In the dynamic landscape of 2024, businesses can play a crucial role in advancing gender equality, particularly regarding financial health. Despite significant progress, women continue to face notable financial disadvantages in the workplace. Addressing these issues is not only a matter of fairness but also essential for fostering a more inclusive and prosperous economy.

Within the Middle East there is a positive shift towards gender equality. Progressive policies, increased educational opportunities for women, and a growing emphasis on female participation in the workforce have all contributed to this change of perception. In the UAE, legislative reforms, such as equal pay for equal work laws introduced in 2018, have played a crucial role in bridging the gender pay gap. Reports indicate that the gender pay gap in the UAE has reduced by nearly 10% in the last five years. 

Saudi Arabia has also made remarkable progress. Women in the finance profession in KSA have seen significant progress in recent years. The Saudi Vision 2030 initiative has been a driving force, aiming to increase female participation in the workforce to 30% by 2030. Notably, women’s participation in leadership roles within banks and financial institutions has grown, reflecting broader social reforms and efforts to enhance gender diversity in the Kingdom’s economic landscape.

These improvements demonstrate a clear commitment to fostering gender equality and empowering women across the Middle East. As the region continues to implement forward-thinking policies and embrace gender inclusivity.

How Businesses Can Advance Gender Equality in 2024

The Impact of Gender Equality Initiatives

Despite it being a topic of controversy and debate worldwide, women are underrepresented in leadership roles and career prospects are still a concern though. A 2024 report from Catalyst reveals that women hold only 29% of senior management positions globally. This underrepresentation limits women’s earning potential and career advancement opportunities, perpetuating financial inequality. The same report found that of the world’s 500 biggest businesses, only 41 were led by women CEOs, that’s just 8%. 

But I believe that as the workplace changes – as roles become more varied – women are in a strong position to shape their own future, using new skills, new technologies and exploring new business opportunities which are emerging all the time – where gender is utterly irrelevant.

There are many factors which are accelerating the increase in opportunities for women. There is a wider acceptance in societies everywhere that women should have access to opportunity in their work and in their life that is equal to that of men; and from this, everyone will benefit. Old attitudes from ages past which discriminate against women are increasingly viewed as outmoded, outdated and just plain wrong. That has happened in our lifetimes. It is a generational change, and the best businesses know this.

They know that to ignore the right of women to claim equal opportunities to men in every walk of life is to risk serious reputational damage and sub-optimal business performance. In that sense, the right of women to take the place which their abilities deserve is a business question as much as it is an ethical question. Far-sighted companies are increasingly aware that to stay relevant, to stay respected, they must accurately reflect the aspirations and the attitudes of all their stakeholders, which includes their investors, their customers and their staff.

One of the most interesting trends emerging now is a changing mood among big institutional investors on this issue, and a shift in how they make decisions. There is a growing willingness to hold businesses to account across a range of measures that extend way beyond profitability. Increasingly they demand action on sustainability, on corporate and social responsibility, and on diversity – including gender equality. 

Another huge factor has been the pandemic. Its effects have reached into every corner of life. It has raised questions about how we live our lives and how we carry on business, and that includes the issue of gender equality. At ACCA we commissioned a global survey into the effects of the pandemic on women especially, and it was clear that it was disproportionately more damaging for women, both economically and socially. Our report, Gender Responsive Budgeting, brought a valuable female perspective to the crisis. For women, it was a story of job losses, a surge in the burden of unpaid care, and increasing economic dependence on men.

But as we have emerged from the pandemic, the employment landscape for women has changed for the better. The pandemic triggered a revolution in remote working, and in more flexible working, which in time has the potential to liberate countless women to combine home lives and careers more easily than ever before. 

There has been an explosion in digital education, and in digital study, and at ACCA we’ve driven that forward in our own approach. It has raised the chances for untold numbers of women to pursue a professional career, especially for those women who have traditionally been excluded from professional education by the simple fact of geography, or by cultural and domestic pressures. The question of greater access to professional education for women is so important. The numbers of women entering professional and business life is poised to explode in the coming generation.

As this new generation enters the workplace, it’s an opportunity for businesses to ‘normalise’ supporting female employees and ensure that the company as a whole is equipped with strategies that enhance women’s financial health. 

How Can Businesses Help Women’s Financial Literacy?

Businesses can help build an inclusive and financially empowering workplace for women by building a respect for gender equality, equality for all people, into the structure of the business. Communicating these values clearly at every level of an organisation, and demonstrating them is crucial. 

Mentoring and support networks for women professionals are also hugely beneficial. Women have, for too long, been living in a world where we are told that we aren’t good enough or not ready to take on a new or senior role. Mentoring groups are a wonderful way to build women up and encourage the confidence and belief that we are capable. But mentoring groups are not the only option. Having multiple mentors that are both inside and outside the workplace bring advantages and play an important role in amplifying the positive and drowning out the negative.

And there are many more ways that businesses can support women in their financial health. Transparent salary bands and criteria for raises and promotions can help ensure fair compensation. Companies should ideally be conducting annual pay audits and adjusting salaries to address gender pay gaps.

Flexible working arrangements, such as remote work and flexible hours, can help women balance work and caregiving responsibilities. Generous parental leave policies for both parents can also alleviate the burden on women. Some companies now offer on-site childcare and flexible working hours, promoting a family-friendly work environment.

Businesses could also offer financial literacy programmes tailored to women’s needs that cover topics such as budgeting, investing, and retirement planning. Providing access to financial advisors and resources can empower women to make informed financial decisions. Encouraging financial independence through programmes that support savings, investments, and retirement planning is crucial. Employers can offer benefits such as retirement savings plans with matching contributions, stock options, and financial planning services. 

Finally,anti-discrimination policies should be mandatory in all organisations. Creating an inclusive culture where diversity is valued and bias is actively challenged can help reduce discriminatory practices. Companies could go one step further and integrate diversity metrics into performance reviews.

We have come so far and businesses wanting to achieve long-term-sustainable success, now understand that there is a clear commercial case why supporting more women is a business ‘essential’. Improving women’s financial health has a positive ripple effect on the economy. Research by McKinsey & Company suggests that closing the gender gap in the workforce could add $12 trillion to global GDP by 2025. By empowering women financially, businesses contribute to broader economic growth and stability.

Companies that champion women’s financial health and gender equality are viewed more favourably by consumers, investors, and potential employees. This positive reputation can enhance a company’s brand and competitive edge in the marketplace. According to a 2024 Edelman Trust Barometer report, 78% of consumers prefer to buy from companies that prioritise diversity and inclusion. Compelling statistics.

By implementing strategies that promote equal pay, support a work-life balance, enhance financial literacy, and foster an inclusive culture, businesses can significantly improve women’s financial health. This not only benefits female employees, but also contributes to a more robust, equitable, and prosperous economy. The time to act is now, and businesses have the power and responsibility to lead the way in creating a future where women’s financial health is on par with their male counterparts.