Businesses in the region are rapidly adapting their practices to ensure they achieve sustainable growth in the increasingly competitive global market. Accepted standards, corporate governance and policies encouraging accountability, transparency and diversity are fast becoming the focus of policymakers across governments and corporates – but how can these policies and benchmarks benefit businesses? A report by McKinsey & Company states that diverse boards are better positioned to understand their customer base and business environment and enjoy higher returns on equity than those favouring a single demographic. However, while business intentions may be good, diversity isn't accomplished through recruiting more people from different genders and minority groups. In fact, it entails giving these employees the support and freedom to express their identity-related knowledge and experiences, utilising them as resources for achieving business excellence. Driving innovation, business growth and success Based on research, a more inclusive workplace is 1.7 times more likely to drive innovativeness, and 1.8 times more likely to be adaptable in a rapidly growing and changing environment. As part of its target to increase women's participation in the workforce, and in line with Vision 2030, Saudi Arabia raises the bar for female economic empowerment. However, this is much more than a tick box exercise. Instead, the role of women, especially in boardrooms, can act as a catalyst for change internally and externally. Women leaders are said to improve financial performance, reduce corporate crime risk and improve CSR and ESG credentials, which some studies have suggested is due to women being more cautious and risk averse than men are. A recent study also found that firms that increased female representation on boards by 10% experienced a 7% increase in innovation. Creating a positive cascading culture A positive tone from the top of an organisation helps drive a culture of diversity and inclusion across the workplace. However, according to the World Economic Forum, women worldwide are underrepresented in the top tiers of business, politics, academia, and finance. Women account for 21.9% of positions in national parliaments worldwide, while in Arab states it is only 16%. While there is still work to be done to educate business leaders on the benefits of inclusion, female-led organisations are the shining example of the positive power of diversity. According to PwC, creating a more inclusive and diverse environment at the board level directly correlates to a more efficient, functioning board and more careful and considered decision making. A pioneer in hiring female talent, the global brand KPMG has doubled the number of women in managerial positions over the past year. With 1469 employees in Saudi Arabia, the company ensures inclusion, diversity, and equity remain at its core. Kholoud Mousa, Partner at KPMG Saudi Arabia, and the first Saudi female partner in any Big Four firm in the country, said: "More women taking up leadership positions in family businesses especially, is normalising the notion of having women in C-suite roles across all sectors." Having achieved success with female empowerment, the company has extended its focus to developing an inclusion and diversity model to include those with varying skills, abilities and disabilities, inspiring people to draw strength from each other and act with empathy and understanding. Building an environment where employees will thrive Research conducted by the Pearl Initiative in the Gulf region shows that the top three factors respondents believe hinder workplace progression for women are: unconscious bias, having children and preconceptions of women's roles and responsibilities in society. However, the processes that hindered progress were in fact gendered preconceptions and stereotypes, demanding work hours and conditions and a lack of policy to support women's advancement. Integrating diversity and inclusion practices in the workplace allows employees to enjoy the support and freedom to thrive and succeed. During the Covid-19 pandemic, businesses have been forced to adapt quickly not only to the changing economic landscape but also workplace culture to ensure employees safety and continuity of business operations. New ways of working such as flexible work patterns, virtual meetings, and balancing competing responsibilities of home-schooling and work have made it easier for females to enter and remain in the workplace. Enabled by technology and determination, employees, especially women, demonstrated their skill and commitment to their careers and families. However, research shows that many high-performing women exit their position upon reaching the middle-management level due to difficulties balancing work and home life. Many women say they could overcome this barrier with adequate workplace support and flexibility It comes full circle, with more diverse boardrooms paving the way for increased levels of diversity through all ranks in the business. One such firm leading the way by promoting women in leadership is General Electric which continues to drive localisation and encourages more women to take up STEM and manufacturing positions. Since 2020, the organisation has globally increased the number of women at leadership level by 1.2% as it continues to empower women to own their career development, increasing diversity and raising awareness of job opportunities. Reimagining social networks and connections Across Saudi Arabia and the wider Arab region, it is a cultural norm to leverage the power of social networks for business deals. Nevertheless, social networks can be engaged to develop and advance careers, especially concerning women moving to managerial or senior leadership positions. For example, the formation of women's networks and training provides female mentors to demonstrate support and encourage collaboration and innovation to support ambitious women to achieve career success. Creating female-led networks where other women can draw inspiration and seek career advice and support from their peers is popular worldwide. A strategic project by PwC aims to retain and progress women to the highest levels of the firm through mentorship and sponsorship programmes. Attributing its success to cultural change, the organisation also delivers training to develop inclusive minds, identify and challenge unconscious bias and assist management with integration of inclusion. Integrating robust structures of corporate governance Vision 2030 has helped change cultural norms and attitudes to women in the workplace, with diversity and inclusion leading to a transformative change to benefit organisations and the economy. With the gender balance being achieved through government objectives such as increasing female participation from 26% to 30% and businesses embracing a corporate governance structure, the focus is now turning to ensure diversity is represented on boards from a disability and intergenerational perspective. Championing diversity in business leadership as a pillar of good governance, the Pearl Initiative has held a series of workshops for business leaders and executives in Saudi Arabia. The workshops focused on Business Integrity, Diversity and Inclusion have convened leaders from various industries to share knowledge and best practices for implementing policies and processes to build supportive, inclusive working environments for all. For more information on the Pearl Initiative's work in Saudi Arabia, contact [email protected].
