Promoting Gender Diversity in the Workplace

In recent years, Pakistan’s private sector has made significant progress in promoting gender diversity in the workplace, despite the country’s ongoing challenges related to this important issue. This is because, even though Pakistan ranks low on the gender gap index and female labour force participation remains stagnant, forward-thinking companies are prioritising the inclusion of women in their workforce.

These organisations recognise the immense benefits of a diverse team, which are supported by global research, which indicates higher profitability for companies that have women in executive roles. Additionally, regulatory bodies are increasingly holding top companies accountable by requiring the publication of gender-segregated data on recruitment, retention, and promotion. These positive developments signal a shift toward a more inclusive corporate landscape in Pakistan.

The theme for this year’s International Women’s Day is ‘For All Women and Girls: Rights. Equality. Empowerment.’, encouraging everyone to advance women’s and girls’ rights, promote gender equality, and foster empowerment. From a corporate perspective, this means addressing internal systemic barriers that prevent women from joining – and remaining in – the workforce. While there is no one-size-fits-all approach, here are eight steps businesses can take to enhance women’s employment and increase gender diversity:

Developing a strong business case for gender diversity is essential for obtaining corporate support and resources. Like other organisational changes, the business case is the initial and most critical step in gaining leadership buy-in. It should demonstrate how enhancing gender diversity can improve business performance, support female employees, and strengthen community ties. Gender diversity business cases are dynamic and should be revisited regularly to ensure they remain relevant. At present, both the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) emphasise gender diversity. A 2020 SECP report found that companies with women on their boards showed improved performance in terms of average return on assets (ROA) and return on equity (ROE).

In 2021, the SBP introduced the Banking on Equality Policy, which aimed to increase the percentage of women from 13% to 20% in the banking sector. The business case behind this was to tap into the female market, assuming that having more women in various roles, including customer service, would attract more female clients. These targets have been milestones for the banking sector in developing gender strategies for recruiting and retaining women. The banking sector has gained recognition for employing more women, with four banks winning the 2024 Employer of Choice Gender Diversity Award.

Performing a gender assessment or audit allows companies to establish a baseline for gender diversity and determine the next steps for improvement. The goal is to conduct an initial benchmarking exercise to identify institutional strengths and weaknesses regarding gender equity. The UN Women’s Women’s Empowerment Principles Gender Gap Analysis Tool (WEPs Tool) is a free, business-driven resource that helps companies globally evaluate their gender equality performance across the workplace, marketplace and community. It’s an excellent starting point for developing a gender diversity strategy.

Collecting specific metrics can help companies set an initial baseline and conduct a comprehensive evaluation of their performance. A gender audit assesses how a company has integrated gender equity into various aspects such as policies, activities, capacity-building, organisational culture, and the workplace. Metrics can include gender diversity among staff, promotion potential for both genders, retention rates, the suitability of the physical work environment for women and men, the priority given to gender diversity in recruitment, and equitable consultation of women and men in community engagement.

When companies apply a gender lens, they can develop more effective strategies and policies, enhancing their overall potential and outcomes. This approach involves considering the different needs, experiences and perspectives of all genders when making decisions and implementing practices. Recently, companies have realised the need to develop family-friendly policies, offering parents and carers flexibility to manage both work and family. These policies include providing childcare support, flexible working hours, and carer’s leave.

While many companies celebrate International Women’s Day with events and other expressions of appreciation for women, it is equally important to highlight performance improvements and organisational achievements. These provide the leadership with a chance to engage with women, celebrate their accomplishments, and reflect on how focusing on gender diversity has benefitted the organisation. To establish a reputation as an employer of choice for women, companies can participate in awards and become signatories to gender diversity initiatives such as the Women’s Empowerment Principles. By publicly declaring and reporting on gender diversity performance and targets, companies can highlight their achievements and benchmark themselves against other industry players.

Attracting female employees remains a significant challenge for many companies. Organisations with traditionally male-dominated or non-traditional jobs have created female-focused internship and upskilling programmes. After completing these programmes, some women are offered permanent positions within the organisation. Many leading companies have also engaged women in various unconventional roles, such as farmers, ambassadors promoting electrical safety, and forklift drivers. By committing to workforce diversity and providing support, companies can strengthen their integration within the community.

While policymakers are creating legislation, it is essential to provide feedback to the government and other institutions, as several structural barriers cannot be resolved at the organisational level. Additionally, larger market-focused companies can engage in gender-sensitive marketing communications. Gender stereotypes have a profound impact on lives, resulting in feelings of exclusion, inadequacy, and invisibility. These harmful norms are deeply ingrained in our society, affecting various aspects such as family, education, workplaces, and the broader community.

Pakistan’s female labour force participation rate remains stagnant at 22%. Furthermore, data collected by the World Bank’s Enterprise Survey highlights that only three percent of the corporate sector comprises women. The gender-segregated data of college graduates are almost at par, and there remains a significant gap in women’s workforce participation. Enhancing women’s employment in Pakistan is complex, requiring a comprehensive understanding of barriers at various life stages and a holistic roadmap. This requires all stakeholders to work together and create a conducive external environment for gender diversity, driving sustainable growth and making a meaningful impact.

Nazish Shekha is Head of Initiative, Centre of Excellence in Responsible Business (CERB) at the Pakistan Business Council (PBC).