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When Women Thrive: Surprising Findings From Mercer’s Global Gender Diversity Research

D’Ann Whitehead, Psy.D.Principal

MercerSan Francisco, California

CONFIDENTIAL. This document contains proprietary methodologies and tools which remain the property of Mercer. These methodologies and tools cannot be used or disclosed without written consent by Mercer.© 2015, Mercer, Inc.

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Overall Business Context:• When Women Thrive, so does your business. . .

Findings from Mercer’s When Women Thrive (WWT) Research• Mercer's When Women Thrive (WWT) program—Thinking holistically about gender

diversity solutions: Health, wealth, and career• Five Research Themes• Opportunities to improve representation

Health Context• A gender lens on health and healthcare• Women and financial wellness• Women and Health: Building a conducive climate

Next Steps

A G E N D A

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WHY EMPLOYERS SHOULD

“HELP WOMEN THRIVE”

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G E N D E R D I V E R S I T Y — T H E D A T A I S C O M P E L L I N G

F O R E M P L O Y E R S : A S U M M A R Y O F R E S U L T S

F R O M 3 5 G L O B A L S T U D I E S S I N C E 2 0 0 5An extensive body of trusted research has consistently demonstrated the positive impact of improved gender diversity on business performance:

Source: Catalyst.org, “The Facts Support the Claim: Diversity Matters”

IMPROVED FINANCIAL PERFORMANCE

Improved financial performance Higher return on sales Higher return on equity Higher return on

invested capital

Better economic growth Better stock growth Lower risk of insolvency Higher market tobook value

Higher organizational excellence scores Higher operating result Improved corporate

sustainabilityOutperforming industry

averages

INCREASED INNOVATION AND GROUP PERFORMANCE

Higher collective intelligence Increased innovation Better problem-solving

abilities Higher social sensitivity

Increased knowledge formation Increased board development Reduced conflict

REFLECTING THE MARKETPLACE AND BUILDLING REPUTATION

Better corporate governance Lower corporate fraud Better board member

attendance

Higher likelihood of being considered

ethical

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G L O B A L F E M A L E L A B O R F O R C E P A R T I C I P A T I O N

R A T E S F A L L S H O R T O F P O T E N T I A L A N D L A G

B E H I N D M A L E E M P L O Y M E N T R A T E S A C R O S S

E V E R Y A G E B A N D A N D A R O U N D T H E W O R L D

15%

47%

62%67%

69% 70% 68% 66%

55%

36%

22%

59%

79%

88% 91% 93% 93% 95% 93%

66%

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64

Female Employment %

Male Employment %

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T H E D A T A I S C O M P E L L I N G

Eliminating the gap between male and female employment rates could boost countries’ GDP by as much as 34%.

%34Only 63% of women are confident they will be able to save enough for their ideal retirement —compared to 80% of men.

%63Women make 80% of healthcare decisions for themselves and their families.

80 %

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M E R C E R ’ S W O R K W I T H T H E W O R L D E C O N O M I C

F O R U M I D E N T I F I E S S I G N I F I C A N T O P P O R T U N I T Y

F O R C O U N T R I E S A N D C O M P A N I E S O N A

G L O B A L S C A L E One of the most significant factors limiting the growth potential of countries around the world is the fundamental participation and engagement of women in their workforce Eliminating the gap between male and female employment rates could boost countries’ GDP by as much as 34%.

To have a highly engaged female workforce, companies need a multi-faceted program that supports women to be healthy, productive and financially secure across the various phases of their professional and personal lifecycle.

Employers play a driving role with enormous ability to influence change and impact in this space—and reap the resulting benefits to their own business performance.

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MERCER’S “WHEN WOMEN

THRIVE” RESEARCH—

LAUNCHED IN 2014

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+ =

Contextual“Controls”

OperationalContext

Dependent“Outcomes”

Internal Labor Market

Dynamics

Policies,Practices,

and Culture

Independent“Drivers”

O U R R E S E A R C H U N I Q U E L Y F O C U S E D O N

L I N K I N G B R O A D H R P O L I C I E S A N D P R A C T I C E S

T O A C T U A L W O R K F O R C E R E S U L T S

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S U R V E Y E D 1 6 4 C O M P A N I E S F R O M 2 8 C O U N T R I E S ,

R E P R E S E N T I N G 1 . 7 M I L L I O N E M P L O Y E E S ,

I N C L U D I N G M O R E T H A N 6 8 0 , 0 0 0 W O M E N

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Use disciplined workforce analytics and predictive modeling to build a holistic diversity & inclusion strategy

Seek holistic solutionsBroad, enterprise focus is linked to sustainable change

Ensure pay equity is a core part of the annual rewards process; monitor utilization and impact of programs

