Breaking Barriers to Women’s Employment in Azerbaijan September 2024 Photo credit: The State Agency for Vocational Education of the Republic of Azerbaijan. A young woman trains for a license to operate rail transport in a program by Azerbaijan Railways. 1 © 2024 The World Bank Rights and Permissions 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this Some rights reserved. work may be reproduced, in whole or in part, for noncommer- cial purposes as long as full attribution to this work is given. This publication was produced with the financial support of the European Union (EU) under the Azerbaijan Rapid Tech- Attribution—Please cite the work as follows: “Nato Kur- nical Assistance Facility (AZTAF). AZTAF is a technical assis- shitashvili, Shamsiyya Mustafayeva, Tural Mammadov, tance program for the Republic of Azerbaijan financed by the Jans Mynbayeva, Sam Kelly and Kirsten Newitt. 2024. European Union and implemented by the World Bank. This Breaking Barriers to Women’s Employment in Azerbaijan. work is a product of The World Bank. Its findings, interpreta- © World Bank”. tions, and conclusions expressed in this work do not necessar- ily reflect the views of the European Union, the Executive Di- Any queries on rights and licenses, including subsidiary rights, rectors of The World Bank or the governments they represent. should be addressed to World Bank Publications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: The World Bank does not guarantee the accuracy, complete- 202-522-2625; email: pubrights@worldbank.org. ness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepan- cies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclu- sions set forth. The boundaries, colors, denominations, links/ footnotes and other information shown in this work do not imply any judgment on the part of The World Bank concern- ing the legal status of any territory or the endorsement or ac- ceptance of such boundaries. The citation of works authored by others does not mean the World Bank endorses the views expressed by those authors or the content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immuni- ties of The World Bank, all of which are specifically reserved. 2 Contents Abbreviations 4 Acknowledgments 5 Executive Summary 6 Key findings 7 Recommendations 10 1. Introduction 15 1.1. Context 17 1.2. Structure of the report 18 1.3. Methodology 20 2. Women’s employment in Azerbaijan 22 2.1. National policy and legislative commitments to gender equality 24 2.2. Women’s participation in the labor market 26 2.3. Key challenges to women’s employment in 28 male-dominated technical sectors 3. Increasing women’s participation in the transport sector: 33 Azerbaijan Railways and Port of Baku 3.1. Workforce profile 34 3.2. Attraction: Encouraging more women to pursue careers in the 34 transport sector 3.3. Recruitment: Increasing the number of women joining the company 36 3.4. Inclusion at work: Building a respectful and safe work environment 38 for all employees 3.5. Progression: Supporting women’s professional development and 39 advancement to leadership roles 4. Examples of best practices on equal opportunity and women’s 43 empowerment in Azerbaijan 4.1. Technical skills training, mentoring, and scholarships for female 44 engineering students: Sumgait Technologies Park (STP) Group of Companies 4.2. Building respectful and inclusive workplaces: Coca-Cola Içecek 45 4.3. Supporting women’s access to education through scholarships: 46 AGA Group of Companies 4.4. Professional development program for women:Nobel Energy 46 4.5. Organizational diversity and inclusion strategy and 47 flexible working arrangements: Azerconnect 5. Recommendations 48 5.1. Recommendations for policymakers 50 5.2. Recommendations for companies 53 6. References 57 3 Abbreviations ADB Asian Development Bank ADY Azerbaijan Railways AZTAF Azerbaijan Rapid Technical Assistance Facility CCI Coca Cola İçecek (CCI) DEIB Diversity, Equity, Inclusion and Belonging GDP Gross domestic product HR Human resources ICT Information and Communications Technology IMF International Monetary Fund NEWEP The Nobel Energy Women's Empowerment Program PoB International Trade and Sea Port of Baku SCFWCA The State Committee for Family, Women and Children Affairs SOE State-owned enterprise STEM Science, technology, engineering, and math STP Sumgait Technologies Park  UNDP United Nations Development Program UNFPA United Nations Population Fund WEPs UN Women’s Empowerment Principles 4 Acknowledgments The preparation of this report was led by Leyla Taghiyeva (AZTAF Coordinator), Saida Nato Kurshitashvili (Senior Gender Special- Bagirli (Senior Operations Officer, AZTAF ist, World Bank’s Transport Global Practice), Task Team Lead), Nigar Sadikhova (Opera- with input from Shamsiyya Mustafayeva (Se- tions Analyst) and Zaur Rzayev (External Af- nior Gender Consultant) and Tural Mamma- fairs Officer). The team is grateful to Mirlinda dov (Senior Human