$880m boost from parity in top jobs

A lack of women in management roles is costing the New Zealand economy hundreds of millions of dollars a year, a new report claims.

The report, commissioned by Westpac and conducted by Deloitte, showed women held just 29 per cent of management roles in Kiwi businesses, despite making up 47 per cent of the workforce.

It claims that getting more women into leadership roles could boost the economy by $881 million.

This is believed to be the first time a figure has been associated with the lack of diversity in New Zealand businesses.

The impact on the economy was based on an estimate that a 1 per cent increase in female managers increases an organisation’s return on assets by 0.07 per cent.

Therefore, a business valued at $10m would rake in an extra $150,000 revenue per year.

Westpac New Zealand’s chief executive, David Mclean, said he was shocked by the findings, but hoped it would encourage businesses to improve their performance on diversity.

‘‘The research shows having more women in decision-making roles has clear benefits … This is not a ‘nice to have’,’’ Mclean said.

The report, drawn from the responses of 500 businesses, looked at attitudes to gender diversity and attitudes holding companies back.

It showed many were making encouraging moves, but there was plenty more that businesses, including Westpac, could do, Mclean said.

‘‘Almost half of respondents said levels of women in management had increased in the past two years, which is great. On the other hand, 9 per cent believed they would never achieve parity in leadership. That seems quite incredible.’’

Measuring its own workforce against the survey criteria in the report, Westpac NZ found women held 47 per cent of management roles, Mclean said.

‘‘[But] we still have lots of areas to work on and this report is a useful contribution to our own work.’’

Prime Minister Jacinda Ardern said ‘‘obviously there’s room for a huge amount of improvement’’ in the public and private sectors.

‘‘My goal is that we become exemplars to the private sector but we’ve got a bit of work to do.’’

The key priority identified for achieving gender parity in leadership was the availability of affordable childcare.

The report also found only 40 per cent of businesses had a gender policy in place, with just 26 per cent of them measure performance or progress.

It also found just 7 per cent of businesses had money dedicated to diversity initiatives.