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Equal opportunity outcomes for women in the finance industryin Australia: Evaluating the merit of EEO plans

Erica FrenchQueensland University of Technology, Brisbane, Queensland, Australia

Glenda StrachanGriffith University, Nathan, Queensland, Australia

This paper investigates equity programs in the finance and insurance industry toidentify the approach to implementing equal employment opportunity used byAustralian organisations. The research uses data from organisational reportssubmitted to the Equal Opportunity for Women in the Workplace Agency inorder to identify issues in one industry, and link organisational approach to equalopportunity with the employment status of women. Despite the high numbers ofwomen employed in this female-dominated industry, there are limited numbers ofwomen in management. The findings show no correlation between the equalopportunity approach used and numbers of women in management.

Keywords: equal employment opportunity, finance industry, human resource management, managing

diversity, women in management

Equal opportunity legislation has been in place for 20 years yet there has beenlittle assessment of its impact in terms of employment outcomes for women.This paper examines the types of policies and practices outlined in equalemployment opportunity plans within the finance and insurance industry inAustralia. Further it classifies these policies and practices according to levels ofactivity in order to indicate the character of the programs and their likelyimpact on equity. The profile of men and women in management positionsspecific to those organisations is also examined. This research seeks to identifythe specific equity approach(es) made by organisations in this industry andrelate this to outcomes for women, particularly movement into managementpositions.

Correspondence to: Dr Erica French, School of Management, Faculty of Business,Queensland University of Technology, PO Box 2434, Brisbane 4001, Queensland; fax: +61 (0)7 3864 1313; e-mail: e.french@qut.edu.au

Asia Pacific Journal of Human Resources. Published by SAGE Publications (Los Angeles, London, New Delhi andSingapore; www.sagepublications.com) on behalf of the Australian Human Resources Institute. Copyright © 2007Australian Human Resources Institute. Volume 45(3): 314–332. [1038-4111] DOI: 10.1177/1038411107082276.

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A focus of the paper is the operation of the Equal Opportunity for Womenin the Workplace Act 1999 (EOWW Act), formerly Affirmative Action (EqualOpportunity for Women) Act 1986, and its impact on the status of women in thefinance and insurance industry. This unique Australian legislation is designedto address workplace disparity between men and women as the EOWW Actpromotes the elimination of discrimination and provision of equal opportu-nity for women in employment, with employment decisions made on the basisof merit (EOWW Act, s. 2A, 1). The legislation aims to overcome entrencheddiscrimination by requiring organisations to take positive steps to change andstipulates a systematic approach to the identification and elimination of anybarriers that women encounter in the workplace. The EOWW Act requiresprivate sector organisations with more than 100 employees to implement anequal opportunity program and to report to the Equal Opportunity forWomen in the Workplace Agency (the Agency) on the issues, actions andpriorities across a range of employment matters and to analyse the outcomesof these initiatives.

The statistics

The finance and insurance industry in Australia is a major site of women’semployment, with more than 198 000 women working in this industrycompared with 179 600 men in 2006 (ABS 2006, 38). Despite a majoritypresence in the industry, women have never been equally represented inmanagement ranks with men. In 1983, women constituted 14.7 per cent ofadministrative, executive and managerial employees in finance, property andbusiness services group, while at the same time constituting 46 per cent of theworkforce in this sector (Department of Prime Minister and Cabinet (DPMC)1984b, 32).

In 1994/95 the ‘top’ 75 organisations in the finance industry employed 276400 employees, 166 791 or 60.3% women compared to 109 609 or 39.7% men,representing approximately 90% of the industry’s total workforce (Still 1997,24). Despite an increase of women in the finance workforce, the gender splitof manager/administrators was 15% women and 85% men, indicating nochange since the previous decade. This picture was repeated in other studies.Examining the 1994/5 affirmative action reports from 18 financial institutions,Still (1997) found that women comprised 15.5% of managers, 6.7 of seniormanagers, and 6.1% of executive management. The following organisationalexamples provide a graphic picture of these statistics. In Westpac, one ofAustralia’s largest banks, 62% of its employees were women but only 17% ofmanagers were women. At the Bank of Melbourne, 78% of almost 2000 staffwere women but only 7 out of 40 (17.5%) executive and senior managers werewomen. Both companies regularly submitted reports to the Affirmative Action

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Agency and Westpac won awards for the quality of its programs (Strachanand Burgess 1997).