Resources Consultant). Gorcaj Llalloshi, Maria Luisa G. Juico and Sa- The Ergon Associates team, including Jans bina Guliyeva for administrative support. The Mynbayeva (Consultant), Sam Kelly (Senior team would like to thank the management Consultant), and Kirsten Newitt (Director), and staff of the Azerbaijan Railways and the provided editing and quality control. The International Trade and Sea Port of Baku team would like to thank the reviewers from (PoB) for their time and assistance in sharing the World Bank, including Jennifer Solotaroff the information presented in this report and (Senior Social Development Specialist), Mira the management of the Azerbaijan Invest- Morad (Senior Transport Specialist), and ment Holding (AIH) for collaboration. Final- Yasmine Sampomaa Acheampong (Opera- ly, special thanks to the European Union for tions Officer). The team is grateful to Shomik supporting this work through the Azerbai- Raj Mehndiratta (Practice Manager, Trans- jan Rapid Technical Assistance Facility (AZ- port ECA) and Steffi Stallmeister (Azerbaijan TAF). The team is grateful to Rhino Media for Country Manager) for their overall support the design. for this study. The team also acknowledg- es the support of World Bank colleagues Vusala Asadova (Senior Program Assistant), 5 Executive This report aims to review women’s par- ticipation in traditionally male-dominated Summary sectors in Azerbaijan and to provide practi- cal recommendations to policymakers and employers on how to increase and support women’s employment and leadership in Women remain underrepresented in sever- these sectors. One of the major contribu- al sectors of national strategic importance tions of this report is to offer new insights into in Azerbaijan despite recent government women’s employment in Azerbaijan’s trans- efforts to lift legislative restrictions on wom- port sector, drawing on findings from gen- en’s employment in male-dominated fields. der assessments of two major state-owned While sizeable gender gaps exist in the la- enterprises (SOEs): Azerbaijan Railways bor market, with 62 percent of women and (ADY) and International Trade and Sea Port 75 percent of men participating in the labor of Baku (PoB). These assessments were con- force and 58 percent of women and 71 per- ducted as part of the World Bank’s Advisory cent of men being employed, the starkest and Analytics (ASA) program Strengthening gender divide occurs by sector of employ- women’s human capital for their better labor ment. Women account for only 16.5 percent market outcomes 2023-2024, within the Eu- of the workforce in the transport and storage ropean Union (EU)-funded and the World sector, 10.7 percent in the energy sector, and Bank-managed Azerbaijan Rapid Technical 7.8 percent in construction. The persistence Assistance Facility (AZTAF). The two SOEs of this pattern of gender-based occupation- were selected considering multiple fac- al segregation indicates that further action tors, such as gender gaps in their respective is needed to enable women’s participation workforces, their potential to contribute to into these and other sectors. the country’s economic diversification, and their willingness to improve their respective Broadening the scope of economic opportu- human resources policies and practices and nities for women can drive higher economic to increase the share of women employed in growth and diversification in line with the am- their workforces. bitious national development priorities set out in Azerbaijan’s Strategy for Socio-Eco- While the challenges to attracting, re- nomic Development 2022-26. Occupation- cruiting, and retaining women vary by al segregation leads to inefficiencies and company, employers in male-dominat- misallocation of talent that can stifle pro- ed sectors globally face some common ductivity and innovation, whereas increases challenges. These include low numbers of in women’s labor market participation are as- women pursuing technical education rel- sociated with substantial gains to gross do- evant to these sectors; social norms and mestic product (GDP). At the enterprise lev- gender stereotypes that influence women’s el, companies that prioritize gender equality educational and career choices and that are more likely to attract and retain top tal- hinder equal opportunity in recruitment ent, as well as benefit from stronger deci- and progression; lower retention among fe- sion-making, team performance, innovation, male staff due to a lack of policies to sup- and improved financial performance. port parents in balancing work with family 6 responsibilities; concerns about workplace Key findings sexual harassment; and a lack of targeted efforts to support women’s progression into Legislative and policy frameworks higher-paying and leadership roles. Azerbaijan’s legislative and policy frame- Therefore, although the recommendations works support equal opportunities for made in this report draw