By: Thokozile Mahlangu
Despite the persistent challenges faced by women in business, the business landscape is steadily evolving, along with the perspectives on traditional ways of doing business, as well as the traditional roles of women in society.
Encouragingly, there is evidence to suggest that women are playing a more prominent role in shaping the future of business and the past few years have seen some positive changes in terms of female representation and opportunities for women in the commerce and enterprise space in South Africa.
For example, the Mastercard’s Index of Women Entrepreneurs published in 2022 found that South Africa is one of only 12 economies across the globe where women’s entrepreneurial activity rates increased, with 11.1% of working-age women engaged in early-stage entrepreneurial activities.
However, while it cannot be disputed that this is good news, gender-based inequality still persists in all aspects of our society and more needs to be done to close the gap between women and their male counterparts.
Despite accounting for just over half of the country’s population (51.1%), research by Grant Thornton and PwC reveals that women only constitute between 20% and 29% of senior management roles in South Africa.
Similarly, the Businesswomen’s Association of South Africa’s 2021 Women in Leadership Census found that women make up 23.1% of vice-chancellor roles at higher education institutions, 40% of directorships at state-owned entities, 36.7% representation in the professional services industry and only 26.9% of directorship positions at JSE-listed entities.
But representation is in the boardroom is the not the only place where gender disparity can be found in the South African business space. The Borgen Project note that South Africa has a median gender pay gap of between 23% and 35%, which is greater than the global average of 20%. Unequal earnings persist in households as well, with 38% of homes managed by women and such households being 40% poorer than those managed by men.
What businesses must recognise is that inclusion, diversity and transformation can no longer be treated as a tick box exercise, but rather as a paradigm shift that will not only see women appointed to leadership roles but also supported within these positions.
At the same time, closing the gender gap should not just be considered as “the right thing to do”, but rather seen as a business imperative that can have a positive impact on an organisation and its business goals.
According to research conducted by The Pipeline, a UK-based gender diversity business, listed firms where at least one-third of the bosses are women have a profit margin more than 10 times greater than those that do not.
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Studies also suggest that placing women in leadership roles drives innovation within an organisation, because as women gain more power and influence in business, they provide fresh ideas and perspectives. It has been established across a wide range of industries that greater gender equality facilitates the creation of new products, services and businesses.
The local, as well as international, insurance industry has historically been a male-dominated sector, meaning that historical and systemic inequality will have to be overcome if gender equality is to be achieved. This will require nothing less than deliberate and concerted actions that are directly underpinned by an organisational culture that fosters an enabling environment for equality.
At a time when the insurance industry is having a hard look at itself to determine the best ways to attract the next generation of talent, employers should also be looking at means to attract new female talent specifically.
Whether insurance companies start introducing flexible working hours, facilitating mentorship initiatives aimed at women or training and education catered towards upskilling female talent, these measures must be based on policies and practices that encourage diversity and support women to achieve their full potential.
Ultimately, when more than half of the country’s population is not equitably represented within the business space and if gender transformation is not effectively enabling the rise of women to the highest levels of industry, institutions, organisations and business leaders must act decisively or risk stymying their sector’s ability to reach its next level of growth.