Breaking the boardroom bias: a case for women in leadership

Singapore

SINGAPORE made headlines last month after posting the highest percentage of companies with women as chief executive officers (CEOs), according to a global Deloitte study. The record breaking number? 13.1 per cent. While the progress is worth appreciating, we still have a long way to go.

Despite topping the list in the CEO category, Singapore placed 28th out of 51 ranked countries in terms of percentage of board seats held by women with 17.6 per cent. The city-state also ranks lower than some of its South-east Asian neighbours, namely Malaysia (24 per cent) and the Philippines (17.7 per cent), which ranked 18th and 27th respectively. The top spot was held by France with 43.2 per cent.

Globally, women represent 19.7 per cent of board seats and just 6.7 per cent of board chairs. Meanwhile, only 5 per cent of the 10,493 companies polled have female CEOs.

The study, however, had varying sample sizes for each country. For Singapore, it looked at the top 100 listed companies.

"If this rate of change were to continue, the world could expect to reach near-parity in 2045 or, over 20 years from now," said Seah Gek Choo, leader of Deloitte Southeast Asia's Centre for Corporate Governance.

In Singapore, this large disparity in leadership comes despite relatively equal education and starting points in the workforce.

Some 32 years ago, the ratio of girls enrolled in tertiary education to that of boys in Singapore was 0.77. This number has risen to 1.13 by 2019. This means that in 2019, for every 100 boys enrolled in tertiary education, there were 113 girls.

Further, the Ministry of Manpower's 2020 Labour Force report noted the labour participation rates for men and women aged 25-29 were 82.1 per cent and 86.3 per cent respectively.

With seemingly level starting points, why are there significantly less women in leadership positions?

The glass ceiling

"In Asia Pacific, we typically see gender diversity being 50/50 in the first few years, dropping steadily as we approach more senior positions. This, of course, varies between industries, companies, and functions, but as an overall pattern it does tend to play out," said Ang Wan May, managing partner for Singapore at global leadership advisory firm Egon Zehnder.

The data comes from a 2021 survey on top-tier banks and selected asset managers across 13 markets in Asia by Egon Zehnder and the Asia Securities Industry & Financial Markets Association (ASIFMA).

According to Ang, women are more vulnerable to "dropping off" from the corporate ladder when they have young kids, because they often still take on the bulk of household and caregiving responsibilities.

When it comes to joining a board, Seah added that women can face several "unique barriers", including tokenism and stereotyping, unconscious bias in the board's recruitment process, lack of sponsorship and a general non-inclusive mindset.

"Lack of visibility could also be an issue due to lesser networking opportunities, as women fulfil their other roles outside of their work and career," she said.

Ang added that there might be fewer women who aspire towards top leadership positions because there have been insufficient role models.

"Our idea of what a CEO looks like is inevitably shaped by the people who have been there before. And there have been more males than females there before."

Ang noted that in earlier stages of her career, it was important for her to redefine what leadership looks like in order to see herself in the role.

After over 10 years as a consultant for top leaders, she also saw many women go through "identity shifts" before projecting themselves as leaders and seeing the benefits they can bring to the table.

But do women actually add value to a company?

Returns and rapport

Companies with higher proportions of female leadership have posted higher returns on assets (ROA), according to a 2021 study on Singapore's listed companies by the National University of Singapore's Centre for Governance and Sustainability (NUS CGS).

As at June 2021, just 13.2 per cent of such listed companies' board members were women, based on data from the Council of Board Diversity. Meanwhile, almost half of the 577 companies have all-male boards.

The finding, however, does not mean that company boards should just be made up of women, said Lawrence Loh, director of NUS CGS.

He also examined the relationship between gender parity in company boards with financial performance, and found that the closer that ratio is to one (meaning there is an equal number of women to men), the higher a company's ROA.

"The result makes sense. It points towards the fact that men and women are equal. And why is it that we are equal in population, but so far from that when it comes to company diversity?" Loh added.

Beyond the bottom line, having female leaders could also create safer working environments.

