Why Investing in Enhanced Organisational Policy Entitlements is a Game-Changer

During their career most women face obstacles that hinder their progression which has resulted in a disproportionate number of men occupying top positions. Globally it is estimated that women make up 39% of the workforce however they only make up 16% of the traditional energy sector¹. In 2023 only 29% of board seats in the UK energy sector were held by women and of these, women are in just 16% of executive board director roles². This indicates that although achieving gender diversity is a challenge for all industries, the energy sector is lagging significantly behind. 

Whilst there has been some improvement in the UK in recent years, including the mobilisation of the TIDE (Tackling Inclusion and Diversity in Energy) task force, the data tells us that globally women leaders are resigning at a higher rate than men³ and that women’s greater time out of the workplace for caregiving responsibilities has a negative impact on their career progression and opportunities⁴. The underrepresentation of women in the workplace can have far-reaching consequences for energy companies, impacting their ability to innovate, engage employees, manage risks, and effectively serve the diverse communities in which they operate.  

There is a long way to go before we as a sector are able to collectively cultivate a culture that not only embraces differences but is positively shaped by those differences. It requires organisations to challenge traditional norms and structures, promote open dialogue and actively dismantle biases and barriers. In our previous article we shared our perspective on how gender is considered when making policy decisions within the energy industry and what could be done to improve this in the future. It is clear that policy making has the potential to transform the role women play as consumers however it is also a powerful mechanism to help organisations retain and attract a diverse workforce. 

Investing in inclusive policy benefits energy companies, the industry as a whole and wider society. From an organisational perspective providing a competitive offer helps to attract and retain talent through increased employee engagement and helps to position organisations as a socially responsible employer. Diverse companies also deliver better business results and data from 21,980 firms across 91 countries found that having more women in corporate leadership positions was associated with higher profitability. Specifically, a 1% increase in female representation at the executive level was associated with a 3.5% increase in net profit margin⁵. For wider industry and society, it promotes a more equitable distribution of caregiving responsibilities and provides families with greater flexibility on how they distribute parental responsibilities, supporting overall gender equality through the breaking down of stereotypes. This ultimately helps make the industry a more attractive place to work.

Creating a diverse, inclusive and equitable work environment is not a tick box exercise. However, through implementing policies that directly target the needs of diverse groups, organisations can better position themselves to attract and retain their people. Specifically, when thinking about the role of women in energy, this could be done through considering implementing:  

Family friendly leave:

Many organisations now offer enhanced Primary parent leave (or what is traditionally referred to as ‘Maternity Leave’) after giving birth, however the average package is 6 weeks’ full pay and then statutory pay⁶. This often forces the birthing parent, to return to work before they feel ready due to financial pressures. Additionally, 49% of organisations⁷ provide the statutory minimum of Secondary parent leave (or what is traditionally referred to as ‘Paternity Leave’), providing little incentive to encourage the partner or other parent to take an extended period of leave. A recent survey also highlighted that when women do return to work, 15% returned to different jobs and 57% ended up leaving their organisation within two years⁸. If we are serious as a sector about achieving true gender equality the ‘motherhood penalty’ must be reduced to make it cost effective to choose to return to work and we also must ensure that the legal entitlements, such as the right to return to work to substantively the same role, are honoured. Shared Parental Leave can also be a powerful mechanism to enable this, allowing both parents to have time at home within the first year of a child being born.  

Menopause policy:

It is estimated that there are around 13 million people who are currently peri or menopausal in the UK which is equivalent to a third of the entire UK female population⁹. Despite being a completely natural stage of life, menopause remains a taboo subject in many workplaces, with so many people feeling embarrassed or ashamed to discuss their symptoms or to ask for additional support when needed. Despite often being at the peak of their careers, half of those experiencing menopause symptoms have decreased job satisfaction and a staggering 42% consider leaving work altogether. Introducing a menopause policy to outline adjustments that can be made to support women who are going through menopause can be a valuable lever to retain existing female talent within the business and support them progressing into senior roles.  

Fertility leave:

Going through fertility treatment is often an emotionally taxing process, particularly for the person carrying the child. It requires multiple consultations and doctors visits and can take a toll on an individual’s mental and physical health. As a result, employees often need to take time off work. With 1 in 7 couples now struggling with fertility and the rates of infertility increasing, introducing a fertility policy can help reduce stress and uncertainty whilst employees undergo treatment.  

Pregnancy loss leave:

In the UK, employees (and their partners) who lose a baby before the end of the 24th week of pregnancy have no statutory right to take leave. From the 25th week onwards employees are entitled to all the benefits of family friendly leave, but any time off before then is granted at the employer’s discretion. As a result, only a quarter of employees who suffer a pregnancy loss are offered paid leave¹⁰. The other three-quarters have the choice of going straight back to work in physical and emotional pain, asking for unpaid compassionate leave or claiming sick leave, the first three days of which don’t come with statutory sick pay. Developing a policy can formalise existing practice and ensure there is consistency and support for individuals who experience pregnancy loss. 

Time off for dependents leave:

Although taking time off for dependents is a legal right, there is no right to be paid for taking this time off which can pose a barrier for parents in the workplace. By offering paid time off for dependents, organisations demonstrate their commitment to equality by ensuring that all employees, regardless of their caregiving responsibilities, have the opportunity to balance work and family life without facing financial hardship.  

Whistleblowing or Speak Up Policy:

Over half of all mothers and caregivers returning from Parental leave have faced some form of discrimination in the workplace when pregnant or upon their return and 1 in 5 mothers have left their job following a negative or discriminatory experience¹¹. Having a speak up policy enables individuals, regardless of their background, to voice their concerns internally without fear of retaliation. A speak-up policy sends a strong message to all levels that bad organisational practice will not be tolerated and it can also reassure employees that their concerns are important, and encourage problems to be brought to the attention of management from within the company.

Effective diversity and inclusion policies in the workplace are essential for fostering an equitable and harmonious environment. Whilst we recognise that there are other drivers that contribute to positive employee experience, policies like the ones explained above signal a statement of commitment, better positioning organisations to attract top talent, enhance innovation and create a culture of belonging. Although it requires financial commitment, the long-term benefits of enriched workplace culture, enhanced innovation, and a more engaged and gender diverse workforce arguably outweigh the cost.