davy-femenomics-information by TheWXN

FEMENOMICS

INSIGHT ON WOMEN IN BUSINESS IN IRELAND

Femenomics Insight Booklet

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CONTENTS FOREWORD 3

FEMENOMICS INFOGRAPHIC

WANTED: CONFIDENCE

5 STEPS TO GET THAT PAY RISE YOU DESERVE

33% MORE

IRELANDâ&#x20AC;&#x2122;S ECONOMY STILL HELD BACK BY LOW FEMALE PARTICIPATION IN THE LABOUR FORCE

Femenomics Insight Booklet

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FOREWORD

For 90 years, Davy has been focused on building and growing our business based on listening to and understanding the needs of our clients. This year, in partnership with Women’s Executive Network (WXN) and Independent News and Media, Davy launched Femenomics, a research study focused on professional women in Ireland. The objective of this study was to create a better understanding around the evolving lifestyle and financial issues impacting women in Ireland today. This supplement will outline some of the findings from our first Femenomics study, which can be summarised under three main headings; Confidence, Childcare and Control Confidence We continue to lack confidence in our capabilities, which has untold knock-on effects, including our failure to self-promote and ask for the raise we deserve. We have more control than some might think when it comes to closing that wage gap—one woman at a time. Sherri Stevens, CEO of WXN, shares her recommendations on how to give yourself the confidence boost you need and Joan McGrath, Head of HR at Davy gives five tips on how to get the pay raise you deserve. Childcare There are certain aspects of life in Ireland that appear to be exceptionally challenging, such as the affordability and accessibility of childcare. According to those surveyed, childcare costs is at the top of the list when it comes to what’s holding us back in our career progression, further indicating that it’s also the issue respondents feel is being addressed least successfully. Conall MacCoille, Chief Economist at Davy, gives his thoughts on women in the economy and how we all stand to lose if this isn’t resolved. Control And back to taking control of what we can now—our financial future. Notwithstanding the personal and financial success women have achieved in recent decades, women remain the primary care giver for children and aging family members, which can impact not only earning potential, but also savings profile. Read what Fiona Haughey, Financial Planning Specialist at Davy, has to say about what this means for our personal pension saving requirements. You can look forward to reading more about Ireland’s Women in Business in the upcoming supplement to the 19th June edition of The Sunday Independent, which will include profiles, interviews and mentoring from The WXN Top 25 Most Powerful Women in Ireland for 2016—keep an eye on this space for more Femenomics insights into what’s impacting women in Ireland today and what we can do about it now.

Marah Curtin Head of Client Engagement Marah spends a lot of her time both in her work and outside the office supporting initiatives aimed at improving financial literacy in women and children. She leads the Cents for Kids initiative in Davy and is passionate about helping prepare individuals for the financial opportunities and challenges they face throughout their lives. Femenomics Insight Booklet

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FEMENOMICS - THE SURVEY SAYS... PROFILE OF SAMPLE AGE %

HAVE CHILDREN %

EDUCATION % 2 Leaving Cert 8 2

Diploma 25

<34 47

Yes

Trade Apprentice

JOB TITLE %

LENGTH OF EMPLOYMENT %

PERSONAL INCOME %

<1 year

<€50k

€50k - €74k

1 - 4 years 25

€75k - €99k

€100k - €149k

€150k - €199k

€200k+

Prefer not to say

Owner / Founder

Partner

Primary Degree

35 - 44

Senior Management 25

45 - 54

55+

Prefer not to say

48 53

Masters

Doctorate

SATISFACTION WITH WORK / LIFE BALANCE Very Dissatisfied % Very Satisfied (4) (5) (4/5) (1/2) (1) (2)

The degree to which I have control (28%) 3 25 over my own work / life balance

Number of hours worked per week

(40%) 10

Gender equality at work

Opportunities available to me for progression in my career

(33%) 8

Time available for personal / family time outside of work

(30%) 7

Access to career mentoring

(48%)

9 (37%)

12 (36%) 18

21 5 (26%)

Most Important 31

More flexibility in working hours

7 7

More women in third level education

7 33 13%

Other

6 2

4 5%

28%

13 13

33%

35% 30%

Entry Level / Intermediate

Other

>10 years

ISSUES FACING PROGRESSION AND HOW THIS IS BEING ADDRESSED % Agree Issue Impacts on % Success with Which Progression of Women in Issues Are Business (4/5) Being Addressed Unsuccessfully Successfully % (%1/2) (%4/5) 91 85 1 Childcare costs Lack of confidence / ability to self promote

