Women Represent Only 6.6% of Executives in Canada’s Largest Companies
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The Globe and Mail covered a story about the executive gender diversity in corporate Canada and the changes we have seen throughout the years. Deborah Aarts exclusively looks at the fourth annual benchmark of gender diversity in corporate Canada where ninety companies were celebrated with an average of 46% women in executive roles. That has been progress from what has been seen in the past. However, Aarts argues that with only 6.6% of Canada’s largest publicly traded companies having women as their executives, we are not progressing fast enough. To put it in perspective, the Globe and Mail reported that in 2020 the percentage was 5.5%; though it has been an increase, it has not been the increase many want to see. With this slow progression, we need to look at how we can jumpstart this but also need to rely on past data to maintain a realistic approach and to investigate our shortcomings.
Case Study: Jennifer Wong in Aritzia
Though there are companies that need more women representation as their executives, in the case of clothing store, Artizia, they have represented themselves well with women representation in one of North America’s popular clothing store. Jennifer Wong began her journey in Aritzia in 1987 as a Style Advisor in the store. Within three years Wong had been promoted to managing at store level with leading many and setting her expectations from everyone as high as she had set them for herself. After a year of impressing many in the corporate side of Aritzia, she had become one of them in joining the corporate side of the fashion store. In the corporate level, Jennifer Wong showed her tenacity, dedication and most importantly- passion for the brand. She was given more responsibilities and with her seniority she consistently proved her capability with each task that was brought to her. Her 20th “Aritzia-versary” was one to remember as she was granted the role of “President” in 2015. A few years later in 2022, she then achieved the top position after founding CEO Brian Hill stepped down.
Jennifer Wong now oversees the profitable and growing retail chain, including- more than 100 stores, approximately 6,500 employees and annual revenue of roughly $1.5 billion. With this, Wong has also encouraged the leadership of women. Currently, Aritzia now has more women in its leadership ranks, per capita, than any other large public company in Canada. Wong has said, “Brian and I have always aligned in our belief in supporting women in leadership, as well as championing equal opportunity.” This has been shown not only through words but action and results. Currently, Aritzia has 73% of senior leaders being women. Like Jennifer Wong, these women have earned their way for their promotions and showcasing to other big corporations in Canada that this was not something difficult to do as every role in leadership was earned. Jennifer Wong is a special case as she began like many in the company as a Style Advisor and has earned way with hard work and her seniority and has become the Chief Executive Officer of one of the most growing retail empires in North America.
What About Other Companies?
Aritzia is one of not so many companies the has an appropriate representation of women, let alone a representation that exceeds male representation. Report on Business magazine’s 2023 Women Lead Here report is meant to offer a snapshot of executive gender diversity in corporate Canada. For the fourth year, researchers evaluated the top three tiers of leadership of the largest publicly traded companies, measuring and verifying the gender breakdown of each—a review of more than 5,400 executives at 514 companies with at least $50 million in revenue.
Looking closely at the chart above, there are some signs of progress: For instance, 22% of executives identify as women, up from 18% pre-pandemic (but, it should be noted, down from 24% last year). More companies are adding women than are sitting on the status quo—or worse, losing them. Moreover, organizations that are boosting gender diversity are outperforming those that aren’t based on the chart below.
Even with this data, there is still a massive discrepancy with women-led companies. Even though there is growth with the chart below, this trend is incredibly minimal when looking at the big picture. At the rate that this has been progressing, it would take another twelve years for us to see 10% of Canada’s largest Publicly Traded Companies with women CEOs.
In order for women to have a fair opportunity to achieve the status of CEO, we also need to look at the steps before. Are enough women executives for Canada’s largest publicly traded companies? The short answer is- no. More than one-fifth- 21.6% does not currently have a single woman in the top three tiers of their organization charts. That means that men are running the show with absolutely no women representation. Even though throughout history that has been the case, it is important to modernize the workforce and to give proper representation.
How Can we Change This?
Deborah Aarts illustrates four ways on how companies can achieve gender-diverse leadership if they have not yet already: keep records, rework work, reinforce with actions and reframe the opportunity.
Recording everything and having full transparency with the public. Last year, the handle on Twitter @PayGapApp went viral by reposting corporations’ self-congratulatory odes to gender equity with often-damning data about each organization’s compensation inequities. Because this went viral, this became a complete nightmare for many corporations as they were not prepared for this and for the public to see their shortcomings of providing a diverse environment in the workplace. The companies under fire and criticism from the public had no choice but to investigate this and reflect on to how things got here. By keeping records, this also demonstrates a value that the company wants to improve. Each company records sales, gross margin etc. so diversity, equity and inclusion should be no different.
The next point that Aart discusses is “reworking work”. With the post-pandemic work culture, it is essential that the large companies adapt to the changes that our world has had to face. Apart of that is the flexibility of one’s career. According to McKinsey & Co. and LeanIn.org’s 2022 Women in the Workplace study, the overwhelming majority of surveyed women—nearly 90%—preferred remote or hybrid work arrangements, compared to 77% of men; higher in the org chart, nearly half of women leaders cited flexibility as a top consideration in deciding to stay at an organization. People are now at a point where they will choose a company that has more flexibility in a hybrid or work from home policy.
Reinforcing with actions is how a company can be validated by their words through their actions. We can see this with companies when the emphasize the importance of work and life balance; how is the company supporting that? Are they modifying their in-office policy, allowing half days on Fridays or enough vacation time? Now with the use of the internet, one can research on sites such as Glassdoor to see what previous and current employees think of the employer and company and go as far as discussing the pay of the job, the benefits and the pros and cons of the culture. Reinforcing with actions mean embracing women-friendly policies in order for them to not leave the company for one that better suits her day-to-day life.
Although diversity, equity and inclusion has become a necessity topic of conversation and a part of a company’s identity, it is also another obstacle when it is not cared for. This is why it is important to reframe the opportunity. We must embrace it and see an opportunity to grow and to create an environment where many- especially women would like to be a part of. By not seeing DEI as a chore, it becomes something that can flourish and enhance the value of a company.
Conclusion
Deborah Aarts demonstrates the slow progression large companies in Canada are having as far as having a woman as a CEO but also, as a part of their executive team. As the use of the internet continues to grow more than one could have ever imagined, companies must be prepared to be called out for their lack of diversity, equity inclusion when it comes to involving women in the workforce. Living in a post-pandemic world, companies must adapt based on data and what their employees are requiring from their leadership. Companies are able to this by recording everything, rework work, reinforce with actions and reframe the opportunity. Companies are unable to do this overnight however, in case such as Jennifer Wong and Aritzia, having enough women representation is a part of the success of their business. Only time will tell if these major companies will choose to see equity, diversity and inclusion as an opportunity rather than a chore and the results will not lie.
Chelsy Sorto is a contributor at Hear Her Stories. This article represents the views of the author only and does not necessarily reflect the views of Hear Her Stories.
Credits:
This original was published by The Globe and Mail and was written by Deborah Aarts. Link: https://www.theglobeandmail.com/business/rob-magazine/article-women-leaders-corporate-canada/