particularly in the public sector and some corporate boards. Across Europe, EU-wide


initiatives have also pushed member states to act. The European Commission’s Gender Equality Strategy 2020–2025 has set the addressing of the gender pay gap as a key goal, and the forthcoming EU Pay Transparency Directive, adopted in 2023, aims to extend transparency obligations and empower workers to challenge pay discrimination. It requires employers to disclose salary ranges in job advertisements, provide employees with information about pay levels and criteria, and explain any pay differentials between male and female workers. Under the new rules, EU companies will be required to share information on salaries and take action if their gender pay gap exceeds 5%. Several European countries


have gone further. In Iceland, where equal pay laws are more rigorous than most, companies are legally required to prove they pay men and women equally for the same work – or face fines. Nordic countries more broadly have seen some of the narrowest gender pay gaps in Europe, thanks in part to strong welfare states, subsidised childcare, and widespread take-up of shared parental leave. In contrast, countries in


Southern and Eastern Europe often show smaller headline pay


gaps, but this can be misleading, as it sometimes reflects lower female labour force participation or occupational segregation, rather than genuine pay equality. One important area of progress


has been in education. Across Europe, women now outnumber men in higher education attainment, which has led to increased participation in professional sectors. This educational advantage is starting to shift patterns in some industries, particularly in the younger workforce. However, the so-called “motherhood penalty” continues to exert a significant influence, with women more likely to reduce working hours or drop out of the workforce following childbirth – a trend that continues to widen the pay gap with age, according to a recent report by PwC. Progress has also been hindered


by the persistence of part-time, low- paid work, in which women are overrepresented. Structural reforms – such as improving access to affordable childcare, increasing flexibility in senior roles, and embedding salary transparency – remain crucial to closing the gap entirely. While the UK and many


European nations have made tangible progress, the gender pay gap remains a complex issue that will require both cultural change and stronger legal frameworks in order


to support the aspirations of women and girls.


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Download our Diversity Mini Factsheet series at thinkglobalpeople.com


GLOBAL MOBILITY MINI FACTSHEET: DIVERSITY & INCLUSION


Diversity & inclusion: Gender diversity


Women comprise around one-third of international assignees. Given that diversity is advantageous for organisations and assignments provide capability building and career opportunities for employees, it is disappointing that women’s participation remains lower than men’s.


GENDERED DIFFERENCES IN ASSIGNMENT TAKE-UP Although women’s participation in international assignments has risen from 3% in the early 1980s, it now seems to have reached a plateau at 34%. Explanations have focused on women’s interest in international careers, host country reception to women assignees and employers’ reluctance to send them abroad. However, research has shown that


women are interested in undertaking international


are receptive towards them (even in masculine societies).


WOMEN’S SUCCESS Female


international


expatriates do well on assignments. Research


indicates that women can achieve even more successful assignment outcomes than men. Increasing gender diversity is therefore advantageous to employers’ talent management strategies. Although historically organisations


have been reluctant to send women, recent


focus on extending assignee


diversity has meant that employers are increasingly looking towards their


assignments, and locals


assignment policies to see how gender diversity (and other forms of diversity) can be facilitated.


SEGREGATED LABOUR MARKETS The labour market is segregated both vertically and horizontally and this disadvantages


women in accessing


international careers Vertical segregation means


women are that concentrated lower down


in organisational hierarchies. The concept of the ‘glass ceiling’ refers to the invisible barrier limiting women’s career progression. Horizontal segregation means that women tend to be concentrated in lower status/paid ‘feminised’ jobs. Global mobility is both vertically and


horizontally segregated. International assignments tend to be offered to more senior individuals and masculine industries (such as the extractive industries) tend to use the largest volumes of assignees. A ‘glass border’ effect can help to explain women’s lower participation in global mobility.


FURTHER BARRIERS Women’s careers are more constrained than men’s by dual careers and family relationships. Women tend to hold greater family responsibilities than men. They also hold lower family power if they are the secondary earner. As such, the lead career (often the man’s) takes precedence.