Flexibility in working hours

Lack of female role models

Share of maternity leave (i.e. lack of paternity leave)

Wage inequalities

Gender discrimination for promotions / appointments

Lack of job security

3rd Most 14 69% 14

28%

Increased number of female politicians 6 10 Growth of women’s networking organisations Grants/funding for extra training/ education for women in business

Middle Management

16 23 29 13 10 16 10

MOST IMPORTANT ATTRIBUTES OF SUCCESSFUL FEMALE LEADERS – TOP 5

% 2nd Most 24

Stricter legislation/monitoring of job appointments and promotions Financial and advisory support for female entrepreneurs

(34%)

9 (35%)

IMPORTANCE OF POTENTIAL OPPORTUNITIES FOR WOMEN IN BUSINESS

More childcare support (grants, tax incentives etc.)

(48%)

(27%) 4 23

(67%)

13 (50%)

(24%) 8 16

Flexibility of working hours

(10%) 2 8

My level of motivation at work

5 - 10 years

59%

Confidence Communication skills Strong business acumen Resilience Integrity Self-awareness Positive attitude Intelligence Creativity Assertiveness Delegation skills Organisational skills Decisiveness Financially savvy Stress management skills Innovative

% Most 2nd Most Important Important (3-5) 57% 13 17 27 55% 6 16 33 50% 20 9 21 47% 8 10 29 10 4 22 36% 30% 10 4 16 30% 6 7 17 24% 8 6 10 24% 22 22 23% 5 7 11 20% 23 15 3 4 8 15% 13% 22 9 13% 22 9 3 1 7 11% 3 2 5 10%

Femenomics: Women in Business Research Study, April 2016

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FEMENOMICS: INSIGHT ON WOMEN IN BUSINESS IN IRELAND | Infographic

CONTRIBUTION TOWARDS PENSION

AGE STARTED SAVING FOR PENSION

% PROPORTION EMPLOYER CONTRIBUTES (Base: All with a company pension)

% PROPORTION OF PERSONAL CONTRIBUTION (Base: All with a company/ personal pension)

I have a company pension

20 - 25 years

26 - 30 years

31 - 35 years

36 I have a personal pension

1 - 10%

9 I do not have a pension

11 - 20%

21 - 30%

11 - 20%

21 - 30%

Don’t Know

26%

Don’t Know

Mean Score:

8.5%

36 - 40 years 41 - 45 years Average:

10%

FINANCIAL ISSUES OF GREATEST CONCERN Most Concerning

% 2nd Most

3rd Most

Not having enough saved up for emergency or unplanned expenses Not being able to retire when I want to

Not being able to meet my monthly expenses

Losing my home

Other

Losing my job

Not being able to keep up with minimum debt payments

16 14

Not being able to give financially to my kids & grandkids Managing my investments in retirement

A Concern 41

50%

8 6

37%

29%

21 15

83%

57%

21%

Not being able to leave any assets for my family when I die Other

38%

Not being able to meet my monthly expenses

55%

20%

Most Concerning

Running out of money

70%

17%

Not being able to afford the same standard of living

71%

28%

2 3

16 17

4 3

FINANCIAL CONCERNS IN RETIREMENT

Rising healthcare costs

7 1 1 45+ years 28 years old

2% Femenomics: Women in Business Research Study, April 2016

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WANTED: CONFIDENCE FEMEMONICS STUDY FINDS MAJORITY OF IRELAND’S WOMEN FEEL HELD BACK BY LACK OF CONFIDENCE

Sherri Stevens Owner & CEO Women’s Executive Network

In addition to being an award-winning entrepreneur and visionary who pioneered her own company, Steven’s Resource Group (SRG), into the $32 million international workforce management company it is today, Sherri is an expert on business strategy, change management, and workforce development and is also at the helm of the Canadian Board Diversity Council (CBDC).

Look for research, theories or strategies on women in leadership and a simple Google search will overwhelm you with resources. Books, articles, reports are flooding the market—my team has a list that grows every day. But when we partnered with Davy and The Irish Independent, we were searching for specific information about how to better support the women who form our WXN community. We knew that discovering the unique challenges and issues that face Ireland’s women in business would steer the future of our community, our programmes and our organisation. So, we asked questions about what propels you forward into leadership positions, fostering growth in the economy, but also what holds you back. Our joint report, “Femenomics: Women in Business in Ireland,” revealed that a lack of confidence is the number one issue for women in business. The vast majority of respondents (89%) agreed that confidence or the ability to self-promote made the largest impact on the progression on their careers. When asked about role models, 57% listed confidence as the most important attribute in successful female leaders, with communication skills and a strong business acumen coming in at second and third on the list. Confidence is what women are struggling with and searching for—both in themselves and others. The answers to the survey told us, loud and clear: this lack of confidence holds women back. It’s not about grappling with what we can do. Women in business

