First, the Female Career and Labor Inclusion Index revealed, on average, a low score of 42.5 out of a total of 100. Second, both men and women perceived an environment that was not conducive to female inclusion in the workforce. However, men had a more positive view than women themselves, a trend that was accentuated in the case of people who work in larger companies (with more than 50 employees). Finally, the business sectors with the highest rates of inclusion were the financial sector, the food production sector, beverages and tobacco, consulting, and health.
TopIntroduction
The entry of women into the business world has not gone unnoticed. The resulting changes in demographic, policy, and leadership styles have been so significant that the topic has already become an area of study.
It is interesting to talk about female leadership in Chile. On one hand, until recently, we observed a rate of female participation in the workforce of 52.6%, below the Latin American average. And this decreased to 42.0% as a result of the Covid-19 crisis (INE, 2020). On the other hand, when we look at top management and leadership positions, we see that women only represent 18.0% of senior executive positions of publicly traded companies in Chile, and when we focus closer, more specifically on women serving on boards, the percentage goes down even further to 15.0% (IMAD, 2020). In other words, women are indeed present in the workforce, but they are not in leadership positions, or at least very few of them are.
Why might this be the case? One can find multiple explanations in the academic literature for the lack of representation of women in senior management. One of these explanations is the lack of investment in human capital that women make throughout their careers. Another explanation is the number of interruptions that women tend to experience in their careers versus those of their male colleagues. Finally, another explanation is the existence of “mommy tracks,” that is, careers that allow reconciling work and family, but that in effect establish ceilings on career advancement for women in such positions. This can take multiple forms: for example, choosing to develop a career horizontally in the company rather than vertically and working in support areas instead of those seen as strategic, etc. This occurs because the personal toll of assuming a position of greater responsibility is deemed too great on the family, so women prefer to pursue careers that allow them to reconcile both work and family.
Another explanation for the lack of women in senior management is that of discrimination and prejudice. Empirical evidence from different studies demonstrate that real biases exist when companies make choices between male and female candidates. For example, some companies continue to reserve strategic positions for men, others do not hire women due to their possible future motherhood and the concomitant risk that they might take a break from their careers for a period of time, and finally, some companies assume that women simply do not want to move up in the organization.
By failing to incorporate female talent, we fail to realize the consequences this has for our organizations. Different studies show a positive relationship between the proportion of women on the board of directors and a company's financial results. For example, companies with favorable policies of women inclusion exceed the average of their respective sectors by 34% (Debeljuh, 2013). There is also evidence that suggest that when at least three percent of managers are women, effectiveness increases in different dimensions of the company, including those of innovation, responsibility, coordination and control, etc. (McKinsey & Company 2013).
At the national level there is also evidence demonstrating that greater female participation in senior positions of power brings macroeconomic benefits. Studies confirm the correlation between gender equality and a country's competitiveness, resulting in increased productivity, generate better results for future generations, and more representative in decision-making (Mundial, 2012).
Thus, this being the case, if it is so advantageous to encourage female leadership in our organizations, what can be done? There are different paths that can be taken and there is no single correct answer to this question. Additionally, there are different stakeholders involved (the company, family, society, the state, etc.), and we must come up with initiatives aligned to each of their respective interests.