Turkey Women Matter 2016 Turkey's Potential: Place of Women in the Business World
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1 McKinsey&Company Turkey Women Matter 2016 Turkey's Potential: Place of Women in the Business World Istanbul December 22, 2016
2 As McKinsey & Company we have been researching Women Matter in different geographies for 10 years. Objective To create an agenda based on allowing women's participation in the workforce and raising women leaders in companies that guide the country's economy and shed light on the actions to be taken in this regard Latam Europe USA ASIA GCC AFRICA McKinsey & Company 1
3 We conducted this study for the first time in 2016 with TÜS AD business association in Turkey. McKinsey &Company Our goals with this study Women Matter study with the highest participation 102 leading local and international companies 11 differentsectors 240 thousand white collarworkers Highlighting the importance of women's contribution to Turkey's economy Analyze women's representation at all levels in leading companiesinturkey Investigating HR practices on genderdiversity Inviting companies to act on concrete actions McKinsey & Company 2
4 Core messages The participation of women in the labor force creates a significant growth opportunity for the world economy and Turkey's economy. McKinsey & Company 3
5 In the global economy, a growth of trillion US $ in 2025 can be achieved with an increase in women's participation in the workforce. 12 trillion US $ / + 11% growth To make sure that Women's participation in the workforce is at the highest level in the country 28 trillion US $/ + 26% growth Achieving equal participation of women in the labor force participation rate SOURCE: McKinsey Global Institute, 'The Power of Parity Report', September 2015 McKinsey & Company 4
6 Turkey ranks 130 in 144 countries in terms of gender equality. World Economic Forum Gender Equality Index Access to healthcare services Access to education services Participation in economic activity and equality of opportunity Participation in politics Ranking of countries according to their index values Iceland Finland Rwanda Moldova Kazakhistan Bangladesh Turkey Mexico 1= Equality SOURCE: World Economic Forum Gender Equality Index, 2016 McKinsey & Company 5
7 Turkey is at the lowest level among OECD countries in the participation of women in the workforce. Women's participation rate in labor force 2015, agegroup #1 Iceland #5 Norway #10 New #15 Austria #20 France #25 Luxembourg #30 Hungary #31 Greece #32 Chile #33 Italy #34 Mexico #35 Turkey SOURCE: ILO, Female Labor Force Participation Rate, age group, 2015 McKinsey & Company 6
8 Thanks to the strong policies to support the participation of women in the workforce has the potential to increase Turkey's GDP by 20% by The Women labor force participation rate in Turkey age group Potential of 20% increase in GDP by Expected 2025 potential scenario 1 The OECD average excluding Turkey, 63% of men in the labor force participation rate in Turkey is 77%. SOURCE: ILO; World Input-Output Database; Oxford Economics; IHS; TÜ K; McKinsey Global Growth Model; McKinsey Global Institute analysis Turkey to reach the OECD average 1 + $ billion US $ McKinsey & Company 7
9 Core messages The participation of women in the labor force creates a significant growth opportunity for the world economy and Turkey's economy. The increase in women's representation in companies and the rise of women to leading positions develop the company's performance and culture. McKinsey & Company 8
10 It was observed that the inclusion of women in top management teams positively contributes to the financial performance of companies. Verified Not-Verified Average equity profitability 1 Industry Fast consumer goods Number of compan ies Average equity profitability Industrial products Energy, raw materials and environment Banking Companies with at least 1 woman in the top management team Companies that do not have women in the top management team Telecommunication, media and entertainment, technology Transportation, logistics and tourism 1 The average profitability of 279 companies in the UK, France, Germany, Spain, Sweden, Norway, Brazil, Russia, India and China between SOURCE: Women Matter 2010: Women at the top of corporations: Making it happen McKinsey & Company 9
11 It is seen that team performance improves by bringing together different ideas, points of view and styles. Harvard Business Review Evidence of a Collective Intelligence Factor in the performance of Human Groups The correlation between teams 'collective IQs and team members' individual IQs is very low. However, the relationship between the number of women in the group and the collective IQ of the group is directly proportional. SOURCE: Williams Woolley, Christopher F. Chabris, Alex Pentland, Nada Hashmi, Thomas W. Malone, "Evidence of a Collective Intelligence Factor in the Performance of Human Groups", October 2010 McKinsey & Company 10
12 The balanced proportion of women in the organization contributes to the company's customer focus. Category Alone Together Food and beverage Personal care Cleaning products White goods Textile technology SOURCE: "The Female Economy", Harvard Business Review, SEPTEMBER 2009 McKinsey & Company 11
13 Increasing representation of women in companies provides access to a wider talent pool. General managers' priorities: "What are the biggest challenges you face when managing your company?" Average score between 1-5 Qualified human source Operational excellence innovation Customer relations Global political / economic risks regulations Global expansion Corporate brand image and reputation Sustainability Confidence in working environment The rate of women among higher education graduates in Turkey University Master's degree Doctor's SOURCE: The Global Talent Index Report: The Outlook to 2015; McKinsey & Company The Conferance Board 2013 Survey; Higher Education Council McKinsey & Company 12 degree It is not a logical job decision to ignore half of the qualified human resource.