have the skills. We are capable. We just don’t believe it. “In studies, men overestimate their abilities and performance, and women underestimate both,” say Katty Kay and Claire Shipman, New York Times bestselling authors. “Their performances do not differ in quality.” With competence checked off, it’s this area of internal processing and external showcasing where women need a boost. Kay and Shipman searched for the nature versus nurture roots of confidence in their book The Confidence Code: The Science and Art of Self-Assurance—What Women Should Know. They discover a link between confidence and genetics but not in an absolute way. Confidence, they found, can be learned. And that learning starts young. Growing up, girls are praised for perfection, for following rules—which is why we typically do well academically. “If life were one long grade school, women would be the undisputed rulers of the world,” they write in their article “The Confidence Gap,” in The Atlantic. But success in the business world isn’t the same. Leaders don’t follow someone else’s rules. We forge our own. We find new ways, create alternative paths and re-invent old ideas. As any business owner knows, myself included, this is not about being textbook perfect. In fact, success is based on just the opposite. Like I always tell my team, it’s about progress not perfection.

Femenomics Insight Booklet

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FEMENOMICS: INSIGHT ON WOMEN IN BUSINESS IN IRELAND | Wanted: Confidence

“Many psychologists now believe that risk taking, failure, and perseverance are essential to confidence-building,” Kay and Shipman state.

the strategy ‘advanced further, were more satisfied with their careers, and had greater compensation growth than women who were less focused on calling attention to their successes.

My own story illustrates just that. During the 1990 Canadian recession, my career as a flight attendant came to an abrupt halt, my long-term relationship ended and I was flat broke. Moving back home to Woodstock, Ontario, I felt like a failure. But that rock-bottom moment forced me into that chair in my pajamas at my mom’s dining room table. Armed with only an idea, I wrote out a very basic business plan to start my own staffing agency. Perseverance pushed me to ignore the banks who weren’t interested in taking a risk on a young, inexperienced woman. I worked at my brothers’ car dealership during the day and at a local printing shop at night, finally securing the line of credit I needed to begin my company—a company that would later grow into a $32 million international workforce management company with locations in Canada and the U.S.

2) Reframe how you think about selfpromotion (WHY you’re doing it) This is about looking at the bigger picture or purpose behind your accomplishments, the recognition of which feels very different than a traditional idea of self-promotion. Ohio State University psychologist Jenny Crocker has found that women thrive on we,” write Kay and Shipman. U.S. Senator Kirsten Gillibrand is also referenced in the book as someone who uses this strategy to encourage women to run for office. “As soon as a candidate realises it’s not about selfaggrandizement, particularly a female candidate, they become stronger and they become more purpose-driven,” she says.

Risk, failure, perseverance: the recipe for confidence. I may not have started with it, but through values-based leadership, I built my business on authentic relationships that, in turn, built my confidence and continue to do so. It’s a reciprocal process. As a result, I’ve had incredible opportunities to meet role models all over the world, women who have struggled, persisted and smile a little differently because of it. Women like the leaders we spotlight in our Top 25 community here in Ireland who have inspiring stories across all three sectors.

3) Redefine your view of confidence (HOW you’re doing it) Throw out the image of successful people as those who “just get it.” See struggle as opportunity. It doesn’t have to tear us down but can instead feed our confidence. Challenges are what equip us with the tools we need to succeed. Confidence gives us a faith in our “ability to make things happen, to risk failure, and to all the while maintain a sense of inner calm and equilibrium,” say Kay and Shipman. “It won’t guarantee success, but it will more importantly lift selfimposed limits.”

Our Femenomics research, books on women in leadership and inspiring conversations with the women in our WXN community have cleared the clouds of confusion. We need a confidence boost. Here’s how to get it and propel your career forward. 1) Get comfortable recognising your accomplishments (WHAT you’re doing at work) In The Confidence Code, Kay and Shipman reference a 2011 Catalyst survey where 3,000 female Master of Business Administration graduates (MBA) engaged nine strategies that make up the “mythical ideal worker”— such as making career goals clear, requesting high-profile assignments and more. Only one strategy made a difference: “making their achievements known to superiors. “According to Catalyst, the women who employed

By boosting our confidence, we not only increase how far and how fast our careers progress, but we also become role models for the next generation. They’re actively looking for confident women in their organizations, communities and networks. They’re looking to us. Imagine a world where future leaders don’t have to search. Where examples of confident women in business are so prevalent you have to close your eyes, plug your ears and sing “Whiskey in the Jar” at the top of your lungs not to be inspired by them. Where surveys like our Femenomics ask women what holds them back and the answer comes, loud and clear: nothing. It’s time for us to step into that spotlight.

