Author: Florentina Șușnea, Managing Partner, PKF Finconta

Gender diversity is more of a topic mimicked in the Romanian business space than one addressed in real terms because the problem itself does not exist. Taken in Romania from the consolidated business environments this topic makes its way in the multinational companies than in the entrepreneurial ones.

At the level of this first category of companies, the HR departments run periodic computations regarding the gender-balanced distribution, often correlating the preservation of the balanced mix with the health of the company. Is it just the health of the company? What is the situation of gender representation at the top management level? How represented are the women on the boards of companies? Since the vision of the CEOs is very important, in our analysis we have tapped into analysis their opinions as evidenced by McKinsey's research on this topic.

Therefore, the balanced gender distribution is not only a matter of organizational health but also of performance. McKinsey's research data shows that those companies that have a balanced gender mix perform 21% better in terms of profitability. In other words, the balanced presence of women and men in the staff component is not only a social one, but it has to do with the performance of the company.

Seen from the perspective of the CEOs, the theme of gender diversity has specific aspects. For example, those executives who take over the management of underperforming companies are constrained to measures with a greater strategic component than those who take over companies that have overperformed. The first of the measures with a strategic component is the 50% change of the management team in the first two years.

Often the consequence of such a measure is also the summoning, within the boards of administration, of a larger number of women. Since in 78% of cases the CEOs are appointed from the old management team, they, surprisingly, make the boldest changes.

If, at the beginning of their term, women have representation on the board of directors of only 11%, at the end of the period of leadership the percentage of women presence increases to 17%. The CEOs brought in from the outside of the company, just as surprisingly, are more conservative and neither increase but nor decrease the percentage of women representation on the boards of directors.

Coming from inside or outside the company, the CEOs previously had responsibility for the results of the companies they ran. Therefore, an essential criterion for women to be better represented on boards is to be given the opportunity for such accountability of results. The candidate selection funnel takes into account the results.

The perspective of the CEOs is important but the acceptance of the working environment is equally important. Some impact measures may change the thinking mechanisms regarding the role of women in companies. The first refers to women's mentoring. Responsibly and carefully done it can yield results. The second concerns awareness of subjectivity in the allocation of new responsibilities, opportunities, but also the evaluation of results and the exposure of women to the management team.

The third measure concerns the leadership models promoted in the company. The model of the professional with a family can be compatible with the expectations of most women who want a leadership position and a family life while the model of the professional dedicated to the whole company sends a discouraging message of the type: "If you want to be a director, give up to the idea of having a family ”

Leadership is a right and a decision every day. Women are increasingly claiming this role. The management of the company and the organizational design can facilitate or hinder the exercise of this right. Acceptance of the organizational environment matters for the respect of equal opportunities regarding women's access to leadership roles. Mentalities change as actions speak.

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About PKF Finconta

For 25 years, PKF Finconta is one of the 10 leading professional services companies in Romania. Since 2006, we are a member of PKF International Limited. PKF International is a leading international business advisory organization. The company grew consistently over the years, forming a Group of four companies: PKF Finconta, PKF Finconta Consultanta, PKF Finconta HR and Finconta Consulting SPRL, members of national professional organizations CECCAR, CAFR, CCFR, and UNPIR. We provide a wide range of business advisory and related specialist services. We have seven core areas of expertise and within these areas, we tailor our services to your business and your needs: audit, corporate finance, tax, bookkeeping and accounting advisory services, transfer pricing, payroll and personnel administration, and insolvency.