Closing the 'Gender Gap' Just Makes Sense
I’m in Davos, Switzerland, this week to take part in the World Economic Forum Annual Meeting as Chairman and CEO of the Renault-Nissan Alliance, which is a partner with the Forum's Gender Parity Program. It’s an appropriate time to take a look at where business, society and my own companies are in addressing the gender gap.
At last year’s World Economic Forum, Japanese Prime Minister Shinzo reiterated his commitment to reinvigorate his nation’s economy, in part by increasing the number of women in the workforce.
Ever since, he has been criticized for his ambitious "Womenomics" program. Admittedly, I was among the first executives to express some skepticism. The administration wants women to hold 30 percent of corporate leadership positions by 2020 – an audacious timetable by nearly any global standard.
But make no mistake: Abe's initiative is a significant, badly needed step in the right direction – and I applaud the intention of his aggressive targets.
The boldness of his plan also represents a shrewd communication tactic: If he had asked for moderate "kaizen" improvements of 1.5 percent, or even 10 percent, would Womenomics still occupy front-page headlines and be the subject of global debate? I doubt it.
Japan has seen incremental increases in female participation in the workforce – particularly in the past several quarters. In fact, you might be surprised to know the percentage of Japanese women who work is now slightly higher than the percentage of French or American working women. Japan's historic division of labor – the stereotypical "salary man" vs. the stay-at-home mother – died years ago.
But few of Japan's working women are in leadership roles, and the pay gap is one of the largest in the industrial world. This is precisely what Abe wants to change, with a bill that would require all companies with more than 300 employees to set numerical targets for women in management.
You might be surprised to know the percentage of Japanese women who work is now slightly higher than the percentage of French or American working women.
The Renault-Nissan Alliance has a lot of experience in this area. We are one of the few companies that publish annual updates on female advancement so that employees – and potential recruits – can track our progress.
Last quarter, we announced that women accounted for 10.6 percent of Nissan's manager-level positions globally in fiscal year 2013, up from 10.3 percent in fiscal 2012. In Japan, women at Nissan accounted for 7.1 percent of such positions, up from 6.8 percent in the previous year – more than quadruple from 2004.
Nissan aims to raise that figure to 10 percent by 2017, in line with its ratio globally.
To hit our goal, we have created professional development and mentoring programs for women. We have implemented a work-from-home initiative and expanded our employee childcare facilities. Nissan now operates one of Japan’s largest corporate daycare facilities, at our technical center in Atsugi.
Nissan has become an industry benchmark in its home market; our percentage of women managers is more than double Japan's national average for large manufacturers. The Tokyo Stock Exchange has recognized Nissan as a "Nadeshiko Brand" for the past two years for our support and promotion of women. And that recognition has an immediate payoff in our ability to recruit the best and brightest female graduates from top universities.
While we have made a special effort to increase the percentage of women in managerial roles in Japan, our diversity efforts are global.
At Nissan's partner company Renault, women accounted for 18.4 percent of manager-level positions globally in 2013, up from 17 percent in the previous year. Women also accounted for 22 percent of the company's 2,000 key global positions in 2014, up from 19.3 percent 2013 and 17 percent in 2012.
These numbers are better than those of the auto industry as a whole – but they are not enough. We are still far from closing the gender gap, which remains one of my top priorities.
Hiring and promoting women is good for business and good for the global economy.
Hiring and promoting talented women is the right thing to do for business and society. In Japan, it's an economic imperative. According to the Cabinet Office, Japan's population will decline at least 30 percent through 2060 – from 127 million people in 2013 to 87 million in less than half a century.
Closing the gender gap is also the right thing to do for our customers: Women are considered "influencers" in 80 percent of all new-car purchases, according to consulting firm Frost & Sullivan. That means they either buy the vehicle outright or have "veto power" on a man's purchase in four out of five new-car purchases globally.
To increase its appeal to women, Nissan last year launched its "Ladies First" retail program. At Ladies First dealerships, we employ double or triple the usual number of women in staff positions. Our Fuchu flagship store features stylish interiors, a nursing room and a spacious area where children can play. It is aimed at making the shopping experience more welcoming to women and first-time buyers. Nissan will roll out 300 of these dealerships across Japan by the end of fiscal 2015.
In France, we are integrating women at the engineering and design level. For the first time in the Alliance, we created a product team for the new Renault Captur that was evenly split between men and women. Half of the team members dedicated to the crossover's engineering, design, marketing and sales were women, the highest for any Renault car. I think it’s no coincidence that Captur is Europe's most popular compact crossover.
Hiring and promoting women is good for business and good for the global economy. Companies with at least one woman on the board have a higher return on equity than those without women, according to a recent Credit Suisse report.
We encourage the Abe administration to stick to its aggressive targets and provide transparent updates about its progress. We look forward to the time when Renault-Nissan – and Japan – have fully closed the gender gap.
Strategic franchise lead - vaccine industry
10 年I was surprised to learn that proportionally more Japanese women are employed than French women. The gap appears more in the seniority of the position that Japanese women occupy. Good luck to Renault-Nissan in their attempt to bridge that gap.
BIRD CEO - CONFERENCE CONSULTANT (BIRD IS A UNITED NATIONS REPRESENTATIVE WITH A SPECIAL CONSULTATIVE STATUS)
10 年Definitively, but it is not easy.
Technical Manager at Nalco Water, An Ecolab Company
10 年I was just searching (and researching) why should a company or even a small team try to attain a healthy male-female ratio. The one point in this article about greater return on equity when there is at least one female member on board caught my eye. Thank you. I would highly appreciate if any other reader of this comment mentions points in favor of healthy male-female ratio.
Join in the making of “The Journey of Global Community Building/Philanthropy “
10 年First of all there never should have been a gap and there is no second thought but to close this gap ASAP in the 21st century. Humans should be treated and remunerated equally It has to be mandatory across the globe. Lets make this mandatory across the globe in 2015. This way no more discussion but the issue is resolved. There is nothing to plan nor to think. It is an action that needs to be taken and executed all across the globe. It will also help increase global economy
Senior Associate Director -Jacobs , Professor-University of Wolverhampton, School of Architecture and Built Environment.
10 年I think this topic is thought provoking and reflects on the global history of the emancipation of women and how cultures have embraced it. I fully support the equalization of the female / males at the highest levels and within the workforce although also advocate the right person for the right job. To change at such a pace suggests that positive discrimination must form a part of the agenda. Support to change attitudes of those in the workforce and nurture this diversity through education and mentoring must be key for 'today', both to those who are managing and those who aspire for progression. For 'tomorrow' we must ensure our children are taught through our education systems, and by us as parents, to break the stereotypical views of a female progression and roles in the workplace or home. Whether female orientated salerooms send out the right message, I question, why not an equal of male / female assistance offering choice within the showroom environment? I fully agree the female designer leading or within the team as why should the male design their idea of 'what fits'. Being in the civil engineering world the growth and attraction to this industry of women has, and continues, to challenge and will look widely for how we can best achieve more in the future.