To help solve economic woes, hire more women
Bringing women into the labor force is not only an acknowledgement of their right to be gainfully employed but will actually be a huge boost to the economy.
A new study, “The Power of Parity: Advancing Women’s Equality in Asia Pacific (Focus: The Philippines),” found that Asia Pacific countries could raise their annual collective gross domestic product (GDP) by 2025 by as much as $4.5 trillion, “a 12-percent increase over the business as usual trajectory”, by advancing women’s equality.
Equality
The study, which was undertaken by McKinsey Global Institute (MGI), the business and economics research arm of McKinsey and Company, concluded that all countries in the region would benefit from advancing women’s equality.
“Across Asia-Pacific, we estimate that 58 percent of the opportunity would come from raising the labor force participation ratio, 17 percent from increasing the number of hours women work, and the remaining 25 percent from more women working in higher-productivity sectors,” the report’s authors said.
The study, which was the subject of a recent panel discussion sponsored by Australian Aid, found that the Philippines was leading other Asia Pacific countries in terms of gender equality in work. It was at par with Australia, New Zealand and Singapore on gender equality in society, particularly on essential services such as education, maternal and reproductive health, financial and digital inclusion, legal protection and political voice.
But Kristine Romano, managing partner in the Philippines of McKinsey & Co., said some 14 percent of Filipino women were still not financially included and “women college graduates” were not making it in the workforce.
In the panel discussion moderated by broadcast personality Ces Oreña-Drilon, Romano said while some 15 percent of women in the corporate world became board members, only 3 percent became chief executive officers.
Romano said the Philippines could add $40 billion to its annual GDP in 2025 by advancing women’s equality and bringing more women into the workforce.
Panelists said crucial to ensuring women’s greater participation in the work force and increased productivity would be providing support, particularly child care, to women.
It was pointed out that the lack of access to quality and reliable child care was a major barrier to women’s participation in the workforce or a major reason for their leaving employment.
Working arrangements
Amy Luinstra, program manager and gender adviser for the International Finance Corp. of the World Bank group, presented specific examples of companies in India, Japan and Turkey that showed that providing child care was an effective way to keep skilled and experienced women employees.
Employers in those countries provided extended maternity leaves, access to expert and quality child care and more flexible working arrangements to women employees.
Luinstra said employers realized it was more costly to replace a skilled worker. Replacements would have to be trained and it would take a while before they acquired the skills of employees who left.
“Investment in women can really pay off,” she said. It would mean higher retention rates, increased productivity and better gender diversity. Employers who adapted to the needs of women also became the employer of choice and found it easier to recruit skilled workers.
But Luinstra stressed that, as far as gender equality policy was concerned, “one size does not fit all.”
Child care should be part of a company’s overall strategy, even as she pointed out that child care support should be extended to both parents.
“Gender equality should not be just a fad but should be institutionalized,” Amor Curaming, program manager for the Philippine Business Coalition for Women Empowerment (PBCWE). She pointed out that policies on gender equality were often not written down “so if leadership changes” the gains achieved could be lost.
“There is a need for continuity [of policies] and a need to institutionalize [those policies],” Curaming said.
Optimal workplace
She encouraged companies to undergo the EDGE (Economic Dividends for Gender Equality) assessment. EDGE is a world leading diagnostic and certification system for workplace gender equality. It is designed to help companies create an optimal workplace for both genders.
EDGE, Curaming said, would give a company a real picture of its gender equality status.
Maria Aurora Geotina-Garcia, PBCWE co-chair and PhilWEN (Philippine Women’s Economic Network) chair, said despite the report’s generally positive assessment of the Philippines, Filipino women were still significantly underrepresented in the workforce. She urged companies to “walk the talk” on women’s empowerment and to use EDGE to identify issues that have to be addressed. —CONTRIBUTED
