Women’s Advancement in Banking in Emerging South Asian Countries MULTI-COUNTRY REPORT COVERING BANGLADESH, NEPAL, AND SRI LANKA 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 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 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 20 private commercial banks across three countries—Bangladesh, Nepal, and Sri Lanka.1 As the largest global development institution focused on the private sector in emerging markets, IFC recognizes and deeply values the business and social benefits of diversity, equity, and inclusion (DEI). It 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 banking industry. Specifically, the study examined the following aspects: • Current representation of women in the commercial banks’ workforce, especially in leadership • Specific barriers that women employees face in advancing within the industry and how their experience compares with 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. This multi-country report spotlights the key findings and recommendations emerging from the study and is intended to help industry actors—C-suite leaders in commercial banks, policymakers, industry bodies, and investors—direct their efforts to increase women’s representation in leadership in the banking industry. Country-specific findings are also included in separate briefs published as accompaniments to this report. |3 4| ACKNOWLEDGEMENTS This first-of-its-kind report is a collaborative effort between IFC’s Gender and Economic Inclusion Department (GEID) and Dalberg Advisors. The project was led by IFC under the overall guidance of Shalaka Joshi and Prapti Sherchan, with the help of country gender experts Aarthy Arunasalam, Samurdhi Lakshani Perera and Zareen Tasnim. We are grateful to Shabnam Hameed, Disha Pandey and Sarah Twigg for their invaluable inputs and research direction, and to Mishal Murad and Pramita Ray for their support to the core working group. The reports were developed under editorial guidance from Tanya Thomas and designed by We Are Designers, Sri Lanka. The research for this South Asia regional report and its three companion country briefs took place through 2022 and 2023. We would like to thank the Dalberg Advisors’ market research team, Convergent, International Development Institute and LightcastleBD for developing the survey tools underpinning the research and for conducting the data gathering and qualitative analysis. The team would also like to thank the following IFC financial inclusion experts and peer reviewers: Ravikant Agrawal, Ashani Chanuka Alles, Ehsanul Azim, Ayesha Baig, Natalia Kaur Bhatia, Madan Karnani, Rajendra Luitel, Meetu Singh, and Partha Guha Thakurta. We are grateful to Imad Fakhoury, IFC’s Regional Director for South Asia, Martin Holtmann, IFC’s Country Manager for Bangladesh, Bhutan and Nepal, and Alejandro Alvarez de la Campa, IFC’s Country Manager for Sri Lanka and the Maldives, for championing our research across the region. 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 also to 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. This report would not have been possible without their generous participation in our surveys and interviews and their deep insights into the banking industry in emerging South Asian countries. |5 FOREWORD Women’s representation in leadership holds center stage in public discourse globally. A growing body of evidence suggests that more women in leadership roles in the banking industry makes good business sense. Yet the opportunities for career progression are heavily skewed against women in these institutions. In South Asia, the representation of women in the banking industry (30 percent) is way behind the global average (52 percent). Additionally, we do not have a nuanced, data-driven understanding of the challenges they face. That is why IFC initiated a multi-country research study—covering 4,600 employees in 20 commercial banks across Bangladesh, Nepal, and Sri Lanka—on women’s advancement in commercial banking in the region. This report identifies opportunities to help women advance to senior roles while also highlighting the systemic barriers—inequitable hiring, lack of fair evaluations, sociocultural constraints, and others—that tend to hold them back. Accordingly, our recommendations, using global evidence, are tailored to the context of each country. They include providing women with professional support and mentoring, helping them access informal professional networking, and ensuring objective evaluations. Flexible work hours and on-site childcare are also crucial to helping both women and men achieve work-life balance. However, it is vital that regulators, industry bodies, investors, and other stakeholders support this shift in the banking ecosystem while promoting committed leadership and safe and equitable workplaces, among others. Industry-level targets can further create a system of public accountability for individual banks. At IFC, we recognize and deeply value the business and social benefits of diversity, equity, and inclusion. As women continue to face the “broken rung” of the leadership ladder, we hope this study—through actionable insights—will help deepen the industry discourse around effective steps to advance more women to leadership roles. An inclusive and diverse banking sector is key to South Asia’s future resilience. Imad N. Fakhoury Regional Director, IFC South Asia 6| ACRONYMS DEI Diversity, Equity and Inclusion ERG Employee Resource Group FLFPR Female Labor Force Participation Rate HR Human Resource(s) IFC International Finance Corporation ILO International Labour Organization OECD Organisation for Economic Co-operation and Development |7 8| Executive Summary For commercial banks, greater participation of women Women’s representation in commercial banks varies among in workforce and leadership holds immense business study countries, with Nepal nearing parity with men while potential. A growing body of evidence links an increase in Bangladesh lags significantly. Women constitute 30 percent of women’s representation in organizations to better performance the banking sector’s workforce in the study countries compared on business metrics. In a global enterprise survey, nearly three to the global average of 52 percent.8,9 However, there is a wide out of four participating organizations reported improved profits variation in these three countries. Nepal is closer to achieving because of higher representation of women. In Asia Pacific, more parity than other study countries, with women comprising 42 than three in five enterprises reported the same.2 On average, percent of the workforce in its surveyed banks.10 Sri Lanka is not these organizations reported a 5–20 percent increase in profits far behind, with women accounting for 38 percent of personnel as a direct impact of efforts to improve women’s representation. 3 employed in the surveyed banks.11 Compared to these two Such impact is also evident for commercial banks. Globally, countries, the representation of women in Bangladesh’s banking commercial banks that have 15 percent or more women in senior sector is significantly lower at 18 percent.12 Across all three countries, manager or higher roles, command up to 33 percent higher return women face multiple challenges throughout their careers, resulting in on equity than banks where women occupy less than 10 percent less equitable outcomes. of such roles.4 Further, banks that have more women occupying senior roles in risk and audit functions (for example, as part of Most women bankers in the three countries aspire to board committees that oversee these functions) demonstrate become leaders, but they are not progressing at the same better risk management.5,6 Besides, a more robust presence of rate as men. More than 80 percent of the female respondents— women leaders can directly improve a bank’s ability to serve new similar to their male counterparts—employed in the surveyed customer segments. The impact extends to other business metrics commercial banks want to rise to a leadership role, indicating wherein having more gender-diverse leadership is associated strong aspiration among women bankers to grow professionally.13 with better talent retention and employee creativity that can help However, women occupy only 18 percent of the senior leadership banks become more competitive.7 roles in the sector in the study countries compared to the global average of 28 percent.14 A common trend across the three study IFC conducted this study in 2022 and 2023 to understand opportunities countries is the decline of women banking personnel as one to advance more women as leaders in the banking sector in South Asia. moves from entry-level to middle management and eventually The primary aim of the research was to surface data-driven insights to senior management roles. For example, in Sri Lanka, women regarding the status of women in the banking workforce and deepen the occupy 40 percent of the entry-level roles but only 27 percent industry discourse around steps that need to be taken to advance them. of middle management and 20 percent of senior management The study employed primary research tools (for example, an employee positions in the study banks.15,16 Limited representation of women survey, an organizational survey, qualitative discussions) and covered in senior leadership despite their strong aspiration to advance over 4600 employees of 20 banks across three countries: Bangladesh, indicates that their advancement is constrained by factors other Nepal, and Sri Lanka. This report provides salient findings and than ambition. recommendations across all three countries. |9 Figure 1: Average share of women employees in surveyed commercial banks 18% 18% 21% 32% MEMBER OF BOARD SENIOR MANAGEMENT MIDDLE MANAGEMENT ENTRY LEVEL Barriers holding women back are complex, interlinked, differently compared to men. Throughout their journey (refer and similar for all three countries. First, it is important Figure 1), women face unique challenges originating from their to recognize that women experience and grow at work very work and workplace as well as those originating outside of it. 10 | Five key barriers affect the career journeys of women in banking across the three countries: 1. Inequitable hiring: None of the three countries has achieved 4. Lack of fair evaluations: Overall, 70 percent of women and gender parity in hiring in the industry. Among surveyed bank 56 percent of men do not believe they receive fair evaluations employees, 41 percent of female respondents and 17 percent from their managers. Feedback given to women tends to be vague of male respondents believe that women do not have the same and unclear. Many banks also lack standardized criteria to bring opportunities as men of being hired in their organizations. objectivity to performance management. Many recruiters hold unconscious biases around women’s ability to manage demanding roles, constraining their entry and advancement. 2. 5. Inadequate professional development: Nearly all employees Non-conducive work environment: Many women face across surveyed banks value professional development support, microaggressions at work, such as being interrupted while but many of them do not have ready access to development speaking and not receiving respect from colleagues. More than opportunities. This is especially challenging for women who half of the women IFC surveyed did not feel respected by their receive such opportunities less frequently than their male subordinates. Significantly, both men and women reported facing colleagues. Across all three countries, less than half of the female bullying and sexual harassment at work. respondents reported that they received these opportunities. However, the extent to which these barriers affect female 3. bankers in each country varies. Unsurprisingly, socio-cultural constraints and a lack of fair evaluations are major barriers across all three countries (refer Figure 2a). The other challenges impact Sociocultural constraints: Prevalent social norms place a women to different degrees in each of the study countries. Inequitable disproportionate burden of unpaid care work on women. A total hiring is most prominent in Bangladesh where fewer women pursue of 40 percent of female respondents in Sri Lanka and 28 percent in postgraduate studies necessary to be eligible for many banking roles, Bangladesh believe that managing household responsibilities has and policy mandates from Bangladesh Bank (for example, mandatory impacted or will adversely impact their careers. Similarly, many transfer of bank employees in branches after a three-year tenure) women felt that having children had or would impact their careers. restrict their entry and continuation in the industry. In surveyed Most banks across the three countries currently do not offer banks in Bangladesh and Nepal, fewer female employees, compared flexible work arrangements that can help women better navigate to their male colleagues, receive coaching and mentoring support. these challenges around managing unpaid care work. While the professional development needs of many women remain unmet even in Sri Lanka, the difference between access rates for women and men in the country is negligible. In Bangladesh and Nepal, microaggressions and bullying at work are relatively more common, which further affects women’s experience at work. A sub-optimal experience prevents them from contributing to their organizations to their full potential. | 11 Figure 2a: Barriers impacting women’s participation, experience and advancement in banking.17 1 Inequitable 2 Inadequate professional 3 Socio-cultural 4 Lack of fair 5 Non-conducive hiring development constraints evaluations work environment Women are often Lack of access Constraints arising due Women receive biased Interactions at disadvantaged at the very to appropriate to prevalent socio- feedback even if they are work disadvantage first step - i.e., gaining a professional cultural norms, such high performers. Managers women further. Many foothold in the industry development support as around managing tend to view all employees women are frequently - as many recruiters prevents women