Manage actively, not passivelyActive management of policies and programs, intended to

support different life choices, is required to avoid unintended career penalties

Realize unique valueCompanies that recognize and value the

differences between women and men benefit

Conduct network analysis to understand how employees are connected to one another and can uniquely drive value

RESEARCH THEMES SOLUTIONS

Engage and coach leaders to drive success; train managers on how to build a more inclusive workforce

Foster passion over formalityAccountability is not enough – leadership needs to be engaged

in promoting & managing diversity

Think and act differentlyNon-traditional solutions drive future success

Provide customized benefits and trainingfor different talent segments

M E R C E R ’ S W H E N W O M E N T H R I V E R E S E A R C H

T R A N S L A T I N G F I N D I N G S I N T O A C T I O N

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Are you confident in your organization’s ability to. . .

3.86

3.803.76

3.79

3.683.66

Attract female talent? Develop female talent? Retain female talent?

Respondents who answered at beginning of survey

Respondents who answered at end of survey

T H E M E 1 — S E E K H O L I S T I C S O L U T I O N S

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Relationship between survey response and workforce outcomes Current Female Representation

Future Female Representation

I agree that senior leaders and men at my organization are actively involved and engaged on D&I initiatives

I agree that leaders at my organization are held accountable, via incentives or other consequences, for failing to meet D&I goals

56%

15% Agree that bonuses/incentives for senior executives (i.e., CEO plus direct reports) are linked to the achievement of D&I goals.

Agree that senior executives (i.e., CEO plus direct reports) are actively involved in diversity and inclusion (D&I) programs/initiatives.

T H E M E 2 — F O S T E R P A S S I O N O V E R F O R M A L I T Y

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“Our company’scommitments

to gender equalityare publicly

documented.”

61% agree, Northern America

42% agree, Latin America

58% agree, Europe/Oceania

“We have aformalized

remediation processto address anypay equity risks

identified.”

42% agree, Northern America

37% agree, Latin America

23% agree, Europe/Oceania

Relationship between survey response and workforce outcomes Current Female Representation

Future Female Representation

I agree that my organization’s commitments to gender equalityand pay equity are communicated and documented

I agree my organization has a dedicated team responsible for pay equity and a formalized remediation process that relies on a robust statistical approach

T H E M E 3 — M A N A G E A C T I V E L Y , N O T P A S S I V E L Y

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Employee-level review

Pay Equity AssessmentData Preparation Model Development

Systemic evaluation (by business unit-job, AAP)

Identify prioritized groups

EEID Expected Pay

ActualPay

Pay smaller than expected?

1 $ $

2 $ $

3 $ $• Marker rates for jobs• Unemployment rates

• Business unit• Job• Pay grade

External Conditions

• Compensation• Gender and

race/ethnicity• Prior experience (age)• Tenure and time in job• Performance history

Employee Characteristics

Job FactorsLegitimateDrivers of

CompensationStatistical Modeling

Workforce Segmentation

1 2 3

A robust pay equity process

T H E M E 3 — M A N A G E A C T I V E L Y , N O T P A S S I V E L Y

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Relationship between survey response and workforce outcomes

FemaleRepresentation

Current Future

I agree my organization’s main retirement/savings programs address different work arrangements and help employees save for others

I agree my organization monitors saving ratios by gender and provides education/training customized to different gender behaviors

My organization offers gender-specific health education campaigns

My organization offers gender-specific health education and I believe it is a critical program for engaging and retaining women

Customized Health

Education Programs

48% of respondents who agree they provide such solutions

Customized Retirement Solutions

13% of respondents who agree they provide such solutions

T H E M E 4 — T H I N K A N D A C T D I F F E R E N T L Y

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Female managers—“top 3” ranked strengths:

Inclusive team management/ people leadership skills

Flexibility/adaptability to change or hardship

Teamwork/cooperationwith other groups

Male managers

Female managers

27% (of participants selecting)11%

20% 10%

22% 6%

Relationship between survey response and workforce outcomes Current Female Representation

Future Female Representation

I believe these three strengths are most important for career success at my organization

I believe these three strengths are least important for career success at my organization

T H E M E 5 — R E A L I Z E U N I Q U E V A L U E

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B U I L D I N G B L O C K S O F A N E F F E C T I V E G E N D E R

S T R A T E G Y

Passion, perseverance and making it personal: Leadership engagement and company culture.

Proof: Basing your gender diversity strategy/ priorities on robust workforce analytics, in order to pinpoint which policies/programs are accelerating or slowing the progression of women in your organization.

Programs: Broadening your understanding of what it takes to support women. In particular, recognizing and responding to women’s unique health and financial needs across their lifecycle with innovative, targeted programs.

Process: Implementing new programs and benefits ONLY in the context of an enabling environment.

