South Africa leads the pack but more momentum is required

At the start of August, which is designated as Women’s Month in South Africa - as we celebrate the anniversary of the great Women's March of 1956, when women marched to the Union Buildings in protest against the carrying of pass books - it is appropriate to take stock of the status of women in our society. An assessment by a leading recruitment group finds that we are leading the pack internationally, but that parity with men is still some way off.

According to Sandra Burmeister, chief executive officer of the Landelahni Regruitment Group, South Africa leads the United States and the United Kingdom with regard to gender equity, but the slow pace of change means it could take 20 to 40 years for women to reach parity with men as directors on corporate boards and in executive management.

“While South Africa may be progressing faster than other countries, the actual numbers of women directors and executives remain small, and the rate of change is miniscule. Overall, global indicators do not reflect well on corporate progress toward gender equity,” she said.

The recent Businesswomen’s Association (BWA) Women in Leadership Census indicates that, between 2008 and 2009, the number of female directors of JSE-listed companies increased from 14.6% to 16.6%. South Africa has overtaken the US Fortune 500 at 15.2% female directors and the Canada FP500 at 13%. Trailing behind is the UK FTSE 100 at 12.2% and the Australia ASX at 8.3%.

In 2009, black women held 10.3% of all director positions on the JSE, occupying 62.3% of female board directorships in comparison to white women at 37.3%.

“South Africa’s legislative framework in regard to black economic empowerment and the advancement of women has had a significant impact in influencing corporates to be more gender and equity sensitive. However, a lot of work remains to be done if we are to tap the skills of our diverse workforce. Unfortunately, the number of women chairs of JSE boards has actually decreased over the past year from 4.6% to 4.1%, representing a mere 13 women," Burmeister said.

“The good news is that companies with no female directors dropped from 33.4% to 21.5% in one year. This compares with the Fortune 500 where companies with no female directors decreased slightly to 12.3%, with the FTSE100 lagging at 25%.”

South African companies with two female directors come in at 18.8%, while those with three or more female directors almost doubled from 17.1% to 35.5% between 2008 and 2009 – at least partly due to increased reporting on subsidiaries of JSE-listed companies. Some 56% of Fortune 500 companies have multiple female directors, while FTSE100 companies with multiple female directors stand at 37%, up from 13% 10 years ago.

“Overall, it’s clear that South African companies are becoming more responsive to gender issues. While there is understandable reluctance to move to a quota system, there is no doubt that the legislative framework and procurement policies are playing a positive role,” Burmeister said.

The sector with the highest number of female directors is technology at 25.3%, followed by healthcare at 17.6%, oil and gas at 15.7%, financial services at 15.3%, and basic materials at 15.2%.

“This shows an encouraging dismantling of some of the stereotypes that hold that women are unsuited to playing a role in technology and resource sectors,” she added.

South Africa continues to have the highest number of women executive managers at 19.3%, compared to its international counterparts, with Canada at 16.9% and the US at 13.5%.

“While this represents a good pipeline for future board members, the BWA census indicates that – at the current rate of progress – it will take until 2031 for women to make up 50% of board composition, and until 2051 for executive management to reach parity with men," said Burmeister.

“There is a compelling business case that having more women in leadership positions improves corporate performance. There is a correlation between business success and diversity of leadership.

"If South Africa is to move beyond the recession and achieve its economic potential, we will need to see an accelerated rate of change that goes far beyond the current efforts,” she added.