from housework and providing from past examples of interrupted when they hold unconscious biases. developing the right care, impact women’s male-dominated leadership speak, face bullying (as Women taking career suite of skills or gaining work-life balance. Lack they have seen. do men) and have to also breaks also find it difficult the right opportunities of employer support to Other unconscious biases contend with issues of to resume work. that can help them navigate these (e.g., with (e.g., male affinity, workplace safety. showcase their childcare) exacerbates visibility in office) also leadership potential. the situation. impact evaluation. Bangladesh Nepal Sri Lanka Less relevant for country Moderately relevant for country More relevant for country Many banks demonstrate strong intentionality to address Nepal’s legal and policy framework provides parental leave to the above barriers and advance more women as leaders, but mothers as well as fathers in line with international benchmarks. It limited leadership buy-in and gender gaps in policy frameworks also has legislation against sexual harassment and discrimination at undermine existing efforts (Figure 2b). Most banks have initiated work. However, no law protects pregnant workers from dismissal. steps to aid the progression of their female employees. Almost all of the Specifically in banking, no policy mandates exist to foster more surveyed banks across the study countries have clearly articulated DEI accountability around women’s representation in banks. policies. To further aid women’s advancement, banks in the region are currently implementing many practices. For example, 10 of 17 surveyed Sri Lanka’s legal framework also provides maternity leave, banks offer at-work coaching programs for women.18 Similarly, nine though the current provision (84 days) is less than the of 17 banks conduct training for managers to reduce gender bias in internationally recognized benchmark (98 days). No law provides performance evaluations. However, banks’ efforts often lose their paternity leave or protects workers against discrimination based on momentum due to limited leadership buy-in. More than 50 percent of gender. While there are government guidelines that require all listed male middle and senior managers across surveyed banks do not believe companies to aim to have at least 20 percent of the board seats reserved that having more women can benefit their organizations to be more for women, accountability mechanisms to ensure that banks meet these competitive. Similarly, gaps in study countries’ legal frameworks affect targets remain weak. the legal protections for women and the mechanisms organizations have to put in place to support women. In fact, the strength of legal Bangladesh’s legal framework provides the most number of days frameworks around women’s participation in employment mirrors for maternity leave (112 days) but no provision to provide paternity the trend of women’s share in employment in the banking sector, leave exists. There are no specific laws to prevent discrimination with Nepal having the most robust legal framework followed by based on gender or to penalize sexual harassment at work. Sri Lanka and Bangladesh19: However, Bangladesh Bank is more forward-leaning in fostering accountability and regularly collects and publishes data about women’s representation in the banking industry’s workforce. 12 | To address the above barriers and support advancement of more Fostering engagement within the ecosystem to drive industry- women, targeted efforts along three areas are needed by banks as level accountability and support for banks in implementing well as by industry actors (Figure 2b). Solutions implemented need different solutions. Initiating solutions at the industry level to be adapted to each country’s context. through ecosystem stakeholders such as regulators, industry bodies, and investors can help tackle larger systemic challenges that prevent women’s progression to leadership. Ecosystem stakeholders, such as Inculcating a leadership culture that lays out ambitious regulators and industry associations, in all three countries can use organizational commitments and holds the organization their influence and mandate goals (for example, minimum targets accountable to them. While most banks have DEI-related policies, for the representation of women). In Nepal and Sri Lanka, central many banks have not put in firm commitments in the form of banks will also need to take on the mantle of increasing accountability representation targets for women in their overall workforce and toward these goals (for example, the central bank in Bangladesh leadership. Defining these targets and regularly tracking progress publishes data semi-annually on women’s representation in the against them is key to building momentum within the organization banking workforce at various levels). These actors will also need to across all three countries. However, banks’ leadership—especially the plug specific legal and policy gaps such as those around the mandatory C-suite—must become the driving force behind these initiatives and transfers of employees every three years in Bangladesh, introduction of ultimately, be accountable for progress. Therefore, the first step across paternity leave in Sri Lanka, etc. all three countries is to help banking sector leaders embrace and internalize the business benefits of having more women in leadership, which many current leaders do not fully agree with. Ultimately, concerted efforts in these areas can help the banking In Nepal, where many employees—especially women—are industry in South Asia to advance more women to leadership constrained by a prevailing culture that discourages taking leave roles. As global data has shown, more women in senior positions (which can help employees manage care responsibilities alongside can boost innovation, resilience, and the financial performance work), leaders would need to be inspired and enabled to act to help of banks, contributing to GDP growth and economic prosperity. reset the culture within the organization. Once such buy-in is secured, In chapter five, the report lays down recommendations in leaders will also need support with improving their organization-wide the form of common, emerging, and bold practices identified accountability to set targets. from across the region in more detail. Country briefs produced alongside this report provide more tailored recommendations for each of the study countries. Building a safe and equitable work environment to provide women targeted support to thrive at work. While the above Figure 2b: Targeted efforts to address barriers step is crucial to secure leadership buy-in, banks must also undertake and support advancement and implement practical solutions that directly support women in navigating the challenges they come up against. This includes providing adequate support for professional development (for example, via dedicated mentorship programs), ensuring fair and objective-based evaluations, and providing them the flexibility to strike a balance between their work and personal lives. These further need to be tailored to the context of each country. For example, COMMITTED coaching from their managers is an unmet professional development LEADERS need for many women in Bangladesh while efforts are required in Nepal to help managers overcome the importance they place on EQUITABLE AND SAFE an employee’s presence in office after work hours. Across all three WORKPLACES countries, employees will also need to be supported with increased flexibility to manage work and personal lives as well as better male ENGAGED allyship at work to help create a safer work environment. Finally, ECOSYSTEM revisions to processes to conduct evaluations objectively will be needed in all three countries. | 13 14 | TABLE OF CONTENTS 1. OBJECTIVES AND METHODOLOGY 16 2. STATUS QUO: Where Are Women In The Industry Today? 18 3. BARRIERS TO PROGRESS: What Is Holding Women Back? 20 4. HEADWINDS: What Is Preventing Change? 32 5. TAKING ACTION: What Can The Industry Do To Advance More Women to Leadership? 36 ANNEXURE 1 | METHODOLOGY AND LIMITATIONS 42 ANNEXURE 2 | LIST OF COMMERCIAL BANKS THAT PARTICIPATED IN THE STUDY 44 ANNEXURE 3 | DETAILED LIST OF SOLUTIONS AND RATIONALE FOR BANKS TO IMPLEMENT 46 PHOTO CREDITS AJP / Shutterstock 4 Jasper Neupane / Shutterstock 8 Weekend Images Inc. / iStock 14 Neeraj Kumar / iStock 24 Scott Wallace / World Bank 27 Mila Supinskaya Glashchenko / Shutterstock 29 Realpictures / iStock 35 Jacob Lund / Shutterstock 41 H M Shahidul Islam / Shutterstock 43 JohnnyGreig / iStock 57 Bhaven Jani / Shutterstock 61 | 15 1. OBJECTIVES AND METHODOLOGY WOMEN’S REPRESENTATION IN LEADERSHIP A NUANCED, DATA-DRIVEN UNDERSTANDING OF NOW OCCUPIES THE CENTER STAGE IN BUSINESS THE CHALLENGES WOMEN FACE IN SOUTH ASIA’S DISCUSSIONS AND PUBLIC DISCOURSE GLOBALLY. BANKING INDUSTRY CAN HELP UNEARTH RELEVANT FOR COMMERCIAL BANKS, THE BUSINESS OPPORTUNITIES TO ENABLE MORE TO REACH BENEFITS OF HAVING MORE WOMEN IN WORK LEADERSHIP ROLES. AND LEADERSHIP ARE WELL-RECOGNIZED. OBJECTIVES While this insight is global, the barriers and pathways to having more women represented in Around the world, evidence is mounting that leadership vary by country and region. greater representation of women in banking Therefore, IFC commissioned this study to leadership leads to better outcomes for investors, explore key questions and generate actionable insights management, and employees. There is increasing into women’s advancement in commercial banks in global recognition of the importance of equity South Asia. Broadly, the study anchored on the and diversity along various dimensions—including following questions: gender—in the business world. Besides social and moral imperatives, there is a compelling business case • What is the current state of women’s for greater representation of women in commercial representation in private commercial banks in different banks. Globally, commercial banks that have more countries in South Asia?​ women in senior manager roles command up to 33 • What does the current trajectory look like for percent higher return on equity.20 Further, banks that women who join the industry? What roadblocks have more women in senior or leadership roles— do they face in their professional development and advancement? How do these challenges play out especially in risk-related functions—demonstrate compared to men? better risk management compared to their peers.21 • How do banks view women’s representation and Having a more gender-diverse leadership can also progression? What efforts are they making to help allow banks to better retain talent, boost creativity, more women advance in their organizations?​ and tap new markets or customer segments.22 • What are the opportunities or solutions that industry actors in each country should focus on to help more women attain leadership roles?​ 16 | The study explored these questions for three countries: Bangladesh, Nepal, and Sri Lanka.23 The focus banks. This report covers the findings from the banking of the study was limited to private-sector commercial sector in Bangladesh, Nepal, and Sri Lanka. METHODOLGY The study employed a mixed-methods approach. In line IFC recruited commercial banks from the three countries with the research questions, the study sought to develop to participate in this study (refer Figure 3). Twenty a comprehensive view by understanding the employee commercial banks from these countries participated.24 as well as the organizational perspective. To achieve this, Figure 3: Research Tools Deployed and Coverage for the Study Employee survey HR survey covering Key informant Six focus group Review of existing covering commercial participating banks interviews with discussions (FGDs) literature and bank employees (N = 17 banks)* HR leaders, senior with commercial data to situate our across participating bankers, and DEI bank employees survey and insights banks from the three researchers countries (N = 21) (N = ~4600) *Note: The total number of participating banks in the study was 20. However, three banks did not provide responses to the HR survey. For the administration of the surveys, the and responses to the HR survey received from 17 of the 20 participating banks remained the primary mode of banks.25,26 access. The employee survey link was shared with all employees in the participating organizations via emails The study followed several protocols to ensure data from their human resource (HR) departments. To achieve and findings from the study are valid, but some adequate representation, the study set soft targets for limitations remain. The study followed a carefully women to form at least 40 percent of the respondent pool. designed sampling and analysis methodology. To that This was ensured via continuous monitoring of the survey extent, the findings provide a robust view of current data and follow-on communications circulated via HR challenges and opportunities to advance women in departments of each participating organization. The HR commercial banks in South Asia. However, the study is survey links were shared with the key liaisons at the banks’ limited by restrictions around the survey rollout mechanics, HR departments who filled in the survey on behalf of the sampling restrictions, and the self-reported nature of the organization. Findings included in this report are based data. More details around the limitations and steps followed on responses received from employees across all 20 banks to ensure validity of the findings are included in Annexure 1. | 17 2. STATUS QUO: WHERE ARE WOMEN IN THE INDUSTRY TODAY? THE BANKING INDUSTRY IN SOUTH ASIA IS SURVEYED COUNTRIES ARE AT DIFFERENT POINTS UNIQUELY POSITIONED TO DRIVE GREATER OF PROGRESS. PARTICIPATION BY WOMEN AS EMPLOYEES DESPITE THESE POSITIVES, WOMEN’S AND LEADERS IN THE INDUSTRY. BANKING IS REPRESENTATION IN LEADERSHIP ROLES IS NOT AT CONSIDERED A PRESTIGIOUS PROFESSION AND PAR WITH GLOBAL METRICS. WOMEN CONTINUE WITH MORE WOMEN SEEKING PROFESSIONAL TO FACE THE “BROKEN RUNG” OF THE LEADERSHIP QUALIFICATIONS, THE INDUSTRY IS WITNESSING LADDER—THERE IS A SIGNIFICANT DECLINE IN A