DISCLAIMER: The views and opinions contained herein represent those of the author and not necessarily those of Davy.

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5 STEPS TO GET THAT PAY RISE YOU DESERVE THROUGH OVER 25 YEARS’ IN HUMAN RESOURCES, I HAVE OBSERVED SOME KEY DIFFERENCES IN THE WAY MALES AND FEMALES APPROACH THEIR CAREERS. AT THE CORE OF THESE DIFFERENCES? CONFIDENCE.

Joan McGrath Head of Human Resources, Davy

Joan has more than 25 years’ experience in HR, working in a range of industries and at Davy for more than 10 years, guiding the company through periods of change and growth with a people-focused strategy at the core of what she does. She serves on the WXN Advisory Board and served 7 years on the Board of J&E Davy.

One of the ways this issue of confidence manifests itself is with pay. Men don’t just receive pay increases (or bonus increases), they ask for pay rises. Women typically don’t ask. So if you feel you should be paid more or have a bigger bonus, ask for it. You may not always be successful with your request on the first try, but I can guarantee that if you 1) deserve it, 2) ask in the right way and 3) ask at the right time, you will eventually get it. How do you I know this? Men do it all the time—successfully. Here are the steps you need to take to get that pay rise. 1. Get your mind-set right Think about why you need or want the pay rise. What are you going to do with the extra money? Have a clear goal or dream in mind, which will serve as strong motivation. Approach the task with the mind-set that you will not take “no” for an answer. It won’t be easy, so be passionate about your goal or dream and know that it will be well worth stepping outside your comfort zone. 2. Pick the best time Understand that certain times of the year or during a poor month or year, your boss’ hands might be tied. If salary reviews normally happen at year end, then that’s your target timeframe, but get in well in advance, before the salary increase budget is committed to others.

3. Talk to the right person This needs to be a decision maker. Sometimes this might not be your boss; it could be your boss’ boss. If your direct report can’t influence the decision, don’t rely on them to bring it to the next level, to the real decision maker—do it yourself. 4. Be prepared Don’t just go in and say you want a pay rise—you will most certainly get “no” for an answer and could even be ridiculed. Prepare, prepare, prepare. You need to: a) Demonstrate your value to the organisation (How did you generate money? How did you save money? How have you made processes more efficient? How has your contribution benefitted the organisation?) Write these down—you need facts and figures. b) Gather some market information on salaries for your role and use this as a guide for yourself. c) Know your target figure and also know what you’ll settle for. d) Role play the conversation with a trusted friend or colleague.

Femenomics Insight Booklet

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FEMENOMICS: INSIGHT ON WOMEN IN BUSINESS IN IRELAND | 6 Steps to get that pay rise you deserve

5. Set some rules for the conversation DO’S

DON’TS

• Diary the appointment with the decision maker you need—the timing of this is key as well.

• Compare yourself with anyone else within the organisation (male or female).

• Be confident and brave—remember that you deserve this. • Use the facts and figures you’ve gathered to demonstrate your value to the organisation and bring the backup documentation.

• Don’t take an emotional approach—it’s not about needing an increase because of the mortgage, the bills, the kids (your motivating goal or dream is just for you to know). • Use too much external salary data in the conversation—you want this increase on your own merits.

• Be very clear about what you want (i.e. the specific number).

• Expect an immediate reply.

• Expect a surprised reaction—not many women ask for a pay rise!

• Get dragged into an argument or a debate.

• Also expect resistance and be prepared to challenge. • Leave the boss time to consider. • Arrange a follow-up meeting. ASK... AND ASK AGAIN You may not get exactly what you asked for, but hopefully it will be the figure you were prepared to settle for. If the answer is “no” for genuine business reasons, you have at least sown the seed and your pay rise will come in the future. Leave it for now and ASK again in six months. Don’t give up easily!

Femenomics Insight Booklet

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33% MORE IT’S A HOME TRUTH THAT IRISH PEOPLE ARE NOT SAVING SUFFICIENTLY FOR THEIR RETIREMENT INCOME NEEDS AND THE STATISTICS SHOW THAT A PENSION GAP EXISTS BETWEEN WOMEN AND THEIR MALE COUNTERPARTS, IN TERMS OF PENSION COVERAGE AND CONTRIBUTIONS TO EXISTING PENSION SCHEMES.

