Article

Women underrepresented in company decision-making processes

Published: 17 June 2007

At the request of the Ministry of Equal Opportunities, the Centre for Population, Poverty and Socioeconomic Policy Studies (Centre d’Études de Populations, de Pauvreté et de Politiques Socio-Économiques/International Networks for Studies in Technology, Environment, Alternatives, Development, CEPS/Instead [1]) conducted a survey on women’s participation in companies’ decision-making processes. The survey was a follow-up of an earlier study carried out in 2000, and aimed at assessing any developments between 2000 and 2004.[1] http://www.ceps.lu/

In 2004, the Centre for Population, Poverty and Socioeconomic Policy Studies carried out a survey to assess the development of women’s participation in the decision-making processes of companies since 2000. The survey findings indicate that the participation of women in this regard is significantly lower than their representation in the overall workforce. The situation has barely improved since 2000.

At the request of the Ministry of Equal Opportunities, the Centre for Population, Poverty and Socioeconomic Policy Studies (Centre d’Études de Populations, de Pauvreté et de Politiques Socio-Économiques/International Networks for Studies in Technology, Environment, Alternatives, Development, CEPS/Instead) conducted a survey on women’s participation in companies’ decision-making processes. The survey was a follow-up of an earlier study carried out in 2000, and aimed at assessing any developments between 2000 and 2004.

As part of the survey, a questionnaire was sent to a representative sample of private-sector companies of all sizes. The survey covered companies in all sectors of the economy, except those in agriculture. In all, 2,315 companies took part in the survey, which represents 15% of all companies in Luxembourg.

Women underrepresented on company board

The level of participation of women as members of boards of directors is considerably lower than their representation in the overall workforce. Women represent 35% of the workforce in companies which have a board of directors, while they account for just 16% of the seats on the board. It should be noted that their participation rate is higher in small companies, employing fewer than 15 workers. In such companies, they hold 18% of the seats on the board of directors. However, in companies employing more than 100 employees, only 10% of those on the board of directors are female. In these large companies, the proportion of women in the workforce is 3.8 times higher than their level of representation on the board of directors.

According to the survey findings, women are underrepresented on the board of directors across all economic sectors, except in the construction sector where the proportion of women on the company board of directors is higher than their representation in the workforce. In sectors such as metalworking, transport, textiles, chemicals, automotive and energy supply – where female workers are few in number and tend to perform administrative tasks – they gain access to seats on the board of directors more frequently and are represented at the same level as in the workforce (Table 1).

Table 1: Representation of women on board of directors, by sector and company size, 2003 (%)
Representation of women on the board of directors, by sector of activity and company size, 2003 (%)
Sector of activity and company size Female employees (%) Women on board of directors (%)
Mining and quarrying; metalworking industry 8 6
Manufacture of food, paper and machinery 34 8
Manufacture of textiles, chemicals and wood; electricity, gas and water supply 12 15
Construction 6 20
Wholesale; trade and repair of motor vehicles 35 22
Retail trade 65 34
Hotels, restaurants and catering 62 26
Transport 15 14
Financial intermediation 45 5
Real estate, renting and business activities; recreational activities; waste management 40 22
Education; health and social work 75 19
Post and telecommunications; information technology (IT) 31 12
Company size:    
1–14 employees 42 18
15–49 employees 30 13
50–99 employees 25 11
100 or more employees 37 10
Overall 35 16

Source: CEPS/Instead, Survey of women in decision making in 2003, 2004

Women underrepresented in top management

When looking at companies run by a single director (66% of all companies surveyed), women are considerably underrepresented as directors: only 12% of small companies employing fewer than 15 workers are managed by a woman, while 88% of these companies are run by a man.

Given that women constitute 32% of workers in companies with more than 15 employees, but only represent 16% of company directors, they are also underrepresented among company directors in this category. The survey results reveal that this is the case in all sectors and in all companies employing more than 15 people.

Participation of women as employee representatives

Although women represent 32% of the workforce, they account for just 24% of members of personnel delegations, which are one of the main types of workplace representation in the country’s companies. Large companies with more than 100 employees show the greatest discrepancy in this instance: the proportion of female employees is 1.5 times higher than the representation of women in the personnel delegations of these companies, with 35% of employees being women and only 23% of women being full delegates.

Indeed, women are underrepresented when it comes to representation as full and deputy delegates in worker representation bodies across all sectors of activity. This disparity is most pronounced in industry and in the small retail, and hotel and restaurant sectors. In the construction sector, women only represent 6% of the workforce, but their representation among delegate positions is not lower in proportional terms, standing at 7% of delegates. Whenever companies in construction employ women, their involvement in worker representation bodies is identical to that of men (Table 2).

Table 2: Women in personnel delegations, by sector and company size, 2003 (%)
Women in personnel delegations, by sector of activity and company size, 2003 (%)
Sector of activity and size Female employees (%) Women as full delegation members (%) Women as deputy delegation members (%)
Industry 20 14 16
Construction 6 7 7
Wholesale; trade and repair of motor vehicles 26 22 25
Retail trade; hotels, restaurants and catering 61 41 55
Financial intermediation; real estate, renting and business activities; recreational activities; waste management; health and social work 54 40 46
Transport; post and telecommunications; IT 19 17 18
Company size:      
15–49 employees 27 25 26
50–99 employees 27 22 23
100 or more employees 35 23 30
Overall 32 24 27

Source: CEPS/Instead, 2004

Véronique De Broeck, Prevent

Eurofound recommends citing this publication in the following way.

Eurofound (2007), Women underrepresented in company decision-making processes, article.

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