STEADY INFLOW OF FEMALE TALENT. WOMEN’S SHARE OF EMPLOYMENT WHEN MOVING THIS IS REFLECTED IN THE ENCOURAGING FROM ENTRY-LEVEL TO MIDDLE MANAGEMENT AND HIRING TRENDS IN THE INDUSTRY, THOUGH THE EVENTUALLY TO SENIOR MANAGEMENT ROLES. Nepal and Sri Lanka are close to achieving parity The representation in Sri Lanka is similar to the global for women’s employment in the financial services’ average for women’s share of employment in financial industry, though Bangladesh lags behind. services (43 percent). By contrast, the representation Women constitute 45 percent of the financial services’ of women in the industry in Bangladesh (17 percent) workforce in Nepal and 41 percent in Sri Lanka. lags behind the global average (43 percent) and the Women’s representation in financial services in both country’s FLFPR (38 percent).29 However, over the last these countries is better than their respective female seven to eight years, the representation of women labor force participation rates (FLFPR) (29 percent in has largely remained unchanged; it increased by Nepal and 33 percent respectively).27,28 one percentage point in Bangladesh and fell by four percentage points in Sri Lanka.30 Figure 4: Share of Women in Financial Services Industry’s Workforce Across South Asian Nations South Asia Average - 20 Global Average - 43 18 | Hiring trends in commercial banks are encouraging, (refer Figure 5). By the time they reach senior especially in Nepal and Sri Lanka. While not at parity, management, women occupy only 12 percent of the women constitute 42 percent of the workforce in surveyed total positions in surveyed banks in Bangladesh.35 The commercial banks in Nepal and 38 percent in Sri Lanka.31 representation in Sri Lanka and Nepal is better, with The rate of hiring of women in both these countries is women occupying 20 percent and 23 percent of senior also encouraging. In 2022, women formed 46 percent of management roles respectively, though much less all entry-level hires in the surveyed banks in Sri Lanka than their share in entry-level positions.36 While the and 39 percent in Nepal.32 However, both the countries representation at the board level is marginally better, it lag the global average (52 percent) for women’s share is driven by regulatory mandates or guidelines. However, in the commercial banking workforce.33 By comparison, compliance with these mandates or guidelines is not women accounted for 18 percent of employees and formed universal. For example, Nepal requires companies to have 22 percent of entry-level hires across surveyed banks in at least one female board member, but many class-A Bangladesh in 2022.34 (commercial) banks do not have female representation on their boards.37 Similarly, the guidance for companies in Sri However, women occupy very few senior management Lanka is to aim to have women occupy at least 20 percent roles in banks in all the three countries compared to of the board seats. However, more than 40 percent of the men. The share of women in banks’ workforce steadily local banks that are listed do not meet this criterion.38 decreases as women move up the leadership ladder Figure 5: Share of Women in Commercial Banks at Various Levels Across Bangladesh, Nepal, and Sri Lanka Bangladesh Nepal Sri Lanka 18% MEMBER OF BOARD 14% 20% 27% SENIOR 18% MANAGEMENT 12% 23% 20% MIDDLE 21% MANAGEMENT 14% 27% 27% ENTRY 32% 19% 46% 40% LEVEL Almost all female bankers aspire to attain leadership indicate that they want to move to a more senior role roles indicating that their lack of progression is driven with greater responsibility in the banking sector.39 The by extrinsic challenges. Men and women employed low representation in leadership despite strong levels in the banking sector in the three countries hold similar of ambition indicates that extrinsic challenges constrain career aspirations regarding career advancement. women’s advancement. These are discussed in detail in the Overall, 81 percent of women and 89 percent of men following two chapters. | 19 3. BARRIERS TO PROGRESS: WHAT IS HOLDING WOMEN BACK? WOMEN FACE COMPLEX BARRIERS SPANNING THAT PREVENT THEIR ADVANCEMENT THEIR ENTIRE PROFESSIONAL JOURNEY—RIGHT TO LEADERSHIP IN COMMERCIAL BANKS. FROM THE TIME THEY SEEK TO JOIN THE INDUSTRY— Five key barriers impact women’s professional growth women’s ability to strike a balance between the two and their tenure in banking. Figure 6 summarizes these and affect their well-being and productivity. It may also challenges and the extent to which they are relevant preclude them from pursuing important professional opportunities. for each country. Their journeys are made more challenging due to the limited support they receive • Performance evaluations tend to be subjective, from their co-workers, organizations, and families to and women are often disadvantaged by these. Many banks have yet to institute performance-evaluation navigate these barriers. This lack of support creates a criteria or training for managers to enable them to unique set of circumstances for women: conduct objective evaluations. • Many women opt for career breaks to manage care • Finally, women face subtle biases and bullying responsibilities. Lack of effective re-entry mechanisms behavior that adversely impact their workplace to help resume their careers means they are unable to experience and their ability to maximize their rejoin their organizations and continue in the industry. contribution to their organizations. • Women miss out on critical development support The above challenges are often interlinked. Women early in their careers since banks often do not provide tailored professional development support like face gendered microaggressions at work where their mentorship and coaching. opinions often remain unheard or are shot down. This can lead to a perception of lesser contribution to team • Social norms across countries place the burden of care work on women and compound other challenges. goals and influence leaders’ view of their competence. Limited support from workplaces and families to Similarly, managing social expectations at home means simultaneously navigate professional responsibilities women face time poverty and cannot invest as much in alongside unpaid care-related expectations impede their professional development. These factors combine with biased notions managers have around women’s abilities, leading to skewed performance evaluations. 20 | Figure 6: Typical Barriers Women Face in Their Career Journeys in Banking 3.1 3.2 3.3 3.4 3.5 Inequitable Inadequate professional Socio-cultural Lack of fair 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 around are high performers. further. Many women are foothold in the industry prevents women from managing housework and Managers tend to view frequently interrupted - as many recruiters developing the right suite providing care, impact all employees from past when they speak, face hold unconscious biases. of skills or gaining the women’s 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, exacerbates the situation. long hours at office) also impact evaluation. 3.1 INEQUITABLE HIRING Fewer women than men—especially in Bangladesh— employees who do not believe men and women have the believe that the chance of being hired is equal for men same chance of being hired, more than half (57 percent) and women. say that recruiters hold reservations against women (for example, notions that women cannot manage demanding • Across the three countries, 59 percent of female roles, or work and home responsibilities simultaneously). respondents believe that women have an equal chance as men of being hired in their organization. By contrast, a • Only nine out of the 17 surveyed banks provide greater share of male respondents (83 percent) believe so. guidance or training to recruiters to counter such biases. • The difference is the most pronounced in Bangladesh where 61 percent of women vs. 88 percent of men believe that men and women have an equal chance of being hired. The difference is the least pronounced in Sri Lanka. The difference in perception is reflected in hiring data that When a vacancy opened up in my indicate fewer women than men are hired across banks in department, my manager expected me each of the three countries. to hire a male candidate because the work sometimes involved a bit of travel or out-of-hours work. He automatically Unconscious bias during recruitment affects hiring assumed that only a man would be able of women but many banks have yet to undertake to do it.” comprehensive action to counter this. • Bias among recruiters is a crucial driver of fewer - Mid-level male banker, Sri Lanka women being hired in the industry. Among surveyed | 21 Many women across the three countries take career • None of the surveyed banks reports having programs breaks, primarily due to care responsibilities, but few to facilitate the return of women bankers who wish to banks offer them avenues to resume their careers. resume their careers, leading to a smaller pool of female talent in the leadership pipeline. • Women’s representation in the banking workforce declines from 32 percent at entry-level to 21 percent at middle management level, indicating that many women stagnate or exit at this stage (refer Figure 7).40 • Social expectations around unpaid care work, including The dual responsibility that women childcare, could result in many women leaving the industry. must carry is the main factor that Across the study countries, in the prime working age holds them back. If a woman wants to group (25–54 years), FLFPR for single women is between rise, she must give more than her 100 percent. After office hours, women are 36–53 percent, but drops to 29–40 percent if they have at also expected to do household chores.” least one child below 6 years of age.41 In-depth interviews indicate that such trends are also relevant for women in the - Senior female banker, Nepal banking industry. Figure 7: Decline in Representation of Women from Entry-level to Management Roles VARIATION IN PROPORTION OF WOMEN EMPLOYEES BY SENIORITY IN SURVEYED BANKS N = 17 | % OF WOMEN EMPLOYEES IN WORKFORCE 50 40 30 20 10 0 ENTRY MIDDLE SENIOR MEMBER LEVEL MANAGEMENT MANAGEMENT OF BOARD OVERALL SRI LANKA NEPAL BANGLADESH 22 | 3.2 INADEQUATE PROFESSIONAL DEVELOPMENT Women as well as men have much less access to employees. Access to these systems can also differ based on professional development support compared to gender—women report having less access or facing other demand, but women are particularly disadvantaged. challenges to avail such support (refer Figure 8). • More than 88 percent of women and men surveyed consider training, mentorship, coaching, and critical projects as crucial for their professional development. Nearly 70 percent of women and men cited sponsorship as important too. Luckily, I had a female mentor who supported me in moving ahead in my • Many senior female employees indicate that access to career. The initial phase is the most such professional development support early in their career challenging, and having a female mentor proved critical to their progression to leadership roles by gives you emotional support and helps helping them pursue relevant opportunities and build the you manage time.” right skills. • However, access to such professional development - Senior female banker, Nepal support at work is significantly below demand for all Figure 8: Employee Access to Professional Development Support (%)42 MEN (n=2341) (n=2251) WOMEN 98 96 TRAINING 73 70 87 89 COACHING 50 40 91 87 MENTORSHIP 57 48 73 73 SPONSORSHIP 29 18 91 CRITICAL 88 41 ASSIGNMENTS 31 Rate as crucial Report they have access | 23 All banks offer technical training and employees have However, access to one-to-one support like coaching equal access to them. and mentoring is limited for all employees, more so for women. • Recognizing the importance of technical training, all 17 banks that responded to the organizational survey • Majority of the women (and many men) do not have reported having dedicated training programs for the staff, access to mentoring or coaching in their organizations. including leadership development programs. The design The gap between the demand for and access to this of these programs is based on needs assessment exercises support at the entry level is stark. More than 85 percent of each bank conducts to understand the development needs female respondents at the entry level in each of the three of employees. countries rated mentoring and coaching as important. However, only 38–47 percent of the women respondents in • A total of 10 out of the 17 banks that responded to these countries have access to it. the organizational survey have professional development programs for female staff; nine out of the 17 surveyed banks • The gap exists despite nine out of 17 surveyed banks also have a management trainee program specifically for offering dedicated career mentorship and coaching women employees. While all six of the surveyed banks programs, indicating that provision of programs alone does in Bangladesh have management trainee programs not ensure access. specifically for women, only 1/5 banks in Nepal and 2/6 • Mentors and coaches often do not have the time or banks in Sri Lanka have such programs. the right incentives to offer the required support. When • Given the above and the relative importance banks they do offer such support, men have easier access than assign to training, access to them is similar for women women. This is reflected in the greater share of men (as and men. compared to women) in each of the three countries who report having access to such support. 