Why we need gender equity, not just equality - IQ-EQ (2024)

The theme of this year’s International Women’s Day campaign is ‘embrace equity’. But what is gender equity, and how can we achieve it in the workplace, to the benefit of businesses?

Equity vs equality

The easiest way of describing the difference between equity and equality is that equality is the end goal and equity is how we get there.

Gender equality is giving all genders equal treatment when it comes to rights, responsibilities and opportunities. Gender equity, meanwhile, is about fairness. To ensure everyone has equal opportunities, we need to consider privilege, bias and other parameters that can limit how people access opportunities.

Inequality has a price

Gender inequality has widespread consequences. Globally, women account for only38% of human capital wealth. In fact, inequality is costing us all. TheWorld Bank Groupestimates that if women had the same lifetime earnings as men, global wealth would increase by $23,620 per person, on average, in the 141 countries studied, for a total of $160 trillion.

This inequality is clearly visible in business; aside from the gender wage gap, women are less likely to progress into leadership positions. According to McKinsey’s annual ‘Women in the Workplace’ report, for every 100 men who are promoted from entry-level roles to manager positions, 87 women are promoted, and only 82 women of colour. It has also been shown that women of child-bearing age and women with children areless likelyto be considered for jobs.

With gender inequality still prevalent today, organisations have a responsibility to their employees. So, what can we do to change the narrative?

The path to equality is built on equity

Researchsuggests we’re amid a “Great Breakup.” Women are leaving companies and switching jobsen masseand it’s having consequences for organisations who can’t keep up.

To promote gender equity, we should understand that a ‘one size fits all’ approach to employee wellbeing isn’t sufficient if we want to optimise talent retention. We should listen to what women want from an employer, most of which fits into three categories: diversity, flexibility and education.

Female leaders tend to want to work for companies that are diverse, inclusive and prioritise employee wellbeing. Diversity, equality and inclusion (DE&I) initiatives are so important to women but40% say their DE&I work isn’t acknowledgedin performance reviews, and spending time and energy on work that isn’t recognised makes them feel burned out. Diversity encourages diversity, and this is why it’s important to women; when there’s representation at the top of the hierarchy, women are more likely to be promoted.

Offering flexibility, whether that’s hybrid working or shiftable working hours, entices more women to join an organisation. However, with reports suggesting flexible working patterns alsoburden women with an increased workload, it’s important that this is implemented correctly. Flexible working should still promote choice, giving an employee power to decide what is best suited to their needs.

Lastly, education is key to promoting gender equity. Unconscious bias training makes us all aware of prejudices we might be sharing without realising and encourages us to call out discriminatory behaviour. Furthermore, employee learning and development courses, like ones we have at IQ-EQ, can empower women to put themselves forward for leadership positions, and give them the tools to succeed.

An equal world should be equitable

Promoting gender equity comes with financial incentives too. Companies with a greater proportion of women in senior leadership and C-suite roles earn a47% higher rate of return on equitycompared with companies who had no women executives.

In the finance sphere,equityrepresents the value that would be returned to shareholders if all assets were liquidated and the debts were paid off. It presents an opportunity for reward, sometimes an investment – and the same mindset can be applied when discussing the implications of gender equity.

Equity is the investment, equality is the reward, and we all make a profit.

Meet the author

Why we need gender equity, not just equality - IQ-EQ (1) Why we need gender equity, not just equality - IQ-EQ (2)

Emma Crabtree

Group Chief Commercial Officer

United Kingdom

Send email +44 207 397 5486 Full profile

Why we need gender equity, not just equality - IQ-EQ (2024)

FAQs

Why we need gender equity, not just equality - IQ-EQ? ›

Equity vs equality

Why is it important to think about gender equity? ›

Why is gender equality important? Gender equality is intrinsically linked to sustainable development and is vital to the realization of human rights for all. The overall objective of gender equality is a society in which women and men enjoy the same opportunities, rights and obligations in all spheres of life.

