GENDER EQUALITY
IN THE WORKPLACE
Recruiting the Best in Female Talent
October 2019
Contents Introduction o o o
4
The Survey Participating Companies Finding a Common Denominator
The Challenges o o o
Targets Gender Equality Percentage and Future Goals Key Internal Challenges When Looking for Female Talent
What Actions are Being Taken? o
o
14
Clarity on Career Development Plan Flexible Working Equal Pay and Policies Family Benefits in Geographical Mobility Female Communities and Role Models
Do More for Gender Equality o o o
10
How Are Companies Adjusting Their Talent Acquisition Tactics to Be More Inclusive of Female Talent? Key Achievements over The Past 3 Years
What Matters to Women ? Where Do You Stand? o o o o o
6
20
Retention Through Data Collection Educating Future Workers: Tech Girls Changing The Family Approach: Fathers Count!
Conclusions by Careers International
22
Introduction The Survey We are proud to say that Careers International is recognised as a specialist in employer branding and recruitment diversity. Over the last ten years we have helped numerous companies boost their brand and hire from the top female talent pool, across the world. Following International Women’s Day 2019 and the theme “Balance for Better”, we decided to run an exclusive survey to better assess how firmly Gender Equality in the workplace is addressed by well-known organisations. Participating Companies The companies that took part in the survey came from a wide range of industries: financial institutions, technology, retail, automotive and health care. We specifically focused on larger size companies (3,500+ employees). 55% of the companies we surveyed had more than 70,000 employees in total.
Finding a Common Denominator Diversity as a top business goal is a recent trend for most of the participating companies and it only became a strategic priority during the past six years. Today, it has been proven by research¹ that gender diversity in executive teams strongly correlates with financial performance: particularly profitability and value creation. However, striving for gender diversity doesn’t seem enough to achieve results. BCG’s recent research²
on gender balance shows that despite 90% of companies having a program in place for gender diversity, only 25% of women state that they have personally benefited from it. In fact, according to the European Commission’s latest report on the matter, the gender pay gap³ across the EU has stayed "practically unchanged" in the last few years and the proportion of women in high-profile positions sitting on company boards is just 26.2%. The World Economic Forum says that it will take us 108 years⁴ to close the economic gender gap around the world. Many studies suggest that the problem is not only about diversity in terms of numbers, but about what happens after having balanced the equation: inclusion. Accenture⁵ has found that a culture of equality — the same kind of ¹McKinsey, 2018. Delivering through diversity. ²BCG, 2017. Getting the Most from Your Diversity Dollars ³Euronews, 2019. International Women's Day: EU progress on gender equality is moving at a 'snail's pace ⁴ World Economic Forum, 2019. Accelerating gender gap parity 4.0 ⁵ Accenture, 2019. Equality = Innovation.
workplace environment that helps everyone advance to higher positions — is a powerful multiplier of innovation and growth. The power of an equal workplace culture is even stronger and has more impact than gender equality percentages. There is still a lot of room for improvement and innovation when it comes to gender equality in the workplace. The good news is that all interviewed companies in this survey acknowledged that diversity and inclusion are top priorities on their agenda, and they are actively trying to recruit higher numbers of female talent. Now, the question is how to achieve better and faster results. In this report we will go through the main challenges faced by companies in female recruitment, what actions have been taken, what the opportunities are and how to do more to achieve gender equality.
Gender and ethnic diversity are clearly correlated with profitability and value creation, but women and minorities remain underrepresented. - Delivering through Diversity, 2018. McKinsey & Co.
The Challenges Targets Attracting the right people to the right jobs isn’t easy but when it comes to women, it is even harder. There are many reasons and here are two of them as an example:
•
•
Studies reveal that women apply to jobs where they feel they meet 100% of the criteria⁶ while men usually apply after meeting about 60%. It can take 8 telephone calls to convince an employed woman to join a recruitment process, compared to men, who usually only need around 2 telephone calls.
Does this difficulty exist at all levels? All companies concede that their major struggle is to hire and retain experienced and executive female profiles, no matter the business area. In fact, the gap in business leadership positions is generally much bigger than at lower levels, especially in business sectors where female graduate recruitment is less of a challenge (financial institutions, for example). It is far tougher in the IT and Engineering areas, as well as Sales and Marketing. IT and Engineering may not seem surprising, since women account for only 32% of graduates in STEM⁷ fields worldwide and even less in Europe, resulting in a severe lack in this pool of talent.