24 | Access to critical projects is limited for all Similarly, few employees receive sponsorship. employees, but women’s access is also determined For women, it prevents them from pursuing the most by biases managers hold around women’s capabilities relevant opportunities at work. or availability. • Very few surveyed employees, especially in Sri Lanka • Most male and female employees report not having and Nepal, report having sponsors. Across the study access to critical projects. The gap is starker in Sri Lanka and countries, only three out of the 17 surveyed banks have a Nepal where fewer than 30 percent of respondents—men formal sponsorship program. and women—report having access to such projects. • Fewer women than men have access to sponsors. • Across the countries, 38 percent of women from middle Senior female bankers indicate that having a sponsor management report having access to such assignments. can accelerate a female bank employee’s career. They The lack of such projects adversely affects their prospects to can encourage women employees to take up roles and build relevant skills, showcase their performance, and build responsibilities for which they would not otherwise apply. visibility to be able to highlight their case for progression. The sponsor’s backing and encouragement in such cases can help women land crucial opportunities at work. • Women’s chances of receiving such assignments are also affected by unconscious biases their managers or supervisors might hold. Managers often tend to assume that female employees have restrictions around travel or lack the capabilities to undertake critical assignments. As a result, they tend to withhold opportunities from women. In Nepal, managers assume that women will not take up opportunities lying outside urban centers like the Kathmandu valley region and prefer to assign such opportunities to men (for example, for credit appraisal projects that require traveling outside of the valley).43 | 25 3.3 SOCIO-CULTURAL CONSTRAINTS Women bear a disproportionate share of care maintain productivity, and invest in their professional responsibilities, and the resulting time poverty development. While this is applicable for all three impacts their ability to strike a work–life balance, countries, it is most stark in Sri Lanka and Bangladesh. Figure 9: Adverse Impact of Social Constraints on Progression44 Percentage of employees reporting household responsiblities Percentage of employees reporting childcare responsibilities affect their career opportunities have a negative Impact on their career OVERALL Bangladesh Nepal Sri Lanka OVERALL Bangladesh Nepal Sri Lanka WOMEN WOMEN (n=2251) (n=2251) 29% 40% 18% 28% 21% 20% 17% 23% MEN MEN (n=2341) (n=2341) 19% 28% 12% 17% 8% 15% 7% 6% • Prevalent social norms compel women to undertake • Managing a disproportionately large share of many care responsibilities in their personal lives whereas housework and childcare responsibilities can impact men are subjected to such norms to a lesser extent. The women’s productivity and reduce well-being. Often, this resulting challenges in managing these expectations results in women carefully calibrating their time in office alongside professional responsibilities and the time poverty while male colleagues who may not have such restrictions adversely impacts women bankers’ careers. are able to spend longer hours at work, thus boosting their visibility. The time poverty also prevents women from • More women than men (29 percent of women vs. 19 building strong networks or keeping up with changes in percent of men) believe that family expectations around the industry. Not keeping up can adversely impact their managing housework can adversely impact their career. chances of progression compared to their male colleagues. The difference between men and women is most stark in Sri Lanka (refer Figure 9). Women also face restrictions around mobility that • Overall, 21 percent of female respondents across the could prevent them from taking up important three countries—nearly 2.5 times the percentage of men— opportunities. indicate that having a child can negatively impact their career. The difference is starker in Bangladesh where 23 • Banks often prefer to relocate employees when they percent of women compared to 6 percent of men indicate advance them to provide exposure to different regions and that having a child can negatively impact their career. functions. In the case of Bangladesh, banks are mandated 26 | to transfer all employees tagged to a branch once they parents—manage care responsibilities alongside work. complete a tenure of three years.45 • Arrangements currently offered by banks are helpful • For many women, relocation requirements are in for many employees: 35 percent of surveyed employees conflict with family expectations that limit their mobility who have children (35 percent of women and 36 percent (for example, to stay where the spouse is located or due to of men) said that the current arrangements support their concerns around safety). This can limit the opportunities needs. However, 18 percent of surveyed employees who that women can pursue as the sector is characterized by have children (23 percent of women and 16 percent of men) transfers, especially as employees advance. believe that better flexible working arrangements are needed. Many employees, both with and without children, • A total of 34 percent of working mothers who indicate that flexible working arrangements and responded to the survey also expressed a need for other other support with caregiving can help them to better support with caregiving (such as on-site childcare). Only manage work and personal lives. five out of 17 surveyed banks offer on-site childcare. Three • Flexible working arrangements (such as work from of these banks are in Bangladesh, which is also the only home options) can help employees—especially working country mandating the provision of on-site childcare.46 | 27 3.4 LACK OF OBJECTIVE EVALUATIONS Most employees, especially women, believe they do • More women (22 percent) than men (12 percent) in not receive fair performance evaluations. middle management explicitly disagree with the statement that performance evaluations are fair and reflect their • Fewer women (30 percent) than men (44 percent) performance accurately. believe they receive fair evaluations during performance reviews (refer Figure 10). In Sri Lanka and Nepal, 25 percent • Fewer women (38 percent) compared to men women believe so. (54 percent) believe that they receive clarity on performance expectations from their managers. Figure 10: Employee Perceptions of Fairness and Expectation Setting PERCENTAGE OF EMPLOYEES WHO BELIEVE THEY RECEIVE FAIR CLEAR PERFORMANCE EVALUATIONS EXPECTATIONS In some banks, taking leave, even within your quota of leaves, gives WOMEN (n=2251) 30% 38% the feeling that you are not as loyal to your organization, irrespective of performance. They prefer a male employee who works till 9pm over a 44% 54% woman performing equally well but MEN (n=2341) leaving early or taking her leave. And this will be mentioned in her year-end appraisal.” Subjective factors and unconscious bias among managers adversely impact the objectivity of - Senior female banker, Nepal performance evaluations as well as clarity of feedback that women receive. • Many subjective factors unrelated to performance can • Managers’ biases aligned with those of social influence and adversely impact performance evaluations expectations around the role of women or their abilities for employees, especially women. For example, in Nepal, also impact performance evaluations. Overall, 10 percent of managers and supervisors value workplace visibility women respondents across the three countries report that and consider employees who stay longer in office as their managers asked about their plans to have children. more dedicated. This can adversely impact performance Of those women, 37 percent said that it was in relation to a evaluations of women who often have other responsibilities discussion of their roles and responsibilities. to tend to on the home front and avoid extended hours in office. 28 | • Research indicates that managers tend to give more vague feedback to women than they do to men. Women tend to receive comments like “You had a great year!” whereas men receive more insightful and actionable Performance appraisals are often biased feedback like “You need to deepen your domain knowledge for women. ‘Is she aggressive enough? in the X space.”47 Similar factors can lead to unclear and But she doesn’t do sales meeting as I did; vague feedback for women bankers. her relationship managers don’t have the same respect and fear as they do for • Managers’ expectations of leadership traits that they her male counterpart.’ So, a lot of times, look for in employees is biased toward traditional norms of what the line manager thinks is good leadership. Studies show that managers report a significant performance also affects appraisal.” overlap between their expectations of good leadership traits and leadership traits typically observed in male -Senior female banker, Bangladesh leaders (such as assertiveness) while not acknowledging other traits that may be equally important.48,49,50 • Even when women display traits that managers Many banks have yet to initiate steps to make their associate with good leadership, they tend to be performance evaluations more objective. overlooked since these traits do not conform to managers’ • Some banks have revised their performance evaluation expectations of leadership demonstrated by women. approaches to counter bias, but most have yet to do so. Women, especially those with high leadership potential and Only five of the 17 banks report having standardized metrics a strong track record, are disadvantaged when managers to evaluate employee performance. Similarly, only seven base their feedback along such expectations. of 17 banks report introducing practices such as collecting 360-degree feedback to make the evaluations more objective and bias-free. | 29 3.5 NON-CONDUCIVE WORK ENVIRONMENT Many female employees face gendered in Nepal and Sri Lanka report feeling confident about microaggressions at work and, as a result, do not feel contributing in team settings. Being frequently interrupted confident in contributing in team settings. and lacking confidence can also reflect in the perceptions managers form around women’s contribution at work • Female employees across all levels, especially in Nepal and their ability to lead, resulting in adverse performance and Sri Lanka, experience microaggressions in subtle evaluations. ways. These include being interrupted while speaking or having their opinions questioned: Banks are far from becoming zero-incident workplaces; - One in 10 surveyed women who face issues voicing many employees face bullying or sexual harassment at work. their opinions in team settings say they tend to be the • Despite policies enacted by banks and other safety only woman in the room. provisions, many employees face such adverse incidents. - One in four surveyed women report that they are Overall, 27 percent of women and 17 percent of men frequently interrupted and spoken over. indicate they have faced bullying at their workplace.51 Majority of them report experiencing bullying from male as - At the middle management level, one in three well as female colleagues (refer Figure 11). surveyed women report that their advice is often shot • Four percent of women and men indicate they have down or questioned. experienced sexual harassment at work. There were no • Nearly half the women surveyed do not feel respected significant differences in respondents’ answers across by subordinates of any gender. This can impact their countries. These experiences indicate that banks have yet experience at work and overall performance, especially if to create workplaces free from incidents of harm for all their subordinates do not cooperate. employees and ensure a safe working environment for • As a result, fewer than half of the women surveyed them. Further, it is plausible that the incidence of sexual harassment at work may be underreported in this survey. Figure 11: Prevalence of Incidents of Bullying and Sexual Harassment in the Organization52 PERCENTAGE OF EMPLOYEES WHO FACED PERCENTAGE OF EMPLOYEES WHO FACED SEXUAL HARRASMENT AT WORK BULLYING 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=2251) (n=2251) 1% 3% 0% 15% 8% 4% MEN MEN (n=2341) (n=2341) 2% 1% 0% 10% 6% 1% 30 | Despite banks instituting policies and systems for in response to a sexual harassment or bullying–related employee safety, many employees—including men and complaint. Some employees also feel that the bank’s women—are not confident that adequate measures are policies are not adequate. Lack of organizational intent to in place. address complaints or lack of male allyship can also result in such complaints getting suppressed. • All surveyed banks have policies prohibiting sexual harassment in the workplace. A total of 15 out of the 17 banks also have policies prohibiting bullying, including 12 banks that also prohibit cyber-bullying. There was a huge fiasco about harassment • Overall, 16 out of 17 surveyed banks report that they [around a particular incident] and most of provide transport facilities for late-night work to their the men didn’t want to take action. They employees. However, only eight of these banks covered all of would rather have it subside and make their locations, which can limit the efficacy of this provision. sure it doesn’t blow into a big thing. I stood • While policies are present in all banks, some of them up against supervisors; made sure the do not have comprehensive mechanisms to tackle adverse person was nailed down. [Speaking up] was incidents. Four of the 17 surveyed banks (of which three actually a black mark for my record; so I doubt people would take the same action are in Bangladesh) do not have any channels to report for women employees.” such incidents whereas one other bank does not ensure anonymity for employees who report such incidents. - Senior female banker, Nepal* • Nearly half of the surveyed employees do not believe *Quote has been lightly edited for clarity. that appropriate action would be taken by the organization Figure 12: Employee perception of adequacy of measures and organizational response to a sexual harassment/bullying complaint53 (n = 4592) % OF MEN AND WOMEN EMPLOYEES 66 61 52 52 8 5 3 2 2 2 2 1 The organisation Appropriate No action will There will be I will not be There are no has adequate action will be be taken by the retaliation/ believed if channels to measures to act taken by the organisation negative I reported report such on the complaint organisation consequences the issue incidents for me Women Men | 31 4. HEADWINDS: WHAT IS PREVENTING CHANGE? A MAJORITY OF THE SURVEYED BANKS IN THE MANY OF THEM HAVE ALSO SET GENDER BALANCE THREE COUNTRIES HAVE CLEARLY ARTICULATED TARGETS FOR THEIR WORKFORCE. GENDER DIVERSITY AND INCLUSION POLICIES. However, two cross-cutting challenges limit As a result, while banks have defined policies the effectiveness of these policies and targets for greater women’s representation, these are not and underpin the limited success banks have had supplemented by strong organizational systems in tackling the barriers laid out in the previous to ensure their efficacy. Major gaps still exist in chapter: terms of monitoring progress on these policies, making leadership accountable for adherence, and • Limited leadership buy-in within the banks providing dedicated staff and resources to implement regarding the importance and business benefit of these programs. having more women in leadership can dilute the importance of existing initiatives to support women Ultimately, these cross-cutting challenges result in and the attention they receive within banks. limited progress toward increasing women’s share in • Lack of robust policy and regulatory frameworks the workforce and leadership of commercial banks in and guidelines at the national level to promote the study countries. women’s participation in the workforce limits the incentives for organizations to commit to women’s leadership initiatives. 