Women’s Advancement in Banking in Emerging South Asian Countries FINDINGS AND RECOMMENDATIONS FOR SRI LANKA IN PARTNERSHIP WITH ABOUT IFC IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org. ABOUT IFC’S WOMEN IN WORK PROGRAM IN SRI LANKA Women in Work (WiW) was a six-year, $9.5 million initiative launched in partnership with the Australian government in April 2017. It was IFC’s largest, standalone country-based gender program designed to close gender gaps in the private sector while improving business performance. The program, which benefit from multisector program design and work closely with the World Bank on research, women’s access to jobs and assets at the same time. ABOUT DALBERG Dalberg’s vision is a more sustainable planet and inclusive societies where all people can thrive. As a diverse, purpose-driven community of professionals, it works in collaboration with local communities and global networks to create bold and equitable solutions and develop the next generation of impact leaders. Dalberg brings together strategy and management consulting, equity-centred community design, data, research, implementation, and communications to achieve its mission of solving the most pressing challenges of our time through systemic change. For more information, visit www.dalberg.com. DISCLAIMER © International Finance Corporation 2024. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 www.ifc.org The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. 2| ABOUT THIS REPORT Global evidence is mounting that more gender diversity in banking, including having more women in leadership, leads to better outcomes for organizations, their employees, and investors. There is increasing recognition of the importance of workforce diversity and equity along various dimensions, including gender. Besides social and moral imperatives, there is a compelling business case for improving gender diversity in commercial banks. Globally, commercial banks with more women in senior manager roles command up to 33 percent higher return on equity.1 Further, banks with more women in senior or leadership roles, especially in risk-related functions (for example, audit and risk committees of the bank’s boards) demonstrate better risk management compared to their peers.2 Having more women leaders can also allow banks to retain talent better, boost creativity, and tap new markets.3 While this insight is global, the barriers and pathways to achieving greater women’s representation in leadership vary by country and region. In 2022-23, the International Finance Corporation (IFC) initiated a multi- country research study focusing on women’s advancement in private commercial banking in South Asia. The study covered three countries: Bangladesh, Nepal, and Sri Lanka.4 IFC initiated this study—among the first of its kind in the region—to identify opportunities that can help achieve more equitable work outcomes for women employees in the industry. Specifically, the study examines the following aspects: • Current representation of women in commercial banks’ workforce, especially in leadership. • Specific barriers that female employees face in advancing within the industry and how their experience compares to their male counterparts. • Policies, processes, and mechanisms that commercial banks and other organizations in the industry (for example, banks’ associations) have in place to support women in reaching leadership positions. • Solutions that banks and other actors (for example, industry bodies and regulators) should pursue to create an environment that supports women’s advancement. While the insights and recommendations of the wider study are compiled in a multi-country report, this edition is a complementary country brief focusing on Sri Lanka. It spotlights the key findings that emerged from the country and is based on an employee survey covering 1255 employees (714 women, 541 men) across seven banks and an organization survey filled by six human resource (HR) departments. This brief is intended to help industry actors—C-suite leaders in commercial banks, policy makers, industry bodies, and investors—direct their efforts toward increasing women’s representation in the industry’s leadership. |3 4| ACKNOWLEDGMENTS This report is a collaborative effort between IFC’s Gender and Economic Inclusion Department and Dalberg Advisors. The research was supported by the Women in Work program in partnership with the Government of Australia. The project was led by IFC under the overall guidance of Shalaka Joshi and Sarah Twigg, with the help of country gender experts Aarthy Arunasalam, Samurdhi Perera, and Prapti Sherchan. We are grateful to Shabnam Hameed and Disha Pandey for their invaluable input and research direction. The report was developed under editorial guidance from Tanya Thomas and designed by We Are Designers, Sri Lanka. The research for the Sri Lanka report took place through 2022 and 2023. We would like to thank the Dalberg Advisors’ market research team, and Convergent for developing the survey tools underpinning the research and for conducting the data gathering and qualitative analysis. The team would also like to thank IFC experts and peer reviewers: Natalia Kaur Bhatia, Savani Jayasooriya, Santosh Pandey, Meetu Singh, and Shyami Siriwardena. We are grateful to Imad Fakhoury, IFC’s Regional Director for South Asia; Alejandro Alvarez de la Campa, IFC’s Country Manager for Sri Lanka and the Maldives; Mehdi Cherkaoui, IFC Manager, Upstream and Advisory, Regional Industry FIG Asia & Pacific, for championing our research in Sri Lanka. For her encouragement and feedback throughout, the team would also like to acknowledge Nathalie Kouassi Akon Gabala, Global Director at IFC’s Gender and Economic Inclusion Department. Thank you to also our colleagues Sammar Essmat, Heather Mae Kipnis, and Amy Luinstra for their consistent support and advice. Finally, the team extends its warmest gratitude to the individuals and organizations who kindly shared their time, experience, and knowledge with IFC. Our research was enriched by the generous participation of Commercial Bank of Ceylon (CBC), Development Finance Corporation of Ceylon (DFCC) Bank, Hatton National Bank (HNB), Hong Kong and Shanghai Corporation (HSBC) Bank – Sri Lanka, National Development Bank(NDB), Standard Chartered Bank - Sri Lanka, and Bank Y in our surveys and interviews and their deep insights into Sri Lanka’s banking industry. |5 6| ACRONYMS DEI Diversity, Equity and Inclusion HR Human Resource(s) IFC International Finance Corporation ILO International Labour Organization |7 KEY FINDINGS FROM SRI LANKA – AT A GLANCE Representation & Aspiration 38% 20% 70% Women’s share in commercial Women’s share Women aspire to move banks’ workforce in senior management to senior roles Navigating hurdles <50% 40% 73% of women have access of women feel housework of women believe they do not to coaching or mentoring impacts their career receive fair evaluations 27% 52% 78% of women experience bullying of women feel their of men believe having more in their organization company does not have women leaders does not adequate safety measures result in business benefits Industry action 6/6 2/6 2/6 banks have banks provide banks have DEI policies anti-bias training dedicated resources to managers for DEI efforts 8| Executive Summary The International Finance Corporation is dedicated to advancing of entry-level hires in the surveyed commercial banks in Sri Lanka diversity, equity, and inclusion (DEI) in developing countries’ private were women, compared to 39 percent in Nepal and 22 percent markets. Focusing on South Asian commercial banks, this study in Bangladesh.7,8 The largest drop in representation occurs when examines opportunities to increase gender diversity by improving moving from entry-level to middle management, with 27 percent women’s representation in leadership. As highlighted in the multi- in Sri Lanka and Nepal and 14 percent in Bangladesh. It further country regional report, research shows an increase in women’s drops at senior management level, where women occupy only 20 representation in banks’ leadership leads to better performance percent across all the surveyed banks in Sri Lanka. However, Sri on business metrics. This brief provides salient findings and Lanka is ahead with 27 percent of women representation at the recommendations for Sri Lanka based on the research conducted among board level, compared to 20 percent in Nepal and 14 percent in seven private commercial banks in the country, which collectively hold Bangladesh. 