Rusty Wiley is CEO of Datasite, a leading SaaS technology provider for the M&A industry.
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As investors continue to see that companies with higher environmental, social and corporate governance (ESG) scores perform better than their peers, additional new policies, such as the European rules on financial services sustainability disclosure requirements, which are set to go into effect this month, March 2021, are likely to emerge. One aspect of ESG that may require additional attention this year is diversity and inclusion, particularly as the ongoing global pandemic has hit women in the workforce especially hard.
According to a report from the United Nations, women are overrepresented in many of the industries that have suffered the most from the pandemic, including food service, retail and entertainment. The overall job and income losses have resulted in 47 million women and girls being pushed into extreme poverty, further widening the gender poverty gap.
Following decades of hard-won battles for gender equality and women's economic rights, this is a cycle we can't let slide back. As the leader of a fast-growing SaaS technology company for M&A professionals, I may not have all the answers for how government and business can best rebuild economic competitiveness, but I do know that policies and programs that support gender equality and women's empowerment need to be a central part of the efforts.
To build more equitable environments, I believe companies must support:
Flexibility
The pandemic has created a clash between professional and personal responsibilities. Companies should aim to give all employees (of all genders) the opportunity to balance their professional and personal responsibilities with programs that support new ways of working, such as flexible working hours and compressed workweeks. For example, while my company currently supports a remote working environment for all our employees, we are looking to establish processes for supporting new remote roles on a permanent basis. We've also reallocated talent whose roles were impacted by our closed offices. In some instances, we've given them new responsibilities and opportunities that they wouldn't otherwise have had, and this is helping accelerate their development. Aim to create more flexibility for your workforce for a greater work-life balance.
The Use Of Family-Friendly Benefits
Companies need to encourage men to take advantage of family-friendly policies, including parental leave. Even if it's offered, men are less likely to use parental leave because of stigma or the fear that it may hurt their careers. However, research shows that there are physical, emotional and financial benefits for men who take parental leave, including the fact that they are more likely to be equal partners in raising their children. Encourage your employees to take the full time presented through the benefit of paid parental leave. At my company, our paid parental leave has been well received by employees. In fact, of the employees eligible to take parental leave in the last two years—including men—all have taken the full time.
Promoting The Underrepresented
Companies can work with industry and local organizations to ensure recovery efforts support underrepresented women and girls, including promoting greater equality for all women. This is important because research shows that when women are involved in the investment decision-making process, the results are impressive. According to the IFC, "venture capital and private equity funds with gender-balanced teams perform 10% to 20% higher than their homogeneous peers," while a MassChallenge/BCG study found that revenue generated from female-led funded companies outstrips that of male-led companies. For example, we are a sponsor of Exponent Women, an industry organization that is dedicated to giving women dealmakers access to meaningful interactions and educational content. Look for opportunities to support the underrepresented and promote equal entrance and learning opportunities for women both inside your org and out.
Recruiting, Recognizing And Rewarding Diverse Talent
Both the mergers and acquisitions industry and the technology industry are traditionally male-dominated spaces. However, to succeed in both, innovation is key. And to innovate, there must be a diversity of perspectives built from different experiences. In fact, research shows that companies with greater diversity produced a higher proportion of revenue from innovation than those with below-average diversity. Make sure your recruiting efforts actively recognize and engage diverse candidates from various pools.
Making Diversity And Inclusion A Continuous Process
Having a diverse and inclusive organization isn't something that happens overnight. Yes, supportive policies need to be in place but to create change and new dynamics, there must be a continuous, sustained effort. There must be ongoing conversation and discussion. We recently celebrated International Women's Day, with a panel discussion on how we can shape a more equal future and recovery from the pandemic. The panel is the first in a series of quarterly diversity and inclusion events. Continuously championing diversity and cultivating true inclusion is requires thought and care.
This is a singular moment to be a leader in business. The pandemic has made clear the weaknesses in our systems and institutions, but it also offers a chance for us to step up and shape a more equal future.
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