Women currently account for only
32% of graduates in STEM fields worldwide.
Gender Equality Percentages and Future Goals More than 60% of the companies interviewed have a gender equality percentage under 40% but in Engineering and Tech related industries, such as automotive and technology, it is much lower (under 31%). What are the Goals? At least a third of the companies strive for 50% women in all levels of their organisation by 2025. However, most of the organisations have set more realistic goals understanding the reality of their talent market and acknowledging the different challenges at different seniority levels. They strive for 40% or even 30% for the upcoming 3 to 5-year period. Also, the survey revealed the case of one company that preferred not to have a diversity quota. For that company, the purpose of their diversity strategy (which includes target and channel diversification) is to give equal opportunities to diverse profiles, but at the end of the process, their final recruitment goal is to find the best candidates no matter the gender. ⁶Harvard Business Review, 2019. Why women don’t apply for jobs unless they are 100% qualified. ⁷PWC, 2017. Winning the fight for female talent.
Key Internal Challenges When Looking for Female Talent 1. Weak Employer Brand Leading to Poor Female Talent Attraction 66% of the companies interviewed identified having a weak employer brand as their main challenge when looking to increase the number of female professionals. So, what are the issues?
•
•
The brand name and sector: it could be that companies manage diverse consumer brands, but their own corporate name is unknown in the market, or that they recently changed their name and brand, or that the industry they work in is not very attractive to women. This directly impacts organic talent attraction and can seriously affect talent pipelines. The value proposition: other companies, even those with good brands, haven’t adjusted their attraction strategies to target women effectively. As a result, the
information they share with candidates doesn’t contain interesting elements for targeting the females they want to reach. These companies need to build more specific value propositions for women.
•
The channels: some companies offer great programs for women, but women are unaware of them. In this case, the external communication strategies toward women seem not to be powerful enough and new channels need to be explored.
2. Weak Internal Diversity Awareness Many companies struggle with internal diversity awareness, especially when it comes to Hiring Managers who are the final decisionmakers in the recruitment process. Since gender equality is a relatively new focus for many companies, it’s very common to see management boards still populated by men or mainly men who are not
42% of interviewed companies agree that internal diversity awareness is an area that must be improved.
used to hiring women and are unfamiliar with their own company culture towards diversity. Even though many companies are putting more effort into gender diversity, only 11% think they have strong internal awareness and at least 44% of interviewed companies agree that internal diversity awareness is an area that must be improved. 3. Reaching out Communities is Difficult
to Female Increasingly
In general, there is a lack of proactive approach to reaching out to external female communities. This is what surveyed companies say.
1
“We have active connections with some female communities, but this is mainly in the USA.”
One third of interviewed companies state that there are not many active, accessible female communities for recruitment in Europe.
2
“We have identified a few female communities, but we do not do much about it”.
They identified the female communities to approach, but they are not closely involved with them yet (22%).
3
“We have no connection at all with female communities.”
They usually have built their own internal female communities, but they are not interested in reaching out to external female communities for recruitment. Instead, these companies typically prefer to focus on direct search (around 44%).
Other Challenges Companies Are Facing: •
Women have a harder time moving onto the next career step, because they have usually built a smaller internal network than their male counterparts and this appears to have strong influence in employee promotions.
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There is lack of female role models in certain industries such as retail, IT and automotive.
•
Difficulty in company culture adaptation at senior levels that affects employee retention.
•
Geographical distance between female talent and needs.
70% DO YOU?
of the companies interviewed identified Weak Employer Brand as their main challenge
15% of surveyed companies think they have enough internal awareness.
43% of companies stated that they have no connection at all with female communities.