41 percent of the market share in Sri Lanka. It is important to note that 5 this research was conducted during Sri Lanka’s most severe economic The limited representation of women in banks’ leadership is crisis in recent history. despite strong aspirations to advance in their careers among women banking professionals. Overall, 76 percent of surveyed women employees—a similar proportion to men—indicate Sri Lanka’s banking industry is close to achieving parity that they want to attain leadership roles.9 However, women are in hiring women, but women’s progression does not match not progressing at the same rate as men. The share of women their career aspirations or progression rates for men. in the workforce in the surveyed banks falls from 40 percent Commercial banks stand to gain immense business benefits at the entry-level to 27 percent at middle management and 20 by improving gender diversity in their workforce, especially percent at senior management levels.10 The decline in women’s by having greater representation of women in the workforce representation in senior roles despite high representation at the and leadership.6 Sri Lanka is considerably ahead of other study entry level indicates that career progression is a clear issue in the countries in terms of women’s share in the workforce. 46 percent country’s commercial banking industry. Barriers: Challenges Holding Women from Progressing to Leadership in Commercial Banks in Sri Lanka Women banking professionals face multiple unique opportunities) and outside of it (such as social expectations challenges inside and outside of work during their entire and care responsibilities) impact their day-to-day experience career journey. Female bankers’ professional journeys vary and, ultimately, their advancement to leadership. While these significantly when compared to their male counterparts. Right challenges are covered in detail in the multi-country report, from their entry into commercial banking, women experience Figure 1 sets out how these challenges affect the career journey of work differently than men. Challenges existing within the a female bank employee in Sri Lanka. workplace (such as inequitable professional development |9 Figure 1: Illustrative journey of a typical female bank employee’s career challenges in Sri Lanka 1. RE-ENTRY When applying to roles in the banking 49% industry, Nuveena faced unexpected barriers. Recruiters held preconceived notions about her abilities after a of women respondents do not career break. believe women have the same opportunity as men to be hired. 2. PROFESSIONAL DEVELOPMENT She received the same technical training as her male 81% colleagues but was not assigned critical projects. There was no mentoring offered that could guide her to advocate for herself. 3. of women respondents want to be SOCIO-CULTURAL assigned critical projects, but only 20% of them are selected. CONSTRAINTS Cultural expectations on women about caregiving demand significant time from Nuveena, and managing multiple responsibilities at home and office leaves her anxious. Some of her female colleagues in the past have quit the industry because of this but Nuveena dreams of being a top leader one day. She learned to work 20% smartly but doesn’t have time to network informally with senior management. of women respondents feel having children has impacted their careers. 4. WORKPLACE INTERACTIONS A peer was cyberbullied by a male colleague but her complaint was unaddressed. Instead, she was blamed for raising a “non- 27% incident” and not putting a stop to the behavior. Nuveena felt unsure if her complaint in a similar situation would be heard. of women 5. respondents report facing bullying at work. EVALUATION OF PERFORMANCE >2/5 Her performance evaluation does not reflect her contributions or strengths. Her manager does not offer actionable feedback or ideas for improvement, and so Nuveena’s career stagnates despite her best efforts. Despite the promise of a bright career and strong aspirations Less than 2 / 5 women to become a bank CEO, Nuveena is unable to fully unleash her report receiving helpful potential. Her career progression stalls compared to her male feedback from managers. colleagues and the rare female colleague who has supportive managers or teams. 10 | Three key challenges stand out for Sri Lanka: 1. Sociocultural constraints: Social expectations place a Banks and policymakers have initiated many steps to improve women’s participation and progression, but the success of disproportionate burden of unpaid care work (such as managing existing efforts is limited by a lack of buy-in from banks’ housework and childcare responsibilities) on women. Managing leadership. All six surveyed banks that responded to the HR survey these dual roles results in time poverty for women and makes have introduced DEI policies and initiated specific efforts to support it challenging for them to strike a balance between their work women employees’ professional development. Nationally, there is and personal lives. Many women exit the industry due to this guidance for all listed companies to aim to have 20 percent women burden after marriage and/or parenthood. 40 percent of female representation at the board level, and various initiatives to support respondents believe managing housework and 20 percent of female this shift are underway.12 However, over 40 percent of regional banks respondents believe having children has or will negatively impact do not meet this criteria. This study indicates that many current their career. managers and leaders are not yet aligned with the broader goal of having greater female representation in their organizations. Only 20 2. percent of middle and senior–level male managers who responded to the survey believe that having more women in leadership can help their organization be more competitive. This limited buy-in can erode Lack of fair evaluations: Few men and women respondents any momentum that national efforts to advance women may be able (approximately one in four) believe they receive fair evaluations. to build (for example, by de-prioritizing DEI on the management’s For women, this is aggravated by preconceived gender stereotypes agenda or due to lower resource allocation). managers hold around their abilities and leadership qualities. While two of the six surveyed banks in Sri Lanka report having instituted clear performance assessment criteria, others have yet to introduce mechanisms to make performance evaluations more objective or enhance accountability to weed out biases in the evaluation process.11 3. Non-conducive work environment: Less than half of the female respondents (49 percent) report feeling confident at work. Many women report facing micro-aggressions such as being frequently interrupted when speaking. Overall, 27 percent of women and 22 percent of men experience bullying at work. Ultimately, behaviors that are incompatible with decent work can erode an employee’s overall confidence levels, thereby negatively influencing the perception that their colleagues and managers have about their leadership potential. | 11 Recommendations: Three-dimensional Approach to Increasing Women’s Leadership in Commercial Banking Across the study countries, driving the advancement of more Foster an industry ecosystem that can hold banks women to leadership roles requires targeted efforts along accountable and support them to reach their goals. Industry three directions. First, banks must lay out clear organizational actors such as regulators and industry bodies can bring greater commitments for gender diversity and to support women in reaching attention and accountability in the country to ensure that leadership positions. This should be complemented by creating buy-in banks show meaningful progress in advancing women. While and incentives for senior leadership within banks to own and deliver there is non-binding guidance from the government on female on these commitments. Second, banks should make efforts to create a representation on boards, the central bank or industry bodies safe and equitable environment at work that enables all employees— can go a step further by setting specific, time-bound targets for especially women—to thrive at work. Finally, industry actors must women’s representation in middle and senior management.13 support banks in this transition and hold them accountable. Detailed To drive accountability, this should be complemented by opportunities and solutions across each direction are listed in the periodic tracking and reporting of representation data (and other multi-country report. relevant metrics) across banks. These actors can also support emerging women leaders directly. For example, the Sri Lanka In Sri Lanka, the following targeted efforts by banks and industry Institute of Directors runs a dedicated program to provide organizations are needed in all three directions. training and mentorship to promising women leaders to rise to board positions.14 Build a committed leadership that understands the value of and prioritizes women’s representation as an important focus area for the organization. First and foremost, building The above list is not an exhaustive set of recommendations but senior management buy-in around the business benefits of having highlights the most critical areas where