gender in the economic enhancement when the gender based principles merge with the organization culture it becomes more reliable, universally accepted by both economist and non-economist, room for easy review and analysis is also created and the general out in the work place can be identified for public education and awareness. Gender equality focuses on three areas in ensuring economic success and growth i.e. lateral isolation in the labor market for ensuring diversity in work force especially in male dominated companies, vertical segregation that aims at increasing the female representation at the top management of organizations and formulation of flexible workplace practices that will ensure increase in the number of women in the labor provision through creation of responsibility equilibrium. The idea of gender equality was modified by the inersectionality theory, this theory was brought forth by scholars to modify and improve the Feminist theory. As opposed to Feminist approach whose main focus was on gender challenges and how to bring equality in the two genders, on the other hand intersectionality theory focuses on the natural relationship between various categories of nature such as race, gender, class and equal involvement in the national development as applied to specific person, group with the aim of developing an overlapping and liberated system free from discrimination and biasness.  The purpose of this paper is to examine and identify the link between gender equality in the corporate roles and the organization performance, identify the benefits of the equality to both micro and macro-economic levels, identify the gender policies and guidelines that has been used in various countries to achieve the equality and provides recommendations on how this quality principle can be used effectively in the underdeveloped nation to improve their economic productivity.

Theoretical Framework

The need for equality in the corporate was introduced by the invention of intersectionality theory. The theory was developed by a black scholar known as Williams Crenshaw in 1989 with the aim of bringing a distinction from the white feminism whose main focus was the rights and freedom of women. The theory focuses on various aspects of socio-political i.e. sexuality, races, gender, age, religion, creed class, disability and discrimination especially of the women in the labor market.

The theory is vital in solving a number of issues related to social and political well-being of human beings (Patel & Pragna, 2013). Scholars and psychologist have used the theory in a number of cases: elimination of systems that create barriers and inequality among various categories in social and political atmospheres, making the invisibles aspects of human co-existence visible through creation of awareness and providing knowledge about rights and importance of the equality, activating of social movement to deal with discrimination and biasness in the intersections, categorizing the voice of the marginalized through social justice and knowledge empowering and challenging the categorical understanding of the identity.

Feminist focused on women needs, equality and rights and forgets that women comes from various classes, ethnics, sexuality ability, religions and have different work potential that can be useful in the economic improvement. All these intersections were addressed by the intersectional theory and an equilibrium point attained for mutuality. Secondly, Feminism laid great emphasis on the needs and demands for the white women, middle-class, and heterosexual and able bodied on contrary Intersectionality was all inclusive, providing solutions to challenges related to all classes, sexuality, races and gender in the corporate world.

Labor Market and Gender Equality

Labor inequalities is common in developing and recovering economies. These economies are characterized by lateral and vertical professional separations analogies through a gender pay gap. In horizontal separation the women are grouped based on the traditional occupation principles in which the females are denied the right access to peruse technical faculties such engineering, constructions and advanced commerce based on the cultural norms and believes. The females are only allowed to be involved in caring, clerical and secretariat related occupations. These result into a big gap in the labor provision in the macro and micro economic world. This can be eliminated by creating and enacting professional principles that outdoor the cultural norms that deter women from indulging in training that put them in good position for administrative positions and vital business practices.

Vertical separation on the other hand represent under representation of females in the administrative position in the organization hierarchy in the economy. Research shows that the females faces underemployment in those positions despite the development of all inclusive policies. Underemployment arises when the individuals are with labor potential are underutilized i.e. the laborer works for less hours than his/her potential or given a less responsibility as their capability is. In most cases women are denied the right to fully exercise their potential in the work place based on the reasoning that they need lesser duties in order to find time to take care of the family. In order to curb this the labor market need to be re structured in order to enable women to have equal chances for exercising their professional mandate and fully utilize their acquired skills and knowledge in business activities for economic and organizational benefits in both macro and micro levels of corporate development.