In 2003, 208 000 women and 163 000 men worked in the finance andinsurance industry (ABS 2003, 47). In that year 160 finance and insuranceorganisations were registered for reporting to the Agency on their equalemployment opportunity programs. These reports contain a profile of theorganisation which lists male and female positions and numbers. An analysisof 66% (n = 106) of these organisations showed that women held 15% ofmanagement/professional positions. Further, in that same year, 22 organisa-tions within the industry (8 banks, 7 insurance companies and 7 financial insti-tutions) listed on the ASX200 were identified as having an average of 14%women in executive management and 15.8% women in board positions(EOWA 2004).

Achievements in EEO

Organisations in the finance industry have been keen to show that they haveemployment policies that assist women employees. Throughout the 1990s theAffirmative Action Agency (AAA) noted that the quality of this industry’sequal employment opportunity programs improved annually (AAA 1998). Inthe mid-1990s, two of the eleven organisations judged by the Agency to havethe highest quality reports were in the finance sector (Strachan and Burgess2000). In 1997 the report of a large financial institution with almost 30 000employees was given the rare top grade. The report ‘stood out primarilybecause the extensive affirmative action program was well integrated withinits human resource management and industrial relations processes and wasclearly linked to its broader business objectives’ (AAA 1997).

The Agency can signal high levels of performance in two ways: waivingthe annual reporting requirement for up to three years; and awarding theEmployer of Choice for Women (EOCFW). Waiving means that organisa-tions can be excused from their annual reporting obligations for a fixed periodsubsequent to an application which demonstrates that the organisation hasanalysed its workplace to identify the equal opportunity issues for womenrelating to seven employment matters specified in the legislation; taken all reasonably practicable measures to address each issue; and been compliantwith the legislation for at least three consecutive years (EOWA 2006a). TheEOCFW citation is a prestigious acknowledgment of organisations that arerecognised as advancing women in the workplace. Organisations wishing to beconsidered for the ‘EOWA Employer of Choice for Women’ citation (valid forone year) need to demonstrate excellence across six areas: policies and practicesthat support women across the organisation; commitment to fully utilising anddeveloping staff, including women; education in relation to sex-based harass-ment; an inclusive organisational culture at all levels of management; and‘improved outcomes’ for women and the business (EOWA 2006b). Less than

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4% of all reporting organisations have the EOCFW accolade; however, 10%of finance sector organisations are in this category. Twenty-five per cent offinance organisations had their reporting requirements waived for 2003–04compared with 7% of all organisations (EOWA 2006a, 2006b).

Assessment of EEO performance

The numbers of finance sector organisations waived from reporting or withthe EOCFW accolade show that these organisations are performing at a highstandard according to the Agency’s criteria and that the organisations them-selves believe that it is worthwhile to achieve these standards. Yet on onecriterion, namely, women’s representation in management, there seems to belittle if any movement in the past 20 years, with figures of about 15% to 17%in managerial positions. There has been negligible change, even though theindustry has become increasingly feminised, moving from 46% of the financeworkforce in 1983 to 78% two decades later. The percentage of women in lead-ership positions (< 20%) throughout the industry means that this industryshould be viewed as low rather than high performing. Women, while theyconstitute nearly four-fifths of the workers, continue to languish in lower leveljobs and in part-time work within finance and insurance and, significantly,few (less than one in five) are reaching management positions. Given theextensive anti-discrimination and equal opportunity legislation in Australiathat has been in place for more than 20 years, it is a poor reflection on theindustry that less than 20% of women reach leadership positions.

Women’s advancement (or lack of it) into management positions has beenwidely discussed both across the globe and over time (Cockburn 1991; French2001; Kalev, Kelly and Dobbin 2006; Kanter 1977; Still 1993; Konrad andLinnehan 1995; Wajcman 1999). The issues are complex and the findings haverecognised both the impact of organisational structures, policies and cultures,and the consequences of individual decisions made by women, as ultimatelyhindering their movement into management. More recently, organisationalfactors specific to the finance and insurance industry have been identified,including the gendered workplace culture manifested in macho cultures andmale homosociability (Beck and Davis 2005); attitudinal prejudices and stereo-types (Beck and Davis 2005; Granleese 2004); lack of respect for gender equityand diversity (Michaelson et al. 2003); and the constancy of organisationalchange (Metz and Tharenou 2001). The traditional requirement of mobilityin a banking career has been a handicap in women’s advancement to seniormanagerial levels (Metz and Tharenou 2001). Metz (2003) notes that there islittle evidence of organisational support for women advancing into manage-ment in this sector, rather their achievements are based on individual merit,that is, their own knowledge and skills and their individual development ofthese. Yet the lack of relevant educational knowledge is an issue for womenin their access and promotion in the industry (Beck and Davis 2005).