the industry must channel more women in senior roles is crucial. All six surveyed banks its efforts to support the advancement of women bankers. It can help have laid out commitments to support women employees via the Sri Lankan banking industry emerge as an exemplar for women’s their DEI policies but one of the banks has introduced training on progression in banking in South Asia. In addition, these efforts can unconscious biases for their leadership to enable them to be role also contribute to the financial performance of banks and, thereby, models for all staff. Once senior leadership buy-in is established, sustainable growth, supporting a resilient recovery for leadership teams should define time-bound targets for the Sri Lanka. This brief presents key findings and recommendations to representation of women across different seniority levels. steer efforts to ensure that Sri Lankan banks can reap the full benefits of a more gender-equitable workforce. Please refer to the multi- Create a safe and equitable work environment for all country report for more details on the comparative findings and employees, especially concerning fair evaluations, and detailed recommendations. provide the necessary support to balance work and personal responsibilities. Banks can focus on establishing clear and objective performance evaluation mechanisms to ensure fair progression. Some banks are already leading the way. Two of the surveyed banks have created standardized metrics and targets against which employees can objectively score. Similarly, it is important to build safety mechanisms and nurture a culture of strong male allyship to make sure women feel safe and confident at the workplace. Finally, providing staff with mechanisms that ensure adequate flexibility (for example, via flexible working hours, remote work, access to childcare or eldercare support, etc.) and equitable distribution of care responsibilities (for example, equal parental leave for men and women) is crucial. It can help employees—especially women—balance work and personal responsibilities. 12 | TABLE OF CONTENTS 1. STATUS QUO : Where Are Women In The Industry Today? 14 2. BARRIERS TO PROGRESS : What Is Holding Women Back? 16 3. HEADWINDS : What Is Preventing Change? 26 4. TAKING ACTION : What Can The Industry Do To Advance More Women to Leadership? 28 ANNEXURE | LIST OF PARTICIPATING BANKS IN SRI LANKA 34 PHOTO CREDITS mentatdgt / Shutterstock 4 mentatdgt / Shutterstock 6 Ground Picture / Shutterstock 20 NIKS ADS / iStock 22 StockImageFactory.com / iStock 27 JohnnyGreig / iStock 29 WESTOCK PRODUCTIONS / Shutterstock 33 JohnnyGreig / iStock 35 | 13 1. STATUS QUO : WHERE ARE WOMEN IN THE INDUSTRY TODAY? SRI LANKA LEADS MOST OF SOUTH ASIA WHEN HOWEVER, THEIR REPRESENTATION IN LEADERSHIP IT COMES TO WOMEN’S REPRESENTATION AND REMAINS SKEWED DESPITE STRONG LEVELS OF HIRING IN COMMERCIAL BANKS’ WORKFORCE. AMBITION AMONG WOMEN TO RISE TO LEADERSHIP ROLES IN THE COUNTRY. Sri Lanka leads most of its neighbors in terms of Among other nations in South Asia, only Bhutan and women’s participation in the financial services Nepal—where more than 45 percent of employees are industry. Women constitute 41 percent of the women—have greater female representation in the employee workforce in the financial services sector in industry (refer Figure 2).16 Sri Lanka against a regional average of 20 percent.15 Figure 2: Share of Women in Financial Services Industry’s Workforce Across South Asian Nations17 South Asia Average - 20 Global Average - 43 14 | In commercial banks, Sri Lanka leads some of its Sri Lanka also leads some of its neighbors in women’s neighbors in women’s hiring into the workforce at representation in leadership, but they are less likely to the entry-level. Women constitute nearly 38 percent of progress than men. Women occupy 20 percent of senior- surveyed commercial banks’ employees in Sri Lanka.18 By management and 27 percent of board-level positions in the comparison, women constitute 42 percent of employees surveyed banks in Sri Lanka.23 Among the study countries, across surveyed commercial banks in Nepal and 18 percent Sri Lanka leads Bangladesh but lags behind Nepal. All the in Bangladesh.19,20 The hiring of women among the surveyed study countries in South Asia fall behind global leaders such banks in Sri Lanka is nearly at par with the hiring of men. as North America and the United Kingdom, where women Across these banks, in 2022, women constituted 46 percent constitute 32 percent and 36 percent of senior leaders of all entry-level hires.21 The corresponding figures were 39 respectively.24,25,26 The decline in the proportion of women percent for Nepal and 22 percent for Bangladesh.22 from entry-level to senior level (refer to Figure 3) indicates that fewer women are progressing to leadership roles when compared to men. Figure 3: Breakdown of Employees at Various Levels by Gender (%) Women’s overall representation MEMBER 73 in the workforce (%) OF BOARD 27 Sri Lanka 38% SENIOR 80 MANAGEMENT 20 Bangladesh MIDDLE 73 18% MANAGEMENT 27 Nepal ENTRY 60 LEVEL 42% 40 Men Women Female bankers in Sri Lanka stop progressing, but 78 percent of male respondents indicate that they want to not owing to lack of ambition, indicating that the move to a more senior role with greater responsibility.27,28 glass ceiling remains a reality. There is no difference in The high level of aspiration for advancement indicates that ambition between men and women: a similar proportion of women’s progression is restricted not by intrinsic factors both indicate that they want to rise to leadership roles in but by other external barriers, such as social norms and the industry. Overall, 70 percent of female respondents and workplace constraints. | 15 2. BARRIERS TO PROGRESS : WHAT IS HOLDING WOMEN BACK? BARRIERS PREVENTING WOMEN’S ADVANCEMENT HOWEVER, WOMEN CONSTITUTE A SMALLER IN COMMERCIAL BANKS SPAN THEIR ENTIRE SHARE OF NEW HIRES AT MIDDLE AND SENIOR PROFESSIONAL JOURNEY. WOMEN FACE FIVE KEY MANAGEMENT. FURTHERMORE, WOMEN IN BARRIERS THAT IMPACT THEIR PARTICIPATION SRI LANKA HAVE RELATIVELY HIGHER LEVELS AND PROFESSIONAL GROWTH IN BANKING (REFER OF ACCESS TO PROFESSIONAL DEVELOPMENT FIGURE 4). WHILE FEMALE BANKERS ACROSS SUPPORT, AT PAR WITH MEN IN THE COUNTRY. BANGLADESH, NEPAL, AND SRI LANKA FACE MANY HOWEVER, EXPECTATIONS AROUND UNPAID CARE OF THESE COMMON BARRIERS, THERE ARE KEY WORK AND OTHER SOCIAL NORMS RESTRICT DIFFERENCES IN EXPECTATIONS AND EXPERIENCE. WOMEN’S ADVANCEMENT. LACK OF OBJECTIVITY FOR EXAMPLE, WOMEN ARE BEING HIRED AT NEARLY IN EVALUATIONS DIRECTLY IMPACT WOMEN’S THE SAME RATE AS MEN AT ENTRY LEVELS. OPPORTUNITIES TO ADVANCE. Many of these barriers are interlinked and play This chapter outlines the key insights emerging from out in complex ways. For example, managing a the study to help Sri Lankan banks and other actors disproportionate burden of care on the home front develop a nuanced understanding of the unique implies that many women find it challenging to balance challenges faced by women in career advancement. personal and work lives. As a result, many women may leave the industry or take a step back leading to a thin pipeline of women leaders. Similarly, women often face micro-aggressions at work where their opinions often remain unheard or are shot down. This can lead to a perception of less contribution to team goals and influence senior leaders’ view of their competence. 16 | Figure 4: Typical Barriers Women Face in Their Career Journeys in Banking BARRIERS IMPACTING WOMEN’S PARTICIPATION, EXPERIENCE, AND ADVANCEMENT IN BANKING 1 Inequitable 2 Inadequate professional 3 Socio-cultural 4 Lack of fair 5 Non-conducive work hiring development constraints evaluations environment Women are often Lack of access to Constraints arising due to Women receive biased Interactions at work disadvantaged at the very appropriate professional prevalent socio-cultural feedback even if they disadvantage women first step - i.e., gaining a development support norms, such as managing are high performers. further. Many women are foothold in the industry prevents women from housework and providing Managers tend to view frequently interrupted - as many recruiters developing the right suite care, impact women’s all employees from past when they speak, face hold unconscious biases. of skills or gaining the work-life balance. examples of male-dominated bullying (as do men) and Women taking career right opportunities that Lack of employer support leadership they have seen. have to also contend with breaks also find it difficult can help them showcase to navigate these Other unconscious biases issues of workplace safety. to resume work. their leadership potential. (e.g., with childcare) (e.g., male affinity, being exacerbates the situation. seen in office) also impact evaluation. 