32 | Nearly half of the surveyed men do not fully believe • The difference in men and women’s perceptions is the greater women’s representation is crucial for their largest in Sri Lanka. Only one in five surveyed male bankers organizations to be competitive. in the country believe that their organizations would benefit from more women in leadership. At the middle • Across all surveyed countries, men and women have management level, more than half of the surveyed male starkly different views on having more women in leadership. employees (56 percent) in Sri Lanka do not agree with this Men are less likely than women to believe that more women view. in leadership positions in their organizations can help their organizations become competitive (refer Figure 13). • A total of 15 percent of surveyed senior management leaders (men and women) did not agree that having more women in leadership roles was important. Figure 13: Employee Perception of the Positive Impact of More Women Leaders on the Company 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 = 4592 % OF MEN AND WOMEN EMPLOYEES OVERALL Sri Lanka Nepal Bangladesh 69% 51% 47% 22% 72% 46% 81% 60% Efforts to bring more women to leadership roles are • Many banks have set gender balance goals, but have unlikely to succeed unless banks and their leaders not supplemented these with the necessary support and show ownership, role modelling, and accountability infrastructure to drive ownership and accountability. toward these efforts. For instance, while 13 banks report that they have clearly articulated gender diversity and inclusion goals, only five • Nearly half of the surveyed banks do not implement of these banks have allocated budget and resources to anti-bias training for their leaders. This could impact implement programs to achieve these goals. prevalent attitudes among men and women leaders toward having greater representation of women and lead to sub- • Similarly, banks lack accountability measures to optimal traction for these policies. achieve these goals. None of the surveyed banks plans to prioritize increased accountability for existing diversity initiatives in the short term. | 33 While all three countries have enacted laws to promote women’s participation, gaps in the national policy and legal frameworks adversely impact women’s progression to leadership. In many banks, the awareness and • Nepal has the most robust legal framework among the willingness to implement change is not study countries for supporting women’s employment and really there among the senior leadership, countering gender-based discrimination.54 Its framework is who are mostly male. There is still very the closest to achieving legal gender parity across countries much that culture of thinking that in South Asia. In contrast, Bangladesh lags the regional women should not be leaders.” average in having a robust framework.55 - Senior female banker, Nepal • Across all three countries, several gaps stand out in the current frameworks: - Nepal: Laws provide parental leave for mothers (98 days) as well as fathers (14 days) in line with provision was repealed from the existing labor code in international benchmarks (as mentioned earlier, Nepal. Across the study countries, workplace culture may discourage men from using - Only three out of six surveyed banks in Bangladesh these). However, current laws do not protect pregnant report that they provide on-site childcare despite employees from dismissal.56 the mandate for employers. Additionally, one bank - Sri Lanka: Women are guaranteed maternity in Sri Lanka and one bank in Nepal currently provide leave of 84 days, which is less than the internationally on-site childcare. recognized benchmark of 98 days; men are not - Lack of technical assistance can affect banks’ entitled to any paternity leave by law. Further, no ability to comply. IFC research conducted in 2019 in law exists against discrimination in employment Bangladesh found that more than 40 percent of based on gender.57 the companies needed guidance (on setting up - Bangladesh: There are no explicit laws to prevent childcare centers, quality standards, and financing) gender-based discrimination in employment or to as the most important resource in planning prohibit sexual harassment. While the longest childcare centers.59 maternity leave (112 days) is provided to women, - None of the countries provides financial support to there are no provisions that provide paternity leave.58 parents or providers of childcare services to make • Policy support that enables working parents to access these services affordable. By contrast, 100 percent of quality childcare is also limited across all three countries. OECD countries and 60 percent of East Asia and Pacific While Bangladesh has laws that mandate employers to countries offer such support.60 provide childcare facilities in the workplace, a similar 34 | Even when banks have instituted specific gender diversity and inclusion policies, critical gaps in monitoring and implementing these policies remain. • Overall, 13 out of 17 surveyed banks have clearly You can’t fix what you don’t measure. articulated gender diversity and inclusion policies. The first step is to carefully report and However, nearly half of these banks do not train their staff monitor how women are progressing on these policies. Only two out of 17 surveyed banks have and uncover the reasons that limit this. communicated their gender commitments publicly via Only then can you identify the issues and their websites and press releases. start fixing them.” • A total of 12 out of 17 surveyed banks have set gender balance targets but half of these banks have not set - Senior male banker, Sri Lanka targets for promotions. Further, only five banks have allocated budget and resources to implement initiatives to achieve these targets and only four banks monitor progress against them. | 35 5. 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 (FOR EXAMPLE, REGULATORS CONCERTED ACTION IS NEEDED TO ADDRESS AND INDUSTRY BODIES) IN THE THREE COUNTRIES THESE CHALLENGES AND KEEP ORGANIZATIONS TO BETTER SUPPORT WOMEN’S PARTICIPATION AND INSTITUTIONS ACCOUNTABLE TO PROGRESS. AND ADVANCEMENT IN COMMERCIAL BANKING. FURTHER, THESE ACTIONS SHOULD ADDRESS DETAILED SOLUTIONS ARE PRESENTED IN THE BARRIERS, WHETHER POLICY, PROCESS, OR ANNEXURE. CULTURE–RELATED, IN A TARGETED MANNER. To make sustainable progress in advancing more leadership, safe and equitable workplaces, and women to leadership, the industry’s efforts should an engaged industry ecosystem. These are laid out be channeled along three directions: committed in Figure 14: Figure 14: Achieving Equity Will Require Focus Along Three Areas Committed leaders Any bank-level solutions that create momentum within the organization by reframing internal policies and building commitment within senior management members to drive equity and diversity. Equitable and safe workplaces Bank-led solutions that introduce new processes or programs or improve existing ones to offer better support and work environment to all employees, specifically women, to aid them to reach their full potential. Engaged ecosystem Solutions initiated by industry actors (such as regulators, industry bodies, and investors) that create the right incentives and support mechanisms for organizations to drive change as well as directly address systemic challenges. 36 | For each of these directions, banks and industry in the region.61 In fact, there are at least 10 common actors are already pursuing opportunities to better practices or solutions being implemented by more than support women, but a move toward more specific and half of the surveyed banks.62 However, ensuring greater actionable solutions is needed to tackle barriers that representation of women in the workforce and leadership women face. Across the region, banks and industry actors would require pushing beyond these common practices are already pursuing ideas and solutions that can better and seeking inspiration from emerging ideas and bold bets support women in overcoming the myriad challenges that a few banks and organizations in other sectors are they face. Several of these are now common practices implementing.63 Figure 15 provides this classification of being implemented by more than half of the organizations common, emerging, and bold ideas. Figure 15: Classification of Solutions for South Asia’s Banking Sector to Implement 1 2 3 COMMON PRACTICE EMERGING PRACTICE BOLD BETS Well-known gender diversity, equity, or Emerging solutions that are being Innovative solutions that are yet to inclusion-related practices that are widely implemented by many organizations in be tried at scale and are either being implemented by organizations, including the region, including 25-50 percent of implemented by very few banks at least 50 percent of the surveyed banks. the surveyed banks. For ecosystem-level (<25 percent) among those that were For ecosystem-level solutions, these have solutions, this includes practices recently surveyed or emerged as potential high- been implemented by industry actors in at introduced or being considered by industry impact solutions being implemented by least one of the study countries. actors in at least one of the countries . organizations in a different sector or region. Figure 16 summarizes the most prominent opportunity country. The country briefs produced as part of this areas to focus on in the region. However, adopting these research delve deeper into specific, contextualized solutions would also require a tailored approach to contextualize for each country. these practices for the most prominent barriers in each Figure 16: Classification of Solutions for South Asia’s Banking Sector to Implement A. Strong organizational commitment for equitable representation Committed leaders B. Ownership and accountability C. Promotion of positive work norms in senior by leaders who act as role models management OPPORTUNITY AREAS D. Inclusive hiring safe workplaces Equitable and and retention E. Tailored professional development F. Re-evaluation to unleash employee potential of performance G. Allyship for bias- evaluation free workplaces H. Equitable support for work-life balance I. Safe working environments J. Ambitious goals for women’s representation and vision for the industry Ecosystem Engaged K. Technical and financial support for the banks to improve women’s representation L. Networks and support for emerging women leaders M. Industry-wide accountability for women’s representation Inadequate Lack of Non-conducive Limited Inequitable Socio-cultural professional objective work impetus hiring constraints development evaluations environment for change BARRIERS TO ADVANCEMENT | 37 5.1 RECOMMENDATIONS TO DEVELOP MORE COMMITTED LEADERS Developing leadership commitment to advance more is vital to assign accountability of achieving these goals women to leadership requires banks to ensure their to a leadership member. Lastly, banks need to propagate leaders receive the right support to decondition their own leadership practices where leaders role-model cultural biases and embrace the value of having more women in shifts in the organization and ensure greater uptake of their leadership. This needs to be complemented with clear programs. Figure 17 lists two common practices, three gender representation targets and mechanisms to track emerging practices, and two bold bets that banks in the progress toward these targets. The tracking mechanism region could pursue. Figure 17: Solutions for Banks to Drive Equitable Representation Through Organizational Commitment 1 2 3 COMMON PRACTICE EMERGING PRACTICE BOLD BETS Diversity townhalls: Equi Power: A. ORGANIZATIONAL Regular firm-wide Set clear targets for COMMITMENT FOR communication on efforts women’s representation, EQUITABLE REPRESENTATION to increase women’s promotions, etc. OF WOMEN Committed leaders representation Diversity Pulse: Chief diversity officer: Diversity-linked B. OWNERSHIP AND Regularly track progress Designate a senior executive compensation: ACCOUNTABILITY IN on diversity metrics to steer diversity efforts Tie C-suite incentives SENIOR MANAGEMENT to progress on diversity targets Visible leader: Diversity sentinels: C. PROMOTION OF POSITIVE Build capacity of leaders Train leaders to recognize WORK NORMS BY LEADERS to role-model inclusivity and unlearn own biases WHO ACT AS ROLE MODELS 38 | 5.2 EQUITABLE AND SAFE WORKPLACES Banks need to reform the workplace to be safer and more flexibility to women—and indeed to all employees—to provide more equitable opportunities for women to grow manage their work and personal lives as well as creating professionally. They can do so by