How Southeast Asia’s Workplaces Win by Welcoming Women

Authored by:

• Stefanie Khaw , Partner, Boston Consulting Group
• Pei Hsia Ang , Project Leader, Boston Consulting Group

Across Southeast Asia, women’s participation in the workforce is high, yet their advancement into leadership roles remains relatively low. Employment rates for women vary widely across the region from 95% in the Philippines to 40% in Indonesia. Despite this, women account for only 4% of Chief Executive Officer (CEO), 10% of Chief Finance Officer (CFO), and 5% of board chairmanship positions in Asia Pacific’s publicly traded companies.

This gap not only suggests a missed opportunity to capitalize on female talent, but also highlights the potential to optimize corporate profitability. Studies have shown that there is a correlation between gender diversity and corporate profits. A study by The Credit Suisse Research Institute that examined the impact of gender diversity on corporate performance across 3,000 companies worldwide found that companies with more women in decision-making roles generate higher returns on equity and higher valuations.

Considering the above, how do we effectively support women at work to turbocharge corporate success?

Research by the Pew Research Center indicates that in Asia, societal norms disproportionately burden women with domestic responsibilities, hindering their labor force participation and career growth. This challenge then exacerbates the difficulty in balancing work and family. ?????

The lack of flexible working options and sufficient employer support not only complicates the balance of work and family life, but also stifles the career progression of high-performing women with potential for leadership roles. This situation leads to a “motherhood penalty,” as described by the International Labour Office (ILO), which often results in employment gaps, part-time working, and ultimately lower lifetime earnings for women.

Crafting support for every woman’s career journey

Recognizing the distinct challenges and requirements of the female workforce is crucial for devising supportive and inclusive workplace policies. Four primary archetypes emerge as particularly significant. We describe these in a bit of detail not because they are a universal remedy, nor a wish-list of demands, but more to underscore the necessity for tailored programs to address obstacles that disproportionately affect women.

Corporate Mothers: This group includes women balancing demanding leadership roles with traditional family roles. They face gender-specific challenges in the workplace, such as glass ceiling barriers and societal expectations of motherhood. Leadership development programs and equitable maternity and paternity leave policies are essential to support their career continuity and leadership ascent.

Single Mothers: These professionals struggle with balancing the demands of their careers and single-handedly managing parenting responsibilities. Flexible work arrangements, subsidized childcare, emergency childcare services, and financial support mechanisms are vital to help this group maintain work-life balance.?

Pre-Motherhood Professionals: Women in this category are planning to start families and are concerned about the potential impact on their career trajectories. Comprehensive health benefits that include fertility support, flexible medical leave, and a workplace environment that respects and facilitates diverse family planning paths are essential for these women.

Workplace Re-Entrants: This group covers a broad spectrum, including those re-entering the workforce after maternity leave, caregivers taking a break for family health reasons, or professionals returning after an extended break to raise children. These women may face the challenge of having to update their professional skills and re-integrating into a workplace that has evolved during their absence. Structured return-to-work programs, skills training, mentorship, and comprehensive support systems are key to easing their transition and helping them re-establish a professional identity.

Leading the way in supporting Southeast Asian women at work?

Recognizing the unique challenges of these archetypes, then addressing them through customized support would go a long way in empowering women across different segments of the workforce. Corporations in the West have historically led the way here. But we are starting to see Southeast Asian companies beginning to implement more advanced schemes to retain female talent.

A very simple but meaningful example would be the on-site pre-school services provided by PETRONAS and Bank Negara Malaysia to support employees with young children. Another example is Boston Consulting Group (BCG) in Southeast Asia, which offers an extended maternity leave of 26 weeks and paternity leave of 8 weeks, surpassing what other employers in the market typically offer. Initiatives like these can enable companies to gain further recognition for their dedication to employee well-being, which could result in substantial social returns such as improved brand loyalty and stronger market positioning.

BCG’s recent report, ‘Childcare Benefits More Than Pay for Themselves at US Companies ’ (based on research carried out in collaboration with non-profit organization Moms First), highlights the advantages of being first-movers in introducing market-leading benefits for female talent. While the initial implementation may seem daunting due to cost concerns and the perceived return on investment (ROI), the long-term benefits are undeniable.

Up to 86% of working parents surveyed report increased loyalty to employers offering childcare benefits, while 78% of respondents acknowledge that the resulting peace of mind had given their careers a boost. These benefits allow employees to say: “I know my company cares about me,” and can lead to a positive return on investment (ROI), ranging up to 425%. More importantly, retaining even a small fraction of working parents, in some cases as low as 1% of eligible employees, can cover the costs of these benefits, proving the value of such investments in today’s competitive market.

Engineering Success: The Strategic Imperative of Gender Inclusivity in the Workplace?

Championing gender equality in the workplace transcends moral duty—it’s a strategic edge. As Southeast Asian companies ramp up their commitment to inclusive policies, the benefits are undeniable: stronger retention of female talent, superior corporate performance, and a sharper competitive edge. Embracing these initiatives is not about setting right past wrongs—it's about unleashing the full spectrum of human potential. By forging robust support systems for women at every career phase, businesses are engineering their own success. Investing in gender inclusivity is less an act of charity and more a masterstroke of business acumen.

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Special thanks:

The authors would like to thank Sarah Tay (SEA Team Coach and Senior Manager, Human Resources, Boston Consulting Group) for contributing her insights to this article.