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Factors such as the difficulties in balancing paid work and family care areimportant for women in finance as, in common with other women workers,these women are more likely to assume major responsibility for childcare andfamily-related issues. It is therefore no surprise that women in the financeindustry report work-life balance issues as important more frequently thanmen (Granleese 2004; Metz 2003; Michaelson et al. 2003). These factors presenta barrier at a systemic level that individual women find difficult to overcome:‘The financial services industry, both because of its historical culture and thelong hours put in by employees has traditionally been a difficult environmentfor women’ (Michaelson et al. 2003, 4).

Despite an extensive literature on the barriers women face in theworkplace and in management positions, there is limited research examiningspecific equity strategies and even less literature that can link strategies tooutcomes such as a change in the numbers of women in senior positions(French 2001; Konrad and Linnehan 1995; Naff and Kellough 2003). There isa dearth of research that classifies the conditions under which such changeoccurs (Glastra et al. 2000). Until now, research has focused on the causes ofdisparity in the workplace and argued for various strategies to address thatinequality, or identified the status of women within organisations. This studydiffers from others in several important respects. First, it seeks to identify theimplementation differences between the types of equal opportunity approachesutilised. Second, it seeks to determine any relationship between approach(es)used to implement equal employment opportunity and the proportion ofwomen in management positions.

Data gathering

The research was undertaken using secondary data gathered from informa-tion provided by 106 organisations reporting in one year to the Australiangovernment (specifically the Equal Opportunity for Women in the WorkplaceAgency) on their equity management processes. In 2003, 160 finance andinsurance organisations submitted EEO reports to the Agency. These reportswere downloaded from the Agency’s online searchable database of reportsbetween January 2005 and April 2005 (EOWA 2005). Forty-one organisationssubmitted reports that were ultimately considered as waived from reportingfor at least one year. It is Agency policy that once an organisation is waived, itsreport is removed from public access to ensure confidentiality. Seven reportswere listed more than once against organisations recorded under more thanone incorporated name, and five others could not be used because of scanningor submission errors.

A report consists of a semi-standardised form which presents details ofthe reporting organisation’s employment statistics for women and men

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Method

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(although there is no standard method of reporting this); analysis and consul-tation processes; information on current issues identified and practices initiatedrelative to the seven employment matters; and details of strategic planning ofequal opportunity including priorities, actions taken, evaluation and futureplans.

In this project, content analysis of each report was undertaken of theorganisational profile; the analysis and consultation process; the issues identi-fied by the analysis and strategies outlined for addressing these issues and theactions taken. Content analysis measures the semantic content of the messageand is described as ‘a research technique for the objective, systematic and quan-titative description of the manifest content of a communication’ (Emory andCooper 1991, 457). The classification of the content analysis is addressed in thefollowing section. Information was recorded in an SPSS data base.

Measures

Workplace profile

The reports include details of male and female full and part-time positions inspecific job roles. Job roles were not standardised throughout the reports sothese were aggregated to four main categories: management (including seniorexecutives, management, supervisory staff, and professional staff), operations(including service and sales personnel), support (including maintenance, tech-nicians, trades and miscellaneous personnel) and clerical staff.

Organisational analysis and consultation

The reports provide information on analysis of workplace equity issuesrelevant to women and information on any consultative processes used toidentify such issues. These were recorded as yes or no information.

Seven employment matters

The legislation identifies seven employment matters for consideration byorganisations in addressing the issues for women in the workplace (EOWWAct 1999). These employment matters are: recruitment and selection;promotion and transfer; training and development; work organisation; condi-tions of employment; sexual harassment; and pregnancy and breastfeeding.

Coding

Organisations identify issues of disparity or inequity and strategies used inthese areas to address them. The issues identified and strategies used foraddressing each employment matter were classified according to the theme of

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the approach taken in implementing equal employment opportunity. The clas-sifications utilised were those identified by French (2001) in a typology ofequity management approaches based on distributive structure, that is,equal/equitable treatment through gender specific and non-gender specificprocedures; and implementation strategies, that is, activities following legisla-tive requirements or using non-legislative procedures.

Five classifications were used.

No reporting: This classification was used when no comments were made,issues identified or strategies outlined at all on any one or all of the sevenemployment matters.

Traditional: The traditional classification was used to identify an approach thatrejects that discrimination plays a role in workplace disparity between differentemployee groups and supports the different treatment of individuals in theworkplace based on the choices made by individuals. This approach advocatesagainst the specific implementation of equity measures, instead calling onwomen and minority groups to make different educational and lifestylechoices in order to create change (French 2001). In this study comments suchas ‘90% of applicants to sales positions are female’ were placed to this category,as were ‘Records show that all positions were advertised internally with recentmiddle management appointments from existing staff’, ‘There have been noinstances of sex-based harassment reported during the past 12 months’ and‘Females fill most of the casual positions. Such positions attract predominantlyfemales, as casual positions suit their needs’.