Fiona Haughey Financial Planning Specialist, Davy

Fiona oversees the financial planning analyst team in developing and analysing financial plans and investment solutions for Davy Private Clients. Prior to returning home to Ireland two years ago and starting at Davy, she worked at UBS Wealth Management in New York City. Fiona is a founding member and serves as the Secretary of the Irish Dublin Network, aimed at fostering links between Ireland and the USA.

It’s a home truth that Irish people are not saving sufficiently for their retirement income needs. And the statistics show that a pension gap exists between women and their male counterparts in terms of pension coverage and contributions to existing pension schemes. But, the fact is that women may need to contribute significantly more than men to their pensions to have an equal income in retirement. The reasons for this can apply to men also, but on the broader scale research indicates that the following issues have a greater general impact upon women. Longevity Women typically live longer than men and so need a larger pension pot to be able to support their income needs in retirement. Actuarial assumptions typically suppose that a woman who retires at age 65 will live 3 years longer than a man who retires at the same age. Reduced Working Hours Women tend to remain the primary care givers to children and aging family members, moving in and out of this role throughout their lifetimes. Reducing working hours can reduce the capacity to contribute to a pension. This is compounded by the loss of growth that would have accumulated over the years.

Impact of off-ramping on earnings power Many women take an off-ramp at some point in their career, taking time out of the workforce to care for others. The more time a woman takes out, the more dramatic the decline in her future earnings potential when she decides to return to work. In an educated workforce where constant upskilling is a requisite the cost of timeout can add up. The Centre for Work-Life Policy estimated that taking 1-2 years out of the workforce can decrease earnings potential by 14% and an absence of over 3 years can reduce earning power by almost 50%. (Source: “Off-Ramps and On-Ramps Revisited”, CWLP June 2010) Case Study Say for example, we compare Matthew and Jane, both 25 year old young professionals with long term successful careers in front of them. Both start out on the same salary at the same age, with their salaries increasing by 4% year on year, and both contribute 15% of every pay check to their pension invested in the same moderate risk strategy achieving a return of 6% per annum. They would like to have 2/3rds of their final salary as income in retirement at age 65. When planning for retirement, the fundamentals remain the same for both Matthew and Jane – save an adequate amount during working years, and invest wisely so these assets can provide an adequate income in later years – but Jane may face the unique challenges we have discussed.

10 Femenomics Insight Booklet

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FEMENOMICS: INSIGHT ON WOMEN IN BUSINESS IN IRELAND | | 33% more

Equal is not always equitable In reality, the practicalities and sums may work out a little differently – just adding longevity to the equation means Jane has to save more to be able to meet her income needs for her longer life expectancy. A further 1% pension contribution (a total of 16%) during Jane’s working life is required to meet the additional 3 years income requirement. This is amplified if Jane decides she would like to ‘off-ramp’ at age 30 to be able to take care of her young children for a 5 year period. For example, let’s assume Jane significantly reduces her working hours resulting in a salary reduction of 50%. She makes 15% pension contributions of her revised paycheck and then goes back to work full-time at the end of the 5-year period on the same salary as before she reduced her hours. Compared to Matthew who has taken no time out Jane’s salary is now 20% lower than Matthew’s at the age of 35 attributed to the off-ramping impact on her earnings potential. In this case, to make up for this impact we calculate that a 20% pension contribution throughout all her 40 year working life is required for her to be able to meet her financial objective, i.e. to maintain an income of 2/3rds her salary in

retirement based on her life expectancy. That’s a whole 33% more than what Matthew has to contribute over his 40 year working period i.e. Matthew contributes 15% over his working life while Jane must contribute 20% to essentially put them on an even keel going into retirement. The maths of this scenario is exacerbated if Jane decided she wanted to cease working entirely for a period, therefore ceasing pension contributions altogether. This is a simple scenario, excluding any tax considerations and revenue requirements, but it might not be that far from home for many working families. Personal considerations likely take priority when families make decisions in regards to care-giving and work-life balance, but the financial implications of any decision should be taken into account. Avoiding the situation of not having enough saved to meet your goals in retirement requires careful and timely planning. We recommend taking the first steps on this journey by discussing the balancing act between your finances and objectives with your financial advisor to devise a pre-retirement plan.

Figure 1: Making Things Even Pension contributions, as a percentage of current income, required to meet income needs in retirement.