primarily on the women and men, particularly following re- experiences of the two SOEs and global in- cent legal reforms to remove restrictions on sights, they are applicable to public and pri- women’s employment. Relevant policies in- vate sector companies in Azerbaijan and clude the forthcoming National Action Plan beyond. They are particularly relevant for on Gender Equality (2024-2027), the Em- stakeholders committed to promoting equal ployment Strategy (2019-2030), and the ac- opportunity in Azerbaijan, including policy- companying draft Action Plan on Women’s makers and companies in transport and oth- Employment in Azerbaijan. The 2022-2026 er male-dominated sectors. They may also Socio-Economic Development Strategy interest actors in other economies exploring of the Republic of Azerbaijan, in particular, pathways for strengthening women’s partic- envisions an enhanced focus on women’s ipation in historically male-dominated sec- access to economic opportunities in highly tors. paid sectors through initiatives such as ca- reer guidance, counseling, and robust em- The research for this report is based on (i) ployment strategies, as well as setting aims desk review of national legal and policy to narrow the gender wage gap. frameworks relevant to gender equality in employment, existing literature on barriers In 2022, Azerbaijan’s government repealed to women’s economic participation in Azer- restrictions on women’s employment in baijan, and international best practices to 674 occupations across sectors, including address barriers to women’s employment in agriculture, construction, transport, ener- the transport sector, (ii) analysis of nation- gy, and manufacturing. Working with the al statistical data on women’s participation World Bank, the government demonstrat- in education and the labor market, and (iii) ed that employment in these sectors posed findings from gender assessments of two no specific threat to women’s health. Instead major SOEs in Azerbaijan, comprising desk of across-the-board restrictions, the new review of company policies and procedures, rules adopt a health risk-based approach focus group discussions with employees, in- to specific jobs for pregnant and nursing depth interviews with senior staff, and work- women. place audits. 7 Furthermore, with the 2023 Labor Code sponsibilities further deter women’s employ- amendments, the government lifted legal ment in technical roles in male-dominated restrictions on night work for pregnant wom- sectors across Azerbaijan, particularly as en, women with children under the age of 14, women tend to bear primary responsibility and women with children with disabilities, al- for caregiving and household duties within lowing them to work night shifts and go on families. business trips with their written consent. Women in the transport sector: Key find- Nevertheless, there are further opportunities ings from Azerbaijan Railways and Port of to strengthen Azerbaijan’s statutory frame- Baku works to advance equal opportunities in the workplace. These could include legal reforms Gender assessments carried out in to mandate equal pay for work of equal value, ADY and PoB provide important prac- the introduction of employer responsibility tical insights into women’s participation for preventing and addressing gender-based in male-dominated sectors in Azerbai- violence and harassment in the workplace, jan. Key findings include the following: alongside the creation of an administrative offence for perpetrators. The introduction of • Women are underrepresented in the paid paternity leave, accompanied by efforts workforce at both ADY and PoB. Wom- to encourage fathers to take advantage of en accounted for just 17 percent of it, could further support women’s advance- all staff at ADY and only 8 percent of ment to leadership roles and their participa- the workforce at PoB in 2020-2022.1 tion in the workforce, particularly after ma- ternity leave. • Women at both SOEs are concentrated in office-based roles and significantly un- Legal reforms must go hand in hand with wid- derrepresented in leadership and techni- er initiatives to dismantle barriers to women’s cal roles. Women held 7.6 percent of lead- participation in the workforce, particularly ership roles in ADY and 5 percent at PoB in relation to higher-paid, male-dominated between 2020 and 2022. Similarly, wom- sectors. Gender bias and stereotypes about en accounted for 10.7 percent of tech- the suitability of women and men for specif- nical engineering positions at ADY and ic roles and occupations present a key chal- only 2.5 percent of such positions at PoB. lenge to women’s education and employ- ment in higher-paid technical sectors. The • Given current recruitment trends, it may lack of flexible working arrangements and take time for ADY and PoB to increase insufficient support for employees’ care re- 1 Figures represent workforce data between 2020-2022 (average of three years) and the latest company workforce statistics might show the ongoing achievements by these SOEs in closing gender gaps. For example, as of June 2023, female representation in PoB reached 10%, reflecting PoB’s ongoing efforts to prioritize gender equality in recruitment practices, with the aim to achieve 20% by 2030. 