Reports

RETURN OR QUIT? - THE KEY DECISION FOR POST-MATERNITY HIGH FLYERS

DIVERSITY DRIVES VARIETY IN CORPORATE CULTURE (Click here for final report)

An increasing proportion of high-flying women executives are taking a “return or quit?” decision after maternity leave, with this judgment based not simply on finance but predominantly on working lifestyle and corporate culture.

This is one key finding to emerge from a six month research project commissioned by Durler Consulting in association with Denton Wilde Sapte LLP. The predominant percentage of women interviewed in the survey was at director level and earning in excess of £100,000 per annum.

CULTURAL CHANGE ESSENTIAL
The wide ranging research identified that cultural change involving the provision of flexible working conditions, diversity programmes that take account of gender culture and age, work pattern choice, and basic recognition of “the individual”, were recognised as being essential elements influencing the “return or quit?” dilemma.

Julian Dawson of Durler Consulting observed that the independent research findings confirmed his own experience that women candidates for senior executive appointments are increasingly selective about the organisations for which they will work. He also noted that men at a similar level are also beginning to demand flexibility from organisational culture, particularly where their partner is the major breadwinner and role-reversal for child caring is an issue.

Dawson is convinced that the business case for embracing cultural change has been made, but that continued resistance by “traditional” UK organisations that ignore this fact could result in them not attracting the best talent and seriously inhibit their future success and growth.

Business is also risking high financial losses when a woman on maternity leave, who was planning to return, changes her mind. On average the replacement period can stretch to as long as 18 months. The financial implications can run at three times a year’s salary with bonuses, search and management time costs.

THE US EXPERIENCE
Desk research revealed that in the US, companies with the highest representation of women in top management achieved 34% to 35% better financial performance (as measured by return on equity and total return to shareholders) than companies with below average female representation.

PROFESSIONS AT HIGH FINANCIAL RISK
The professions are running a higher financial risk than any other sector by not putting in place adequate maternity management policies. In the UK the majority of trainee barristers are women and two-thirds of medical students are now female. By 2012 the majority of doctors will be women. The findings from this research suggest that UK Plc may have some rethinking to undertake if they are to stay ahead of the global game in the next ten years. Technology is outpacing working environment practices and the growth in IT ability provides reality to the ‘virtual office’ - but what cannot be replaced is quality management.

Women accept that if they wish to continue their careers to the board room, then readjustment and rethinking of their contractual agreement is essential, but at a realistic cost. Durler Consulting and the focus group participants suggest that the report’s wake up call is loud and clear – plan for change now and implementation will not only be easier and more cost effective but will also be welcomed by senior executives and long-term provide competitive advantage in the preferred employer choices.