In 2020, women accounted for only 20% of the board composition of Canadian companies, according to a study by the Canadian Securities Administrators (CSA). This is a 9% improvement since 2015. What is worrying is that only 30% of vacancies are filled by women… At this rate, parity is not ready to be achieved! What can companies do to break the famous glass “ceiling“ that is holding back women in their access to the upper BOD sphere? We discussed this issue with Andrea Plotnick, Senior Vice-President, Board and Executive Solutions at LHH.
Andrea Plotnick accompanies companies that set goals of parity and inclusion on their boards. And she does not buy into the “myth” that there is a lack of qualified women to fill these positions.
“If we moved away from the CEO experience requirement and instead relied on the competency matrices, we will the find a lot of qualified women,” she explains.
In light of her remarks, we understand that women who want to apply face a first “systemic” barrier, that is, the fact that boards have the reflex to recruit CEOs, while women are historically few to be CEOs.
Spanner in the works
Of course, that is not the only factor that works against them. The “boys club” that has long prevailed in the business world gives a head start to men who can use their networks to access the most coveted positions.
To complicate the matter, the women themselves put certain obstacles in the way:
“They consult the publications of the board of directors and if they do not meet all the requirements of the position, they do not apply. Men tend to take a different attitude and are more willing to apply even if they do not meet all the requirements.”
While some women lack confidence in themselves, notes Andrea Plotnick, others simply lack the “role model” to follow, to allow themselves to move forward.
Finally, personal life weighs in the balance of many women. They take on a large part of family responsibilities, which results in their career ambitions being held back or postponed.
What can be done?
Far from being a fatalistic, Andrea Plotnick sees several possible ways to help companies open themselves to greater diversity in the composition of their board of directors.
“Openness to diversity requires deliberate work on problems from many angles.”
She identified some initiatives:
- Create women’s leadership development programs.
- Create sponsorship programs between senior managers and high-potential women.
- Advise women on how to gradually develop relevant skills to join a board, so that they are ready to take a seat on the board when they have time.
Boards must also review their practices to eliminate implicit biases. Andrea Plotnick cites her company LHH as an example, which has created a process to assess directors for inclusion.
“This can be revealing. Many boards are well-intentioned and seek to strengthen diversity, but they may not be aware of their unconscious biases that hinder them at every step of the process. Evaluating the BOD is a way to show that we may not all be as inclusive as we think.”
Changing the culture rather than “fixing the past”
On the issue of parity, Andrea Plotnick notes that efforts are focused on women’s “reparation”.
“More emphasis should be placed on adapting cultures to be more inclusive and to truly value diversity. This is not a check-box exercise focused solely on numbers. More thought needs to be given on how to create the right cultures to allow different groups to share their views, rather than feel pressure to comply.”
Finally, businesses must remember that greater parity is not just a social responsibility, it is above all a good way of doing business.
“Research shows that well-focused diversity leads to better innovation, agility, financial performance, and a host of other measures. While homogeneous teams can make decisions faster, a diverse team that works well will make better decisions. If a board is to monitor risks, it is essential to be able to think from several points of view!”