8 the proportion of women represented in ternships for students to support recruit- their workforces. Women comprise only ment efforts, but the proportion of female 16 percent of new recruits at ADY and 11 interns is low, particularly those with vo- percent at PoB. Women are significant- cational education, and there are no tar- ly more likely to be recruited in admin- geted internships reserved for women. istrative and office-based roles than in technical positions at both companies. • Women’s turnover rate is higher than that of men at ADY and PoB, with many women • ADY and POB are committed to increas- not returning to work after having children. ing women’s representation in the work- ADY and PoB offer a range of family-friend- force. PoB has set a corporate target to ly benefits for their employees, but there achieve a 20 percent female workforce is scope to widen these to strengthen re- share by 2030. Meanwhile, both com- tention among women by increasing the panies are strengthening their human availability of flexible or part-time working resources (HR) policies and procedures arrangements, offering childcare support to incorporate provisions for diversity, for working parents, introducing paid pa- inclusion, non-discrimination, and pre- ternity leave, and ‘return to work’ schemes vention of gender-based violence and to facilitate women’s transition back harassment, as well as to ensure equal op- into employment after maternity leave. portunity in all aspects of employment. • Many newer workplaces provide appropri- • ADY and POB have taken concrete steps ate facilities for women and men, such as to recognize the achievements of women separate changing rooms and bathrooms in transport and to reach out to potential for female staff, but there is scope to im- female job candidates. For example, they prove workplace infrastructure at older have organized events to highlight wom- sites to accommodate women’s needs and en’s contributions to the transport sector. encourage women’s participation in tech- They continue encouraging young people nical roles. to pursue technical education by hosting information sessions and site tours for part- ner academic institutions and high schools. • There is scope to strengthen company policies to ensure equal opportunity in re- cruitment. Both ADY and PoB collaborate with educational institutions and offer in- 9 Recommendations The findings of this report indicate significant leadership in male-dominated sectors such gender gaps in key strategic sectors of Azer- as transport. They include measures to at- baijan’s economy, particularly in relation to tract more women to take up technical stud- leadership and technical positions. Strength- ies and careers, promote equal opportunity ening women’s representation in historically in recruitment, build inclusive workplaces, male-dominated sectors requires concerted and support women’s career progression. and coordinated efforts from policymakers and companies across multiple fronts. The following recommendations outline con- crete actions for policymakers and compa- nies to support women’s employment and Attraction Encouraging more women to pursue careers in the transport sector Recruitment Increasing the number of women joining the company Inclusion at work Building a respectful and safe work environment that meets the needs of all employees Progression Supporting women’s professional development and advancement to leadership roles 10 Recommendations for policymakers 1. Promote women’s increased participation in technical and vocational training and science, technology, engineering, and math (STEM) fields of study by partnering with educational institutions and employers on scholarship schemes, apprenticeship programs, mentoring schemes, and public awareness-raising campaigns. 2. Collaborate with companies and business membership associations to establish or support industry coalitions to promote women’s employment and leadership in male- dominated sectors. 3. Strengthen legislation to mandate equal pay for work of equal value and adopt measures to close the gender pay gap through statutory reporting requirements and regular pay surveys. 4. Strengthen legislation on workplace sexual harassment by introducing employer responsibility for preventing and addressing gender-based violence and harassment at work. 5. Introduce paid paternity and parental leave to promote a more equal distribution of care responsibilities among women and men. 11 Recommendations for companies 6. Demonstrate organizational commitment by establishing a formal company strategy on gender equality, signing up to the UN’s Women’s Empowerment Principles, and ensuring senior leaders speak out in support of gender equality and provide personal support for women’s increased participation. 