What Actions are Being Taken? How Are Companies Adjusting Their Talent Acquisition Tactics to Be more Inclusive of Female Talent? More than 75% of the interviewed companies are actively trying to adjust their talent acquisition strategies and methods to be more inclusive to female talent. These are the top 3 strategies that are being used: 1. Recruitment Awareness:
Team
Diversity
Only one third of the interviewed companies have specialist team members in diversity recruitment. Quite often, there are not enough available resources to have diversity recruitment specialists, so companies are tackling the problem using the following strategies: a) Training up the recruitment team on unconscious bias: 77% of interviewed companies have implemented diversity awareness training among hiring managers and line managers in order to teach them how to be more inclusive during selection processes. b) Involving the Diversity & Inclusion department: in many cases it is not possible to have specialist diversity recruiters, however, more than 30% of the surveyed companies are starting to involve their own
a) Diversity and Inclusion department in recruitment initiatives in order to co-create strategies for attracting female talent. c) Through Partnerships: another way of increasing the number of female hires is by building alliances with recruitment agencies or companies that have gender diversity recruitment expertise or that are connected to relevant female communities. More than 30% of companies are using this method. d) Artificial Intelligence: less than one fourth of the interviewed companies are implementing AI tools in the filtering process to make sure their talent acquisition processes and systems are free from bias. 2. Inclusive Job Descriptions Changing the way job descriptions are written is the second most common strategy that companies are using to
BEST IDEAS A surveyed company has been running an internal campaign showcasing their female leaders in order to generate awareness surrounding gender diversity among recruitment decision makers and business unit leaders.
attract more female talent (more than 70%). It has been proven that job descriptions often limit the way people understand job opportunities, therefore it’s recommended to remove anything that may be filtering out quality people, such as requirements that are too rigid in terms of years of experience or graduating from specific universities. Another idea is to add a disclaimer encouraging people to apply even if they do not match all criteria, this might increase the pool of applicants with diverse backgrounds.
BEST IDEAS A company developed a tool internally that balances the language of job descriptions to be more inclusive of different genders, races, backgrounds, etc. Today, they don’t just use it for internal purposes; they also offer it to their partner companies as a tech solution to increase the number of female applicants.
3. Adjusting Recruitment Attraction Campaigns
Understanding that talent is not always available in certain locations, More than a half of the surveyed a company works together with a companies are adjusting their strategic partner organising talent attraction campaigns and strategies attraction events several times a focusing them on candidate experience year in different locations around and implementing a more personal Europe. The purpose is to approach. This includes adjusting proactively look for and approach career websites to be more inclusive to female talent and using social media to female talent by identifying the tell female employee’s stories. This places where there will be more enables more conversations with female professionals with the female candidates and therefore required profiles. The events are develops trust. However, recruitment held as after-work events to soften channels haven’t been adjusted yet. the recruitment approach and strengthen the Other Actions company’s employer • Train recruiters on establishing deeper conversations with females as branding they are historically harder to convince, especially experienced talent.
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Set gender equality goals for the recruitment pipeline to make sure there is a balanced talent pool and complement it with targeted sourcing of passive female talent.
•
Get closer to female communities that can provide access to specific talent pools (STEM, Finance, Sales, etc.)
Key Achievements over The Past 3 Years 1.
Gender diversity increased among leadership positions and C-level roles, even at CEO level in more than in 55% of the companies interviewed.
2.
In-house female communities (more than 40%): the creation and/or strengthening of internal female networks has brought a sense of female community and belonging for female employees.
3.
Improving online employer branding: producing new narratives and graphics on websites to make jobs more attractive for females to apply to (more than 30%).
4.
Working and partnering with agencies that agree with companies’ diversity policies and that are able to deliver results (more than 20%).
55%
40% +
25% +
28% +
of surveyed companies with more female leaders
of enterprises established female communities
of businesses are making online job posts more appealing to females
companies are working with strategic partners for diversity
CASE STUDY Diversity Week A company implemented a “Diversity Week�, which now takes place every year. It is a full week to address diversity in 25 countries worldwide. Every day there is a global message delivered by the CEO and Diversity Council as well as local activities to raise awareness about the topic.