15%

ADDITIONAL CONTRIBUTION REQUIRED TO OFFSET IMPACT OF OFF-RAMPING ON EARNINGS POTENTIAL (+3%)

10%

ADDITIONAL CONTRIBUTION REQUIRED TO OFFSET IMPACT OF REDUCED WORKING HOURS & SALARY (+1%) ADDITIONAL CONTRIBUTION REQUIRED FOR A LONGER LIFE EXPECTANCY (+1%)

5% PENSION CONTRIBUTION (15%)

0% MATTHEW

Source: Davy

PENSION CONTRIBUTIONS (% OF CURRENT INCOME)

20%

WARNING: This graph is for illustrative purposes only and does not take into account the personal circumstances of any individual. You should seek advice from your pension adviser.

JANE

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IRELAND’S ECONOMY STILL HELD BACK BY LOW FEMALE PARTICIPATION IN THE LABOUR FORCE

Conall Mac Coille Chief Economist, Davy

Conall Mac Coille is the Chief Economist at Davy. Prior to joining Davy, Conall worked in London for eight years at the Bank of England where he was a special economic adviser on monetary policy issues to former Monetary Policy Committee (MPC) members Danny Blanchflower and David Miles. He has published a number of papers on the risks that Brexit poses to both Ireland and the UK.

Ireland’s labour market has recovered rapidly in recent years. From a peak of 15% in early 2012 the unemployment rate has almost halved falling to 7.8% in May 2015. The recovery in the Irish economy also appears to have helped Irish women’s labour market prospects. The female unemployment rate has

also declined, to 6.5% in Q1 2015 the lowest level since 2008. Since the trough in early 2012 the level of female employment in the Irish economy has grown by 6.5% to just over 900,000 in Q1 2016, comprising 46% of total employment.

Figure 1: Irish female labour force participation

60 55

Source: Central Statistics Office

PERCENT

50 45 40 35 30

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

IRISH FEMALE LABOUR FORCE PARTICIPATION

000S

12 Femenomics Insight Booklet

450

400

350

300

250

200

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FEMENOMICS: INSIGHT ON WOMEN IN BUSINESS IN IRELAND | Ireland

PERCENT

60 Female participation in Ireland has fallen back partly reflecting emigration 55

Part of the explanation relates to Ireland’s economic recession. Net emigration of younger women, more likely to participate and remain in the labour force has hurt the aggregate participation rate. Over the past 5 years net emigration of females aged 15-24 has equalled 50,000 – pushing down on numbers in younger age groups. Had sufficient job opportunities existed this group would have remained in Ireland, taking up employment, and pushing up on the aggregate female participation. In 2015 the number of females aged 20-30 fell to 263,800 the lowest level since 1993 (see Figure 2).

Digging a little deeper reveals worrying trends in Irish female participation. Figure 150 shows that Ireland’s female participation rate rose consistently from 35% in the late 1990s 45 to almost 55% by 2007. However, since 2007 the participation rate has fallen back, to 53% in early 2016. So while female 40 unemployment rates may be falling, they do not reflect the many women who may be discouraged or unable to seek employment. 35 30

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

450

400

350

300

250

Source: Central Statistics Office

000S

Figure 2: Total Irish females aged 20-30 years old in Ireland

200

150

100

1950

1958

1966

1974

1982

1990

1998

2006

2014

TOTAL IRISH FEMALES AGED 20-30 YEARS OLD

Ireland’s female participation compares poorly with EU cost in % The 30 recent flattening off of Irish female participation rates cannot be entirely explained by the recession. Table 1 shows 25 Irish female participation compares relatively poorly compared with EU 20 countries. Ireland’s employment rate for women is well below the EU average at 62.8%. The only countries with lower female 15 12 to be in 12 employment rates than Ireland tend

10 8 9

10 5

3 3

10 10

7 8

10 11

5 5 4 4 5 4

Ko A re Hu ust a n ria Gr gar Sw eec y e e Ice den P lan Po oland rt d Es uga to l n Ge Sp ia rm ain De an nm y No ar k Be rwa Sl lgiu y ov m Cz Fr enia a ec OE h I nce CD Rep sra Av ub el er lic a J ge Lu F apa i xe nl n m a Sl ov A bo nd ak us ur g Ne Rep tral th ub ia Un erla lic it Ca nd Need S nad s w ta a Sw Zea tes Un itze land rl ite d Ire and Ki la ng nd do m La Bu tv Li lga ia th ri ua a Eu M nia a ro EU zo A lta ne ve Av rag er e ag e

