Canadian HR Reporter

CanaDian hr reporter october 6, 2014 NEwS 3 Federal government gets on board with female leaders Report setting 30 per cent target for women on boards 'groundbreaking, ' 'call to action' By Liz Bernier wOmen rePreSent nearly one-half of the Canadian work- force — but when it comes to leadership positions, they are woefully underrepresented. Only 15.9 per cent of corporate board positions at FP 500 companies are held by women, according to the federal government. "Canada has a wealth of tal- ented, well-educated women and we want them to be able to partici- pate in all aspects of the Canadian economy," said Kellie Leitch, fed- eral minister of labour and minis- ter of status of women. e government has released the report Good for Business: A Plan to Promote the Participation of More Women on Canadian Boards and set out the concrete goal of 30 per cent female repre- sentation on boards in the next fi ve years. It will help contribute to a stronger economy, said Leitch. "The facts really speak for themselves," she said. "Whether it be tracking the performance of Fortune 500 companies in Canada between 2004 and 2008 where it was found that the companies that had the most female directors outperformed those with the few- est… or the general business case that has been accepted by many (that diversity yields) stronger fi - nancial performances or height- ened innovation." e report is an important step in advancing the conversation, said Pamela Jeff ery, founder of the Canadian Board Diversity Coun- cil in Toronto. " is gives permission for the conversation to happen. And from an HR standpoint, that's really key because sometimes a senior human resources profes- sional will be stymied, because the board might not necessarily even want to have the conversation." Setting goals – not quotas e goal of 30 per cent represen- tation over fi ve years is a good one, said Alex Johnston, execu- tive director of Catalyst Canada, because that's around the point where organizations will start to see a culture shift. "For the 40 per cent of public company boards in the country that have no women on their boards, cracking that fi rst step is important — getting a woman on your board — but really, it's once you get to about 25, 30 per cent that you start to see a shift around the table, and that is important," she said. "Often, more women on boards shifts throughout an organization in terms of pipeline development and the executive committee." Unlike a hard quota, the 30 per cent goal off ers organizations the fl exibility to involve more women in a way that makes sense for their individual sectors, said Jeff ery. "I'm not in favour of quotas and neither is the Canadian Board Diversity Council. We've always said that we want what we call a 'made in Canada' approach, which is more collaborative," she said. "Take a look at it for your own business, and move along towards the 30 per cent in a way that makes sense for your business." e report also helps pave the way for the "comply or explain" regulatory approach the Ontario Securities Commission (OSC) is on the verge of adopting, said Jeff ery. is approach is a good one for Canadian business, said Johnston, because it requires disclosure and goal-setting but still has some fl exibility. "I think it's going to require disclosure, I think it's going to re- quire people to set a target, I think it gives companies fl exibility to set a target that is relevant for them, for their sector, but that is mean- ingful. I think it will become very diffi cult for people to not have meaningful, relevant targets," she said. One of the report's most im- portant recommendations looks at how leaders should respond to the challenge, said Leitch. "It is about leadership — lead- ing the way and leading by exam- ple," she said. "It's a call to action and it's groundbreaking from the standpoint that that call to action has not been out there before." ere's a key opportunity for leaders to take a mentorship role for talented women, said Leitch. "I talk about encouraging every business leader in the country, male or female, to pick that one young woman that they're go- ing to champion," she said. "My champion in my current role was Minister Jim Flaherty and he en- couraged me to run for offi ce, but then he also helped set the path for me and encouraged me to fol- low in his footsteps in public ser- vice. And I think that if we have leadership of that calibre across the business sectors in the coun- try, where senior business lead- ers, CEOs, presidents, chairmen — men and women — identify that one young women to follow in their footsteps… we're going to move the bar here very quickly." Moving forward, Johnston would like to see the comply or explain approach passed by the OSC, and to have more compa- nies committing to the Catalyst Accord, which is a voluntary ini- tiative to set a goal and a target. The government report is a good fi rst step, said Jeff ery — but there's still work to be done. "We would like to see the re- sults, as everyone I think who has been busy working on this," she said. "We want to give corporate Canada this opportunity to do it on their own. But then if we don't see meaningful change, and we're nowhere close to the 30 per cent as the next four years roll along, then we are going to be advocating for a diff erent approach." IT PAYS TO KNOW Professional Development Mark your calendar for payroll education! With more than 190 federal and provincial regulations and changes each year, staying payroll compliant is one of the biggest challenges employers face. Ensure compliance and reduce the risk of audits and penalties with help from Professional Development seminars from Canadian Payroll Association (CPA). CPA offers seminars for all levels from beginner to advanced. On a variety of topics covering Learning Payroll, Taxable Benefits, Employment Standards, Pensions and more. Check our calendar for a seminar in your area. Learn more at payroll.ca. Call 416-487-3380 ext 118 or 1-800-387-4693 ext 118. Become a CPA member and get preferred rates on seminars. Stay Current Stay Compliant payroll.ca CPA_PD Ad 9.5x7.indd 1 14-01-17 9:46 AM

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