CASE STUDY Job Sharing as Part of the Company Culture Job sharing means that some roles in a company can be shared between two people allowing mothers or other individuals to work and develop their careers without giving up their personal obligations and family needs. This brings a new perspective in the work market, as this model allows the inclusion of hidden female talent. One of the interviewed companies is an expert on this subject. Their most recent achievement was to make all job postings, regardless of the level, as part-time offers. This means that job offers are posted by default as part-time and, only if the manager rejects the offer changed into a full-time role. This rule has changed company culture. It also works well with customerfacing roles, which are often the most challenging roles when it comes to job sharing. Obviously, to be able to offer this type of opportunity, some specific tools must be implemented
What Matters to Women? Where Do 1 You Stand? Activating passive talent is not an easy task, but when it comes to female talent it turns out to be even more complicated. Why? The main reason is lack of trust. Before starting a recruitment process with a potential employer, women want to validate a variety of factors related among others to diversity and inclusiveness. Careers International has over 10 years’ experience in female recruitment around Europe. Every year we interview hundreds of female professionals, both for our Top Women Tech summits and for the sourcing projects we support in different industries around the world. From our experience, we have identified the most important factors for women when considering whether they should work for a company, on top of the job description. Where are companies standing regarding these topics? Have they implemented relevant programs already? Are they communicating their progress in order to be more appealing to female talent? Let’s analyse those questions one by one, under the diversity lens.
Clarity on career development plan: When joining a new company, women want to be sure that there will be a clear professional growth path for them from day one.
2
Flexible working: Many women are mothers, or they plan to be, which is why flexibility is a key factor for them. Being able to be close to their children without affecting their professional career is something that they value even more than money.
3
Equal pay and policies: A company that claims to be gender equal nowadays needs to prove it. Having equal pay and policies isn’t obvious and women want to make sure they join a company where gender equality is not only a belief but a rule.
4
Family benefits in geographical mobility: When relocating mothers, women expect to have special benefits for their families, such as school fees subsidised or paid, housing or other family initiatives.
5
Female communities and role models: Internal female networks provide trust and create a community among female workers. Additionally, having female role model proves that new female employees have a potential to grow and develop themselves as leaders.
Clarity on Career Development Plan Having clarity on career progression is the most important factor that women consider before deciding whether or not to work for a company. Women want to know how and how much they could grow as professionals if they accept a certain job offer. So, let’s have a look at the current state of career development plans. Most of the interviewed companies have career development plans in place. Only one company in the survey admitted that they stopped designing them because they wanted to promote growth based on performance and leave employees to drive their own career. However, how do companies run their own career development plans? At least 25% of the participating companies have established mandatory career development plans, which are part of employees’ general plans and are created together with the corresponding managers. It appears that very often career development plans are not inclusive to diverse workers, especially women. One of the interviewed companies admitted that sometimes it is more difficult for females to succeed in their career development programs due to available opportunity requirements versus women’s needs, depending on their age and personal situation (for instance, long working hours with lack of flexibility, or requiring a lot of traveling and mobility).
No company in this survey has yet developed career development plans for specific target groups such as women. It must be said that considering career development was ranked as the most important factor for women when considering whether to work for a company, it is worth thinking about concrete value propositions for them in terms of career progression.
BEST IDEAS One of the interviewed companies’ active in the IT industry has established a career development model based on career objectives that are aligned with the company mission. There are three development paths that employees can choose depending on their career interests -Managerial, Expert or Project Manager- and, of course, these are adaptable to the individual’s needs. Even though this model is not designed exclusively for women, it’s a model with a very concrete proposal for potential employees that, if well communicated, could have an impact on talent attraction. In addition to traditional career development plans, a company implemented a mentorship program to support entry-level employees’ professional development and growth, assigning them company senior members as mentors for one year.
Flexible Working Over 85% of respondent companies have established flexible work policies. Some of the learnings are as follows: •
Companies that implement flexibility programs see immediate results from these initiatives.
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Making flexibility and wellness part of the company culture is key. Some companies have flexible hours, but just in certain business areas or in certain offices while it should be utilized across the company.
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It is important to train managers on flexibility, so they learn how to manage their teams under this model and open this type of opportunity up to more employees.
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In some cases, these initiatives exist but they are not well known inside the company. Communication plays a vital role.
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Even the 14% of companies that don’t have flexibility programs in place recognise its importance and plan to implement soon.
Other Initiatives •
Job sharing is a great and innovative initiative for flexible working, especially when it comes to women, since it gives them the opportunity to balance work and life duties without lowering company productivity (see above Case Study, Page 13).