10 10

southern and eastern European countries such as: Hungary, Poland, Greece, Romania, 29 Northern and Italy and Malta. In contrast, 29 Scandinavian countries such as Iceland, Sweden, Norway 25 and 24 Denmark all register employment rates in excess of 75% for 22 21 women aged 15-64. Similarly, the female 18rate in our nearest neighbour, employment 18 the 16United Kingdom, is 71.7% well ahead of 15 14 levels in Ireland. 13

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Table 1: Irish Female Employment and Participation Rates vs Europe

Country 50

Employment Rate, %

Participation Rate, %

Country

Employment Rate, %

Participation Rate, %

Iceland 45 Sweden

85.9

82.3

France

67.3

60.6

79.9

74.0

European Union

66.8

60.4

Switzerland 40 Norway

79.8

76.0

Czech Republic

66.5

62.4

76.1

73.0

Luxembourg

65.6

60.8

Denmark 35 Netherlands

75.3

70.4

Bulgaria

65.4

59.8

74.7

69.2

Slovakia

64.3

56.0

Finland 30 Germany

74.4

67.7

Belgium

63.0

58.0

73.1

69.9

Ireland

62.8

57.9

Estonia

73.0

68.5

Croatia

62.2

51.5

Latvia

72.8

66.4

Hungary

62.2

57.8

Lithuania 450 United Kingdom 400 Austria

72.5

66.5

Poland

61.4

56.6

71.7

68.0

Greece

59.9

42.5

70.9

67.1

Romania

56.7

53.2

Portugal 350

70.3

61.1

Italy

54.1

47.2

Cyprus 300 Spain 250 Slovenia

69.3

58.9

Malta

53.8

51.0

69.0

52.7

FYR Macedonia

52.0

38.8

67.9

61.0

Turkey

34.9

30.4

000S

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Source: Eurostat, Employment and Participation Rates for 15-64 age group

PERCENT

450 400 350 300 250

200

A 150range of factors may be hurting female participation

are amongst the most expensive in the Organisation for Economic Co-operation and Development (OECD). Clearly, Irelandâ&#x20AC;&#x2122;s relatively high fertility rate has not been accompanied by an efficient childcare system to help women remain in the labour 1982 1998 2006 2014 force. 1990

100course identifying the problem of low Of Irish female participation is far easier than 50 providing a solution. There are a range of factors that may have contributed to 1958 1966 1974 low 1950 female participation in Ireland. Chief among these are childcare costs â&#x20AC;&#x201C; which

150 100 50 0

Figure 3: Out-of-Pocket Childcare Costs for a couple family, % of average incomes cost in %

29 25

25 21

22 18

18 16 14 12 10 8 9

10 5

10 10

11 7 8

10 11

5 5 4 4 5

3 3 4

Ko A re Hu ust a n ria Gr gar Sw eec y e e Ice den Poland Po lan rt d Es uga to l n Ge Sp ia rm ain De an nm y No ar k Be rwa Sl lgiu y ov m Cz Fr enia a e OE ch I nce CD Rep sra Av ub el er lic a J ge Lu F apa xe inl n m a Sl ov A bo nd ak us ur g R Ne ep tral th ub ia e l rl ic Un it Ca and Need S nad s w ta a Sw Zea tes Un itze land rl ite d Ire and Ki la ng nd do m La Bu tv Li lga ia th ri ua a Eu M nia a ro EU zo A lta ne ve Av rag er e ag e

10 10

Source: OECD

EUR/GPB EUR/GBP PPP

OECD IRELAND

PERCENTAGE OF GDP

14 Femenomics Insight Booklet 0

Ireland

Belgium 14 103_7267_Davy Femenomics Information Booklet_VER03.indd

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1950

1958

1966

1974

1982

1990

cost in %

1998

2006

2014

25 Figure 3 illustrates that childcare costs

Ko A re Hu ust a n ria Gr gar Sw eec y e e Ice den Poland Po lan rt d Es uga to l n Ge Sp ia rm ain De an nm y No ar k Be rwa Sl lgiu y ov m Cz Fr enia a ec OE h I nce CD Rep sra u Av b el er lic a J ge Lu F apa xe inl n m a Sl ov A bo nd ak us ur g Ne Rep tral th ub ia Un erla lic it Ca nd Need S nad s w ta a Sw Zea tes Un itze land rl ite d Ire and Ki la ng nd do m La Bu tv Li lga ia th ri ua a Eu M nia a ro EU zo A lta ne ve Av rag er e ag e

