Asian Women Leaders: Engines of growth

Researchers contend that women in Asia are moving into management positions in greater numbers. While true for some countries, others lag far behind. In those countries, moving from management to leadership or decision-making roles is hindered by workplace bias, family obligations and being stuck in dead-end roles. Women in Asia today face challenges that require a different perspective and new way of thinking in order to ensure percentages change positively in the executive suite.

Let’s look at how some Asian countries are doing.

Malaysia outranks Japan and Korea in terms of gender equality, but falls far well below in representation of women in business.  Since 1995 the number of women in the workforce has increased 3.4%.  If present numbers continue to decline,  Malaysia will not reach its 2020 goal of becoming a developed nation.  Adding to this challenge, over a half a million Malaysians exited the country between 2007 and 2009, and far too few have returned, or are interested in returning.

A UN report states, “Women are crucial to the nation’s economic engine to further propel Malaysia up the value chain [and] further the nation’s development efforts.”

Similar to Malaysia, Japan needs women in the workforce to support long term growth and economic stability.  Kathy Matsui of Goldman Sachs states, “Increased female participation implies higher income and consumption growth which we estimate could lift trend GDP growth by 0.3 pp to 1.5% from 1.2% and boost per-capita income by 5.8% over the next 20 years.”

The issue facing Japan, in addition to the recent natural and nuclear disasters, is an aging population and declining birth rate. There is a genuine economic need for women’s participation in the workforce to support growth.

In Korea, the number of women in the work force hovers around 47%.  The government is trying to drive change by recruiting more women, creating a Presidential Commission, and reviving Gender Equality initiatives. While advances have been made in terms of ‘family-friendly’ policies and the creation of the Ministry of Gender Equality, pay inequity and internal conflicts remain at many Korean firms.  Most Korean women prefer to work for U.S. multinationals with equal opportunity policies rather than Korean firms with traditional mindset and values.

China seems to fare much better, allowing more promotional opportunities and protecting women’s rights.  China has a higher percentage of women’s employment than other countries (which makes sense given its size).  Yet, looking into the statistics in China, the vast majority of women remain in administrative positions, seldom conducive to getting inside the executive suite.

According to Grant Thornton research, Vietnam and Thailand have a higher percentage of women in senior management positions, but ironically 10% of these roles are in Human Resources, often dead-end stations.

In many Asian societies – China, Taiwan, Korea, India, Taiwan, Hong Kong, Vietnam, Thailand, and Singapore – women are still expected to fulfil traditional roles, including child and elder care.  Confucian values remain strong in Chinese families, holding women to higher expectations, although this varies across countries.   While the numbers of women in the workforce may be increasing, stereotypes, bias, and perceptions have remained the same.

Given the strong family values, increasing women’s roles in business requires balancing family obligations and organizational commitments.

Interviewing women across Asia, most senior executive women mentioned, “family support and having access to outside help – is critical – otherwise we couldn’t do what we do…”

In addition to family support, flexible work schedules fills the gap. Cicso, HP, Microsoft and other high-tech organizations provide telecommuting as a solution, but this option comes with a stark  reality; working from home is not viewed as real work, so mindsets need to shift.

While many organizations across Asia claim to have a pipeline of talented women, few have made a dent in the executive ranks. Moving from middle management to leadership is never easy.  To do so,organizations must ensure that women remain engaged with real opportunities to reach the executive suite.  Understanding and appreciating the cultural norms of each country and finding a strategy that builds an inclusive workforce allows for innovative thinking and provides a competitive advantage – and ultimately benefits everyone.