Women s Activities and Enterprise Operating Results

Transcription

1 Report of the Study Group on Gender Equality (Summary) Women s Activities and Enterprise Operating Results I. Introduction Purpose of the study group To enable women with the desire and ability to play an active role within enterprise to actually do so, there must be benefits for both working women and firms. Until now, however, no research had been conducted to achieve an accurate understanding of actual conditions with regard to the relationship between female employment and firms operating results. The Study Group on Gender Equality (Chairwoman: Prof. Machiko Osawa, Japan Women s University) at the Ministry of Economy, Trade and Industry (METI) has conducted activities on this topic since the spring of Its research included corporate interviews and quantitative analysis using microeconomic data such as the Basic Survey of Japanese Business Structure and Activities. The study group also heard the opinions of experts who spoke at the group s offices, and examined topics such as the relationship between women s activities and firms management achievements and the effects of creation of comfortable working environments for women. II. Survey methods 1. Enterprise interviews The study group conducted in-depth interviews with personnel managers at firms where female employees play highly active roles. These included firms employing many women in career-track positions, firms with long average service years for female employees, and firms rated highly by female college students as places they would like to work. The interviews covered topics such as the current status of women s activities and measures adopted to increase women s activities within firms, and problems from the standpoint of women s activities. 2. Quantitative analysis using microeconomic data such as the Basic Survey of Japanese Business Structure and Activities The study group analyzed the relationship between profitability (return on assets; ROA) and the percentage of female employees, using data on approximately 26,000 companies in METI Basic Survey of Japanese Business Structure and Activities. In addition, to clarify the relationship between various approaches to labor management thought to affect women s entry into the labor force, such as childcare leave systems and flextime systems, and firms percentages of female employees and operating results, the study group 1

2 analyzed the relationship between human resource and labor management efforts concerning women s activities and firms percentages of female employees and operating results, using data on approximately 300 companies in the Employment Quarterly Handbook (Female Student Edition). III. Survey results 1. While firms with a high percentage of female employees show strong performance, the real reason is not the percentage of female employees but each firm s unique environment Based on quantitative analysis using microeconomic data from the Basic Survey of Japan Business Structure and Activities, the study group identified the following facts. In a comparison among companies, firms with a high percentage of female employees have a high profit ratio (or firms with a high profit ratio are firms with a high percentage of female employees). Based on the results of an analysis of the relationship between changes in the percentage of female employees and changes in profit ratio, however, it cannot be claimed the profit ratio will improve if a firm merely improves its percentage of female employees. That is, while the percentage of female employees is the apparent factor, the real factor is a company s characteristics (factors unique to the firm). In other words, if a firm that does not have an environment that enables women to be active, it will not be able to improve its profit ratio simply by increasing the percentage of female employees. 2

3 Chart Relationship between business culture that enables women to be active and operating results Real factors Firm s percentage of female employees Operating results Firm s unique environment = Real factor Percentage of female employees within firm = apparent factor Operating results 2. Human resources and labor management, operating results and female employees activities According to the interviews, firms that have eliminated the traditional concept of management distinguishing among employees because he s a man or because she s a woman and do not treat male and female employees differently have a tendency to emphasize evaluation and compensation based on each individual s capabilities and performance (= merit-based management). The results of the quantitative analysis showed firms where women can play an active role and which also have strong operating results are firms with a business culture that enables women to be active and excellent human resources and labor management capabilities that skillfully utilize female employees to increase earnings. As specific characteristics, such firms have a small difference in service years between male and female employees, a re-employment system, a high percentage of female managers and short average service years for both male and female employees. 3

4 Chart Profit ratio Relationship between percentage of female employees and profit ratio Positive correlation with profit ratio No correlation with profit ratio Percentage of female employees Positive correlation with percentage No correlation with percentage of of female employees female employees Small difference in service years for men and women * Re-employment system * High percentage of female managers Average of service years for men and women is short High percentage of female employees hired for career-track positions Childcare leave system that exceeds legal requirements Few overtime hours No flextime system. No possibility for women to be transferred (Note) Factors marked with an asterisk are strong candidates for real factors High degree of promotion equality High percentage of female employees taking childcare leave Percentage of married female employees is high Personnel management systems involving career and non-career streams IV. Conclusions 1. Changing the firm s business environment, not simply increasing the number of female employees, is fundamental to increasing the level of female employees activities and improving operating results. A firm s unique environment and its approach to human resources and labor management are important for increasing the percentage of female employees and improving operating results. This includes, for example, clarifying the firm s vision and objectives, adopting a personnel evaluation system that emphasizes performance and results, employing diverse work styles and promoting highly productive approaches to work and working methods. 2. Gender equality measures can reconcile female employees activities with improvement of firm operating results Firms that implement equality measures to treat all individuals equally regardless of sex tend to exhibit both a high percentage of female employees and good management performance. 3. Government should promote work-life balance measures for society as a whole. While many work-life balance measures that companies support to address 4

5 employees personal needs are not necessarily linked to short-term corporate earnings, they do have the effect of increasing the percentage of female employees. Policies such as encouraging employees to take childcare leave as members of society as a whole, accelerating development of support infrastructure such as daycare centers and decreasing overtime hours in society in general are all important. 4. The most critical factor is preparation of gender-neutral systems for women in the labor force. The most critical factor to avoid obstructing women s desire to enter the labor force is creation of gender-neutral systems for working women in areas such as the social insurance system and wage systems. 5