2.1 INEQUITABLE HIRING “When a vacancy opened up in my department, my manager expected me Women are being hired at nearly the same rate as men to hire a male candidate because the at the entry level, but recruiter bias could impact their work sometimes requires a bit of travel hiring at senior levels. or out-of-hours work. He automatically • A total of 46 percent of new hires at the entry-level assumed that only a man would be able across surveyed banks are women. However, women to do it.” constitute a smaller share of new hires at middle management (35 percent) and senior management - Senior male banker, Sri Lanka (29 percent) levels.29 • This reduction in hiring is reflected in employees’ perception of women’s chances of being hired. In total, 49 percent of female respondents and 36 percent of male respondents do not believe that women have the same chance as men of being hired.30 “Perceptions of women’s abilities and • Recruiter bias could be driving this perception. Both time they can devote to work come into male and female respondents feel that interviewers play when females apply for higher roles; hold biases against women’s abilities and indicate that it is thought how can they [women] organizations often prefer hiring male employees for manage all the work.” certain roles.31 - Senior female banker, Sri Lanka | 17 Social expectations around parenthood and care However, support for women re-entering the responsibilities lead some women to take career workplace after care-related career breaks is limited, breaks. leading to a thin pipeline of women leaders. • Women constitute 40 percent of entry-level, 27 • All six surveyed banks provide maternity leave to percent of middle management, and 20 percent of senior mothers, with two banks allowing for more leave than management roles in the surveyed banks.32 specified by law. Three out of six banks also provide paternity leave to fathers. However, paternity leave is • Some women could be leaving their organizations much less than that available to women (15 days or less for due to social expectations around care responsibilities. men compared to minimum of 84 days of maternity leave In the prime working age group (25–54 years), the labor specified by law) and unlikely to alleviate career vs. care force participation rate for single women in Sri Lanka is trade-offs for women, encourage equitable sharing 66 percent but drops to 40 percent for married women.33 of parenting responsibilities, or lead to support for It further drops to 32 percent for women with at least returning mothers.37 one young child.34 Even for women living with extended families but having at least one young child, the labor • None of the surveyed banks have dedicated force participation rate is 39 percent, suggesting that recruitment drives for women returning after a career care responsibilities are high even in the context of multi- break. generational living arrangements.35 Discussions with • Two out of six banks provide support with upskilling employees from the surveyed banks indicate that similar for women returning after an extended career break. trends seem true for women in the banking industry. 36 In Sri Lanka, we have a system where “The issue is not rate of return (after women are held responsible for the care maternity leave); getting back after of all family members including children, longer breaks is a problem. If you don’t even when they have some support with have a skill set, then it is a problem. childcare from their extended family.” * Even for men who take breaks, say for entrepreneurship, it becomes difficult to - Senior female HR representative, Sri Lanka resume a career in banking.” *Quote lightly edited for clarity - Senior female banker, Sri Lanka 18 | 2.2 INADEQUATE PROFESSIONAL DEVELOPMENT Women and men have near-similar access to professional development support; however, the provision of such support does not meet demand. • More than 80 percent of men and women respondents rank training, mentorship, coaching, critical projects, and sponsorship as crucial for their professional development. Access to such support is important for all employees— especially women—to advance in their careers. Mentorship helped me stay motivated. My mentor used to send me vacancies • Men and women have near similar access to such within the bank, pushing me to take on professional development support (refer Figure 5 below). new roles and finally helped me move Except for training, access to professional development from corporate banking to financial is much lower than demand. For example, more than 80 banking.” percent of employees rate mentoring as crucial but only 36 percent of female respondents and 37 percent of male - Senior female banker, Sri Lanka respondents report that they have access to mentoring at work.38 Figure 5: Employee Access to Professional Development Support (%)39 MEN (n-541) (n-714) WOMEN 96 95 TRAINING 76 80 91 91 COACHING 47 46 86 84 MENTORING 37 36 87 CRITICAL 81 23 ASSIGNMENTS 20 Rate as crucial Report they have access | 19 Banks recognize the need for trainings, including When assigning critical projects, managers sometimes specific programs catering to the unique challenges assume that women have limitations that would faced by female employees. prevent them from accepting such assignments. • All six surveyed banks conduct needs assessments to • Both female and male respondents report poor access understand the development needs of staff members to critical projects (refer Figure 6). before designing leadership development programs. • Often, managers tend to assume that women have • Two out of the six surveyed banks run targeted limitations (for example, around travel or relocation, late management trainee programs for women. night work, etc.) even when women themselves may not voice such concerns.41 Such assumptions can lead managers to prefer male employees when assigning critical work Most banks do not have formal coaching and opportunities.42 mentoring programs, resulting in inequitable access. • Two of the six surveyed banks offer mentoring and/or coaching programs for women. The access to coaching and mentoring can vary due to an employee’s initiative in asking for such support. Women tend not to make the ask explicit, From the bank’s side, there can be a which could disadvantage them in comparison to men.40 thought, ‘Because she is a woman she might not want to travel’, so they have to be more concerned and careful. Some banks don’t even offer the position [to a woman] thinking she might not take it.” - Female board member of a commercial bank, Sri Lanka 20 | 2.3 SOCIOCULTURAL CONSTRAINTS Expectations around managing care responsibilities work, and prevent women from capitalizing on impact women’s ability to participate fully in the opportunities for advancement. workplace, which can result in stepping back from Figure 6: Adverse Impact of Social Constraints on Progression43 Percentage of employees reporting negative impact of household Percentage of employees reporting negative impact of childcare responsibilities on their career opportunities responsibilities on their career opportunities ENTRY MIDDLE ENTRY MIDDLE OVERALL OVERALL LEVEL MANAGEMENT LEVEL MANAGEMENT WOMEN WOMEN (n-714) (n-714) 40% 22% 34% 20% 20% 18% MEN MEN (n-541) (n-541) 28% 20% 29% 15% 16% 11% • Women bear a disproportionate burden of the networking, etc., leaving them disadvantaged in their care work at home, leading to inequalities in how care professional careers. responsibilities impact the professional development of men and women. Overall, 40 percent of female Managing care responsibilities and family expectations respondents, compared to 28 percent of male respondents, associated with them, constrain many women’s and feel that family expectations around managing housework men’s ability to travel or relocate, which can impact have or can adversely impact their careers (refer to Figure 6). their advancement. • Similarly, 20 percent of female respondents and 15 • Overall, 21 percent of female respondents and 20 percent of male respondents feel that their careers have been percent of male respondents feel that family restrictions or will be impacted by having children.44 Two in five female around work-related travel can limit their career respondents in senior roles also report that having children opportunities (for example, by preventing them from has held back their progress. In comparison, no men in senior traveling outstation).46 roles indicate this to be true for them. As noted earlier, 45 • A total of 13 percent of female respondents and 11 percent challenges in managing care responsibilities alongside work of male respondents feel that a requirement to relocate could can also lead some women to opt for career breaks. prevent them from moving to a senior role in the organization • Many women respondents indicate that this (for example, employees may be unable to accept a promotion disproportionate burden of care leaves them limited time to if it requires them to move to a new