Do we really need gender equality? ›

Gender equality prevents violence against women and girls. It's essential for economic prosperity. Societies that value women and men as equal are safer and healthier.

Why do we need equity? ›

When you have equity, you foster a sense of fairness in the workplace, so you're more likely to attract workers from a range of backgrounds and identities. They'll feel comfortable working for your organization because they know they'll be treated fairly. You also need equity for inclusion.

What is the difference between equality and EQ? ›

Equality assumes that everybody is operating at the same starting point and will face the same circ*mstances and challenges. Equity recognizes the shortcomings of this ​“one-size-fits-all” approach and understands that different levels of support must be provided to achieve fairness in outcomes.

Why is gender equity better than gender equality? ›

Gender equality is giving all genders equal treatment when it comes to rights, responsibilities and opportunities. Gender equity, meanwhile, is about fairness. To ensure everyone has equal opportunities, we need to consider privilege, bias and other parameters that can limit how people access opportunities.

Why is gender equity an issue? ›

Every day, in every country in the world, women are confronted by discrimination and inequality. They face violence, abuse and unequal treatment at home, at work and in their wider communities – and are denied opportunities to learn, to earn and to lead. Women form the majority of those living in poverty.

Is gender equality still a problem? ›

Gender equality remains unfinished business in every country of the world. Women and girls have less access to education and healthcare, too often lack economic autonomy and are under-represented in decision-making at all levels.

What are the negative impacts of gender inequality? ›

Girls are much more likely to shoulder the responsibility for household chores while boys are more likely to engage in harmful work such as construction. Girls are usually pulled out of school earlier than boys and are more likely to face sexual exploitation and slavery.

Will we ever achieve gender equality? ›

At the current rate of progress, it will take another 131 years to achieve gender equality worldwide. 40% of women worldwide live in countries where abortion laws are restrictive.

Why do you need equity? ›

Building equity means you have a much better chance of selling the property for more than you owe on the mortgage, even if the market takes a (down) turn. You can use the profits from the sale to purchase another home or pay off other debt or invest it elsewhere. You can build long-term wealth.

What is the main purpose of equity? ›

The purpose of equity is to do justice. 'Equity as a legal concept is a direct emanation of the idea of justice. The Court whose task is by definition to administer justice is bound to apply it.

Why equity is the most important? ›

Equity is important because it represents the value of an investor's stake in a company, represented by the proportion of its shares. Owning stock in a company gives shareholders the potential for capital gains and dividends.

What is the difference of EQ and IQ? ›

Type of ability: Your EQ refers to your emotional abilities and social skills, including cognitive empathy, emotional regulation, and motivation. Conversely, IQ measures your cognitive and intellectual skills, like working memory, analytical thinking, and knowledge retention.

Why do we need equality in society? ›

Good equality and diversity practices make sure that the services provided to people are fair and accessible to everyone. They ensure that people are treated as equals, that people get the dignity and respect they deserve and that their differences are celebrated.

What is an example of equity and equality in real life? ›

equity is a critical topic. For example, students may be given access to a laptop to complete assignments. However, due to the digital divide, some students may lack broadband access once they leave the classroom and return home. Equality in this situation would be giving all students access to laptops.

Why do you think gender equality is very important nowadays? ›

With income options equal to men, mothers can offer education, healthcare, and healthier food to their children. Studies also show that reduced infant mortality is linked to higher levels of education. Children raised in gender-equal environments will do better than those raised with inequality.

Why is it important to understand gender inequality? ›

The unequal social relationships between women and men results in less effective policies, institutions and processes, and it means many people are left unable to reach their potential and are left out of making decisions and contributing to social change.

Why is gender pay equity important? ›

Pay equity is important because it helps ensure that all employees are treated fairly by eliminating wage discrimination, which helps promote diversity and inclusion in the workplace.

What is the importance of gender equity in teaching? ›

All students deserve equal access to educational opportunities. Girls and women often face structural barriers that threaten their success in school and beyond. Girls of color are more likely than white girls to face unfair discipline.

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