EMPLOYER ACTIONS Approaches to policy design and implementation can reinforce


used, and


panels representative of diversity, are all beneficial to women’s selection. Women’s family responsibilities they prefer less disruptive


mean that


assignment types. Long-term, accompanied assignments are often preferred as they provide family stability. Organisational support before,


during, and after expatriation is critical for women’s assignment participation. Access to networks, mentors, sponsors and role models are helpful interventions for women.


ASSIGNMENT POLICY Women value particular assignment policy elements and look for these to support their relocation. Emphasis on housing quality and children’s education/childcare


are of particular


value. Medical care and security issues are also of concern. Women also look for an appropriate


work-life balance and flexibility so these are other areas which require consideration. Policy should address home leave, working time, and rest and recreation leave in challenging destinations.


glass


ceilings and borders. Employers should therefore review their selection process, assignment types


provide


assignment support. Open and transparent selection methods such as advertising vacancies, using structured interviews, and selection


To access the Mini Factsheet series visit thinkglobalpeople.com and find out about events, webinars and podcasts. Contact us info@thinkglobalpeople.com


For comprehensive information on managing Global Mobility visit our sister website relocateglobal.com


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GLOBAL LEADERSHIP


FINANCIAL INEQUALITY


© 2024: Relocate Global & Think Global People


GLOBAL LEADERSHIP MINI FACTSHEET: DIVERSITY & INCLUSION


Gender & leadership


Assisted by legislation and a changing social climate, women’s representation in management is being translated into senior leadership roles but women still remain under- represented within board positions. Gendered structures within labour markets result in occupational segregation.


HORIZONTAL SEGREGATION Horizontal segregation indicates occupations with high male or female representation. Female occupations refer to where the proportion of women employed is greater than women’s representation in


the labour force. Women are


stereotyped into female occupations. Young women require encouragement to enter male-dominated professions. Inequality arises from the values


society attaches to women’s occupations and the status, prestige and pay attached to them. Fewer female occupations are high status; low status occupations attract low pay.


VERTICAL SEGREGATION Vertical


segregation refers to gender


inequality resulting from women’s concentration in the lower echelons of organisational


hierarchies. Despite


women’s labour market participation increasing, women continue to face difficulty in entering managerial ranks. Vertical segregation is compounded by women’s propensity to work part- time which restricts women’s access to leadership roles. Horizontal segregation affects vertical


segregation: the smaller the percentage of women in a profession, the lower their chances of getting to the top of it. Organisations need to specifically consider women for leadership roles and take positive action.


sex


GLASS BARRIERS An explanation for the reinforcement of vertical segregation may lie in invisible (but firmly embedded) glass barriers to women’s career progress. Discrimination, stereotyping and gender bias combine to create the ‘glass ceiling’: an invisible but impermeable barrier that limits women’s career advancement. When women are appointed to senior


leadership roles, there is evidence that they are given precarious positions. Such appointments are known as ‘glass cliffs’. Women’s success (or not) in these roles make their everyday actions more visible and subject to criticism than is the case for men.


SENIOR LEADERSHIP Company boards are


predominantly


male. Members are drawn from a senior management pool and if this contains few women, there is no talent pipeline in place to change the status quo. Gender diversity on boards presents of advantages, including


a number


a diversity of opinions, improved boardroom behaviour, commitment to hard work, an enhanced company image, and the provision of role models for aspiring women leaders. Women also show moderation, for example, in executive pay setting.


GLOBAL MOBILITY IMPLICATIONS Future leaders are required to have global experience. Accessing international assignments is critical if senior leadership is to have greater female representation. But here lies a problem. Women are hindered not only by the glass ceiling but also by a glass border and these reinforce each other. The sectors that employ the largest


numbers of assignees are masculine (extractive industries for example) and so horizontal segregation helps to explain why women comprise only around a third of international assignees. Vertical segregation plays a role too. Assignees tend to be drawn from senior positions and women hold fewer of these. Greater attention is required to


ensure that women gain access to career enhancing international


assignments.


Open and transparent selection systems and policies that support women’s requirements for mobility are needed.


To access the Mini Factsheet series visit thinkglobalpeople.com and find out about events, webinars and podcasts. Contact us info@thinkglobalpeople.com


For comprehensive information on leadership and managing global mobility visit our sister website relocateglobal.com


relocateglobal.com |


thinkglobalpeople.com


© 2024: Relocate Global & Think Global People


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