Anti-discrimination: The anti-discrimination classification was used to identifyan approach that acknowledges the importance of removing discriminatorypractices and processes in order to offer equal treatment based on human rightsprinciples. This approach fulfils the requirements of anti-discrimination legis-lation. Equal employment opportunity activity limited to equal treatmentand/or equal outcomes for men and women was classified as ‘anti-discrimina-tion’ (French 2001; Konrad and Linnehan 1995). In this study comments suchas, ‘A current position description is necessary prior to recruiting for anyvacancy’ were placed in this category. Also comments such as, ‘We treat allapplicants the same’, ‘Our policy is to treat men and women equally’ or ‘Totalnew hires 52 – 24 female and 28 male’ were included into this category. Thestatement ‘Introduction of a career leaders program (CLP) designed to developindividual high potential employees as a matter of priority. 8% of CLP par-ticipants are female. CLP participants are identified by HR and seniormanagement and the criteria is non-gender biased therefore female employeeshave equal access to the CLP’ provides a further example of commentsrecorded in this category.

Affirmative action: The affirmative action classification was used to identify anapproach that acknowledges the importance of the removal of discriminatory

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practices as well as the adoption of special measures designed to assist membersof disadvantaged groups, particularly women. This follows the usage of theterm ‘affirmative action’ in Australian legislation:

Affirmative Action is based on recognition and acceptance of the fact that itis not sufficient to make specific acts of discrimination unlawful. Furthersteps are needed to relieve the effects of past discrimination, to eliminatepresent discrimination and to ensure that future discrimination does notoccur. (DPMC 1984a, 8)

In this study reports on specific strategies such as apprentice or graduateprograms for the recruitment of women were classified as affirmative actionin nature. Further examples include, ‘Parental leave Information Kit detailsentitlements and benefits for pregnant and potentially pregnant employees are distributed’ and ‘We encourage women still predominantly employed in Clerical/Administrative category to apply for other positions advertisedinternally’.

Gender diversity: The gender diversity classification was used to identify anapproach that acknowledges bias and discrimination against women andsupports neutral treatment of individuals based on organisational require-ments. While there is debate about exactly what constitutes policies andprograms variously labelled ‘diversity’ and ‘managing diversity’ (Bacchi 2000;Kirton and Greene 2005), we have used the term ‘gender diversity’ to incorp-orate elements of organisational change. In order to classify policies as genderdiversity, organisations needed to include elements of culture change withinthe organisation. In our policy classification, the category of gender diversitycan extend on affirmative action, seeking cultural and systems changes thataddress root causes of prejudice and develop the potential of every individual.Proactive equal employment opportunity activity that included specifictreatment to address any potential for disadvantage for all workers or thedifferent needs of all workers, but not limited to gender and often includingexternal measures such as enterprise bargaining and union advocacy wereincluded in this categorisation. In this study reports that included leave oppor-tunities that were the same for both genders and included maternity, paternityand adoption leaves were classified as diverse in nature. Examples included:‘All employees have opportunity to work either full-time part-time job share,flexible hours, casual or on contract [through negotiation]. All positions arereviewed to see if flexible-working arrangements can be accommodated. Withcore hours being between 7am–7pm the majority of employees are able to keeptheir own hours’; ‘All staff on maternity, paternity or paid parental leave havethe option of dial in access … to receive corporate communications … viaemail’; and ‘Flexibility in working hours, part time/job share workers beingable to hold management positions’.

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Priority

The reporting form requires organisations to make a realistic assessment ofwhat is most important to their organisation, and what can be achieved overthe course of a year. In analysing this part of the reports, assessments weremade using the same five-point schema discussed above. For example,‘Increase training to address sex-based harassment in the workplace’ was deter-mined as anti-discrimination; ‘Implement strategies to encourage a greater rateof return from maternity leave’ was determined as an affirmative actionbecause it addresses the needs specific to women; and ‘Developing systems forpermanent part-time work or work from home opportunities for all staff’ wasclassified as gender diversity because it addresses the needs of all workers,regardless of gender.

Actions

In this section of the report organisations identify the specific actions takenduring the reporting period. Statements were divided into three levels of actiontaken: 1 = limited statement of fact; 2 = detailed activity statement; 3 =extensive strategy development with timeframes and/or responsibilitiesoutlined.

Future actions

Organisations are also asked about their future actions, encapsulating plannedor intended actions for the following years that are designed to achieve andimprove equal opportunity for women within the organisation. Strategies inthis section were again assessed according to the five classifications model, withone additional category. Some organisations identified a mix of strategies thatmoved across the range of assessable categories. An extra category called‘mixed approach to equal opportunity’ was utilised to show this range.