Shailey Hingorani, head of research and advocacy at the Association of Women for Action and Research (Aware) Singapore, noted studies which show that female managers tend to be less tolerant of sexual harassment and other discriminatory behaviours, and respond more positively to such complaints.

Conversely, workplaces in which male employees significantly outnumber female employees tend to be associated with increased harassment, she added.

"Women who are harassed tend to leave male-dominated industries, rendering those industries even more heavily male in a vicious cycle," Hingorani said.

The presence of female leaders might also encourage victims to speak out more than they might have otherwise, for example if they prefer to confide in a manager of the same sex.

That said, Hingorani noted that female leaders have also been known to turn a blind eye or even perpetuate harassing behaviours, and emphasised that companies should build comprehensive and accessible policies around harassment and discrimination, regardless of the gender of their leaders.

Forward in heels

Supporting women in leadership positions can take many forms. For example, Aware recommended that Singapore implements temporary and progressive gender quota on boards of publicly listed companies.

Hingorani said: "Everyone should be free to pursue their ambitions and earn their livelihoods with the same ease, no matter their gender. With that goal in mind, we should remember that seeing women in high-profile leadership positions, especially in male-dominated fields, signals to other women and girls that they too can achieve similar professional positions."

Seah added: "While setting quotas can help move the needle, it is important to avoid the practice of tokenism. The boards' recruitment process should be a robust one, even if it is to fulfil a quota. All candidates should be assessed equally - for their relevance, scope of experience and authentic voice."

Meanwhile, Ang and Loh highlighted that positive discrimination comes with its own risks, such as tokenism or breeding unhappiness in other groups.

Instead, Ang suggested that companies provide more flexibility to its workers. This would benefit many parents or caregivers who are tied to their responsibilities.

She noted that businesses should focus on the value a person adds, rather than the way they contribute.

"For example, many women will need to take care of their kids going to bed. So they can't do work in the time between 6pm and 8pm. It's tough, but it doesn't necessarily mean she won't start working again at 9," she said.

Companies looking to expand their diversity and inclusion (D&I) efforts should also open up conversations with their workers to better understand their needs, Ang added.

On a more personal level, Helen Wong - who became the first woman to head a Singapore bank after she was appointed as OCBC's chief executive officer last year - advised aspiring talents to upskill themselves in terms of competency, character and values.

"Women tend to overthink the role and its requirements. Women should be more confident in their abilities and take up opportunities as they come along," she said.

Wong also suggested women seek out mentors who can provide guidance or even open up opportunities for collaboration.

Ang added: "Don't sit around and wait for the external environment to change. Go look for mentors that inspire you and give you new insight."

Diversity beyond gender

While gender diversity is often the first step in a business' D&I agenda, Ang emphasised that D&I encompasses much more than just that. Other groups which have seen less progress in company inclusivity include LGBTQ+ communities, ethnic minorities, religious minorities and the disabled workforce.

Age and educational diversity could also benefit a company, according to Loh's research. He found a negative correlation between the proportion of board members aged 60 or above and financial performance.

Loh said: "Age and tenure are quite well correlated. Sometimes women or younger talent cannot get into a board because a lot of directors are hogging the seats. When you stay too long, you become part of the furniture. You become too familiar with how things are and there is no fresh perspective."

Companies with boards made up of a good mix of postgraduates, graduates, diploma and certificate holders also saw higher ROAs than those with little educational diversity.

"Diversity provides a range of perspectives, experiences, and ideas, which means more robust discussions and superior outcomes," Loh noted.

"A diverse board that is sensitive to cultural differences has a stronger capacity to attract and retain talented board members and be in touch with community needs," Seah added.

Leadership diversity also allows more people to excel, according to Ang. "I think society loses when we don't fulfil our potential," she said.

Gender parity in education

Your next ride's on us.

To all the women who have led the way, Happy International Women's Day.

• For a limited time only, purchase a Business Times subscription and receive up to $80 worth of Grab Ride vouchers. Find out more at btsub.sg/btgrab