What is the key to increasing the number of women in management positions?

Despite all the examples of educated, capable, and successful women managing numerous companies, their share in the total number of senior and higher management is quite modest. When it comes to the business world, women still walk several steps behind men, and achieving equality and equal representation remains one of the pressing topics.

Data shows that, although women made up almost half of all employees (46.3 percent) in the European Union last year, only 35.3 percent held managerial positions, according to Catalyst. In Europe, women in high positions are most represented in Sweden (43.8 percent) and France (38.3 percent), but it is concerning that globally, the ratio of women advancing to leadership positions is decreasing, with a notable decline felt especially after the pandemic.

At the same time, it is interesting that numerous studies show that companies with women in leadership positions perform better, have increased social responsibility, a stronger sense of collectivity, and navigate crises more successfully.

But why is this the case? Why are women still underrepresented despite indicators of success, and more importantly, what can we do to increase the number of women in leadership positions?

Why are women underrepresented?              

There are many reasons why men convincingly lead in the fight for high positions. A study conducted at Yale showed that women have a 14 percent lower chance of promotion, while research over the years indicates that people simply do not see potential in women the same way they do in men.

– I would say that there are multiple reasons and that we cannot generalize the answer to why women are underrepresented in high positions. It is a combination of various factors – historical, social, cultural… and even some personal choices or specific situations – emphasized Anita Letica, CEO of Philip Morris Zagreb.

In addition, the culture of society, traditional views on male-female roles, and biological differences between men and women play a significant role.

– I think the root cause is the basic biological difference between women and men, which is that women give birth. We can add to this the traditional understanding of the role of women in society, which directly stems from the previous fact. Very simply, if a woman gives birth to two children during her life, she is out of the workforce for almost two years, and after that, she is in a limited work engagement zone for several years because the children are small and require additional care. The traditional understanding of the role of women in society that I mention consists of assigning women a large number of roles such as mother, wife, housekeeper, cook, and so on, while the role of entrepreneur or manager comes after that. All of this, along with potentially some additional reasons, are limiting factors that completely deter some women from advancing in their careers, while others are slowed down. The consequence is that fewer women reach high executive positions compared to men and that they require more time and effort for that ‘path’. I believe that those who decide on the career advancement of some women, regardless of whether the decision-maker is a woman or a man, take all of this into account and therefore may favor men despite the fact that the candidates are equal in competencies and work results – explains Daliborka Kranjčić, CEO of KTC.

Nataša Rapaić, a member of the management board of Hrvatski Telekom, adds to this: outdated attitudes, the absence of policies or non-compliance with them, failure to recognize the value that a more diversified composition of management positions brings, and potential unnecessary doubt and greater self-criticism in one’s abilities, which is generally more present among women. However, she notes that she can boast that she works in a company where just over 40 percent of women hold managerial positions, and it is positive that she generally notices some small shifts.

– A certain shift in the representation of women in managerial positions is visible, and Croatia has made certain progress in the business segment over the last few years when looking at specific indicators. However, undoubtedly, as long as we continue to talk about and deal with the 30 percent quota, this topic is very much current and important, and progress is necessary. After all, the global average is around 20 percent, with progress of about 2.8 to 3 percent in the last two years, which would mean that parity at this pace can be expected around 2045. It is clear that we cannot be satisfied with this pace because it would mean that entire generations of girls graduating from university today cannot expect to be treated equally by the time they are 45 years old – emphasized Rapaić.

I can and I want!                                                  

However, Liana Keserić, CEO of RBA, believes that times have changed and that women now have the same opportunity as men to demonstrate knowledge and social resources. She emphasizes that today, unlike in the past when power was thought to stem from physical strength and social connections of the strongest, mental strength is the main driver of the world. From her example, she knows that it is important to perceive being a woman as an advantage, not as an obstacle.

This is particularly interesting considering that research shows that women tend to underestimate their work and that female managers generally, due to a lack of confidence, expect lower achievements and career advancement than men.

– If you have something smart to say, if you are socially intelligent, men will be happy to listen to you, they will certainly at least give you time. Being a woman is a disadvantage or an obstacle only if you decide it is – emphasized Keserić.

However, despite this, women should not be blamed for an unencouraging environment; rather, the focus should be on eliminating biases in the system and creating a supportive environment. Both Rapaić and Kranjčić emphasize that they have not found themselves in environments or situations where they would be treated differently or worse or ‘lose points’ because they are women.

– Realistically, I do not have such personal experiences. I have spent my entire working life in a company where the owner preferred women in managerial positions, and it could be said that this is an unwritten policy within the system. His stance has always been that women are more diligent, loyal, responsible, and more willing to cooperate than men, so at this moment, we have over 90 percent women in the highest management – emphasized Kranjčić.

Environment and progress based on ability

Every society, as well as every company, must develop a culture of equal opportunities for everyone, believes Letica, who also confirms that she has not had fewer opportunities in her career because she is a woman. On the contrary, she now works in a company that views diversity as an opportunity to develop better solutions and become a more successful organization, rather than as something that will make someone’s path to success easier or harder.