Analyses and reliability

In order to determine any relationship between the dependent variable (DV)and the independent variables (IV), ordinary-least-square (OLS) regressionanalysis was used. Independent variables consisted of equal opportunityapproach; action taken; priority and future actions. Dependent variablesconsisted of the specific job roles of women and of men.

Organisation size has been considered to be a significant predictor of theemployment status of women (French 2001; Konrad and Linnehan 1995). Wemeasured and controlled for size as the number of employees, using four cate-gories ranging from less than 500; 500–999; 1000–2999; and 3000 or more.

Social desirability bias (Fowler 1988) is a recognised threat to accuracy of

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information when there is pressure to present a socially desirable image oforganisations. Public availability of the reports and the potential to be namedin parliament for a non-compliant report may be seen as a pressure to presenta socially desirable image. The EOWW Act attempts to ensure accuracy ofinformation by the mandatory requirement of the signatures of both the reportwriter (usually the HR manager) and the CEO on all reports submitted to theAgency (this information remains confidential). Further, each report ischecked at the Agency and evaluated. Trained assessors review the contentsof every report first to ensure compliance status under the EOWW Act, andthen to evaluate the organisation’s analysis of equal opportunity issues andidentify demonstrated links with the organisation’s current actions and futureplans. Each organisation is contacted to verify information and to make recom-mendations and give feedback. Information is provided for those organisationsthat are not compliant under the Act to assist them to meet compliancestandards (EOWA 2006c).

The quantitative analysis of qualitative data can potentially prove a threatto accuracy and reliability as there is the possibility that the researcher may‘force’ cases into categories that reflect the biased views of the researcher ratherthan the substantive actions of the respondents (Crompton and Harris 1999).To address this issue we used a predetermined model of equity managementapproaches to determine the categories into which the responses were to bedivided and generated an appropriate coding scheme on this basis (Harris2001). To address reliability, the coding process was separated from the processof data entry to allow for cross-checking. In addition, the researchers workedtogether on the coding process with one researcher checking a sample of thecoding from the other (Krippendorff 1980). To address sampling validity weselected the data from an entire industry responsible for reporting their equalopportunity plans and where data were unavailable we cross-checked availabledata with data from a different source (addressed further in the results section)(Harris 2001; Krippendorff 1980).

There was evidence of a range of different approaches taken across the sevenemployment matters when implementing equal employment opportunityactivities (see table 1). In ‘recruitment and selection’, ‘promotion and transfer’and ‘training and development’, 31%, 39% and 27% of organisations respec-tively reported no specific equal employment strategies of any type to addressany inequity of women in their organisations. Most organisations (43%, 42%and 55% respectively) took an anti-discrimination approach to these employ-ment matters. This involved the use of strategies that encouraged equaltreatment of men and women in recruitment, promotion, and development.However, approximately one-third of organisations did not even mention these

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Results

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areas in their reports. Less than 10% of organisations took a proactive approachof any kind, either affirmative action or gender diversity, in designing anddelivering equal employment opportunity strategies specific to the disadvan-tage of women in gaining access, promotion or opportunities for training anddevelopment.

In the areas of ‘work organisation’ and ‘conditions of service’ an equalnumber of organisations offered no specific strategies for addressing inequity(30.1%), yet for those organisations that did seek to address recognised equityissues, the approach was different to that used in the areas of recruitment,promotion and training. More than 22% of organisations took a proactiveapproach to developing equitable work patterns and conditions of service.Most organisations utilised the gender diversity approach, bringing in flexiblework and fair conditions for both women and men. These strategies wereneutral in their application rather than gendered through an affirmative actionapproach. For many of these organisations part-time work, flexible workhours and work from home opportunities were identified as opportunities forwomen and/or men to balance their work-life issues. Given debates in recentyears about work and family policies this is not unexpected.

Approximately 20% of organisations identified equity issues related tocurrent remuneration structures when addressing ‘conditions of service’. Someorganisations identified the use of recommended pay equity systems or consult-ants to assist in the process of developing equity in remuneration; however,more than half of these organisations were vague in putting any change inaction, suggesting staff consultation or the process of enterprise bargaining ormarket benchmarking would ultimately address any unfair pay differentials.The balance of organisations (80%) either did not address remuneration differ-ences or identified that all staff had equal access to additional pay entitlementssuch as bonuses or paid leave.

