International Women's Day: How Gender Equality Can Strengthen Your Business
Men vs. Women in the Workplace: Why Gender Diversity Pays Off for Your Company.
“But isn’t it only logical that men are paid more than women?” I’m at a loss for words in front of a class of mostly boys at the technical high school. The four girls sigh a little, but otherwise remain silent and just let it wash over them. I try to explain that even when it comes to the same work and equal performance, women, starting from November 18 work for free, but it’s no use. “Men just do better work.”
Today, March 8, is International Women’s Day. What once began as a strike by women in the textile and apparel industry for an eight-hour workday, better working conditions, and the right to vote is now the day on which we show solidarity with women around the world. But even today, here in the Netherlands, there is still much to be said about women’s working conditions. So this is the perfect opportunity to take another look at the issue: what is the current state of gender balance in the labor market? Why is a good gender balance important for your organization? And what can you do about it?
Women's Quotas in Numbers
According to 2023 figures from Statistics Netherlands (CBS), the male-to-female* ratio in the workforce still varies greatly by occupational category. While women are overrepresented in the education sector and in health care and social services, they are underrepresented in IT, engineering, and transportation and logistics. This is what makes the anecdote at the beginning so telling, because the future shows no sign of change: a class focused on technical education consists almost exclusively of boys. It may not be surprising, then, that their perception of women in the workplace is so distorted, but this is also a factor at play within the professional field itself. It’s no coincidence that Women.Inc’s new campaign is titled: “Make sure she wants to stay.” Because women often leave the technical sector due to exclusion.
In contrast, the number of women in top positions appears to be rising. For example, the SER’s 2024 Female Board Index showed that the percentage of women appointed to boards rose from 13% to 33% that year. So much for the good news—because, unfortunately, that does not yet mean the gender ratio is equal. The proportion of female board members is 16%, indicating that men still dominate, although the number of female supervisory board members has stabilized at 40%. In middle management (leadership positions), the percentage of women in 2022 was still only 26.3%.
Since January 1, 2022, the SER has been responsible for tracking these figures, as that is when the Act on Entry Quotas and Targets took effect. This law requires large companies in the Netherlands to work toward a more balanced ratio of men to women in their (sub)top management.
Gender Balance: Why Is It Important?
The fact that laws are even being passed to promote greater balance shows that this imbalance is a serious problem. But why is it so important to ensure sufficient gender diversity in your company?
Of course, it is a matter of fairness not to reject people based on characteristics they cannot choose and to prevent discrimination. In addition, research by the International Labor Organizationshows that teams with a balanced mix of men and women achieve better results. Companies where this is the case are 60% more likely to see higher profits and productivity. This isn’t surprising, since these teams are often more creative, more innovative, and the employees are more open with one another. Furthermore, this approach increases your chances of not only attracting talent but also retaining it for your organization, and it strengthens your reputation as a company.
What can I do?
According to research by the SER and the CPB, the gender imbalance in top positions is primarily due to unconscious biases against women, stereotypical thinking in recruitment and selection, an unequal distribution of caregiving responsibilities, and the fact that women have less experience in board work and weaker professional networks. These issues, incidentally, are not limited to the top levels but lead to unequal treatment across all levels of organizations.
Awareness is the first step, and we’ve previously shared tips on how to make the recruitment and selection process more inclusive. But Women Inc. also offers some additional tips in their new campaign that aren’t just relevant to the tech sector: for example, you can set your own goals—such as a women’s quota—to balance the gender ratio in your organization. Consider equal pay to close the wage gap and equal opportunities for career advancement. Provide appropriate facilities for women, whether that’s a trash can in the restroom or a lactation room. Establish and actively communicate policies and regulations regarding leave, and encourage the equal distribution of work and care responsibilities through a policy on work-life balance for both women and men that offers sufficient flexibility.
And to come back to that class where the girls wisely kept their mouths shut: make sure you have role models within your organization. Whether that means men in healthcare, women in engineering, or an equal distribution of top positions. Show that everyone can thrive in your organization!
*We are aware that the male/female ratio in the workplace is presented in somewhat binary terms in this article. Unfortunately, little is known about the proportion of non-binary employees in this field. We do know, however, that transgender people experience more discrimination in the workplace, so there is still a lot of work to be done in this area as well. For more information, see the SER’s charter document on LGBTI+ employees.
