Challenges in Diversity - Quotas for Women

Quotas for Women:

Quotas for Women Challenges in Management of Diversity Team members: Joanne Kok, Kavish Mahadew, Esmee Overman, Blair Reeves, Mark Roest

Companies Are Recognizing the Value of Gender Diversity:

Companies Are Recognizing the Value of Gender Diversity IBM, Pfizer, Exxon, Microsoft – almost every major corporation has publicly available diversity strategies in place From IBM’s policy: “(..)valuing a culture of diversity and inclusiveness is essential to how we attract and retain the best talent. In today's competitive global marketplace, we can't stand idle if we want our business to grow.“

Government Interest in Promoting Diversity:

Government Interest in Promoting Diversity Following Norwegian model, several countries have begun exploring the option of mandating minimum quotas of women on corporate boards http://www.youtube.com/watch?v=B3BiU5Ios3U (until 0:43)

Aims of Our Research:

Aims of Our Research How do prospective applicants to major firms perceive quotas for women? Are applicants, especially women, more likely to apply to companies that offer quotas for women? How do prospective applicants perceive the number of women in high corporate leadership positions?

Widespread Agreement About Value of Diversity:

Widespread Agreement About Value of Diversity Access to diverse perspectives is valuable for a diverse marketplace and globalized economy http://www.youtube.com/watch?v=hdOcjKsUqOI (00:52 – 01:03)

Objections to Quotas for Women:

Objections to Quotas for Women Quotas are unrealistic because many women will simply prefer to work part-time Companies will hire token female candidates simply to fill the quota, instead of addressing the underlying issue Can sow doubts for successful female applicants about whether they are hired on merit or because of their gender

Potential Advantages:

Potential Advantages A quota for women can force change in particularly conservative firms or networks Some women cannot overcome cultural barriers to female participation, and thus need mandated change Putting women into board seats can create role models Counters discrimination within the company

Potential Disadvantages:

Potential Disadvantages Undermines merit-based selection process Quota could be seen as a requirement to be met, and thus a cap, not a minimum Threatens women’s confidence and respect within the workplace

Survey Findings:

Survey Findings Respondents: 94 (mostly RSM students) Percent Male/Female: 56%/44% Average Age: 22 Number working for a firm with a quota for women: 2 Lack of respondents in such firms made two questions irrelevant

Survey Findings (Cont.):

Survey Findings (Cont.) Attitudes towards companies that used a quota for women were noticeably negative Respondents were 33% more likely to report that working for a firm with a quota would make them feel they “had been hired more because of [their] gender than for [their] skills.” Respondents were 17% more likely to report that they were “unlikely” to “apply to work at a firm that had a quota for the number of women.” Difference was gender-neutral.

Survey Findings (Cont.):

Survey Findings (Cont.) Respondents who reported that their goal was to “Make it to the top management of my firm/organization” were 42% less likely to apply to a firm that used a quota for women Respondents whose goal was not to get to top management, were still 38% less likely to apply to such a firm Results hold even while controlling for gender!

Survey Findings (Cont.):

Survey Findings (Cont.) Even respondents who disagreed that “There are enough women in the top management of my firm” were split 50/50 on likelihood to apply to a firm that used a quota Respondents who believed that their firm had enough women in top management were 45% less likely to apply to such a firm

Survey Findings (Cont.):

Survey Findings (Cont.) Men were 50% more likely to report that their goal was to reach top management in their firm/organization than not Women were 250% less likely to report a goal of reaching top management Men were 8 times (800%) more likely to agree that there were enough women in top management at their firm Women were 27% more likely to report that there were enough

Conclusions:

Conclusions Survey found an ambivalent attitude towards quotas for women Showed marked differences in attitudes towards careers between men and women, and in perceptions of women in top management Both groups appear unconvinced of the need for quotas for women and find them a mild deterrent

Potential Alternatives:

Potential Alternatives Ideas for the future http://www.youtube.com/watch?v=ktCKEPZLMEU&feature=related (3:02 – 3:24)