7. Implement initiatives to attract young women and girls to technical education and careers by partnering with educational institutions to offer scholarships for women in technical studies, highlighting successful women in technical roles at the company, and ensuring that awareness-raising activities emphasize a diverse range of roles open to women. 8. Strengthen women’s recruitment into technical roles by introducing targeted internship and job-preparation training for women, ensuring company recruitment policies explicitly prohibit discrimination and training hiring staff to combat gender bias, and incorporating equal opportunity elements into recruitment materials. 9. Foster a respectful and inclusive work environment by reviewing HR policies and practices to strengthen family- friendly working arrangements, strengthening policies to prevent and address workplace sexual harassment, reviewing basic infrastructure to ensure it corresponds to the needs of female employees, ensuring equal access to skills development opportunities, and identifying further areas of improvement through regular staff surveys. 10. Invest in leadership development initiatives that specifically target women’s advancement, such as mentoring programs and women’s networks, and consider targets or quotas for female representation in leadership roles. 12 13 Photo credit: Shutterstock 14 1. Introduction 15 This report explores the key issues relating to The insights and recommendations pre- women’s employment in Azerbaijan and of- sented in this report are relevant to fers recommendations to policymakers and a broad range of stakeholders committed companies for tackling gender-based occu- to fostering equal opportunity in the work- pational segregation in the labor market and place and strengthening women’s human increasing women’s participation in sectors capital in Azerbaijan and beyond, including where they are underrepresented. The re- policymakers and companies in transport port specifically examines gender gaps with- and other male-dominated sectors. They are in the transport sector, presenting the find- particularly pertinent to large male-dom- ings of gender assessments conducted for inated organizations in the early stages of state-owned enterprises (SOEs) Azerbaijan formulating their gender strategies and un- Railways (ADY) and International Trade and dergoing significant modernization efforts Sea Port of Baku (PoB) as part of the World within transport and related fields. Bank’s Strengthening women’s human cap- ital for their better labor market outcomes 2023-2024 initiative within the European Union (EU)-funded Azerbaijan Rapid Tech- nical Assistance Facility (AZTAF). 16 1.1. Context In 2022, 62 percent of women and 75 achieve significant macroeconomic gains percent of men participated in the labor when women are able to develop their full force, and 58 percent of women and 71 labor market potential (Elborgh-Woytek et percent of men were employed in Azer- al. 2013). Furthermore, a McKinsey Global baijan. The starkest gender divide oc- Institute report estimates that women’s full curred by sector of employment: for in- participation in the labor market alongside stance, women accounted for only 16.5 men would add as much as USD 28 trillion, percent of workers in the transportation or 26 percent, to global annual GDP by 2025 and storage sector, 10.7 percent in elec- (Woetzel et al. 2015). tricity, gas, and steam production, 7.5 percent in construction, and 12.2 per- For companies in male-dominated sectors, cent in mining, respectively (State Statistical there is a compelling business case for pro- Committee, 2023a). moting gender equality and empowering women in the workplace. Companies that Azerbaijan’s recent legal reforms to remove prioritize gender equality and foster an in- restrictions on both women’s employment clusive environment are more likely to at- in traditionally male-dominated fields and tract and retain top talent, and a diverse on women’s night work are commendable, workforce is better equipped to understand but further action is needed to address per- and meet the diverse needs of a global mar- sistent occupational segregation. Despite a ket. Indeed, attracting the best people at all strong policy and legislative framework on levels is essential for the development of the gender equality, several barriers continue sector, and women represent a major source to hinder women’s equal participation in key of untapped talent and skills in Azerbaijan, sectors of the economy. These barriers in- particularly in technical and management clude gender bias and stereotypes that af- roles. A company that values and supports fect women’s education and career choices, its female employees is also likely to enhance lack of female