introducing policies and a culture where employees feel safe from harm and programs that improve current practices (like reducing microaggressions can help them thrive. Figure 18 provides bias in hiring processes or making performance evaluation common and emerging practices as well as bold ideas more objective) or address some previously unmet needs that emerged from South Asia – and primarily the three (like providing formal sponsorship programs). Providing countries - that banks can consider pursuing. Figure 18: Solutions for Banks to Support Women Through Different Policies and Programs 1 2 3 COMMON PRACTICE EMERGING PRACTICE BOLD BETS Equi Hire: Revise hiring Gender-anonymized Returnships: Hire processes to reduce bias job roles: women returning from D. INCLUSIVE HIRING Remove gendered a career break AND RETENTION descriptions in JDs Catalyst for her: New horizons for her: 25th hour: Easy-to-consume Contextualize professional Rotation program to provide training content for E. TAILORED PROFESSIONAL development for women critical exposure professional development DEVELOPMENT TO UNLEASH EMPLOYEE POTENTIAL Women for women: Sponsored by: Formal Resource group for peer sponsorship program for learning and networking emerging women leaders Equitable and safe workplaces On second thought: Manager Transparent evaluations: Clear De-bias merit: F. RE-EVALUATION training around objective criteria & improved evaluation Track promotion ratings and OF PERFORMANCE evaluations transparency correct for biases EVALUATION I support her: Encourage and Inclusive us: equip men to act as allies G. ALLYSHIP FOR Mandatory annual trainings BIAS-FREE on DEl for all employees WORKPLACES Speak up, speak out: Build a culture to allow surfacing of relevant issues On-site childcare: Provision of Caring for working parents: Normalize flexi-work: Flexible lactation rooms, crèches, etc. Pilot new ways to provide H. EQUITABLE SUPPORT (but restricted) working childcare support FOR WORK-LIFE opportunities BALANCE Bank parent: Employee resource Bring your plus one: Engage group for peer support for parents spouses/families to generate at-home support Balance for well-being: Stress management programs Unrestricted hybrid work: and resources Move fully to hybrid operations Confidential Vigilance: Anonymous channels for Visible leader: Unequivocal trust: I. SAFE WORKING reporting incidents Build capacity of leaders Build trust in organization to role-model inclusivity commitment to act ENVIRONMENT Travel Assistance: Safe transport for after-hours work travel | 39 5.3 ENGAGED ECOSYSTEM Industry actors, such as regulators and investors, can that prevent women’s advancement and provide them create appropriate directives and incentives for banks the necessary expertise to undertake change. An active to prioritize women’s advancement to leadership roles. ecosystem can also initiate positive change in allied Leveraging these industry actors will allow the banking industries, such as insurance and financial technology. sector to address the complex policy and structural issues Figure 19: Solutions for Industry Actors to Create Momentum in the Banking Sector 1 2 3 COMMON PRACTICE EMERGING PRACTICE BOLD BETS Empirical policy hub: Generate Zero-tolerance workplace: Industry diversity targets: evidence on what works J. AMBITIOUS GOALS FOR Policies and guidelines for Guidance for banks on targets WOMEN’S REPRESENTATION workplace safety for women’s representation AND VISION FOR THE Inclusi-vision: Cross-country INDUSTRY collaboration of region’s regulators Project-linked funding: Gender advisory network: Financial support to banks Group of experts to advice ENGAGED ECOSYSTEM K. TECHNICAL AND to launch initiatives banks on increasing FINANCIAL SUPPORT women’s representation Concessional funding: FOR BANKS TO Link diversity to loans/ IMPROVE WOMEN’S Behavioral lab: investments to banks REPRESENTATION Pilot and scale nudges to Diversity Center of Excellence: transform culture Forum to share best practices Womens bankers association: Forum to advocate for women L. NETWORKS AND SUPPORT FOR EMERGING Women leaders bootcamp: WOMEN LEADERS Networking and training platform High-visibility signalling: Gender taskforce: Bank employee diversity index: M. INDUSTRY-WIDE Public communication HR leaders’ group to monitor Public report on progress in ACCOUNTABILITY FOR effort on equitable industry-wide progress women’s representation EQUITABLE WOMEN’S representation of women REPRESENTATION in the industry A more detailed description of each of these recommendations is provided in Annexure 3. 40 | | 41 ANNEXURE 1 METHODOLOGY AND LIMITATIONS METHODOLOGY We conducted primary research in three countries: 4. Expert interviews with prominent individuals Bangladesh, Nepal, and Sri Lanka. The study in banking and other sectors: Identify anchored on four research methods: important barriers and ecosystem factors preventing women’s progression and the drivers 1. Employee survey of 1,000+ employees each in all behind them as well as existing solutions to building inclusive organizations. three countries: Understand the experiences, views, Implementation of the research incorporated and perceptions of employees at banks to gauge several steps to ensure respondents’ the presence and effectiveness of organizational confidentiality. efforts to improve women’s representation. Data The survey instruments did not include any personal for number of employees in banking industry and for the surveyed commercial banks in each of the identifiers, to protect respondents’ identities. The three research countries was used to apply survey survey links were hosted on an independent server weights while analyzing the data from the surveys. and the participating banks did not have access to 2. the servers on which the surveys were hosted or to the response data. The survey script also informed the participants of these measures and allowed them HR survey in each country: Understand the approach, policies, and initiatives undertaken by to opt out of the survey at any point. To create an banks in each country to achieve greater women’s appropriate environment for open and objective representation and drive inclusion across levels. conversations, the FGDs were held either online or in 3. neutral venues. They did not include senior leaders of participating organizations, who were interviewed separately. All data from the surveys and FGDs Focus group discussions (FGDs) with employees in participating banks, across gender and were anonymized. Further, this report does not tie hierarchy: Understand barriers employees and findings or observations to any bank except where organizations face and evaluate solutions that can the information is in the public domain or explicit be implemented. permission from the bank has been obtained. 42 | LIMITATIONS Our study is limited by restrictions around sampling, the validity of the data to the extent possible through the limited responses from key groups, self-reporting, and sampling methodology, careful design, and pre-testing of the differences in interpretation. We have strived to ensure questionnaires. However, the following limitations remain: 1. 3. The sample set of banks for the survey was not random We received limited responses from senior and was based upon banks with which IFC had prior management members in banks. We have tried to relationships. The findings therefore cannot be deemed account for this by including weights in the survey as representative of the industry. We chose a mix of analysis that seek to mirror the representation of these private commercial banks and validated high-level groups in the banking industry at the population level. findings with senior leaders from other banks. Given this, and participation of a sizeable number of banks 4. from each country, we remain confident that the findings are directionally correct. 2. The data collected from both surveys are self-reported and, therefore, limited by respondents’ willingness and ability to answer. The employee survey was rolled out by the HR department of each particular bank. We followed key protocols such as aligning with banks that data will not be shared directly with them, removing personal identifiers from the survey, hosting the survey on 5. independent servers of research partners, requesting The survey was conducted in English and the most banks to circulate survey links to all employees, widely spoken languages in the country. This included clarifying to respondents at the beginning of the Bangla in Bangladesh, Maithili in Nepal, and Tamil survey that the responses were anonymous, etc. to and Sinhala in Sri Lanka. While we ensured that the minimize bias in employee responses. However, the survey instruments were translated by qualified banks remained the direct link to employees filling professionals, the questions may have been interpreted the survey, which could have impacted the responses differently based on linguistic differences, and this received from the employees. may have affected the overall results. | 43 ANNEXURE 2 LIST OF COMMERCIAL BANKS THAT PARTICIPATED IN THE STUDY S. NO. COUNTRY BANK NAME 1. Bangladesh BRAC Bank 2. Bangladesh Eastern Bank 3. Bangladesh Bank X* 4. Bangladesh Mutual Trust Bank 5. Bangladesh Prime Bank 6. Bangladesh Standard Chartered – Bangladesh 7. Bangladesh The City Bank 8. Nepal Laxmi Bank* 9. Nepal Machhapuchchhre Bank 10. Nepal NMB Bank *Laxmi Bank participated in this survey prior to its consolidation with Sunrise Bank in 2023. 44 | Bangladesh Nepal Sri Lanka S. NO. COUNTRY BANK NAME 11. Nepal Prabhu Bank 12. Nepal Siddhartha Bank 13. Nepal Standard Chartered – Nepal 14. Sri Lanka Commercial Bank of Ceylon 15. Sri Lanka Development Finance Corporation of Ceylon (DFCC) Bank 16. Sri Lanka Hatton National Bank (HNB) 17. Sri Lanka Hong Kong and Shanghai Banking Corporation (HSBC) Bank- Sri Lanka 18. Sri Lanka National Development Bank (NDB) 19. Sri Lanka Bank Y* 20. Sri Lanka Standard Chartered – Sri Lanka *The bank wishes to remain anonymous. | 45 ANNEXURE 3 DETAILED LIST OF SOLUTIONS AND RATIONALE FOR BANKS TO IMPLEMENT 5.1 RECOMMENDATIONS TO DEVELOP MORE COMMITTED LEADERS SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS A. ORGANIZATIONAL COMMITMENT FOR EQUITABLE REPRESENTATION OF WOMEN Diversity townhalls: Create Regular internal communication townhall-like forums and other directly from the leadership signals communication channels for importance of goals set for women’s leadership to interact directly representation to staff in the with employees to stress the organization and serves as a useful importance of equitable women’s feedback channel. representation and seek feedback on existing policies and priorities. Defined targets: Set clear, Setting detailed targets for women’s time-bound targets for women’s representation throughout the representation at each level, employee journey (not just hiring) and particularly in promotions. Focus communicating them can help banks for banks in Sri Lanka differs from sustain a pipeline of female talent. others in the region where many banks still need to define overall gender balance targets. B. OWNERSHIP AND ACCOUNTABILITY IN SENIOR MANAGEMENT Diversity pulse: Identify clear and Defining metrics and monitoring comprehensive metrics to gauge progress can lend structure and progress on goals for increase in urgency to achieving equitable women’s representation. Regularly representation goals while helping monitor these at the board level and organizations to correct course. take corrective action as needed. 46 | SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS B. OWNERSHIP AND ACCOUNTABILITY IN SENIOR MANAGEMENT Chief diversity officer: Designate Appointing a senior diversity officer an executive team member (for who builds ownership for equitable example, Chief human resources representation goals and amplifies the officer) to lead and steer efforts for women’s representation agenda within greater women’s representation. the leadership. Enable the diversity officer by committing specific budget and resources for efforts to improve women’s representation. Diversity-linked compensation: Linking executive compensation to Tie a part of the compensation achieving women’s representation structure or incentive package for targets can ensure it is part of the chief executive officer, other leadership key performance indicators C-suite executives, and the board and that they accord it importance. to achievement of diversity-linked targets set by the organization. C. PROMOTION OF POSITIVE WORK NORMS BY LEADERS WHO ACT AS ROLE MODELS Visible leader: Train senior leaders Defining metrics and monitoring on the dos and don’ts of inclusive progress can lend structure and behaviors and around role-modelling urgency to achieving equitable key workplace norms (for example, representation goals while helping encouraging employees to take organizations to correct course. rightful leaves without penalty, avoiding microaggressions at work, etc.) within their teams and rest of the organization. Diversity sentinels: Train senior Aligning senior leaders to prioritize leaders to recognize shortcomings greater equity for women can help shift or biases in own behavior (for toward a more inclusive culture and example, assigning critical processes within an organization. projects to women, addressing microaggressions toward women) and organization’s approach to women’s representation (for example, addressing gaps in performance-evaluation processes). Build their capacity to address these observations within oneself and the wider organization. | 47 5.2 EQUITABLE AND SAFE WORKPLACES SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS D. INCLUSIVE HIRING AND RETENTION Fair Hiring Practices: Revise hiring Establishing a diverse recruiter panel approach to be more intentional and providing anti-bias training reduces in hiring women. Unlike other the chances of gender bias impacting countries, fewer banks reported the recruitment process. that they take specific measures to recruit more women. Make the recruiting process more equitable by using a diverse interview panel for senior hires and training interviewers to protect against their biases around women’s ability to manage senior roles. Gender-anonymized job roles: Eliminating gender references in role Remove any explicit or implicit descriptions prevents recruiters from gender-linked references from associating job requirements with a role descriptions for internal and certain gender and encourages more external job postings as well as from candidates to apply. curricula vitae and applications received for job postings to prevent recruiter bias. Returnship Programs: Instituting a structured program Launch dedicated recruitment can enable a smooth return to the programs aimed at hiring women workforce for women who have opted who took career breaks and support for a career break and can help firms them via training and upskilling retain potential female leaders. to relaunch their careers at the organization. E. TAILORED PROFESSIONAL DEVELOPMENT TO UNLEASH EMPLOYEE POTENTIAL Catalyst for her: Launch and tailor Conducting in-depth needs assessment training, coaching, and mentoring for women’s professional development programs provided to all employees. can uncover gaps in the design and Design these programs to meet the access of existing programs. unique needs of female employees at different levels. 