Benefits of Gender Equality to the Economy

Addressing of gender inequality issue can result into a number of gain to the business. The inequality can be done away with through embracing diversity in workforce through ensuring balance in gender representation in the administrative work, formulation of flexible principles at work that bridge the gap between work place commitments and family demands, provision of equal chances in the occupation training for the whole gender in order to create fair competition in the labor market and finally eliminating traditional and cultural practices which are barriers to women labor progress and developments. Evidences shows that organizations that has embraced gender equality policies in the acquisition and retention of human personnel has experienced a positive macroeconomic performance since it will ensure complete utilization of the female human capital in the production. Gender equality is significance in the following ways:

Creation of Diversity

Involving women in the corporate operations completely increase the ability and potentiality for essential decision making and provision of solutions to different businessn challenges. The women will bring a different perspective of viewing a given case and provide the company with the female market proximity that has been missing due to imbalance (Badal, & Harter, 2014). Research shows that when the ratio of men to women are balanced in a corporate sector the organization  is having a pool of talents and ability that ensure effective financial transparency and accountability, effective information flow and proper workers engagement and dedication that results into production increment, well-structured ethical practices and generation of social standards for better organization governance. A research conducted in varies sectors of economy such as retail and mining shows a positive results in in developed countries such as Spain, Vietnam, China, UK and US attained as result of equal involvement of both men and women in these sectors. According to critical mass theory gender parity in which women are given higher chances in an organization workforce is a tool for realizing the actual need for gender balances in meeting the goals of economic development in the corporate world.

Flexibility at Workplace

Traditionally women are treated as the caretakers of the families. When the gender equality policies are adopted by an organization the employment policies will be made flexible enough to enable the balancing between the paid work duties and the family care responsibilities. In most countries these are achieved through provisions such as compulsory maternity leaf that enables an expecting woman to be relieved from her duties for a given period of time upon which she is paid as she take care of the child (Whyman, Baimbridge, Buraimo, & Petrescu, 2015). Through workplace agility, most organization has realized that the employees are motivated to give their whole since the company cares for their personal needs by providing favorable working atmosphere. Through the flexibility policies the company experiences reduced cases of sicknesses related absenteeism and improvement in the staff acquisition and retention. Studies shows that flexible workplace provisions ease the management work of the company by enhancement of the workers well-being that boost their performance morale. This leads to increase in the organization production and make it attractive to consumers and investors. Scholars agrees that flexible workplace policies are best formulated and implemented by women mangers than male mangers and this explains why most organizations with females in the administrative positions thrives more than a male dominated organizations.

Equality as a Growth Parameter

Gender equality not only bridge the gap between the men and women in the employment opportunities but also ensure complete utilization of human capital. Since the 2007 equality awareness, the countries that embraced the gender equality report has found a sustainable solution to the financial crisis in the economy. Equal women participation in the labor market has ensured increase in the macroeconomic performance through full utilization of the available labor force. Global organizations such as IMF and WEF shows that use of women skills and talents in the management of organizations results into increase in economic growth and productivity (Matsa, & Miller, 2013). Prediction on the UK economy shows that ensuring gender balance and female participation in the paid workforce can result into a 12 percent increase in the country’s GDP by 2025 and a long term economic growth in the economy. Generally the adoption of gender diversity and flexible work policies that promote gender labor market balance are useful for ensuring individual business development and economy in general.

Practical Application of Gender Equality in Business Organization

Since the realization of benefits associated with gender balance in the labor market, a number of companies has embraced the principles of equality and can attest that indeed it is a tool for realizing the economic goals of development. In my study I samples the following companies:

