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CCH® HR MANAGEMENT - 03/08/10

Economy is leading more women back to work

The EEOC, in February, posted extensive data on job patterns in the private sector as part of the Obama administration's Open Government Initiative. According to that data, 30 million (48 percent) of the approximately 62 million private sector employees nationwide in 2008 were women. This marks a jump from 31 percent to 48 percent in women's overall participation in the private sector.

And, according to a TIME magazine/Rockefeller Foundation poll, women will soon constitute a majority of the workforce. According to that poll, women earn 57 percent of college degrees and they make 75 percent of the buying decisions at home. "The recession has played a large part in this trend," said Peter Handal, president, chairman and CEO of Dale Carnegie Training. "Mass pay cuts and pay freezes, layoffs and a general air of uncertainty have forced many women, who had previously left work to stay at home with their children, to reenter the workforce to help supplement their husband's salary. Many of these women have advanced degrees and are highly intelligent which has absolutely aided in their efforts to break the 'glass ceiling.' In addition, we are seeing an influx of women just now entering the workforce, who had previously put off employment in order to obtain advanced degrees."

Expect a culture shift. Many women currently find themselves at the helm of large organizations. Handal pointed to Carol Bartz at Yahoo, Indra Nooyi at PepsiCo and Ursula Burns at Xerox. Dale Carnegie Training provides another example where, after her husband's death many years ago, the organization was run by an effective and strong female leader, Dorothy Carnegie. "Organizations such as these with women at the very top are highly likely to have internal shifts in corporate culture," Handal explained. "Women bring invaluable fresh perspective to formerly male-dominated companies, enriching the company's overall outlook and balance and paving the way for more diverse ways of thinking."

Still waiting for a shift in pay. President Obama signed the Lilly Ledbetter Fair Pay Act into law on January 29, 2009, amending four antidiscrimination laws, including Title VII, the ADEA, the ADA, and the Rehabilitation Act. The law effectively restarts the statute of limitations for filing a charge of discrimination (180 days or 300 days if the charge is also covered by a state or local antidiscrimination law) each time a discriminatory paycheck is issued, not just when an employer makes an adverse pay-setting decision. The hope was that more organizations would give women equal pay for equal work.

However, according to Handal, even though women are starting to close the gap on corporate seats, studies show that women still make less money for every dollar made by men. "In fact, the latest Census statistics show that the gap between men's and women's earnings widened slightly between 2007 and 2008, from 77.8 (generally rounded to 78 percent) to 77 percent," Handal explained.

"Women have made enormous progress in the workforce over recent years, but the stubborn fact remains that, over 40 years later, a disparity still remains for a variety of reasons, from speculated gender behavioral differences (e.g., women socialized not to promote their work, etc.) to less longevity in the work place, to specific lifestyle choices (e.g., taking time off from working to have/raise children) and straight-up discrimination," Handal continued.

And the statistics are worse for minority women. "While discrimination is not gender specific, studies do show that women from minority cultures make even less than Caucasian women for every dollar that men make," said Handal. "In addition, women often are denied advancement or promotion when they return from maternity leave."

Women leaders offer positive influence. According to Handal, women are invaluable to companies looking to expand their female customer base as the female market, especially between the ages of 21-35, is one of the hardest markets to reach and effectively influence. "Who better to understand the thoughts and needs of a woman than another woman who has been through similar life experiences?" Handal asked.

Additionally, Handal said studies show that women tend to be more inclusive than men and more understanding of others, both personality characteristics essential for building camaraderie among co-workers as well as winning over and maintaining new clients. "One of the Dale Carnegie principles in team building is to create teams that include people with diverse backgrounds and different views," he explained. "Adding talented women to a corporate team accomplishes that perfectly."

Putting men and women on equal playing field is invaluable. "Companies that put men and women on an equal playing field will not only attract stronger talent, but a larger customer base as well," said Handal. "Companies are often judged by the way they treat their own employees, so by setting a good example and treating men and women equally, companies will have a more positive workplace environment that attracts educated, hardworking employees."

Along these lines, balanced companies have a greater chance of attracting a wider range of potential customers, as these companies are most likely to understand the multi-faced and changing needs of a wider audience. "It all boils down to the fact that discrimination simply is harmful to the goal of maximizing profit: it is good business to attract the best talent, regardless of gender, race, religion, and sexual orientation," Handal said.

Enforce your policies, and reap the rewards. It can be argued that when it comes to the workplace, women have never been on the same playing field as men. So, how do you go about changing a culture that has never known any other way? Well, according to Handal, it goes without saying that organizations must adhere to all existing company laws and guidelines pertaining to gender equality in the workplace. "Beyond that, policies against sexual harassment, illness, maternity leave, etc. should all be taken seriously and strictly enforced, with violators being punished and/or let go if necessary," he explained. "Additionally, diversity should be an important goal in the objectives of the managers and leaders of an organization."

Source: Interview conducted by CCH, a Wolters Kluwer company, of Peter Handal, president, chairman and CEO of the internationally-renowned Dale Carnegie Training.

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