48 | SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS E. TAILORED PROFESSIONAL DEVELOPMENT TO UNLEASH EMPLOYEE POTENTIAL New horizons for her: Create Rotation programs ensure that rotation programs for emerging women are exposed to different lines women leaders to provide them of business and have the breadth of exposure to critical projects and experience needed in leadership roles. functions. Women for women: Create an An ERG can help women seek advice employee resource group (ERG) for from colleagues who have faced women employees to network and similar challenges and feel like part of a seek peer support (for example, community. peer-led trainings, fireside chats with female leaders). 25th hour: Launch platforms or Providing custom learning content in initiatives that can be leveraged by innovative formats assists employees women experiencing time poverty in skilling up without compromising on during the day to provide relevant personal commitments (especially in learning content in easily digestible roles with long working hours or when formats and channels (such as they have care responsibilities). podcasts, short articles, etc.) Sponsored by: Create a program to Sponsorship provides a platform for connect high-potential employees, women to highlight their contributions especially women, to senior leaders and a spokesperson who can make a who can serve as active sponsors case for their progression. and pave the path to progression for the employees they are sponsoring. F. REEVALUATING PERFORMANCE EVALUATIONS On second thought: Train Training managers to be aware of managers to recognize and counter gendered inequities in employees’ individual biases (for example, career journey improves the quality anchoring on visibility or traditional of manager coaching and mentoring, notions of leadership) when giving an employee the best chance to providing evaluations. Also build progress. their capacity to engage female subordinates and channel clear feedback to them. | 49 SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS F. RE-EVALUATING PERFORMANCE EVALUATIONS Transparent evaluations: Greater transparency as well as Set and communicate standardized checks and balances in performance evaluation metrics against which evaluation can help ensure evaluations employees’ performance can are objective and prioritize merit. be assessed. Introduce other processes, such as seeking 360-degree feedback, making senior management promotion decisions by a committee, reviewing all promotions by a diversity monitor, etc. De-biasing merit: Undertake Statistical correction of performance a review of evaluation ratings ratings is increasingly becoming a and their statistical correction to global best practice and ensures that identify and remove inherent biases. performance is objectively assessed. Close the loop by providing feedback to individual managers/teams to bring greater accountability. G. EMPLOYEE ALLYSHIP FOR BIAS-FREE WORKPLACES Inclusive us: Ensure all employees Ensuring mandatory annual trainings undergo mandatory annual can ensure employees understand trainings on gender sensitivity, what are the firms’ values/principles on gender diversity and inclusion gender, equip them to be more gender- policies, workplace behavior, and sensitive, and set a norm for what is creating a culture of respect. expected of employees. Speak up, speak out: Create a Empowering employees to voice fear-free culture where employees concerns can help surface relevant feel confident of raising relevant issues that otherwise go unaddressed, issues (such as microaggressions keep the management accountable, within teams) for themselves as and build greater trust in the well as on behalf of their colleagues. organization. I support her: Provide trainings Male allyship is being recognized and avenues for male employees globally as a best practice to create a to explore how they can be better more inclusive, collaborative, and safer allies within their teams (for workplace for women and indeed all example, ensuring women get credit employees. for their contributions, creating space for women to speak up during meetings, calling out other employees’ microaggressions, etc.) 50 | SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS H. EQUITABLE SUPPORT FOR WORK–LIFE BALANCE Normalize flexi work: Pilot flexible Flexiwork policies provide greater working programs (for example, agency to the employee to manage work from home, flexi hours, their professional and personal etc.) or institutionalize practices, commitments, improving productivity if already present, at least for in many cases. new parents and other relevant segments (such as employees with care responsibilities). Normalize accessing such programs (for example, by encouraging senior leaders to participate). On-site childcare: Provision of On-site childcare options can help facilities (for example, in-house working parents with young children daycare, lactation rooms, etc.) come to work without concerns around to help employees manage their managing care and can lead to better responsibilities of parenting productivity. alongside work commitments. Bank parent: Create an ERG for ERGs can help employees better employees (of all genders) who are manage the transition to parenthood about to become or have become and provides employees with the parents to share access to parenting support to balance their care and networks, peer advice, etc. professional work. Balance for well-being: Create a Stress management and other program that engages employees wellbeing resources can help employees and supports them in achieving better manage the demands of their better wellbeing through stress roles with their personal commitments. management support and other well-being resources. Unrestricted hybrid work: Remote work is proven to be effective Transition to hybrid work which in helping employees strike the right allows employees to work remotely balance with personal responsibilities with or without some mandatory and contribute more to work. office presence. Launch this for all functions where remote work is possible without any age or segment restrictions (for example, not limited to new parents). | 51 SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS H. EQUITABLE SUPPORT FOR WORK–LIFE BALANCE Bring your plus one: Pilot a Spousal support helps employees program for spousal engagement navigate social expectations around that helps spouses/partners better care work and strike a better balance understand the employees’ work and with their work lives. feel pride in it. The program could also help them see the importance of their support and help shift their attitudes over time. This is especially relevant for Sri Lanka where social/ family expectations emerged as a key driver of women’s sub-optimal experience. Caring for working parents: Childcare support is a critical identified Pilot new ideas to support parents need and can help working parents (for example, childcare allowance, manage their care responsibilities partnerships with daycare centers, better alongside work. allowance for a caregiver to accompany them on official trips, mandatory paternity leave) and scale ideas that resonate most with parents/employees. 52 | SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS I. SAFE WORKING ENVIRONMENT Travel assistance: Provisions to Women employees can travel back and ensure safety of women during forth safely between work and home. travel (after-hours transport Being less concerned about safety can services, apps for emergency alert also help them be more visible at work. systems during outstation visits). Confidential vigilance initiative: Demonstrating a strong stance against Focus on demonstrating zero sexual harassment and bullying tolerance and inspiring confidence increases the trust employees have in by creating a platform that allows the bank’s processes and creates a safer employees to anonymously report working environment for all employees. incidents of harm. Unequivocal trust: Build trust in Building trust is key to ensuring organization’s commitment to act employees step forth to report on instances of harm by regularly incidences of harm—which may communicating channels available otherwise be underreported—and seek to employees to seek redressal and redressal without fearing backlash. printing/communicating annual progress on actions taken to promote safety. | 53 5.3 ENGAGED ECOSYSTEM SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS J. AMBITIOUS GOALS FOR WOMEN’S REPRESENTATION AND VISION FOR THE INDUSTRY Zero-tolerance workplace: Communicating a strong, sector-level Enhance policies and guidelines stance against sexual harassment for workplace safety by covering and bullying can compel banks to prevention of sexual harassment, implement stronger measures and bullying, etc. and mandating set-up make banking workplaces safer for of necessary mechanisms to ensure employees. compliance with these policies/ guidelines. Industry diversity targets: Industry-level targets create a system Set policy targets or guidelines of public accountability for individual that push banks to aim for greater banks. Banks that perform well on women’s representation at these targets benefit commercially (in a different levels and achieving competitive environment) from better them in a time-bound manner. access to women applicants. Inclusion Leadership: Cross- Collaboration across regulators can country collaboration for region’s help share best practices and ensure regulators, ministries, and other greater action from regulators if they industry stakeholders to align on sign up for targets on an international and set a target for the region. stage. Empirical policy hub: Generate Evidence-backed research can help research and a strong body of generate an ecosystem shift toward evidence that helps policy design greater equity for women and a better and advocacy efforts to modify balance of professional and personal national policies or helps banks responsibilities. to commit to revising policies around paternity leave, flexi-work, mandatory transfers, etc. 54 | SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS K. TECHNICAL AND FINANCIAL SUPPORT FOR BANKS TO IMPROVE WOMEN’S REPRESENTATION Diversity center of excellence: A common, open library of knowledge Create a knowledge hub that allows all banks and their leadership to synthesizes evidence on women’s learn from each other and from other leadership and provides resources industries and countries that have (such as best policy practices, successfully implemented programs for toolkits on monitoring diversity greater women’s representation. internally, etc.) for banks to access. Consider convenings or facilitating knowledge exchange between different institutions including the region’s regulators, banks, etc. Project-linked funding: Create a A fund to implement equity initiatives grant fund or provide subsidies for banks removes any cost barriers banks may to implement employee support have in providing adequate support to solutions (for example, on-site women employees. childcare, creation of training platforms, etc.) to support women employees. Concessional funding: Step beyond Providing banks with a commercial assessing women’s representation as incentive to be explicit about women’s an investment screening criteria to representation goals can accelerate providing lending rate concessions and the progress toward a more balanced cheaper capital to banks (for example, representation of women at all levels. by lowering borrowing rates) that meet or exceed certain diversity criteria. Behavioral lab: Business research Collecting empirical evidence for policy group that runs microexperiments recommendations can help design around nudges and behavioral locally adapted equity initiatives. interventions online and at work can create more inclusive behavior. Prepare a repository to share or help bank deploy comms and nudging strategies to strengthen programs. Gender advisory network: Convening an advisory group provides Permanent group of consultants banks with the necessary expertise to associated with the central bank design programs for greater women’s or the industry body that acts as a representation more effectively resource for banks to draw upon for and avoids unintended negative advice, support with data analysis, consequences. monitoring systems, etc. to design and implement initiatives for greater women’s representation. | 55 SOLUTION DESCRIPTION RATIONALE COMMON EMERGING BOLD PRACTICE PRACTICE BETS L. NETWORKS AND SUPPORT FOR EMERGING WOMEN LEADERS Women leaders bootcamp: Leadership training in the absence Create a cross-organization of management trainee programs structured training program for for women can develop necessary high potential women employees leadership skills. to build leadership skills and equip them with tools and networks to advance careers. Women bankers association: A cross-organizational banking Create an association of women association bridges the gap women bankers that provides members face in networking and receiving with networking opportunities and mentorship in the absence of such mentoring from industry stalwarts programs within the banks. in the country. The association can also discuss barriers to progression for women and advocate for change. M. INDUSTRY-WIDE ACCOUNTABILITY FOR EQUITABLE WOMEN’S REPRESENTATION High-visibility signaling: Launch Public commitments, especially a series of high-profile, high-visibility written commitments, create public communications anchored by the accountability for banks to achieve industry to publicly signal commitment targets set for women’s representation to workplace diversity and women’s and inspire trust among employees progress in the industry. about the bank’s priorities. Gender taskforce: Panel that Body with HR professionals can includes HR representatives and serve as a good forum for banks to DEI experts who recommend and collaborate on efforts to improve co-opt pathways for the industry, women’s representation, co-opt monitor and report progress, into targets, etc. and ensure collaboration for all banks to commit to women’s representation targets. Bank employee diversity index: Mandated reporting enforces Mandate collection of key gender tracking and external disclosure of disaggregated workforce metrics gender-disaggregated data through (such as employee breakdown by an industry authority to monitor levels and gender, promotion rates, progress toward greater women’s hiring rates, etc.). Publish these on representation and equity. a periodic basis to allow public and researchers to access these data and as a signal to banks. 