100 Tools for Gender Equality: No.2 – Clear KPI targets

I’m super excited to hear what kind of specific gender equality targets and KPIs your company have in place! And are they linked to your bonus schemes?

We measure leaders and organizations on pretty much everything these days. We link KPIs to areas that we perceive to be critical for our financial and operational performance, representing a competitive advantage or alternatively risk exposure. Supply chain performance, environmental performance, financial performance, efficiency, quality, customer satisfaction – you name it!

We usually define these areas and KPIs primarily based on the need to create profit, (even though some spearhead companies also want to perform ethically responsibly) – and that’s the beauty of succeeding with diversity. It pays off!! So even if you don’t care shit about gender equality – educate yourself and get to work if you want to improve your financial returns…!

“Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians.” (McKinsey – Diversity Matters)

Performance-based incentives based on how you deliver on a range of specific and measurable KPI targets is quite common. But we also know that people in tend to put just a little bit extra effort into the areas that they’re measured on. Not only due to eventual bonus triggers, but also because a specific KPI targets provides a shared focus and direction from top mgt. – it’s clear for everyone what we want to achieve.

Hence, an efficient tool for an organization who wants to succeed in building better diversity, is to identify measurable KPIs on recruiting and retaining females. They could be linked to individual or collective bonus schemes, but they can just as well work based on a clear commitment from the board and mgt team – through all layers of the organization.

I’ve included some good examples of gender equality related targets and KPIs used among some maritime companies. Feel free to share other examples with me – this is not a “one size fits all” solution.

DNB: All leaders are responsible for identifying a top male and female candidate before final selection, in recruitment and reorganization processes. When recruiting leaders, there are clear requirements to identify female candidates and actively encourage them to apply. When planning changes in mgt.teams, leaders have to ensure specific focus on improving gender balance. 50% female participants on internal leadership and talent programs. Minimum 40% female candidates on the lists of successor candidates for business critical positions. Works towards ensuring 50% female lawyers within their legal department.

Siemens: Clear target to increase the ratio of female leaders within technical roles, project execution and sales from 12% to minimum 20% within a five year period. Identify key important leadership criteria, and conduct structured development initiatives for women related to these criteria. Ensure that 50% of the seats in their talent program are offered to females. Siemens has also defined a specific target for recruitment; at least 20% females among the group of newly educated.

Here’s a useful video on a gender target-setting toolkit from Australia. This presentation from Dr Graeme Russell shows organisations how to set gender diversity targets using the Workplace Gender Equality Agency’s target-setting tool.

Download the target-setting tool from the Workplace Gender Equality Website

I’m super excited to hear what kind of specific gender equality targets and KPIs your company have in place! And are they linked to your bonus schemes?

Have a great week!

#WomenWhoMoveTheWorld #WISTA #WomenInShipping

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