In the area of addressing harassment, the majority of organisations took a compliance-based approach in ensuring equal treatment through thetraining of all staff, regardless of gender or organisational role. While somewere not compliant, these were in the minority. This is not surprising given

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Table 1 Organisations’ approaches to EEO in employment matters by percentage

Promote/ Train/ Condition/ Pregnancy &Approach type R&S transfer dev Work org service Harassment breastfeeding

Nil 31.1 38.8 27.2 30.1 30.1 14.6 21.4

Traditional 16.5 14.6 10.7 26.2 19.4 2.9 6.8

Anti-discrimination 42.7 41.7 55.3 17.5 25.2 65.0 35.0

Affirmative action 7.8 3.9 4.9 3.9 2.9 4.9 11.7

Gender diversity 1.9 1.0 1.9 22.3 22.3 12.6 25.2

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the emphasis that tribunals and courts place on the existence of appropriatepolicies and practices, and the zero-tolerance stance taken through judgmentsawarding increased amounts in damages (Jackson 1998; Jenero and Galligano2003). A small number of organisations within the industry have taken compli-ance to new levels and extended their harassment policies to include protec-tions for other groups, and have identified issues of vilification and bullyingthroughout their policies and procedures. One organisation specifically iden-tified expected behaviours of employees and responsibilities of managers atcelebratory functions within the organisation.

Compliance was also an important outcome in addressing the issues ofpregnancy and breastfeeding. Many organisations had policies specific tomeeting the requirements of the legislation, but a small number had extendedthese to include further issues such as adoption and invitro-fertilisationrequirements, while others ensured the policies in these areas were alsoavailable for male employees with parental responsibilities.

The data was analysed using multiple regression analyses in order toascertain any relationship between equal employment opportunity in practiceand the outcomes for women in terms of their numbers in organisations,particularly in management. The independent variables were equal employ-ment opportunity activities undertaken by the organisation across the sevenemployment matters, and actions. The dependent variables included the statis-tics of women and men within the organisations and their job roles. Onemultiple regression equation was set up using independent variables whichincluded the analysis of the seven employment matters, priorities, and futureactions. In each of these variables, content analysis had determined theapproach taken by the organisation in their equal employment opportunityprogram. It was found that there was no significant relationship between theapproach taken in implementing equal employment opportunity through theseven employment matters, priorities or future actions, and the numbers ofmen or women employed across any of the job roles including management.

A separate multiple regression equation was set up for the independentvariable ‘actions’. For this variable the analysis identified the degree of actiontaken including ‘limited action’, ‘detailed action’ or ‘extensive action with timeframes and responsibilities identified’. ‘Limited action’ referred to statementsthat did not detail the action but spoke in general terms. ‘Detailed action’referred to statements that identified the specifics of implementation. Thethird category included those actions which not only detailed the implemen-tation but gave timeframes and the name and/or title of the person(s) account-able. Twenty-four per cent of organisations had very general action statements,34% had specific action statements; 35% identified specific actions, with explicittimeframes and responsibility identified. The equal employment opportunityactivities undertaken were also included. The dependent variables includedthe job roles of men and women within the organisation. These includedmanagement, operations, support and clerical. No significant relationship was

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found between the approach and actions taken and the numbers of men orwomen employed across any of the job roles.

A third multiple regression equation investigated the relationshipbetween equal employment opportunity practices and the outcomes forwomen with size of the organisation as a variable. Controlling for size, themodel showed no significant relationship between the approach taken inimplementing equal employment opportunity and the number of men orwomen employed across any of the job roles. Table 2 indicates the numbers oforganisations according to size.

The aim of this study was to determine any relationship between the approachused to implement equal employment opportunity and the proportion ofwomen in management. The findings indicate that women’s advancement intoleadership in this industry is not related to equal employment opportunityactivities as they are currently implemented. It is argued that equal employ-ment opportunity now provides a means to maintain the current industryculture through the encouragement of flexible employment practices whichallow women to move in and out of organisations as their family needs dictatebut which may further limit their access into the management levels.

Specifically, the findings indicate that there are relatively few organisa-tions in this industry developing proactive strategies in the areas of recruiting,promoting, and retaining women. Indeed, about one-third of the organisationsdo not even mention these issues in their reports. Numerous organisationsidentified ‘equal treatment’ as the primary reason for their lack of proactivityin recruitment, promotion and training. Analysis of organisational processesand systems is a foundation of equal opportunity programs. This was acknowl-edged in the early years of affirmative action legislation in Australia (e.g. CCH1990, ch. 8; Ronalds 1987, 50–5):

We need to explore organisational arrangements by going beyond theassumption that a neutral administrative logic prevails or can be forged,and ask, to what extent do gender relationships inform the application

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Discussion

Table 2 Numbers of organisations in finance and insurance industry according to size

Number of employees No. of organisations

< 500 67

500–999 23

1000–2999 15

> 3000 1

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of rules, hiring decisions, initial assignment practices, training anddevelopment decisions, promotional patterns, performance evaluation,salary offers and conditions of work? (Burton 1991, 13).