Badenoch and Clark

Badenoch and Clark is a small organization that provides services related to personnel recruitment and professional developments within specific regions in Scotland. The company data base shows that women forms the highest percentage in the part time labor sector due to cultural hindrance and traditional responsibilities of family care. The part time work is characterized by low salaries and wages since in most cases they are casual which implies that most women work below their professional skills and their potential is under-utilized. The organization realized that when a company value and retain employees it stands at a higher chance of succeeding in meeting its set goals and also they were committed to ensure that the workers who are engaged as part timers could also develop their careers effectively (Scottish Government, 2014). Since its conception the company has ensured flexibility culture that enables part time working through initiation of workers engagement policies that ensures retention and talent nurturing. According to the company both the part time employees and the full time employees have equal opportunities to training and professional development. Business meetings and activities are planned in a flexible manner that ensures that all the employees are comfortable and included. The policy is made possible through instituting proper management programs for all genders and persons in the organization. The essential meetings like target meetings are held at good time and review in the policies conducted to ensure that the implemented work policies accommodates and creates a conducive environment for service delivery. The organization is now working towards realizing the gender equality in the board rooms and government offices top position through the partnership for change act. The growth in the business sectors that embrace diversity and flexibility through implementation of policies that provide solution to gender imbalance at workplace results into real business for real benefits.

Accenture

Accenture is an international administrative company focused on consultancy services on technology based in UK. Women employees occupies a third of the total workforce in the company which to some extent has contributed to failure in realizing some of the company founding goals. The company has given priority to gender equality as a tool for providing lasting solution to the under representation globally. The company attained the 40 percent women representation by 2017 and look forward for full balance in the near future (Whyman, & Petrescu, 2015). This initiative was propelled by the benefits associated with equal representation of genders in the workforce. This will be achieved through equal training and career growth for both men and women for realizing their professional goals, creating leadership opportunities for the women in the top management, financing activities that ensure that the females ascend to the senior managerial positions such as awareness and advice on how to make it possible.

Atkins

Atkins is a UK company based on international design, project management consultancy and engineering works. Women employees constituted only 16 percent in the engineering section. The company committed a pledge to attain the equality in the workforce, in order to attain this they develops the ten policies for women in engineering and science, creation of royal engineering academy that focuses only on the training of women in the technical professions and formulation of gender related policies that ensures that for every recruiting process women are well represented. Through the institution the company was able to meet the gender balance by 2017 and since then the company performance has been ranked excellently in the global performance charts.

Conclusion and Recommendation

Since the realization of the benefits associated with gender equality at work place. The challenges of labor underutilization, cultural barriers and professional in ability have been addressed by a number of companies in the developed countries through flexible work policies. The policies bridge the gap in the workplace ration between the male and female and promote diversity in all levels of economy for effective micro and macro-economic achievements. Gender inequality is still a great challenge for economic success in the underdeveloped and developing nations. Therefore, based on the benefits to both macro and micro economy I will recommend the formulation and implementation of gender based policies that will ensure equal chances for both the men and women in the workplace in order to improve the workplace performance for achieving set objectives and goals of organization and country in general.

References

Badal, S. & Harter, J.K. (2014). Gender Diversity, Business-Unit Engagement, and Performance, Journal of Leadership & Organizational Studies vol. 21, no. 4, pp. 354-365

Matsa, D. A. & Miller, A. R. (2013). A Female Style in Corporate Leadership? Evidence from Quotas in American Economic Journal: Applied Economics Vol. 5 No. 3 pp. 136–169

Patel & Pragna, (2013). Notes on Gender and Racial Discrimination: An Urgent Need to Integrate an Intersectional Perspective to the Examination and Development of Policies, Strategies and Remedies of Gender and Racial Equality. United Nations Commission on the Status of Women, n.d. 29 May 2013 http://www.un.org/womenwatch/daw/csw/Patel45.htm.

Scottish Government (2014). Women on Board: Quality through Diversity, Scottish Government Consultation on the Introduction of Gender Quotas on Public Boards Available at www.gov.scot/Resource/0044/00449321.pdf [last accessed 10 January 2016]

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Whyman, P.B., Baimbridge, M.J., Buraimo, B.A. & Petrescu, A.I. (2015). Workplace Flexibility Practices and Corporate Performance: Evidence from the British Private Sector, British Journal of Management vol. 26, no. 3, pp. 347-364