HEALTHAND WELLNESS

FINANCIALWELLBEING

TALENTMANAGEMENT

PROCESS PROOF PROGRAMS

PASSION PERSER-VERANCE

PERSONAL

Women as patients, caregivers, and healthcare decision-makers

Policy/practice, management to support women’s career opportunity

Managing finances and preparing for retirement

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O U T C O M E S I N N A : W H A T D O T A L E N T F L O W S

L O O K L I K E T O D A Y ?

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19%

36%

24% 26%

18%

47%

12%

39%

2014 2024 2014 2024 2014 2024 2014 2024

LATINAMERICA

+27 % PTS

EUROPE/OCEANIA

+29 % PTS

NORTHERN AMERICA

+2 % PTS

GLOBAL

+17 % PTS

E X A M I N I N G O U T C O M E S : W H A T I S T H E F U T U R E

O U T L O O K ?

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GLOBAL

+17 % PTS +25 % PTS

19%

44%

24%

42%

18%

55%

12%

53%

2014 2024 2014 2024 2014 2024 2014 2024

LATINAMERICA

+27 % PTS+41 % PTS

EUROPE/OCEANIA

+29 % PTS+37 % PTS

NORTHERN AMERICA

+2 % PTS+18 % PTS

E X A M I N I N G O U T C O M E S : W H A T I S T H E F U T U R E

O U T L O O K , A N D F U T U R E O P P O R T U N I T Y T O

I M P R O V E R E P R E S E N T A T I O N ?

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MERCER’S “WHEN WOMEN

THRIVE” PROGRAMWOMEN AND HEALTH

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M E R C E R ’ S P E R S P E C T I V E

C O M P O N E N T S O F A H O L I S T I C G E N D E R

D I V E R S I T Y S T R A T E G Y

PHYSICAL AND EMOTIONAL WELLNESS

FINANCIAL WELLNESS

CAREER ENGAGEMENT

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W O M E N A N D H E A L T H — T H E P A T I E N T

N o t j u s t r e p r o d u c t i o n —To p s u b j e c t s w o m e n d i s c u s s w i t h t h e i r h e a l t h c a r e p r o v i d e r s 1

Diet, exercise and nutrit ion

Gett ing enough calcium to prevent

bone loss

Smoking

Mental health issues

Alcohol / drug use

Health conditions that impact only

women2, e.g.:

• Breast, ovarian, cervical cancers• Fertility/infertility; pregnancy; fetal health• Menopause

Health conditions that impact

women differently2, e.g.:

• Cardiovascular disease (heart attack symptoms are different/more subtle– leads to delayed treatment)

• Metabolic disorders (e.g. diabetes; shorter life expectancy, worse blood glucose control, increased depression)

• Obesity (increased risk of breast/uterine cancers; obese women more likely to have high blood pressure, diabetes and other complications)

• Nutrition/wellness• Efficacy and side effects of many drugs and devices

(medical testing issue)

Health conditions far more

prevalent in women2, e.g.:

• Autoimmune diseases (75% occur in women, among the top 10 killers of younger women in particular)

• Depressive disorders (2-3x more prevalent in women)• Eating disorders (88% of patients are women)• Alzheimer’s disease (75% of patients are women)• Sleep disorders (women 2x as likely to have difficulty)• Osteoarthritis (typically women over the age of 45)

PAT I E N T

Age / life stage consideration

1. Kaiser Family Foundation, Women’s Health Care Chartbook2. The Business Case for Women’s Health, Anula Jayasuriya, MD PhD

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0%

10%

20%

30%

40%

50%

Ages18-29

Ages30-39

Ages40-49

Ages50-64

From a healthcare providerFrom the internetFrom family/friendsOther sources

• 85% of mothers select their young children’s doctor5

• 84% of mothers take their children to doctor’s appointments5

• 48% of full time working women have to take time off work when their child is sick5

The Healthcare Caregiver—

“Women as the CMOs of their

families”

Mid-Career Women Late-Career Women Women in Retirement

• 55% of family caregivers are ages 45-545

• Many late-career women care for growing children, many of whom are becoming adults themselves, as well as their spouses and often elderly parents5

• On average, women live 6-8 years longer than their male counterparts. Many end up making decisions for their aging spouses and/or caring for their male loved ones as they near death6

Women account for 80% of all healthcare consumer purchases1

Average annual healthcare expenditures for all women as of 2011 was $4,315 (versus $3,948 for men)2

Health categories in which women are the largest consumers: Cosmetic procedures; Aesthetic medical devices; Nutraceuticals; Wellness3

The Healthcare Consumer

Women are increasingly turning to social media for health care information and sharing their healthcare experiences, recommendations, and decisions3 – but where/how women get their health care information varies across the lifecycle in today’s multi-generational workforce:

“Women: Where do you get your healthcare information today?”5

C O N S U M E R & C A R E G I V E R

Age / life stage consideration

W O M E N A N D H E A L T H — T H E C O N S U M E R

A N D T H E C A R E G I V E R

1. http://she-conomy.com/report/marketing-to-women-quick-facts2. CDC (http://www.cdc.gov/nchs/data/hus/2014/106.pdf)3. The Business Case for Women’s Health, Anula Jayasuriya, MD PhD4. Pew Internet Project5. Kaiser Family Foundation, Women’s Health Care Chartbook6. Fidelity Money Fit Women Study

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W O M E N A N D M O N E Y

F I N A N C I A L W E L L N E S S A N D G E N D E R

Financialwellness

Financial literacy

Women tend to be less confident in their financial knowledge than men.

Personal characteristics

Compounding lifecycle circumstances

Financial situation

Women earn increasingly less than men across their employee lifecycle.

Financial behavior

Risk aversion and low investing confidence

Financial stressors

Women report higher levels of financial stress due to unique life stressors.

Despite these reservations, there is research that suggests that women who take risk outperform their male counterparts

Source: The MetLife Study of Financial Wellness Across the Globe

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H O W C A N Y O U I N N O V A T E ? W O M E N A N D M O N E Y

A L I F E C Y C L E P E R S P E C T I V E

Investments: • Do you have a tiered investment line-up that addresses different life stage needs? • Is the design of your default target fund consistent with the potential circumstances of women?

Analytics: • Do you monitor retirement plan participation, savings rates, expected replacement ratios, investment returns and investment choices

by gender?

Education/communication: Are your communications/education programs customized to different gender behaviors and learning preferences?

Retirement income menu:• Do you offer options that protect against the risks of

women living longer?

Design• Do your benefit designs address different work arrangements? (e.g. adapted to part-timers, service

breaks, contributions during leave, catch-up contributions, automatic features)• Do they help employees manage the financial well-being of their dependents?

Advice solutionsDo your advice programs consider financial issues typical of women? Are your advice providers gender-aware?

The rising professionalwoman

The mid-career woman

The late career woman

The woman in retirement

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WOMEN AND HEALTHBUILDING A CONDUCIVE CLIMATE

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W O M E N A N D H E A LT H

C R E AT I N G A C O N D U C I V E C L I M AT E . . .

. . . I T I S N O T J U S T A B O U T “ B E N E F I T S / P R O G R A M S ”

BENEFITS POLICY AND OFFERINGS

LEADERSHIP WORKPLACE CULTURE

• Heal th care benef i t des ign o f fer ings

• Time-of f benef i ts for w omen AND men

• Wel lbe ing o f fer ings / too ls /programs promoted to w omen AND men

• Specia l ty ne tw orks and Centers o f Exce l lence for w omen’s hea l th needs

• Specia l i zed fer t i l i ty benef i ts

• Leading by example • Divers i ty t ra in ing

inc lus ion in new manager and new h i re t ra in ings

• Inc lus ive team leadersh ip sk i l ls , cooperat ive f lex ib le and adaptab le management s ty les are impor tant to career advancement

• Vis ib le sen ior leader champions

• Flex hours• Sabbat ica l o f fe r ings• Matern i ty /patern i ty /adopt

ion /e ldercare leave f lex ib i l i ty

• Onsi te ch i ldcare and/or ch i ldcare /e ldercare subs id ies

• EAP programming• Work /L i fe Ba lance

so lu t ions• Specia l i zed Return to

Work programming

• Pr ivate space for new mothers

• Aff in i ty groups• “Careg iv ing” lunch

and learns for w omen and men

• Heal th in format ion for w omen throughout the i r l i fecyc les

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M E R C E R ’ S W W T R E S E A R C H

2 0 1 5 S U R V E Y L I V E I N T H E M A R K E T

TAKE THE SURVEY

5/25/15 – 9/1/15 Participate in 2015 study:• Register on imercer.com and choose the level of your participation• Complete the web-based research questionnaire (~1.5 hours)

November 11 Findings published

ATTEND THE ANNUAL CONFERENCE

November 9-10 Brussels, Belgium

Early 2016 Washington, DC, United States (date to be announced)

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T O D A Y ’ S A G E N D A

• THE W@M BRG JOURNEY- 2013 Re-Launch W@M Laying the Foundation

31

WHEN WOMEN THRIVE. . .

THEY ARE HEALTHY AND PRODUCTIVE

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32

WHEN WOMEN THRIVE . . .

THEY AREFINANCIALLY SECURE

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33

WHEN WOMEN THRIVE. . .THEY ADVANCE. . .

THEY SUCCEED. . .

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34August

WHEN WOMEN THRIVE. . .BUSINESSES THRIVE

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Q U E S T I O N S ?

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