are universal,25rather 24 than targeted at low in Ireland are amongst the highest in the income households, or lone parents, where 22 21 OECD at 24% of net income. This measure is childcare costs are more likely to provide a 20 18 to labour force participation. 18 the net cost for a couple both with average disincentive 16 earnings after accounting for childcare 15 15 benefits and tax rebates. The burden on 13 14 At the same time, recent International 12 11 lone parents is even heavier at 42% of net12 Monetary Fund (IMF) and European 10 10 10 11 10 10is10 9 income, the largest in the OECD. This Commission (EC) analysis has pointed 9 10 8 7 8 are being clearly an impediment for women seeking to the risk that ‘poverty traps’ 5 5had work having created by Ireland’s social benefit system. 5 4children. 4 5 3 3 4 This reflects Ireland’s highly progressive 2 However, the lack of childcare provision income tax-benefit system that works 0 0 does not appear to reflect a lack of public exceptionally hard to redistribute income spending. A recent UK Office for Budgetary from high to low income households. The Responsibility study found Ireland spent potential downside is that low income 8.3% of Gross Domestic Product (GDP) household’s face financial disincentives to on working age benefit payments more taking up employment through the loss of than any other OECD country (see Figure benefit payments – potentially holding back 4). That said, many of these payments female participation. Figure 4: Working Age Benefit Payments PERCENTAGE OF GDP 0

Source: UK Office for Budgetary Responsibility

Ireland Belgium Denmark Spain Finland Netherlands Luxembourg Iceland Norway New Zealand UK Austria Hungary Australia Slovenia France Canada Sweden OECD Estonia Slovak Rep. Portugal Switzerland Israel Germany Czech Rep. Poland Italy Greece US Japan Chile Korea Mexico Turkey

OECD IRELAND UK

Low female participation could hurt Ireland’s recovery in the long-run. At 7.8% in May, Ireland’s unemployment rate remains well above the pre-recession rates. However, with the economy recovering rapidly a sub 7% rate now looks likely before the end of 2016. In this context, labour shortages will eventually start to emerge, already evident in some key sectors such as IT. In recent years attention has largely focused on the efficacy of government training and other programmes to help encourage the long-term unemployed back

into employment. Specifically, the high numbers of ex-construction workers that are still on the Live Register. However, there has been less attention on policies to encourage female participation in the labour force. This poses difficult questions on the nature of Ireland’s taxbenefit system, but also on broader issues such as the lack of housing which may be preventing past cohorts of emigrants from returning to Ireland. Femenomics Insight Booklet 15

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Davy. Since 1926. The Davy Group is Ireland’s leading provider of wealth management, asset management, capital markets and financial advisory services. We work with private clients, small businesses, corporations and institutional investors.

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This information is summary in nature and relies heavily on estimated data prepared by Davy as well as other data made available by third parties and used by Davy in preparing these estimates. There can be no assurance that the entities referred to in the document will be able to implement their current or future business plans, or retain key management personnel, or that any potential investment or exit opportunities or other transactions described will be available or consummated. Statements, expected performance and other assumptions are based on current expectations, estimates, projections, opinions and/or beliefs of Davy at the time of publishing. These assumptions and statements may or may not prove to be correct. Actual events and results may differ from those statements, expectations and assumptions. Estimates, projections, opinions or beliefs are not a reliable guide to future performance. 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Accordingly, actual realised returns may differ materially from any estimates, projections, opinions or beliefs expressed herein. Economic data, market data and other statements regarding the financial and operating information that are contained in this Update, have been obtained from published sources or prepared by third parties or from the partners, developers, operators and sponsors involved with the properties and entities comprising the Investment. While such sources are believed to be reliable, Davy shall have no liability, contingent or otherwise, to the user or to third parties, for the quality, accuracy, timeliness, continued availability or completeness of same, or for any special, indirect, incidental or consequential damages which may be experienced because of the use of the data or statements made available herein. As a general matter, information set forth herein has not been updated through the date hereof and is subject to change without notice. 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The maximum liability of Davy collectively with each and all Davy Related Parties for any and all claims in aggregate shall not in any circumstances exceed the higher of (i) four times the amount of the fees actually paid by you to Davy in the 12-month period prior to the event(s) giving rise to the claim or (ii) the amount of €50,000.00 (fifty thousand euro) whichever is the higher. Davy and each Indemnified Party shall have no liability or obligation for any direct or indirect consequential loss after the first anniversary following investment. J&E Davy, trading as Davy, is regulated by the Central Bank of Ireland. Davy is a member of the Irish Stock Exchange, the London Stock Exchange and Euronext. In the UK, Davy is authorised by the Central Bank of Ireland and authorised and subject to limited regulation by the Financial Conduct Authority. 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16 Femenomics Insight Booklet

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