New Deloitte Report: Governments Crack Glass Ceiling More Effectively Than Pricate Sector

March 5, 2010—Governments have been more successful at advancing women than the private sector, according to the new Deloitte Touche Tohmatsu report, “Paths to power: Advancing women in government,” launched in advance of International Women’s Day on March 8. Globally, women are increasingly being elected and appointed to positions of power within the public sector -- such as heads of state, ministers and cabinet members, and legislators--more so than in the private sector.

Research shows that almost 10 percent of the members of the United Nations have female heads of state, compared to the 3 percent of the top 1000 multinational companies that have a woman president or CEO.[1] Furthermore, women comprise nearly 20 percent of parliamentary seats worldwide, compared with 13.5 percent of women executive officers of the top 500 U.S. companies.[2]

“ The report showed  that the Middle East holds some surprises with respect to the views of women and men alike regarding women participation in government. These findings suggest a building support for equality in government”, said Rana Ghandour Salhab, regional talent and communications partner at Deloitte in the Middle East.

The report includes personal insights from women who have achieved success in the public sector including those of the minister of tourism and antiquities in Jordan, her Excellency Maha Khatib who said in the report: “Having women in high levels of government is important, but what’s more important is having women who can make a difference.”

“Talent and knowledge are the most important resources a nation can possess,” said Greg Pellegrino, Deloitte Touche Tohmatsu, Global Public Sector Industry Leader, and one of the authors of the report.  “Women’s progress has vital implications for the health and growth of governments, companies, and nations. Therefore, it is crucial that governments and companies work together to harness and cultivate global female talent, to help create positive change and ensure continued growth and success."

Additional key findings of the report: 

• Progress with respect to women’s participation in the public sector serves as a model for the private sector

Countries that have women in government leadership positions have an increased number of issues affecting women on the legislative agenda, often resulting in positive societal and economic developments. For example, after ten women won parliamentary seats in Kenya, legislation relating to women’s issues, such as combating domestic violence, was passed into law.[3]

Likewise, research has shown companies with women in leadership positions perform better and achieve more economic rewards than those without women representation. The top 500 multinational firms, which had at least three women on their boards, saw a 16.7 percent return on equity, while average companies just saw an 11.5 percent return.[4]

• Women in leadership begets more women in leadership

Evidence suggests that as female representation in government increases, their shared interests emerge, bringing about increased attention of issues affecting women.[5] It also paves the way for more women to move up the ranks, as their predecessors break down many of the cultural and institutional biases still in existence.

• Cultural and organizational change accelerates the retention and advancement of women

As the world grows ever more interconnected, talent is becoming increasingly mobile. With the exception of North America, regions throughout the world are experiencing a “brain drain,” in which educated women are emigrating at alarming rates in search of advancement opportunities. For example, in Africa alone, 27.7 percent of females with tertiary education emigrate—10 percent more than men.[6] An organization-wide culture shift is required to nurture an environment that is friendly to women and encourages their advancement.

• Women are a critical national resource for economic growth

Women’s progress has vital implications for the health and growth of governments, companies, and nations. Both the private and public sectors must continue to nurture and advance diverse talent—including high-potential women-- in order to stay competitive and grow.

“While women have used individual strategies to achieve their ambitions, accelerating the advancement of women into positions of leadership in the government will require new organizational strategies led by those in senior positions, ” said Anne Weisberg, Director, Talent, Deloitte Services LP in the United States, and one of the authors of the report. “Among others steps, it will require organizations to establish metrics and accountability measures, focus on career development for women and promote work life integration.”

To learn more about this evolution in government, and personal insights from women who have achieved success in the public sector, read the full report on Deloitte.com.

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