56 | | 57 ENDNOTES 1 The study also covered the non-banking financial companies 13 All similar findings that report employee responses/perceptions sector in India. The results of the study in India are not covered in are derived from the employee survey rolled out as part of the this report. research effort, unless specified otherwise. 2 International Labour Organization (ILO). 2019. “The Business 14 Official Monetary and Financial Institutions Forum. 2022. Case for Change.” https://www.ilo.org/wcmsp5/groups/public/- “Gender Balance Index 2022.” https://www.omfif.org/wp-content/ --dgreports/---dcomm/---publ/documents/publication/ uploads/2022/04/GBI-2022.pdf. wcms_700953.pdf. 15 Here and elsewhere in the report, when reporting results from 3 ibid. the survey, we define entry-level roles to mean non-managerial and junior management roles. 4 Credit Suisse Research. 2016. “The CS Gender 3000: The Reward for Change.” https://www.credit-suisse.com/media/ 16 Data based on workforce composition of surveyed banks in assets/corporate/docs/about-us/research/publications/csri- Sri Lanka as of December 31, 2022. An independent research gender-3000.pdf. paper published in 2018 indicates women hold 25 percent of middle management and 21 percent of senior management 5 Yu, Bing. Mary Jane Lenard, E. Anne York, and Shengxiong Wu. positions in the banking sector in the country. Source: Jayatilaka, (2015). “Women Leaders in Banking and Bank Risk.” In Proceedings Wijaya, and Shamalka Uduwella. 2018. “Impact of Glass Ceiling of World Business Research Conference, Hotel Novotel Xin Qiao, Factors on Women Career Development in Banking Sector: Beijing, China, June 11-13, 2015. https://studylib.net/doc/13320687/ Evidence from Non-state Banks in Colombo District.” 15th proceedings-of-world-business-research-conference. International Conference on Business Management. http://dr.lib. sjp.ac.lk/bitstream/handle/123456789/8246/Impact%20of%20 6 Credit Suisse Research. 2016. “The CS Gender 3000: The Glass%20Ceiling%20Factors%20on%20Women%20Career%20 Reward for Change.” https://www.credit-suisse.com/media/ Development%20in%20Banking%20Sector%20evidence%20 assets/corporate/docs/about-us/research/publications/csri- from%20Non-state%20Banks%20in%20Colombo%20District. gender-3000.pdf. pdf?sequence=1. 7 ILO. 2019. “The Business Case for Change.” https://www.ilo. 17 The relevance is based on the most prominent challenges org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/ observed in each country and are not relative to each other. documents/publication/wcms_700953.pdf. The prominence in each country is assigned based on the findings from the employee survey (for example, the extent of difference 8 Based on workforce composition of 17 surveyed banks in between responses of men and women on sociocultural Bangladesh, Nepal, and Sri Lanka for 2022. expectations or professional development). 9 Ferrary, Michel. 2017. “Gender diversity in the banking industry An All similar findings that report on the presence of a certain policy 18 international comparison.” Skema Business School. https://www. or practice among banks are derived from the HR survey rolled skema.edu/skema-news/research-gender-diversity-in-banking- out as part of the research effort, unless specified otherwise. industry. 19 Based on the score provided to each country’s legal framework 10 Data based on workforce composition of surveyed banks for women’s economic participation as covered in Women, (five banks) in Nepal as of December 31, 2022; A 2022 article not Business and the Law. 2023. World Bank. https://wbl.worldbank. associated with this research indicated women’s representation in org/en/wbl. private commercial banks is 40 percent. Source: Pande, Sabin Jung, and Ayusha Chalise. 2022. “Women in Banking Leadership: A Grim 20 Credit Suisse Research. 2016. “The CS Gender 3000: The Reality.” The Farsight. https://farsightnepal.com/news/65. Reward for Change.” https://www.credit-suisse.com/media/ assets/corporate/docs/about-us/research/publications/csri- Data based on workforce composition of surveyed banks in 11 gender-3000.pdf. Sri Lanka (six banks) as of December 31, 2022. Industry-level data via external sources were not available for Sri Lanka. 21 Yu, Bing. Mary Jane Lenard, E. Anne York, and Shengxiong Wu. (2015). “Women Leaders in Banking and Bank Risk.” In Proceedings 12 Data based on workforce composition of surveyed banks in of World Business Research Conference, Hotel Novotel Xin Qiao, Bangladesh (six banks) as of December 31, 2022; The central bank’s Beijing, China, June 11-13, 2015. https://studylib.net/doc/13320687/ report on women’s representation in the banking sector released proceedings-of-world-business-research-conference. in 2022 stated that women represent 16 percent of all employees in the banking sector in Bangladesh. Source: Bangladesh Bank. 22 ILO. 2019. “The Business Case for Change.” https://www.ilo. 2022. “Gender Equality Report of Banks & Fis.” https://www.bb.org. org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/ bd/pub/halfyearly/sfd/geneqtjul-dec2022.pdf. documents/publication/wcms_700953.pdf. 58 | ENDNOTES 23 The study also covered non-banking financial companies in 36 Data based on workforce composition of surveyed banks in India. Findings for the India phase of the study are not covered by respective countries. Women constitute 21 percent of senior this report. management roles in the banking sector in Sri Lanka as per an independent research paper published in 2018. Source: Jayatilaka, 24 Refer Annexure 2 for a list of these organizations. Wijaya, and Shamalka Uduwella. 2018. “Impact of Glass Ceiling Factors on Women Career Development in Banking Sector: 25 Data reported on policies and bank’s systems are based on the Evidence from Non-state Banks in Colombo District.” 15th responses of these 17 banks. International Conference on Business Management. http://dr.lib. sjp.ac.lk/bitstream/handle/123456789/8246/Impact%20of%20 26 In the rest of the report, results quoted from the HR survey are Glass%20Ceiling%20Factors%20on%20Women%20Career%20 based on data from these 17 banks. The phrase “surveyed banks” Development%20in%20Banking%20Sector%20evidence%20 when reporting the findings refers to these 17 banks. Employee from%20Non-state%20Banks%20in%20Colombo%20District. survey findings or results pertaining to employee’s perceptions are pdf?sequence=1; Women constitute 9 percent of senior based on data received from employees of all 20 banks. management roles in the banking sector in Nepal as per an article published in 2022. Source: Pande, Sabin Jung, and Ayusha 27 ILO. 2022. “Labor Force Participation Rate (Percentage of Chalise. 2022. “Women in Banking Leadership: A Grim Reality.” The Population Ages 15+) (Modelled ILO Estimate).” https://www.ilo. Farsight. https://farsightnepal.com/news/65. org/shinyapps/bulkexplorer7/. 37 Dhakal, Pabitra. (2021). “Board of Directors of 8 ‘A’ Class 28 ILO. 2022. “Economic Activity (ISIC) 64 - Financial Service Banks Void of Women.” Nepal Press. https://english.nepalpress. Activities, Except Insurance and Pension Funding.” https://www. com/2021/03/26/board-of-directors-of-8-a-class-banks-lacking- ilo.org/shinyapps/bulkexplorer7/. women/; Data collated from official websites of all commercial banks listed on Central Bank’s website as of July 6, 2023. 29 ibid. 38 Economy Next. 2019. “Women on Sri Lankan Listed Firm Boards 30 ibid. to Be Mandatory: Budget 2019.” https://economynext.com/ women-on-sri-lankan-listed-firm-boards-to-be-mandatory- 31 Data based on workforce composition of surveyed banks in budget2019-13262/; Data collated from official websites of regional respective countries as of December 31, 2022. banks mentioned on Central Bank’s website as of June 7, 2023; information was only available for 13 banks. 32 Data based on the representation of women in new recruitments for the year 2022 in surveyed banks in respective 39 Based on employees responding “strongly agree” (in the survey countries. rolled out in study banks) to the statement, “In the future, I want to move to a senior role with greater responsibility in my current 33 Ferrary, Michel. 2017. “Gender diversity in the banking industry organization/industry.” An international comparison.” Skema Business School. https:// www.credit-suisse.com/media/assets/corporate/docs/about-us/ Data based on workforce composition of surveyed banks as of 40 research/publications/csri-gender-3000.pdf. December 31, 2022. 34 Data based on workforce composition and new recruitments in ILO. 2020. “Labour Force Participation Rate by Sex, Age, and 41 surveyed banks in Bangladesh for 2022. Marital Status (percent).” https://www.ilo.org/shinyapps/ bulkexplorer7/. 35 Data based on workforce composition of surveyed banks in Bangladesh. Women occupy 9 percent of senior management 42 The difference between the responses of men and women is roles in Bangladesh as per the central bank report released in 2022. not statistically significant for a 95 percent confidence interval for Source: Bangladesh Bank. 2022. “Gender Equality Report of Banks training. & FIs.” https://www.bb.org.bd/pub/halfyearly/sfd/geneqtjul- dec2022.pdf. 43 Challenges such as restrictions around mobility affect the ability of some employees, including women, to pursue such opportunities (refer Section 3.3). However, this may not be applicable for all employees and women; those who may not face such restrictions are often precluded from consideration for such projects. 44 The difference between the responses of men and women is not statistically significant for a 95 percent confidence interval for childcare responsibilities for Sri Lanka. | 59 ENDNOTES Bangladesh Bank. 2018. “BRPD Circular No. 15: Regarding 45 60 World Bank. 2022. “Toward Available, Affordable, Employee Transfer and Mandatory Annual Leave.” https://www. and Quality Childcare in South Asia.” Women, bb.org.bd/mediaroom/circulars/brpd/oct252018brpd15.pdf. Business and The Law 2022. https://documents1. worldbank.org/curated/en/099843412232229520/pdf/ Bangladesh Labour Act No. 42 of 2006 requires all employers 46 IDU0eaa3deb5043ca048cc0a4d80da019092a3a0.pdf. with 40+ women to provide childcare facilities. 61 Common practices are defined as solutions or practices being 47 Correll, Shelley J., and Caroline Simard. 2016. “Research: Vague recommended by more than 50 percent of the banks or at least Feedback Is Holding Women Back.” https://hbr.org/2016/04/ two industry bodies or regulators in the region. research-vague-feedback-is-holding-women-back. 62 Refer Annexure 3 for a list of these practices. 48 Fiske, Susan T., and Steven L. Neuberg. 1990. “A Continuum of Impression Formation, from Category-based to Individuating 63 Solutions being implemented by more than 25 percent of Processes: Influences of Information and Motivation on Attention the banks but less than 50 percent of them are identified as an and Interpretation.” Advances in Experimental Social Psychology emerging practice while other solutions being implemented by 23: 1–74. https://www.sciencedirect.com/science/article/abs/pii/ less than 25 percent of the banks as well as promising solutions S0065260108603172?via%3Dihub. being implemented in other industries in the region are classified as bold bets. 49 Higgins, E. Tory, and John A. Bargh. (1987). “Social Cognition and Social Perception.” Annual Review of Psychology 38:369–425. https://doi.org/10.1146/annurev.ps.38.020187.002101. 50 Dennis, Michael Robert, and Adrianne Dennis Kunkel. 2004. “Perceptions of Men, Women, and CEOs: The Effects of Gender Identity. Social Behavior and Personality: An International Journal 32, no. 2: 155–72. https://doi.org/10.2224/sbp.2004.32.2.155. 51 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. 52 The difference between the responses of men and women is not statistically significant for a 95 percent confidence interval. 53 The difference between the responses of men and women is not statistically significant for a 95 percent confidence interval. World Bank. 2023. “Women, Business and the Law”. https:// 54 openknowledge.worldbank.org/server/api/core/bitstreams/ b60c615b-09e7-46e4-84c1-bd5f4ab88903/content. 55 ibid. 56 ibid. 57 ibid. 58 ibid. 59 IFC. 2019. “Tackling Childcare in Bangladesh.” https://www. ifc.org/content/dam/ifc/doc/mgrt/ifc-tackling-childcare-in- bangladesh-final-report.pdf. 60 | | 61 © International Finance Corporation 2024. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 www.ifc.org