Women in the EU: 13 Percent Lower Wages and Only 8 Percent at the Helm of Major Companies

In every member state of the European Union, men are better paid than women. The disheartening average percentage is 13 percent, while in Croatia it is around 11 percent. A new European directive aims to tackle this problem. Companies listed on the stock exchange will have to apply quotas for the underrepresented gender in certain leadership positions, and states will have to publish a list of such companies on an annual basis.

European employers will have to publicly communicate the salary structure within three years at the latest, starting from the job advertisement itself. If women were given equal opportunities, the GDP in the EU could increase by up to 3.15 trillion euros by 2050, according to estimates from the European Institute for Gender Equality.

Are employers ready for change, what is the situation in our companies, and what goals have they set for themselves – these were the topics of the round table ‘Gender Equality and ESG Principles in Management and Decision-Making Processes’, held today in Rome. The round table was organized by Eurochambres Women Network, which operates within the European Association of Chambers, with the support of the Croatian Chamber of Economy and the Italian Union of Chambers of Commerce (Unioncamere).

– Gender equality and equal pay are values that strengthen and improve both companies and society. We should also view the quotas of the new Directive as a means of raising cultural standards. Women make up half of the EU population, more than half of the highly educated residents, yet they earn 13 percent less and only 8 percent are at the helm of the largest European companies – stated Marina Rožić, Secretary General of the Croatian Chamber of Economy and President of the Eurochambres Women Network, which added a provision for greater representation of women to its statute last year.

Rožić, along with interlocutors from Croatia and Italy, raised the question of whether good employer branding is sufficient given the quite demanding ESG principles, as noted in the HGK statement.

– There is an increasing number of organizations promoting their employer branding activities. There is also a growing number of those who understand that these activities do not stop at marketing, but that each such activity should be connected to the company’s purpose and the way their employees understand how and what they do in their organizations – emphasized Rožić.

According to data from the European Institute for Gender Equality, in almost all surveyed countries, in one or more industries that are stereotypically considered female, women are indeed predominantly represented in leadership positions: education services, social services, health services, food and beverage, and food retail. However, there are exceptions and shining examples in other industries as well.

– We are proud of the figure of 41 percent of women employed in the IN2 group, which represents a higher average than the rest of the IT companies in our environment and in the IT industry in general. Almost the same share, 40 percent of women, is in leadership positions, where we see that we value and recognize the effort and dedication of our female colleagues – stated Sanja Svilokos, a member of the management board for business at IN2 Group.

– In the employee structure, there are more women, 55 percent, and a similar ratio is present in management positions, 52 percent. Caring for employees and ensuring quality and stimulating working conditions is an important segment of our responsible and sustainable business – said Ivana Barišić, Director of Export and Industry at Meteor Group Labud.

Maja Crnjak, Director of the Human Resources Sector at Erste Bank, conveyed impressive figures for their organization, where 72.9 percent of employees are women.

– Our goal is to maintain the positive trend from the last few years and to continue promoting female leaders in the future so that their shares remain stable and grow over time – stated Crnjak.

The advantages of women in management bodies for business are clear. When the share of women in company boards is 30 to 40 percent, research shows that companies are more likely to achieve better financial results and higher returns, and there are also better ESG results related to the environment and society.

There are also more decisive shifts towards addressing the consequences of climate change and initiating innovations. Conducting business activities according to ESG criteria is essential as it helps companies prepare as best as possible for the standardization of non-financial reporting at the European level, which is crucial for attracting investments and obtaining the right to use funding sources.