location).47 pursue professional development avenues such as training, | 21 Many employees, especially those who have children, indicate that flexible working arrangements and other support with caregiving can help them to better manage work and personal lives. • Overall, 34 percent of employees with children (45 percent of women and 30 percent of men) feel that having policies for flexible working arrangements such as flexi hours can better help them advance into leadership positions; 30 percent of employees without children also indicate the need for such support. • Many employees are dissatisfied with the current support available. Only 38 percent of all women and 28 percent of all men indicate that current flexible working options meet their needs. • A total of 43 percent of working mothers who responded to the survey also expressed a need for other support with caregiving (such as on-site childcare) but fewer than 1 percent report having access to such support. None of the six surveyed banks provides on-site childcare support or allowances for childcare across all locations (one bank reports providing it at most locations). “When it comes to women, we are multi-taskers; we have to take care of family and also enjoy our jobs. If there were certain number of flexible hours, we will be able to manage our challenges better.” - Senior female banker, Sri Lanka 22 | 2.4 LACK OF OBJECTIVE EVALUATIONS Performance evaluation and feedback provided to Banks have initiated reforms to bring more objectivity women are often non-specific and can disadvantage to how they evaluate employees, but deeper them in career progression. interventions are needed to ensure evaluations are fair and merit-based. • Two in three employees do not believe that the performance evaluations they receive from their managers • Banks have instituted multiple reforms to attempt are fair. Similarly, fewer than two out of five of the women to remove gender discrimination in their performance and men respondents believe they receive clear inputs on evaluations: goals and expectations from their managers. - Two of the six surveyed banks have revised their performance evaluation criteria and set clear metrics • Women also typically receive less actionable feedback to assess performance to ensure each employee is compared to men. Feedback provided to them do not clearly rated on similar metrics. lay out what they need to do to improve their performance - Two of the six surveyed banks have introduced and showcase their readiness for advancement.48 Managers training for managers to reduce bias when conducting also tend to provide feedback based on preconceived evaluations. notions of what good leadership looks like while not - One of the surveyed banks has introduced additional accounting for other leadership styles or qualities that their processes, such as 360-degree evaluations, to high-potential female employees may have. 49 corroborate feedback from multiple sources to counteract bias. • Some banks indicate and feel confident that the above reforms have helped them successfully counter and negate gender-based discrimination in performance evaluations. • While these reforms are a positive step, deeper reforms may be needed to ensure evaluations are objective. Introduction of such reforms without complementary efforts to bring accountability and transparency to managerial levels can lead managers to become more complacent in their evaluations, which has been shown to reinforce gender biases the managers might hold.50 | 23 2.5 NON-CONDUCIVE WORK ENVIRONMENT Many women—including those in middle Employees—both men and women—report facing management—face micro-aggressions at work. bullying and sexual harassment at work; even these figures may be underreported. • More than half the women respondents (51 percent) report not feeling confident in contributing within team • Overall, 27 percent of female respondents and 22 settings. Many cite micro-aggressions at work as a driving percent of male respondents report facing bullying at their factor: workplace.53,54 The majority of respondents face bullying behavior from male as well as female colleagues (refer - Overall, 17 percent of the female respondents who do not feel confident report that they are the only woman Figure 7). in the room. • A similar proportion of men and women respondents - A total of 30 percent of the female respondents (6 percent) report having experienced sexual harassment (vs. 11 percent of the male respondents) who do not at work. Similar to previous studies on the subject, it is feel confident, report that they are often interrupted plausible that the incidents of sexual harassment have been when speaking or others speak over them.51 underreported in this survey.55 - A total of 42 percent of female respondents at middle management (vs. 13 percent of male) who do not feel confident, report that their advice is often questioned or shut down.52 • Micro-aggressions affect women’s workplace At one instance, I reported a misconduct experience and compound the challenge around receiving by a support staff (outsourced). However, it was discussed among the fair evaluations. Being frequently interrupted and perceived unit members and I was made to feel as as lacking confidence can be reflected in the insights if I made a mistake.” managers form about women’s contributions at work, which is reflected in their performance evaluations. - Senior female banker, Sri Lanka Figure 7: Prevalence of Incidents of Bullying and Sexual Harassment in the Organization56 PERCENTAGE OF EMPLOYEES WHO FACED BULLYING AT WORK PERCENTAGE OF EMPLOYEES WHO FACED SEXUAL HARASSMENT AT WORK FROM ALL FROM MEN BUT FROM WOMEN FROM ALL FROM MEN BUT FROM WOMEN GENDERS NOT WOMEN BUT NOT MEN GENDERS NOT WOMEN BUT NOT MEN WOMEN WOMEN (n-714) (n-714) 17% 6% 4% 1% 4% 1% MEN MEN (n-541) (n-541) 15% 6% 1% 3% 2% 1% 24 | Most banks have instituted policies and systems to • Despite the existence of these policies and mechanisms, ensure employee safety; yet many women are not fewer than half of all women employees surveyed believe confident that their organizations have adequate their organization has adequate measures to act on sexual measures to effectively deal with incidents of bullying harassment or bullying complaints (refer Figure 8). and sexual harassment. - Over half of all female respondents do not believe that appropriate action would be taken by their • All surveyed banks have policies that prohibit and organization if they report a sexual harassment or address incidents of sexual harassment. All banks also have bullying incident. channels to report these incidents anonymously. - One in 10 female respondents fear that they will - All surveyed banks also provide other mechanisms— have to face negative consequences for reporting such as provisions for late-night transport—to ensure such incidents. the safety of employees. • Four out of the six surveyed banks explicitly prohibit bullying, including cyber-bullying. Figure 8: Employee Trust in Organization’s Response to Sexual Harassment and Bullying Complaints57 EMPLOYEE PERCEPTION OF ADEQUACY OF MEASURES AND ORGANIZATIONAL RESPONSE TO A SEXUAL HARASSMENT/BULLYING COMPLAINT (n = 1255 % OF MEN AND WOMEN EMPLOYEES 48 59 46 47 10 6 4 4 5 2 3 4 The organization An appropriate No action There would I would not There are no has adequate action would would be be retaliation/ be believed if channels to measures to act be taken by the taken by the negative I reported the report such on the complaint organization organization consequences issue incidents for me Women Men “I cannot answer as I do not have personal experience in this regard. However, an incident once happened to a colleague where people blamed her for reporting the issue. They made her the bad one. This was not done by the Management but her own colleagues. This is the culture.” - Responses from employee surveys | 25 3. HEADWINDS : WHAT IS PREVENTING CHANGE? WHILE COMMERCIAL BANKS HAVE PUT IN PLACE SEEM UNAWARE OF THE POTENTIAL BENEFITS SEVERAL MEASURES TO SUPPORT WOMEN, OF HAVING MORE WOMEN LEADERS. THIS CAN THERE IS A NEED FOR INDUSTRY LEADERS TO ADVERSELY IMPACT THE ATTENTION SUCH EFFORTS MORE PROACTIVELY CHAMPION ADVANCING RECEIVE WITHIN AN ORGANIZATION AND LIMIT THE MORE WOMEN TO LEADERSHIP. MANY CURRENT SUCCESS OF EXISTING INITIATIVES. EMPLOYEES, INCLUDING SENIOR MANAGEMENT, Many employees—including middle managers and agree that having more women in leadership is senior leaders—do not believe that having more important for the company to be competitive. women in leadership is important for the business • More than 50 percent of male respondents at to be competitive. middle management level responded neutrally or • Men and women differ in their belief around the disagreed with the statement that having women benefits of gender diverse leadership teams (refer in leadership is important for their company to be Figure 9). A total of 