Evidence from this study shows that women have made few inroads intonon-traditional areas of employment such as management in the past twodecades, so these comments remain pertinent today. Equal treatment has beenwidely recognised as insufficient to achieve equity of opportunity or equity ofoutcomes for women (Bacchi 1990; Poiner and Wills 1991). Women continue tobe identified as undertaking more of the family responsibilities which ensuresthey are not ‘equal’ in the workplace. Research has shown that equal treatment,based on strategies that are blind to identity difference, is not conducive tochange in many of the measures of advancement of women in organisations(see French 2001; Konrad and Linnehan 1995). Without specific programs thatacknowledge women’s historic systemic disadvantage in the finance andinsurance industry and in management, change is unlikely to occur.

It is interesting to note that there is significant proactivity in the imple-mentation of equal opportunity strategies for the ‘organisation of work’ andthe ‘conditions of service’ under which that work is performed. These strate-gies may further increase participation in the workforce by encouraginggreater flexibility of working conditions but they do not extend equality ofaccess or equality of opportunity for movement into management or leadershiproles or other non-traditional occupations. In today’s competitive market placeit is arguable that this tactic ensures a form of cheap flexible employment forthe finance and insurance industry.

Since the restructuring of the banking industry in the 1970s the industryhas sought part-time and casual staff to meet the demands of peak businesshours. Older women with family responsibilities provided a ready source. Theresultant collapse of the traditional career structure which supportedpromotion of males through a pipeline of ‘the long apprenticeship’ highlighteda new approach of ‘stratum staffing’, which divided employees into career andnon-career areas. The emergence of this division heralded a new careerblockage within the industry (Manning 1990). Now with the increased family-friendly policies and flexible hours, people with family responsibilities,predominantly women, continue to provide a ready source of labour forsupport roles and service jobs outside the career structure.

Equal employment opportunity, it would seem, has become a ‘pacifier’ forworkers through the delivery of day-to-day equality of opportunity for par-ticipation, and a ‘satisfier’ for an industry determined to ensure an adequatelabour supply for full-time and part-time non-career jobs. It has been side-tracked from delivering equitable treatment through opportunities for recruit-ment, promotion and development. It is also suggested that the currentimplementation strategy disarms any dissidents in the fight for substantiveequality by encouraging an illusion of the provision of equal employment

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opportunity while maintaining the status quo. Any suggestion that theoutcomes from equal employment opportunity strategies are sluggish may beattributed to other issues, such as getting enough women in the pipeline or thelack of trained and skilled women able to move into management roles.

Despite 20 years of anti-discrimination and equal employment oppor-tunity legislation, an increase of women in the workforce and a social mindsettowards equity outcomes in the workplace, this industry has seen only minimalchange to the status of women. Individual case studies provide evidence ofsome change to the percentage of women in management but this should notbe heralded as impressive. It is, in fact, poor, given the increase in the overallnumbers of women within the industry and the increased numbers of men inthe industry generally and in management specifically. The suggestion thatwomen are in the pipeline muddies the waters further. ‘In the pipeline’ means‘on the way’ or ‘in preparation’. Rather than a pipeline, this industry offers areservoir or holding tank with the expectation that individuals will themselvesprovide the impetus for change. Metz (2003) notes that the development andpromotion of women in this industry is already an individual phenomenon,with women’s advancement principally linked to their training and develop-ment and years of work experience as well as work hours, occupation type,change and education. Further, Beck and Davis (2005) note that of thenumbers of women in management at one bank, the majority did not comeup through any pipeline. Rather, they were groomed elsewhere and strategic-ally transplanted to address gender equity considerations. Pini (2005) believesthat the hegemony of the pipeline discourse ultimately limits the developmentof processes to address gender equity. Without the impetus of the industryitself to turn this situation around, the time-lag between 20% women inmanagement and substantive gender equity is likely to be very long.

This research study did not include the reports of 41 organisations waivedfrom reporting due to unavailability. In the interests of accuracy the employ-ment statistics for 22 organisations from the finance and insurance industrylisted on the ASX were also examined (see table 3). The statistics for theseorganisations were gathered in a separate EOWA study using a census ratherthan survey approach and ‘information was initially summarised from publiclyavailable annual reports and companies were then contacted to validate thedata’ (EOWA 2004). For all these organisations the average percentage forwomen in executive management is 14.3% with a range of (0–28.6%) and theaverage percentage for women on boards is 15.8% with a range of (0–30.8%).Ten of these organisations are waived organisations under the EqualOpportunity for Women in the Workplace Agency’s criteria. The averagepercentages for women in executive management and on boards in theseorganisations waived from reporting on their equal employment opportunitystrategy and implementation are 10.6% with a range of (0–28.6%) and 17%with a range of (0–22.2%) respectively. The evidence suggests that these waivedorganisations are doing no better and some may argue they are even worse

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than those still reporting each year when considering the position of women inleadership.