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15 Core messages The participation of women in the labor force creates a significant growth opportunity for the world economy and Turkey's economy. The increase in women's representation in companies and the rise of women to leading positions develop the company's performance and culture. The Women Matter survey Turkey 2016 shows that like other countries, it also shows that Turkey has open areas of development for women's representation and leadership. McKinsey & Company 13
16 The ratio of women's representation in leading companies in Turkey is slightly below the international examples. Woman representation rate in leading companies USA Latin America Turkey Finance sector Other sectors SOURCE: McKinsey & Company, Women Matter survey Turkey 2016 McKinsey & Company 14
17 The rate of woman representation decreases as the level of top management increases Woman representation rate at different levels of the company Genera l manag er Top manage ment 1 Entry level International examples Europe USA ASIA Distribution of women top managers Latin America Support functions 1 The General Manager and the first level managers who are directly connected to them 2 Functions such as Human Resources, Corporate Communication, Law SOURCE: McKinsey & Company, Women Matter survey Turkey 2016 McKinsey & Company 15
18 There is a big difference between companies in terms of the representation of women at the top management level. Top 10 Percentage of woman representation in top management Next 15 Next 25 Next 28 Last 21 SOURCE: McKinsey & Company, Women Matter survey Turkey 2016 McKinsey & Company 16
19 Core messages The participation of women in the labor force creates a significant growth opportunity for the world economy and Turkey's economy. The increase in women's representation in companies and the rise of women to leading positions develop the company's performance and culture. The Women Matter survey Turkey 2016 shows that like other countries, it also shows that Turkey has open areas of development for women's representation and leadership. With the holistic efforts of the companies to increase the representation of women and women leaders, Turkey may be a great example to the whole world in terms of rapid development. McKinsey & Company 17
20 Companies must focus on 3 issues in order to achieve success in increasing women's representation. STRATEGIC PRIORITY HOLISTIC EXCHANGE PROGRAM STABILITY To make gender equality one of the company's top 5 priorities and to emphasize this priority at all levels of the company's priority To make focused studies by creating a holistic exchange program To keep the work done on the agenda for a long time with regular and consistent communication and to apply it consistently for at least 3-5 years SOURCE: McKinsey & Company Women Matters studies McKinsey & Company 18
21 A comprehensive and stable holistic exchange program should be established to ensure gender equality. Senior management commitment and awareness at all levels Keeping track of events with regular communications and metrics Woman leader training Special trainings for women Sponsorship and mentoring Women's social networks Flexible work models and birth support programs Preventing prejudice Prejudices in the course of recruitment Prejudices during the performance assessment process Prejudices in leadership style Inclusive company culture SOURCE: McKinsey & Company Women Matter surveys McKinsey & Company 19
22 Implications for the future The female labor force in Turkeyrepresents a potential that is not being used Women executives have a significant contribution to the performance and health of companies. With the focused and stable work of the leading companies in Turkey there is the potential to put out role model companies and leaders in the region and the world. SOURCE: McKinsey & Company Women Matter Survey Turkey 2016 McKinsey & Company 20
23 Women Matter TURKEY 2016
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