47 percent of female respondents competitive. compared to 22 percent of male respondents strongly Figure 9: Employee Attitudes Toward Female Leadership in Their Organization58 EMPLOYEES ACROSS ALL LEVELS WHO RESPONDED “STRONGLY AGREE” TO THE STATEMENT “I BELIEVE HAVING MORE WOMEN IN LEADERSHIP ROLES IS IMPORTANT FOR THE COMPANY TO BE COMPETITIVE” n = 1255 % OF MEN AND WOMEN EMPLOYEES OVERALL ENTRY LEVEL MIDDLE SENIOR MANAGEMENT MANAGEMENT 47% 22% 46% 22% 49% 20% 63% 64% 26 | Most banks are making efforts to support women, but • More leadership commitment to steer implementation a lack of leadership buy-in could lead to policy gaps and is also needed: impact implementation of existing efforts. - Two of the six surveyed banks report having dedicated resources, staff, and budgets to implement • Five out of six surveyed banks report that they have their gender diversity and inclusion programs aimed at clearly articulated gender diversity and inclusion policies increasing women’s representation. to stakeholders. Four of these banks have also set gender - Two of the six banks report they conduct training balance targets for their overall workforce. for all staff members around their gender diversity and inclusion policy. • Even with the above steps, critical policy gaps remain. - None of the banks recognizes increased Only one of the surveyed banks has set gender balance accountability for existing diversity initiatives as a targets for different career levels including leadership. priority for 2023 to improve women’s representation in leadership. | 27 4. TAKING ACTION : WHAT CAN THE INDUSTRY DO TO ADVANCE MORE WOMEN TO LEADERSHIP? ONE-OFF SOLUTIONS IMPLEMENTED BY BANKS THIS CHAPTER LAYS OUT THE KEY ARE UNLIKELY TO ADDRESS THE MULTITUDE OF RECOMMENDATIONS FOR BANKS AND OTHER CHALLENGES FEMALE BANKERS FACE. INSTEAD, INDUSTRY ACTORS (SUCH AS REGULATORS AND CONCERTED ACTION IS NEEDED TO ADDRESS THESE INDUSTRY BODIES) IN SRI LANKA TO BETTER CHALLENGES AND HOLD ORGANIZATIONS AND SUPPORT WOMEN’S PARTICIPATION AND INSTITUTIONS ACCOUNTABLE FOR PROGRESS. ADVANCEMENT IN COMMERCIAL BANKING. FURTHER, ACTIONS SHOULD ADDRESS BARRIERS IN A TARGETED MANNER ACROSS POLICY, PROCESS, AND CULTURE. To support more women to rise to leadership the opportunity areas remain relevant to Sri Lanka but roles, banks and industry actors need to step up would need to be adapted to the country’s context. their efforts in three different but complementary Specific recommendations and relevant examples from directions. These three directions, specific surveyed banks that can inspire for other banks and opportunities for each, and detailed recommendations industry actors are provided below. are highlighted in the multi-country report. Most of 28 | Figure 10: Classification of Solutions for South Asia’s Banking Sector to Implement Committed leaders A. Strong organizational commitment and accountability for equitable representation B. Promotion of positive work norms by leaders who act as role models OPPORTUNITY AREAS C. Inclusive hiring Equitable and safe and retention E. Re-evaluation D. Tailored professional development of performance workplaces to unleash employee potential evaluation G. Allyship and F. Equitable support safety in the for work-life balance workplace H. Ambitious goals for women’s representation and vision for the industry Engaged ecosystem I. Technical and financial support for the banks to improve women’s representation J. Networks and support for emerging women leaders K. Industry wide accountability for women’s representations Inadequate Lack of Non-conducive Limited Inequitable Socio-cultural professional objective work impetus hiring constraints development evaluations environment for change BARRIERS TO ADVANCEMENT Relative importance of barriers to Sri Lanka less moderately highly some existing Require relevant relevant relevant momentum more focus | 29 4.1 RECOMMENDATIONS TO DEVELOP MORE COMMITTED LEADERS 1. Strong organizational commitment and make to the business, and be well-versed in the case for accountability for equitable representation: increasing women in leadership. Banks should also set Sri Lankan bank leadership teams must be the custodians clear organizational priorities by having representation and advocates of increasing gender diversity within targets at all levels, since only one of the six surveyed their ranks and leadership pipelines. All leaders need banks set targets for women’s representation at all levels. to understand the benefits of having more women in Accountability for the success of these goals must be leadership, including the immense contributions they can assigned to the bank leadership. CASE STUDY 1 Training leaders to recognize their unconscious biases and limit their impact on organizational policies. bias can help banks provide equitable growth The training was completed with a 100 percent opportunities participation rate and helped the participants become Leadership can be the torchbearers for the banks to more effective leaders. It also had a broader impact on achieve their DEI initiatives. Standard Chartered Bank the organization’s strategic decision-making, enabling in Sri Lanka recognized this and identified that training leaders to improve their recruitment and promotion their leadership was necessary to extend equitable policies (by assessing candidates more objectively on growth opportunities to all employees. A critical part of merit and alleviating biases in this process).59 this was training their leadership to be aware of their 2. Promotion of positive work norms by leaders who move the needle on the common narrative in Sri Lanka act as role models: from a gender-neutral one to one that recognizes the Sri Lanka’s banking leadership, which is predominantly inherent biases that women face. This can help drive the men, should be incentivized to engender a culture that acceptability of programs and norms that help women establishes positive working norms. Leaders should help progress and increase their adoption. 30 | 4.2 RECOMMENDATIONS FOR BUILDING EQUITABLE AND SAFE WORKPLACES 1. Tailored professional development to unleash different positions (for example, need for exposure of entry- employee potential: level and mid-level professionals to critical projects and Curate initiatives to provide equitable access to building women bankers’ confidence) will allow them to professional development opportunities for all employees. fully leverage their technical skills, and help set them up for Accounting for the unique needs of female employees at leadership roles. CASE STUDY 2 Banks are beginning to cater to specific training Lankan bank associated with the program acknowledged needs of women employees. the need to go beyond technical skills for women: An increasing number of banks in Sri Lanka now inculcate soft skills as part of employee training, especially for women. One such training program, called the Technical competence is not an issue (for Superwoman Training program, was initiated by a bank progression of women). Banks already have that recognized that a cohort of women were plateauing trainings for that, plenty of them. Soft skills and in their career. The bank contacted a senior industry confidence are where women tend to lack.”60 leader to design the training program by understanding and accounting for the specific needs and challenges of The program has since expanded and is offered by women professionals. A senior female director at a Sri multiple banks. 2. Re-evaluation of performance evaluations: Apart from having objective criteria, anti-bias training for Ensure that the performance evaluation process is managers and other organization-wide measures to correct thorough and free from gender bias. Only two out of six for biases (statistical review of ratings to understand banks have standardized metrics that employees can systemic bias, creating manager-level accountability for be scored against to make the evaluation process less objective feedback, etc.) are crucial. objective and the application of merit more subjective. | 31 CASE STUDY 3 Some banks in Sri Lanka are already pushing for more evaluations, and providing training for managers. transparency in performance evaluations. Some banks, aided by the perspectives that employees’ Some banks, like HSBC and HNB, already recognize the unions bring, have also revised their performance value of greater transparency and accountability in evaluation criteria, made them objective, and shared career development and promotions. Besides tracking them with all employees to bring more transparency performance evaluation ratings and promotion decisions to performance evaluations. Such reforms need to be to understand if these are equitable, they have introduced combined with others around weeding out bias to ensure other practices—most notably in terms of setting clear greater objectivity.61 metrics for performance goal setting, feedback