Equal Pay and Policies 88% of interviewed companies now include equal pay in their internal policies and processes, of which 12.5% recognise that they still have gender pay gap regardless of their established internal policies, especially at senior leadership level. The remaining 12% have no equal pay policy yet, but they are working toward making it happen soon. Regarding those companies that have equal pay policies, 87.5% say that they are not communicating their efforts and progress towards fair and equal policies and pay externally. Some reasons for this are:
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They feel it's obvious or don't see the need to communicate it. They think it is irrelevant as every person should automatically expect this.
•
They never considered mentioning it during the recruitment process, but they now see that it is big opportunity to do so.
Family Benefits in Geographical Mobility Around
•
45%
of
the
respondent
companies don’t have any more expat programs and therefore no relocation packages. The remaining percentage of companies that still deal with employee relocation confirmed that they support their employees and give family benefits when offering a position in a different location. In some cases, the relocation package is given to employees as installation allowance, when they need to relocate for their new job. However, one of the interviewed companies admitted that these family packages are not successful enough, because they still have a high rate of employees rejecting job offers if they need to relocate. On the other hand, about 78% of the surveyed companies declared having benefits related to maternity leave in addition to the legal obligations, which are seen as highly attractive family benefits for potential female applicants. Some of those ideas mentioned were:
•
Giving the father 8 weeks of paternity leave regardless of the country’s policy. Even if it’s not a benefit directly for women, it gives a clear image of the company’s position towards gender equality.
Companies have an internal Kindergarten inside their offices, where employees can leave their children while they are working. This is not exactly a flexible work initiative, but it is a smart solution that allows employees to develop their careers while staying close to their children.
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Giving extra days of parental leave on top of the country’s mandatory maternity and paternity leave or the option of taking unpaid parental leave.
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Having an open policy to renegotiate flexible or reduced time working deals with returning mothers.
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Implementing a maternity program: during pregnancy, the company organises meetings with mothers to discuss their career and future job interests. During their maternity leave, the company keeps in contact with them and integrates them before they come back to work in order to keep them engaged and motivated.
Female Communities and Role Models All companies have some sort of female community, in some cases these are large global networks whereas in others they are small,
How to grow your female community? Based on company testimonials, we built “the ideal female community job description”:
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Female volunteers work together to build a supportive internal community for women.
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Promotion of female empowerment within the company.
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Deliver online courses and/or physical training on hard and soft skills.
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Create internal awareness campaigns and events (for instance, on International Women’s Day).
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Give recognition to internal female role models, both for their positive impact in the business and in society. Share their stories to inspire others!
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Connect women globally.
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Be a sharing knowledge platform for specific topics or technical areas (case studies).
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Create and implement strategies to always make their workplace more inclusive in terms of policies, organisational culture and job opportunities.
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Leverage on the expertise and knowledge of the Diversity and Inclusion department and its financial support (if any) for initiatives.
limited initiatives. The biggest has over 11,000 women worldwide with subcommittees; some others are strictly limited to certain business areas (IT, Trade, Business etc.) or characteristics such as “working part- time”.. In half of the cases though, these communities are not very active or known internally and even less so externally. However, women care about this, because it demonstrates how committed the stated company is towards gender equality. All interviewed companies have female role models in leadership positions, some of them in top leadership teams. However, at least 22% of them admit that their management board is still formed mostly by men and that the company still lacks female role models, and therefore lacks credibility in diversity as well. We asked companies whether they communicate their female leaders’ stories with relevant external female communities for recruitment purposes. Surprisingly, only one of them uses their leaders’ stories to attract external talent. Female leaders are mostly involved with internal initiatives and communities, which of course is great for internal employer branding. However, this means that good opportunity for attracting external talent is lost, because this is one of the top 5 factors that female candidates look for in a company prior to applying to a role.
Do More For Gender Equality Some companies have gone further with traditional diversity initiatives and have turned unique ideas into reality, aiming to close the gender gap. The following shows those companies that are doing more for gender equality and the type of good practices they have implemented.
Retention Through Data Collection
A company in the laboratory equipment industry implemented a strong data collection program that allows them to track their diversity index score, for example, hires, female representation, promotions, voluntary and involuntary terminations, gender diversity in leadership positions, etc.
This data is highly valuable when running a gender diversity strategy, because it’s not only about understanding the external market but also about understanding the internal market. The gender gap will never close if retention is not achieved. This data is key to understanding how women move internally in the company.