role models, and unequal dis- its reputation, creating a positive brand im- tribution of household and care responsibil- age that resonates with both customers ities. and investors. International research con- sistently shows that companies with diverse Overcoming these challenges is crucial for leadership outperform their peers in profit- advancing the 2022-2026 Socio-Econom- ability, and higher levels of gender diversity ic Development Strategy of the Republic are linked to better team performance and of Azerbaijan, which seeks to bolster the innovation. By investing in the professional economy and cultivate competitive human development and empowerment of women, capital. Women represent a significant por- businesses are not only fostering an inclusive tion of the nation’s talent pool, and harness- workplace culture built on principles of equal ing their full potential can drive econom- opportunity but also securing a resilient and ic growth. Research by the International competitive future. Monetary Fund (IMF) shows that countries 17 1.2. Structure of the report This report is structured around four Others relate to women’s experience key entry points for supporting wom- of the workplace: ensuring that working en- en’s employment, which correspond to vironments are inclusive and correspond milestones in the employment lifecy- to the needs of women and men alike (In- cle where women are likely to encoun- clusion), and supporting women’s career ter barriers to participation and advance- progression, including into leadership roles ment (see figure 1). Some of these relate (Progression). to women’s entry into the sector: encourag- ing women to take up relevant studies and pursue career opportunities in these sectors (Attraction), and strengthening women’s re- cruitment, particularly into technical roles (Recruitment). 18 Figure 1: Key Entry Points for Strengthening Women’s Participation in Traditionally Male-Dominated Sectors Attraction • Encouraging women to take up technical education and relevant studies. • Raising public awareness of opportunities for women in the sector. • Shifting gender stereotypes and norms. Recruitment • Introducing recruitment processes that strengthen equal opportunity outcomes. • Incentivizing the recruitment of women. Inclusion at work • Introducing HR policies and procedures that support women and men alike. • Supporting care responsibilities. • Ensuring zero tolerance for sexual harassment. • Ensuring basic infrastructure corresponding to women’s needs. Progression • Supporting professional and skills development for women, particularly in technical roles and management. • B uilding the pipeline of female talent and increasing the share of women in senior leadership. • E xpressing support for women’s employment and leadership at senior management level. 19 The report comprises five principal sections: Section 1 Outlines the context and objectives of the report and provides an overview of the methodology applied. Provides an overview of Azerbaijan’s national legal and policy framework on gender Section 2 equality and current levels of women’s participation in education and the labor market, while highlighting the barriers Azerbaijani women face in the workplace. Presents the findings from company-level research conducted with two SOEs in Section 3 Azerbaijan’s transport sector, including quantitative workforce data and qualitative insights based on key informant interviews and focus group discussions with employees. Section 4 Features a selection of examples of best practices on gender equality and equal opportunity from various companies operating in Azerbaijan. Presents practical recommendations for policymakers and companies on how to remove Section 5 barriers to women’s participation and strengthen women’s human capital in Azerbaijan’s transport sector and beyond. 1.3. Methodology This report is based on three main elements: Desk review of national legal and policy • Findings from in-depth gender assess- • frameworks relevant to gender equali- ments of two major transport SOEs in ty in employment, existing literature on Azerbaijan, comprising desk review of com- barriers to women’s economic participa- pany policies and procedures, focus group tion in Azerbaijan, and international best discussions with employees, in-depth inter- practices to address barriers to wom- views with senior staff, and workplace au- en’s employment in the transport sector; dits. Further details on the methodology of the gender assessments are set out in the • Analysis of national statistical data section 1.3.1 below. on women’s participation in educa- tion and the labor market in Azerbaijan; 20 1.3.1 Company gender assessments In-depth gender assessments were con- rience, and seniority (6 groups per SOE). ducted with ADY and PoB, two state- In addition, 20 key informant interviews owned enterprises in Azerbaijan’s trans- were held with female and male senior port