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Lessons from the world's most gender-equal countries

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Author: 
Zalis, Shelley
Format: 
Article
Publication Date: 
28 Oct 2018
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At every stage of life, we have different needs. If we want to attract and retain women in the messy middle, we should adjust for the different life stage needs. This is key for getting closer to equality in the workplace, since women continue to shoulder the bulk of the caregiving responsibilities and we’re losing our best talent to caregiving.

We know that gender equality isn’t just a social issue; it’s a business imperative. There is plenty of research showing the business case for equality, such as gender-diverse teams are more profitable and innovative; organizations that embrace female-specific issues have higher employee satisfaction and less staff turnover and companies that elevate women are more effective in all dimensions.

In an effort to help both men and women better succeed in the workplace, the Nordic countries (Norway, Sweden, Finland, Denmark and Iceland) have long been rewriting the rules of work by adopting more family-friendly policies, such as subsidized child care and paid parental leave for both mothers and fathers, as well it being common for companies to offer flexible schedules, work-from-home days and alternative working hours.

How has rewriting the rules of work paid off in terms of making equality a reality? The Nordic countries frequently top the list of the 144 countries in the World Economic Forum’s annual Global Gender Gap Report (with Iceland, Norway, Finland and Sweden making the top five). They have some of the highest workforce participation rates for women in the world. The economy has benefited too: Having more women employed has boosted the GDP per capita by 10 to 20% over the past 40 to 50 years, according to an OECD report.

While the Nordic countries each have a combination of  family-friendly policies that leads to their overall success in helping to level the playing field for women at work, below is a snapshot of a specific policy from each of the Nordic countries that is a step in the right direction.

The Country: Iceland

The Global Gender Gap Report Ranking: #1

The Policy: Fines for companies with gender wage gaps

When it comes to dual income earners, men’s careers will take precedence over women’s careers if men continue to be paid more than women. Iceland has become the first country in the world to make the gender pay gap illegal, with a new law requiring companies with 25 or more employees to prove that they pay men and women equal for equal work.

The Payoff:  In general, the average American woman makes about 80 cents for every dollar the average man makes—with the wage gap widening for women of color. This is a wage gap of about 20%. In Iceland, the gender wage gap was just 5.7% in 2017, and may continue to close this year with the new law.

The Country: Norway

The Global Gender Gap Report Ranking: #2

The Policy:  Paid mandatory parental leave

When more men take paternity leave, it will help eliminate bias and normalize parenting in the workplace. The U.S. still does not have mandatory parental leave. In Norway, the parental benefit period is split into three parts: maternity leave, paternity leave and shared leave, with a mandatory leave of 15 weeks for both maternity and paternity leave. The total benefit period for birth parents is 49 weeks at 100% pay, and 59 weeks at 80% pay. For adopted parents, it is 46 and 56 weeks. The first six weeks after birth are reserved for mom and the rest of the period is to be shared freely between parents. Co-mothers have the same rights as fathers.

The Payoff: “The whole society is set up so that you can work and have a family life,” says Nathalie Eyde Warembourg, Country Manager at Ipsos in Oslo, Norway. “Nearly 70% of women work. In order to both stay active professionally and have children, the government of Norway has constantly evolved the benefits you can get if you’re employed. Over time, the maternity leave has become more gender equal. We’re now talking about a paid parental benefit with the birth or adoption of a child for both parents. There’s a clear push for fathers to take more and more parental leave.”

The Countries: Finland & Sweden

The Global Gender Gap Report Rankings: #3 and #5

The Policy: Flexible Schedules

Some research shows that flexible workers are more satisfied with their jobs, achieve more and take fewer sick days than those without flexible schedules. Finland and Sweden may take the lead in the world for alternative work schedules, with a whopping 92% of companies offering flexible work arrangements in Finland, and 86% in Sweden. Only about 30% of employers in America may offer flexible work schedules, according to the Bureau of Labor Statistics. Side note: Finnish workers are tied with Canadians for shortest work days on average at six hours and 45 minutes.

The Payoff: Flexible schedules may lead to happier employees. Finns rate their life satisfaction at 7.5 and Swedes at 7.3, compared to Americans at 6.9. Moreover, companies—not only employees—benefit from flexible work. “Companies can help by acknowledging the correlation between flexibility and productivity, and building flex-work into their structure and culture,” says Laura McGee, CEO of Diversio, which uses artificial intelligence to help companies overcome diversity challenges. “This is not a ‘women’s issue.’ Flexibility is equally as important to men; it’s especially important for millennials, and it can make an employer highly attractive to top talent.”

The Country: Denmark

The Global Gender Gap Report Ranking: #13

The Policy: Partially-subsidized and affordable childcare

In the U.S., childcare costs more than state college tuition in 28 states, with the national average being about $9,300 annually (with Massachusetts averaging more than $20,000 annually). Compare that to Denmark, where childcare is guaranteed and the state pays for about 75% of childcare costs—covering it completely if your income is below a certain level.

The Payoff: In Denmark, more than 78% of women ages 25-54 are in the labor force, compared to only about 69% in the U.S.

If corporations want to attract and retain top talent in middle management, we can learn from the countries who are doing it best. While the Nordic countries have not yet reached full equality, they are leading the way by activating solutions for change. Let’s follow their lead and create workplaces and homes where we can all thrive. This isn’t a woman’s issue. This isn’t a man’s issue. This is a human issue.

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