and 3. Male allyship and safety of women in the workplace: 4. Equitable support for work–life balance: All employees, especially men, should be inspired to Banking in Sri Lanka is characterized by long working actively confront inequity in interpersonal interactions and hours. Most bankers are expected to report to the office in intervene to address inequity’s structural and institutional person since no banks provide unrestricted work-for-home dimensions. All banks in Sri Lanka provide anonymous flexibility, which puts additional pressure on employees channels to report bullying and sexual harassment with caregiving responsibilities. In the absence of statutory incidents, but employees do not fully trust that appropriate paternity leave (although three out of six banks offer some action will be taken if reported. Banks should focus on paternity leave) and because of entrenched social norms, updating and increasing the efficacy of their respectful childcare responsibilities fall disproportionately on working workplace mechanisms, while promoting greater male mothers. No banks consistently provide on-site childcare allyship and building trust in these channels. or a childcare allowance to help employees better manage their work and care responsibilities. CASE STUDY 4 Some banks are instituting new work paradigms by The result has been overwhelmingly positive for transitioning to hybrid work. employees, especially women; 68 percent female employees reported that they found it easier to manage HSBC Sri Lanka introduced fully remote work during their responsibilities at work against a country average of the COVID-19 pandemic across most functions (where 38 percent in all surveyed banks in Sri Lanka.62 possible). As the restrictions due to the pandemic eased, employers began rolling back the flexibility they had offered. However, HSBC retained the option for employees to work in a hybrid setting and is now moving to make this a business-as-usual policy. 32 | CASE STUDY 5 Ensuring paternity and caregiving leave can help Three of the six surveyed banks in Sri Lanka already offer women manage caregiving responsibilities more paternity leave even in the absence of a legal mandate equitably. to do so.63 In addition, banks can explore additional caregiving leaves for parents. For example, banks in some Sri Lanka guarantees 84 days of paid maternity leave developing countries allow parents to avail additional but does not have any statutory provisions for paternity leaves in a year to take care of their children or other leave. In the absence of legal mandates for such leave, family members. banks can take the lead in setting the standards for more equitable policies. The John Keells Group in Sri Lanka enhanced their existing five-day paternity leave to 100 days to match Paternity leave can help both parents equitably share the maternity leave. The leadership believes the initiative caregiving burden. By offering such leave, organizations will eliminate the discrimination around hiring and can level the playing field for working mothers and promoting women due to maternity leave.64 minimize any negative impacts on women’s careers. | 33 4.3 ENGAGED ECOSYSTEM 1. Ambitious goals for women’s representation in the industry: Set an industry-wide vision in terms of CASE STUDY 6 representation targets for women, with a timeline that Industry bodies can help banks identify and train sets clear goals for the banks. While there is non-binding future women leaders. guidance from the government on women representation on boards, regulators or industry bodies can go a step The Sri Lanka Institute of Directors launched the further for banks to commit to achieving specified, time- “Women on Boards” training program to create a bound targets for women representation in middle and strong female leadership pipeline. The program senior management. Further, these actors can provide plans to identify and assemble a deep talent pool of knowledge support to banks to help design relevant potential leaders among working Sri Lankan women solutions to achieve these targets. who can become board members and senior managers in the future. The program brings together talented working women 2. Networks and support for emerging women leaders: with different professional backgrounds and supports Women in banking in Sri Lanka indicate the need for them to develop the necessary people and leadership networks and professional support to further their careers skills to be placed on the boards of public and private in the sector. Banks may be able to move the needle on companies. A leadership-ready talent pool combined these gaps to an extent, but ecosystem-level actors can with progressive representation targets in the industry create a greater impact since they can connect women can create the pathway for more women to move into employees across organizations (refer Case Study 6). leadership roles in the sector.65 3. Industry-wide accountability for women’s representation: Currently, only two out of six surveyed banks make external disclosures about progress on gender balance targets. Creating a culture of public disclosure of this information by banks in Sri Lanka will elevate their accountability to achieving women’s representation goals. This ensures that these goals are treated with the same importance as other key performance metrics by the banks. 34 | | 35 ANNEXURE LIST OF PARTICIPATING BANKS IN SRI LANKA S. NO. BANK NAME 1. Commercial Bank of Ceylon (CBC) Development Finance 2. Corporation of Ceylon (DFCC) Bank 3. Hatton National Bank (HNB) Hong Kong and Shanghai Banking 4. Corporation (HSBC) Bank- Sri Lanka 5. National Development Bank (NDB) 6. Standard Chartered Bank - Sri Lanka 7. Bank Y 36 | ENDNOTES 1 Credit Suisse Research. 2016. “The CS Gender 3000: The Reward Initiatives such as “Ring the bell’” have been undertaken by IFC; 12 for Change.” https://www.credit-suisse.com/about-us-news/ there has also been guidance from the government to increase en/articles/media-releases/credit-suisse-gender-3000-report- women’s representation on the boards of listed companies to shows-women-hold-almost-a-quart-202109.html 20%. Economy Next. 2019. “Women on Sri Lankan Listed Firm Boards to Be Mandatory: Budget 2019.” https://economynext. 2 Yu, Bing. Mary Jane Lenard, E. Anne York, and Shengxiong Wu. com/women-on-sri-lankan-listed-firm-boards-to-be- (2015). “Women Leaders in Banking and Bank Risk.” In Proceedings mandatory-budget2019-13262/. of World Business Research Conference, Hotel Novotel Xin Qiao, Beijing, China, June 11-13, 2015. https://studylib.net/doc/13320687/ Data collated from official websites of regional banks mentioned 13 proceedings-of-world-business-research-conference. on Central Bank’s website as of 7 June 2023; information was only available for 13 banks 3 International Labour Organization (ILO). 2019. “The Business Case for Change.” https://www.ilo.org/wcmsp5/groups/public/- DailyFT, SLID’s Women Directors Forum unveils new initiatives, 14 --dgreports/---dcomm/---publ/documents/publication/ 2022 https://www.ft.lk/Management/SLID-s-Women-Directors- wcms_700953.pdf Forum-unveils-new-initiatives/53-731740 4 The study simultaneously covered non-banking financial 15 ILO. 2022. “Economic Activity (ISIC) 64 - Financial Service companies in India, which are not covered by this report. Activities, Except Insurance and Pension Funding.” https://www. ilo.org/shinyapps/bulkexplorer7/ 5 Based on total assets of Licensed Commercial Banks (LCBs) (in USD) in Sri Lanka as of 2020: KPMG, Sri Lanka Banking Report, 16 Comparison based on ILO data available for latest year 2021. https://assets.kpmg.com/content/dam/kpmg/lk/pdf/kpmg- (Bangladesh, Nepal: 2017, Maldives: 2019, Sri Lanka: 2020, India, sri-lanka-banking-report-june-2021.pdf Bhutan: 2022). 6 Refer the multicountry report for more details on how gender 17 ibid. diversity and women’s representation in leadership can lead to business benefits for banks. Data based on workforce composition of surveyed banks in Sri 18 Lanka as of December 31, 2022. 7 Data based on representation of women in new recruitments for the year 2022 in surveyed banks in each of the study countries. For Data based on workforce composition of surveyed banks in 19 Sri Lanka, the data are based on those collected from six of the Bangladesh and Nepal as of December 31, 2022. seven surveyed banks. One of the surveyed banks did not fill the HR survey. Refer the methodology for more details. 20 The India phase of the study focused on non-banking financial companies. Hence, comparisons here and throughout this report 8 Here and elsewhere in the report, when reporting results from do not include India, except where secondary data are available. the survey, we define entry-level roles to mean non-managerial For more details, please refer the Methodology section in the and junior-management roles. multicountry report. 