Promoting women and older employees

Last year, the Institute of Financial Services Zug IFZ at the Lucerne University of Applied Sciences and Arts collected data for the Diversity Index (see box) for the third time. The aim of the Diversity Index is to measure the heterogeneity of the workforce in organizations and to depict this by means of a key figure. In an online survey, the participating companies answer around 50 questions on the general organisation of the company, diversity management and the criteria of age, gender, nationality, religion and health.

For those companies that took part in the current survey, diversity management generates a great deal of benefit (see figure). On the one hand, diversity management is of great importance for personnel policy. On the other hand, it is clearly expressed that it also results in advantages for the company as a whole.

The findings from the third survey of the Diversity Index are manifold. In this article, the focus is on diversity management, gender and age. Based on the results, recommendations for action regarding personnel recruitment are formulated for each dimension.

Diversity culture: How can change succeed?
Companies that are at the top of the third diversity index score well in terms of anchoring diversity in management and in the organizational structure. It is clearly expressed that a heterogeneous workforce and the corresponding benefits from this diversity for the organization are particularly important.

"Diversity considerations are an important component in the recruiting process."

This is especially true when diversity is practiced in a sustainable manner. This includes, for example, a dedicated diversity department that reports directly to the management, or the explicit inclusion of diversity principles in the company's mission statement, corporate strategy or other overarching documents with strategic relevance. Thus, a diversity concept is particularly successful if the topic is actively lived and, in particular, taken seriously by the company management and implemented accordingly. The continuity of the measures is also central to successful diversity management, as positive effects cannot be realised within a short period of time.

Accordingly, diversity considerations are undoubtedly an important component in the recruitment process. However, any measures are not limited to this point in time. A successfully practiced diversity culture must be reflected in the entire personnel development, which in turn has a positive effect on the reputation of the organization on the labor market.

Low proportion of women and hardly any mothers on the Executive Board and the Board of Directors
With regard to the gender perspective, the survey clearly expresses that from the hierarchy level with management responsibility upwards, fewer women are employed than men. Within the companies surveyed, the overall proportion of women is around 37 percent, the majority of whom do not hold management positions. The proportion of women in management and on the board of directors remains low.

The low proportion of women is astonishing. According to their own statements, 97 percent of the organizations surveyed have taken measures to reconcile work and family life. 59 percent also have gender balance targets, in some cases even with salary-relevant consequences for those responsible if they are not met.

There are also large disparities in terms of parenthood. On average, around 33 percent of women and 42 percent of men in the companies surveyed have children. The difference is even more pronounced at higher levels: Only a quarter of the women working at the upper levels of the hierarchy are mothers, but over half of the men working there are fathers. Furthermore, every third woman does not return to work after maternity. Of the women who do return to work, an average of 86 percent are still working in the same company after one year. Nevertheless: Based on these two survey results, it can be concluded that on average only around 56 percent of women are still working in the same company one year after maternity. With the loss of these women, valuable company-specific know-how, often built up over many years, is lost. Particularly in view of the demographic change and the looming shortage of skilled workers, it is imperative to counteract this situation.

The figures make it clear that, despite a large number of measures introduced and corresponding progress, there is further potential for catching up in the area of gender. The corresponding measures only relate to a limited extent to the recruitment of younger employees. Rather, companies should increasingly focus on the further development of their staff, continue to promote women within the organization and provide positions with the appropriate flexibility. Many women still barely make it past the middle age.

management - especially if they are mothers. Measures such as flexible working time models and part-time work, which should in principle be offered to both genders and also to highly qualified employees, are central for organisations to position themselves as attractive employers in the future.

Age: Using the knowledge of older employees
The average age of employees (excluding board members) across all the organizations surveyed is around 41 years, with managers being around 51 years old on average. In view of the ageing society, the proportion of employees aged 50+ is of particular interest. This proportion is around 25 percent overall and around 30 percent for managers. All participating companies stated that they have hired employees aged 50 or older in the last five years, and over 87 percent support their older employees in maintaining their employability. This is particularly important as the world of work continues to change, including digitalisation and the need for greater job mobility. In terms of personnel recruitment, the focus should be increasingly on older employees in order to be able to use their knowledge for the optimal support of junior staff and for the good of the organisation. The results show that diversity management is clearly beneficial. However, the potential is far from exhausted, and a lot of educational work is still needed in this regard.