This International Women’s Day, there is a collective focus on what can be done to #breakthebias and create a gender equal world. A world that is not only diverse, but also equitable, and inclusive. To #breakthebias it will require an honest look at the inner biases that hinder our everyday decisions.
Amidst a global pandemic, continued demands for social change, and investment dollars flooding into ESG assets, there is a clear demand for transparency and progress surrounding social data and the change it can inspire.
To quote Accenture’s Ellyn Shook, corporate leaders “are realizing that while the journey is complex, and making enduring progress can be difficult, the true risk is to do nothing.”
The data fueling the conversation
The first step on this journey begins with data. Through the lens of the Bloomberg Gender-Equality Index (GEI), we aim to provide companies with a Framework to gather this data and fuel the conversation necessary to work towards gender equality.
Over 550 companies across 45 countries and regions have reported their FY20 gender data through the Bloomberg Gender Reporting Framework. These firms are driving accountability through data transparency. Through comprehensive scoring of both disclosure and data performance across five key pillars, corporations are able to understand areas for improvement, benchmark against peers and feel confident in starting what can otherwise seem a difficult conversation on bias.
Addressing the bias
The theme of IWD this year, #breakthebias, calls on all of us to reflect on how we are addressing bias in our workplaces. A key theme of the GEI assesses how companies may be addressing both blatant acts of discrimination but also unconscious bias within their workplaces. Self identification campaigns, unconscious bias training, and employee resource groups, for example, are just a few of many steps being taken to address discrepancies and encourage more equitable practices.
But employee engagement means so much more than offering a yearly survey – one must always remember, there are people behind the numbers. Without the data they provide, it would be especially challenging to identify and address gaps.
Studies find that there are two top reasons an employee may not answer an engagement or self-identification survey: fear of discrimination and lack of trust in the company to do anything as a result.
We can use data as a first step to addressing both.
Fear of Discrimination
There are many misconceptions when it comes to workplace discrimination, mainly that it only comes in the form of blatant acts of mistreatment. But discrimination may present itself in countless other ways, like microaggressions and even unconscious bias. As discrimination is incredibly complex, GEI’s measure of it has been an evolution – iterating each year as we expand our data sets, driving stronger correlations among metrics that actually enact positive change.
An area we’ve been looking at closely is unconscious bias. Not just blatant acts of discrimination, but the behaviors under the surface. When dealing with such a specific issue, can training and other tools help?
Recent studies suggest that mandatory training may not be as successful as initially thought. In fact, of participants in mandatory trainings, many interpreted the key takeaway as having to ‘walk on eggshells’ around women and minorities – i.e. choosing words carefully so as not to offend – rather than the goal of understanding the respect needed for individuals to thrive and contribute to a truly inclusive workplace.
This leads us to iterate, enhancing the Framework year on year to be sure corporations are addressing the evolving needs of the workplace. As we consider the 2023 GEI Framework, we’ll ask firms to specify if they offer training voluntarily, and the percentage of employees who take the training of their own accord. Assessing if employees are voluntarily completing these training will give insight into a genuine interest in learning – speaking volumes about particular corporate culture.
This illustrates an opportunity for companies to step in and encourage honest conversations between their employees. Discussions of equity have the potential to be polarizing, dividing groups as “us versus them.” It is everyone’s responsibility to approach training and subsequent conversations with this in mind, ensuring all voices are empowered.
Lack of trust in the company to do anything as a result
Even in cases when a company is doing the right things, offering training, and tools such as employee surveys, why do employees still not sense meaningful change? What matters is not only offering these tools, but assessing the results effectively, and using them to drive inclusivity.
Assessing key findings by gender and publishing reasonable goals to overcome challenges hold companies accountable for progress. It also shows their employees they actually care about what they have to say, not just about ticking the box.
Across all pillars of the GEI, accountability is critical. 83% of GEI Members conduct a global employee engagement survey, and 85% of GEI Members assess survey results by gender.
An increasing number of companies are implementing diversity and inclusion goals as benchmarks for managers in performance reviews. 56% of 2022 GEI Members have done so, a 15% increase from the year before.
Our analysis of GEI participants shows that there is a positive correlation between whether a company has implemented D&I goals for managers in performance reviews and the percent of women in management. This suggests that the implementation of a policy – holding managers accountable to D&I goals – may increase women in leadership over time.
Published action plans are also a critical next step. Articulating how a firm is working to close the gender pay gap, for example, through regular assessment assists firms in their efforts to implement checks and balances in their pay practices and to undertake additional measures to eliminate gender biases.
Companies with the largest mean raw gender pay gaps did not share an action plan to close that gap. Of 2022 GEI participant companies reporting a mean raw gender pay gap greater than or equal to 40%, none publicly shared a specific, time-bound action plan to close their gender pay gap. Ultimately, those who publish a plan to close their gap, those holding themselves accountable, are the ones actually closing it.
Year-round accountability
While corporations are moving in the right direction, there is work to be done. The journey to gender equality begins with data. Having an understanding of what can be measured in order to manage effective change is just the first step. Taking it the next step further, data transparency is critical. Sharing actionable goals and results with stakeholders holds corporations accountable.
Breaking the bias begins with difficult conversations addressing the inequities within the workplace. Data helps start these discussions with the hope that, one day, they’re no longer difficult, just simply a tool helping to fuel a more equal future.