9 Here and elsewhere findings related to the number of banks or Data based on representation of women in new recruitments for 21 those based in the HR survey are based on the responses received the year 2022 in surveyed banks in the country. from six banks that responded to the HR survey. 22 ibid. 10 Initiatives such as “Ring the bell’” have been undertaken by IFC; there has also been guidance from the government to increase 23 Data based on workforce composition of surveyed banks in Sri women’s representation on the boards of listed companies to Lanka as of December 31, 2022. Women constitute 25% of middle- 20%. Economy Next. 2019. “Women on Sri Lankan Listed Firm management and 21% of senior-management roles in the banking Boards to Be Mandatory: Budget 2019.” https://economynext. sector in Sri Lanka as per an independent research paper published com/women-on-sri-lankan-listed-firm-boards-to-be- in 2018. Source: Jayatilaka, Wijaya, and Shamalka Uduwella. 2018. mandatory-budget2019-13262/. “Impact of Glass Ceiling Factors on Women Career Development in Banking Sector: Evidence from Non-state Banks in Colombo Economy Next, Women on Sri Lankan listed firm boards to be 11 District.” 15th International Conference on Business Management. mandatory (2019) http://dr.lib.sjp.ac.lk/bitstream/handle/123456789/8246/ Impact%20of%20Glass%20Ceiling%20Factors%20on%20 Women%20Career%20Development%20in%20Banking%20 Sector%20evidence%20from%20Non-state%20Banks%20in%20- Colombo%20District.pdf?sequence=1. | 37 ENDNOTES Women form 23% and 9% of senior-management roles in Nepal 24 40 Based on responses from participants in focus group discussions and Bangladesh respectively in the surveyed commercial banks’ and interviews. workforce as of December 31, 2022. 41 In the survey, a similar proportion of men (11%) and women (13%) 25 Official Monetary and Financial Institutions Forum. 2022. report restrictions around travel for work. This difference is not “Gender Balance Index 2022.” https://www.omfif.org/wp-content/ statistically significant. uploads/2022/04/GBI-2022.pdf. Based on responses from participants in focus group discussions 42 Deloitte. 2022. “Within Reach – Achieving Gender Balance in 26 and interviews. UK Banking Leadership.” 44 The difference between the responses of men and women is not 27 All similar findings that report employee responses/perceptions statistically significant for a 95% confidence interval. are derived from the employee survey rolled out as part of the research effort, unless specified otherwise. 44 ibid. 28 The difference between the responses of men and women is not There were 27 respondents at the senior-management level 45 statistically significant for a 95% confidence interval. (men = 14; women = 13). 29 Data based on representation of women in new recruitments for 46 The difference between the responses of men and women is not the year 2022 in surveyed banks in Sri Lanka that responded to the statistically significant for a 95% confidence interval. HR survey (six banks). 47 The difference between the responses of men and women is not 30 Here and elsewhere in the report, all data representing statistically significant for a 95% confidence interval. employee beliefs or perceptions are based on the employee survey, unless specified otherwise. 48 Correll, Shelley J., and Caroline Simard. 2016. “Research: Vague Feedback Is Holding Women Back.” https://hbr.org/2016/04/ Based on focus group discussions and key informant interviews 31 research-vague-feedback-is-holding-women-back. conducted with employees from the surveyed banks. 49 Fiske, Susan T., and Steven L. Neuberg. 1990. “A Continuum of Data based on workforce composition of surveyed banks in 32 Impression Formation, from Category-based to Individuating Sri Lanka (six banks) as of December 31, 2022. Processes: Influences of Information and Motivation on Attention and Interpretation.” Advances in Experimental Social Psychology ILO. 2020. “Labour Force Participation Rate by Sex, Age, and 33 23: 1–74. https://doi.org/10.1016/S0065-2601(08)60317-2 ; Higgins, Marital Status (%).” https://www.ilo.org/shinyapps/bulkexplorer7/ E. Tory, and John A. Bargh. (1987). “Social Cognition and Social Perception.” Annual Review of Psychology 38:369–425. https://doi. ILO. 2020. “Prime-age Labour Force Participation Rate by 34 org/10.1146/annurev.ps.38.020187.002101; Schein, Virginia E. 1973. Sex, Household Type and Presence of Children (%).” Household “The Relationship Between Sex Role Stereotypes and Requisite Type: Couple with Children. https://www.ilo.org/shinyapps/ Management Characteristics.” Journal of Applied Psychology 57: bulkexplorer7/. 95–100. https://doi.org/10.1037/h0037128; Heilman, Madeine E., Caryn J. Block, Richard F. Martell, Michael C. Simon. 1989. “Has ILO. 2020. “Prime-age Labour Force Participation Rate by Sex, 35 Anything Changed? Current Characterizations of Men, Women, Household Type and Presence of Children (%).” Household type: and Managers.” Journal of Applied Psychology 74, no. 6: 935–42. Extended Family. https://www.ilo.org/shinyapps/bulkexplorer7/. https://doi.org/10.1037/0021-9010.74.6.935; Dennis, Michael Robert, and Adrianne Dennis Kunkel. 2004. “Perceptions of Men, 36 Based on findings from qualitative research conducted as part of Women, and CEOs: The Effects of Gender Identity. Social Behavior this study. and Personality: An International Journal 32, no. 2: 155–72. https:// doi.org/10.2224/sbp.2004.32.2.155; Martell, Richard F., Christopher All similar findings that report on the presence of a certain policy 37 Parker, Cynthia G. Emrich, Marnie Swerdlin Crawford. 1998. “Sex or practice among banks are derived from the HR survey rolled Stereotyping in the Executive Suite: ‘Much Ado About Something.’” out as part of the research effort, unless specified otherwise. Journal of Social Behavior & Personality 13, no. 1: 127–38. https:// psycnet.apa.org/record/1998-04360-009; Benson, Alan, Danielle 38 The difference between the responses of men and women is not Li, and Kelly Shue. 2021. “‘Potential’ and the Gender Promotion statistically significant for a 95% confidence interval. Gap.” Management Potential. https://extranet.sioe.org/uploads/ sioe2021/benson_li_shue.pdf. 39 ibid. 38 | ENDNOTES 50 Castilla, Emilio J., and Stephan Benard. 2010. “The Paradox of Data based on responses to HR of our surveyed banks in Sri 63 Meritocracy in Organizations.” Administrative Society Quarterly. Lanka (6 banks). https://gap.hks.harvard.edu/paradox-meritocracy-organizations; Deloitte. 2016. “Meritocracy- Unraveling the Paradox.” https:// 64 The Island. 2022. John Keells introduces an equal 100 days of www.deloitte.com/au/en/blog/diversity-inclusion-blog/2019/ maternity and paternity leave as parental leave. https://island.lk/ meritocracy-unraveling-paradox.html; Mackenzie, Lori john-keells-introduces-an-equal-100-days-of-maternity-and- Nishiura, JoAnne Wehner, and Shelley J. Correll. 2019. “Why Most paternity-leave-as-parental-leave/ Performance Evaluations Are Biased, and How to Fix Them.” Harvard Business Review. https://hbr.org/2019/01/why-most- The Sri Lanka Institute of Directors, Board Leadership Training 65 performance-evaluations-are-biased-and-how-to-fix-them. Program. https://slid.lk/ The difference between the responses of men and women is not 51 statistically significant for a 95% confidence interval. 52 ibid. 53 Bullying behavior at work is when an individual intentionally uses aggressive or unreasonable behavior or comments to hurt or isolate an employee; for example, through hurtful jokes, teasing, scolding or rude dismissal, yelling, or shouting. 54 The difference between the responses of men and women is not statistically significant for a 95% confidence interval. 55 IFC. 2022. “Business Case for Creating Respectful Workplaces in Sri Lanka.” http://www.grassrooted.net/wp-content/ uploads/2023/03/SrilankaReport_5thSept-IFC.pdf. 56 The difference between the responses of men and women is not statistically significant for a 95% confidence interval. 57 The difference between the responses of men and women is not statistically significant for a 95% confidence interval for any of the options except for “The organization has adequate measures to act on the complaint.” The difference between the responses of men and women is 58 not statistically significant at senior-management level for a 95% confidence interval. IFC. 2020. Sri Lankan Businesses Advance Gender 59 Equality. https://documents1.worldbank.org/curated/ en/547021613562441312/pdf/Sri-Lankan-Businesses-Advance- Gender-Equality.pdf 60 Information reported here was gathered from an in-depth interview with a senior female director at a Sri Lankan bank who first organized the training program. 61 Information reported here was gathered from the HR survey. 62 Information reported here was gathered from the HR survey. | 39 IFC Sri Lanka Level 37, One Galle Face Tower, 1A, Centre Road, Galle Road, Colombo 02, Sri Lanka www.ifc.org