Policies for change

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Achieving gender equality in the workplace is a complex and worthy goal. While companies have a significant role to play in addressing this issue, so does public policy. Indeed, finding the right balance between government policy and corporate action will be key to driving meaningful and lasting change in the workplace. But what are the public policies that can help enable this change?

Policies for change: Government levers for enabling workplace gender equality, developed by The Global Institute for Women’s Leadership, King’s College London, with support from Deloitte Global, presents the findings of an analysis of government policies and regulations in fifty countries and territories. It also includes insights gathered from interviews with 19 HR and diversity, equality and inclusion leaders from 13 multinational companies based in nine countries, from Mexico to Singapore. Each of these companies is considered a global leader in workplace gender equality and is well placed to identify how policy environments can support it. The analysis and interviews explored the relationship between supportive policy environments and progress in driving workplace gender equality, identifying the policy elements that interviewees felt had been most effective in enabling change.

Gender Pay Gap Report

Respondents found that requirements for transparent gender pay gap reporting and policies promoting board diversity have a tangible impact. Countries with such regulations are more likely to welcome companies that promote gender equality. Commenting on gender pay gap reporting, many respondents pointed out how national reporting requirements have highlighted gender imbalances that might not otherwise have been examined, and have sparked internal efforts to address gender equality in the workplace; they have also ensured ongoing engagement on the topic. Importantly, these requirements have elevated gender equality as a leadership priority, increased employee engagement, and created a race to the top among competitors.

However, while such reporting requirements are seen as a catalyst for change, they also pose challenges. Multinational companies are frustrated by the complexity of providing different sets of data for different reporting systems (if any). Respondents suggested that a more uniform approach across jurisdictions and indices would free up resources that could be used to address the underlying issues identified. Furthermore, standardised reporting would enable easier comparisons between multinational companies, which could lead to external pressure from consumers and other stakeholder groups.

Parental leave and care infrastructure and flexibility

Countries with policies and laws that support work-life balance were more likely to host companies that proactively address gender equality. Care infrastructure and more equal parental leave provisions were key suggestions for where governments could do more, with the nature of these provisions varying across jurisdictions. Women are more likely than men to give up or reduce their paid work to care for children and vulnerable adults (Andrew et al. 2021), and when parental leave is shifted towards the biological parent, this problem is exacerbated. Addressing this through policy was therefore seen as a key lever for change. Similarly, interviews highlighted flexible working as a cornerstone in helping to enable work-life balance – although respondents did not see a legal entitlement to flexible working as a key area of ​​government support. However, government requirements to provide flexible working can have a positive impact on those with caring responsibilities, particularly in companies that do not prioritise diversity and inclusion.

Making lasting changes

The degree of interaction between companies, governments and the broader society was evident in interviews and policy analysis. Respondents said that regulators, investors, customers and employees motivate, encourage and praise companies’ efforts to improve gender equality in the workplace. However, sometimes the political environment does not enable such efforts as effectively as it could.

Policymakers have an important role to play in ensuring a policy environment conducive to advancing gender equality in the workplace. The report therefore presents a set of recommendations for policymakers based on our data analysis and interviews, including:

1. Introduce transparency measures on the gender pay gap and/or gender representation in jurisdictions where such measures do not currently exist.
2. Adoption of global, unified pay gap reporting requirements, with guidelines for multinational corporations.
3. Provide adequately paid leave that allows for a more equitable sharing of caring responsibilities between women and men.
4. Providing access to affordable care for vulnerable children and adults.
5. Implement policies that support flexible working so that employees can balance care responsibilities.

These key recommendations can have a significant impact on improving gender equality in the workplace, and this report provides the detailed information, resources and motivation needed to achieve this.