Educating Future Workers: Tech Girls
A company in the IT and finance services industry invites 9-13 years old girls annually to attend a day at their company offices across the globe in order to motivate them in the field of technology, teaching the basics about coding and discuss tech opportunities. This initiative promotes the brand for future generations and, most importantly, tackles the talent-shortage problem from its root: education.
Changing the Family Approach: Fathers Count! Changing company policies in favour of women is not always a fast process, therefore it is important to work on changing company culture towards gender equality as well. The first step should be to change a company’s perspective on maternity by including paternity initiatives. For example, a company in the IT industry created an internal fathers’ network, through an initiative of male employees, recognising the importance of the fathers’ role during parenthood. The fathers’ network organise parental related training sessions and activities. Gender equality is not only about women, but about valuing different behaviors, aspirations and needs equally, regardless of gender, and that includes men!
Conclusions by Careers International While gender balance has become a priority for many companies, most are not quite there yet. We are probably just at the beginning of a long process that is both linked to business strategy and societal transformation. Many companies still need to come to terms with the fact that diversity is not just a right; it is a must if they are to remain competitive. Studies prove the positive impact of diversity on financial performance and value creation. Additionally, diversity has a strong influence on companies’ employer brands. According to PWC latest research on female talent⁸, 86% of women and 74% of men find an employer’s policy on diversity, equality and workforce inclusion important when they decide whether or not to work for them. In the context of fierce battle for the best talent, can any company afford to miss the people they need by moving too slowly on the diversity issue? Obviously not. Achieving gender equality in terms of hires is not enough. Retention is key to maintaining the balance and a welldefined inclusion policy is crucial to achieve lasting results. This shows the importance in having female workers well-distributed across any business and in leadership positions, where they can influence decision making processes.
To remain focused and at the forefront of diversity, companies need to regularly review their internal programs related to career development, flexible working, equal pay, family benefits, female communities and role models. These factors matter to women of all ages when considering applying for a job or developing themselves inside a company; they are essential in making women feel included and engaged. Women will apply to jobs and remain engaged if they trust the company, and companies need to gain that trust by showing hard evidence. The assessment of internal programs aimed at women will clarify a company’s strengths that can be transformed into powerful messages to communicate with relevant talent pools. Our report shows that one of the biggest barriers to achieving gender equality in the workplace is the lack of communication between potential candidates and companies. Some topics that seem obvious to recruiters, such as equal pay, are not obvious at all. The latest World Economic Forum’s report revealed how far we are from closing the gender gap in all industries. By communicating a company’s internal progress in gender equality and showcasing internal programs and value propositions for female workers, passive female talent ⁸PWC, 2017. Winning the fight for female talent.
is very likely to be activated. However, identifying strengths and developing strong messages is not enough. Companies need to make their brand more accessible to female talent by adapting recruitment channels and messages. Women have many questions; they want to know more information than what a job description provides. Therefore, it is crucial for talent acquisition teams to improve the candidates’ experience journey and get closer to female communities, where they can open spaces for closer conversations with female candidates. Lately, new initiatives have come into place such as artificial intelligence for gender bias, job sharing programs, diversity data collection systems and even paternity policies; all are brilliant proposals. However, the baseline to implement successful diversity strategies is a strong alignment between talent acquisition teams and line management. Too often line managers don’t realise the importance of team diversity, which has a negative impact on productivity and innovation. This alignment is perhaps the priority focus! Company diversity is a fantastic challenge to tackle. It is a win-win journey. Let’s go for it! Careers International Team
About Careers International We are Careers International, global experts in attracting and selecting top talents. Our company delivers unparalleled results thanks to the combination of unique technology and our passion for high-quality recruitment. All our services are based on a very simple, yet powerful idea: to find the best talents, you need a human approach. Sounds obvious, yet in a lot of cases, the ‘human’ seems to have disappeared from HR. Take job applications: top candidates may not apply or even retire from the process because they have no way of getting answers to questions they may have. The result: a less efficient recruitment system. That’s where we come in. At Careers International, we put the ‘human’ back in human resources and create greater impact. Humanizing talent acquisition is our core business.
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Credits Giulianna Delgadillo Business Developer, Diversity Specialist StĂŠphane Wajskop CEO Careers international
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