This study indicates there is no significant correlation between theapproach to equal employment opportunity and the numbers of women inmanagement or any other employment category. No significant correlation ofany of the employment matters was found with any of the roles for womenwithin the industry. Just what equal employment opportunity offers in the areaof addressing equity for women through vertical integration within organisa-tions in this industry remains questionable. The report into the barriers to thecareers of women in the Australian finance industry in 1997 identified thatwomen asked for career guidance and planning as well as recognition of thelack of career opportunities brought about by organisational change and restruc-turing as well as pregnancy (Still 1997). Organisations have introduced policiesand procedures that improve the conditions for women including job-sharing,flexible work hours, and harassment-free workplaces, but have not addressedthe issues of development or a lack of career opportunities specific to women.While the current strategic approach to implementing equal employmentopportunity has not addressed the issues of access and development, it hashelped to ease the difficulties for women in maintaining employment through

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Table 3 ASX200 organisations and numbers of women directors and in management

Women board Women executiveCompany directors (%) management (%)

Adelaide Bank Limited 25 9.1*Australian and New Zealand Banking Group Limited 12.5 12.5Bank of Queensland Limited 0 30Bendigo Bank Limited 12.5 30.8*Commonwealth Bank of Australia 16.7 0*National Australian Bank Limited 11.1 8.3*St. George Bank Limited 25 11.1*Westpac Banking Corporation 22.2 22.2Australian Stock Exchange Limited 25 27.3*Challenger Financial Service Group Limited 11.1 11.1100F Holdings Limited 14.3 16.7*Macquarie Bank Limited 18.2 0Perpetual Trustees Australia Limited 25 11.1SFE Corporation Limited 11.1 18.2Suncorp-Metway Limited 11.1 25*A.M.P. Limited 28.6 12.5A.X.A. Asia Pacific Holdings Limited 0 27.3*HHG-PLC 0 12.5*Insurance Australia Group 25 15.4OAMPS Limited 0 0Promina Group Limited 28.6 0QBE Insurance Group Limited 25 16.7

*Organisations waived from annual reporting. Source: EOWA (2004)

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changes to the areas of ‘work organisation’ and ‘conditions of service’. Perhapsthis explains why the industry currently employs so many women.

The cross-sectional data collection for one year of reporting provides onlya small window of report investigation and it may not be advisable to gener-alise from these results over time. However, despite the limitation, the study’sstrengths need also to be considered. Industry-specific research has been iden-tified as essential (Konrad and Linnehan 1995) and is noted as beneficial to thestudy of women in management, particularly in understanding the differentprocesses of advancement in different industries (Metz 2003). This study formspart of an increasingly detailed picture of this industry, currently building froma variety of independent sources over a period of time.

The practical implications are twofold. First, women’s advancement intomanagerial positions currently within the finance and insurance industry issignificant for the absence of any relationship to a range of identified organ-isational approaches for managing equity. Metz (2003) found that two primaryfactors, namely, accumulating years of work experience and working longhours, are among the factors that most explain the current model of manage-rial advancement in banking. If the industry is serious about retaining women,organisational strategies that offer substantive individual and career develop-ment opportunities are required. If equal employment opportunity is to assistthe change process, proactive strategies that acknowledge and address thedifferent needs of women in finance and insurance are required to provide analternative approach. Further, identifying timelines, assigning responsibilityand determining key performance criteria against which to measure outcomesis as important in encouraging strategic change in equity management as it isin other areas of the organisation.

Second, despite the recognition of career blockages within the structure ofthe industry, considerable effort is currently being afforded to maintaining thereservoir of women in the non-career roles. Little attention has been affordedto encouraging a flow from it into senior roles. Pini (2005) argues that untilthere is a conceptual shift away from maintaining the status quo to strategicequity management by the power holders, women will continue to be under-represented in management. Organisations within the finance industry needto consider different and proactive strategies for the development, promotionand transfer of women to ensure their movement into and ultimately theirretention within management.

Erica French (PhD) is a senior lecturer in the School of Management at Queensland University of

Technology, Brisbane, Australia. She researches and publishes in the area of equal employment

opportunity; change and women in management.

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Practical implications

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Glenda Strachan (PhD) is professor of management in the Griffith Business School, Griffith University,

Brisbane, Australia. She researches and publishes in the area of women and work and employment

relations.

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