– Personally, I have always been guided by the belief that knowledge, results, and effort are valued and recognized, and ultimately only they are the key factor for success. I believe that throughout my nearly quarter-century-long career, I have not lacked opportunities for development and advancement. On the contrary, opportunities have come as a result of my work, development, and results I have achieved, often because I dared to take on even the more challenging tasks – said Letica.

However, with all this, the question remains how to ensure that all women have such experiences and how to generally increase the number of women in management positions? Rapaić emphasizes that in her environment, the only criteria for advancement have always been ability, work, and results, and Forbes states that this approach – where people are selected for leadership roles based on competencies – is one of the best ways to increase the representation of women in high positions.

In addition, the environment in which women live and work plays an extremely important role in this – it is crucial whether the environment is mature and normal and whether women’s work is adequately valued, believes Rapaić.

– An environment where there is a ‘cave’ mentality that women cannot do something or are not up to something is a relic that should be left in the Stone Age, and if it is present in any organization, it should be eradicated once and for all – says Rapaić.

Regulations as solutions?

But does the system play a role in all this? While some believe that established rules, quotas, and similar tools could help solve this problem, Keserić emphasizes that she is not convinced that quotas are a good solution.

– For example, if 80 percent of engineers are men, why should we have 50 percent of them in the company? Also, if more women study psychology, why should we have an equal number of men and women in human resources? – explains Keserić, adding that we are currently at a historical point where mental strength is more important than physical strength, women have equal rights to education and employment, often even greater institutional support (for example, through incentives for women entrepreneurs), and with digital networks, we all have equal opportunities to influence. Therefore, she believes that the ‘first step is to look at what opportunities we have and be grateful. Not to see gender as a problem, and men as always being guilty of something’.

Kranjčić also emphasizes that she is not a proponent of institutionally imposed solutions because they can sometimes be impractical in practice and thus remain dead letters on paper, but that it is important to raise societal awareness on this topic.

– On the other hand, legislative tools can help in what is primarily needed, which is raising societal awareness in the context of this topic as a whole. In that awareness-raising, education about the position of women in the workplace can play a significant and positive role, which would be conducted within business systems. One excellent example of such a program with an educational effect is the MAMFORCE standard, which enables the creation of a supportive work environment for women and the improvement of the balance between private and professional life – added Kranjčić.

– Every change in regulation, every new program or initiative that contributes to equalizing opportunities for all, and I do not mean only the relationship between men and women but generally and literally for everyone, is not only welcome but more than desirable. Given that there is an equal number of men and women in the population in Croatia, there is no reason why such a ratio should not be represented in management structures – said Rapaić.

Awareness is key

And although gender equality topics are much more represented today and more activities are being carried out to help companies build more diverse and inclusive teams, Letica emphasizes that not every company is the same. While, for example, at Philip Morris Zagreb, there is an equal number of men and women at various levels and they are the only company in Croatia to receive the Equal Pay certificate, data still shows that in Croatia women earn about 20 percent less than men for the same job and the same level of responsibility, which Letica considers a disappointing fact.

The tools that can and must address such problems are numerous, but it is indisputable that the way we, as a society and individuals, approach this, among other things in the context of laws, quotas, parental leave for both parents, and so on, can contribute to solving the problem, Letica notes, but adds that this will not completely solve the problem.

– What we need is to continuously work on raising awareness, in order to eliminate biases and create a supportive work environment in which everyone, both men and women, feels that advancement is the result of their work, knowledge, engagement, and results, not gender – believes Letica.

– The fact is that statistics confirm that the number of women in the highest positions, both in the world and in Croatia, is still extremely small and is not growing at the necessary pace. Precisely because this is such a deeply rooted problem, it is essential that companies, various institutions, and even the media, as well as you with this long-standing project, raise awareness of this issue, motivate change in a positive direction. My stance is that we all must be responsible when it comes to the need for society to change for the better. If we want to live in a society without biases and (unconscious) discrimination, we must actively accept responsibility for creating such an environment in all aspects of life, including addressing this problem – concluded Letica.

Daliborka Kranjčić, Nataša Rapaić, Anita Letica and Liana Keserić will have the opportunity to discuss this topic in detail at the Lider conference Women in Business.

In a conversation with the most powerful women in Croatian business, we will discuss the burning question of ‘how to increase the number of women in management positions’, as well as many other topics that this question raises. How to achieve equal opportunities, but also equal evaluation of work? What tools do we have at our disposal and how can we apply them?

The goal of the conference is to highlight successful experiences and connect businesswomen, motivate them for new ventures, and also stimulate the initiative to increase the representation of women in the highest positions. The meeting, which will be held on December 1st at Lauba in Zagreb, will also mark the presentation of the traditional Lider annual list of the 300 most powerful women. Ensure your place in time!