sector, in 2023. The two SOEs were staff from different departments to under- selected based on multiple factors, such stand each SOE’s operational context and as sizeable gender gaps in their respective business requirements as well as to iden- workforces, their potential to contribute tify opportunities to strengthen women’s to the country’s economic diversification, participation within each organization. and their willingness to improve their Visual assessments of workplace infra- respective human resources policies structure and company facilities informed and practices andto increase the share an assessment of the availability and of women employed in their workforces. suitability of basic infrastructure to meet the needs of male and female employees. The assessments involved a desk review of the two companies’ policies and proce- Following the gender assessments, the dures, including relevant human resources World Bank supported ADY and PoB in policies, collective bargaining agreements, developing and implementing gender training protocols, grievance procedures, action plans to support women’s employ- and other documents to understand the ment and narrow the gender gaps within extent to which these provide for equal their workforces. opportunity in employment. To gather qualitative insights into challenges to greater women’s participation in the SOEs’ workforces, 12 focus group discussions were conducted with male and female employ- ees across different roles, levels of expe- 21 Photo credit: Yayo López / World Bank 2. Women’s employment in Azerbaijan 22 23 2.1. National policy and legislative commitments to gender equality Azerbaijan’s legislative framework supports These amendments abolished all 674 job re- equal opportunities for women and men. strictions for non-pregnant and non-nurs- Women’s labor rights are safeguarded by the ing women, replacing them with a list of 204 Constitution and the Labor Code. The Con- jobs where the employment of pregnant stitution explicitly prohibits gender-based women and mothers of children under one discrimination, asserting equal rights and is restricted and adopting a list of hazardous liberties for men and women, and empha- substances, agents, and lifestyle factors that sizes the right to freely choose one’s pro- could negatively affect maternal-fetal health fession and to work in safe conditions and for employers’ attention. The government receive remuneration for one’s work without made additional amendments in 2023 that any discrimination. Similarly, the Labor Code lifted legal restrictions on night work for preg- prohibits all forms of discrimination in labor nant women, women with children under relations, including on the basis of gender. the age of 14, as well as women with children with disabilities, allowing them to work night In 2022, the government of Azerbaijan shifts and go on business trips with their writ- repealed restrictions on women’s em- ten consent. Azerbaijan’s support for wom- ployment in certain roles in a number en’s employment is also prioritized in various of key industries. Previously, article 241 national policy documents. These include: of the Labor Code and resolution N170 of the Cabinet of Ministers, prohibited • The forthcoming National Action Plan the employment of women in 674 occu- on Gender Equality (2024-2027), which pations across sectors including agricul- aims to strengthen the legal framework ture, construction, transport, energy, and for women’s rights in society. The plan manufacturing. These restrictions barred prioritizes women’s economic empow- women from working as conductors of erment through support for the devel- freight wagons, locomotive engineers, opment of women’s labor market skills drivers of buses with more than 14 seats, and equitable economic participation. as well as in jobs in asphalt laying, car- pentry, and certain positions in the en- ergy sector. However, following review supported by the World Bank, the Min- istry of Labor and Social Protection of the Population proposed amendments to the Labor Code, which were adopted in November 2022 (World Bank 2020). 24 • The Employment Strategy (2019-2030), While these initiatives constitute an import- which aims to create equal and inclusive ant step towards facilitating women’s partic- employment opportunities, including by ipation in Azerbaijan’s workforce, a broader reducing unemployment among wom- approach is needed to address the socio- en and young people to achieve produc- cultural barriers impeding women’s employ- tive employment and decent work for all ment. These include, for example, gender groups of the population by 2030. The stereotypes that steer individuals towards Action Plan on Women’s Employment traditionally “gendered” career paths, as well in Azerbaijan, drafted by the State Com- as workplace health and safety issues, includ- mittee for Family, Women, and Children ing inadequate infrastructure (such as sepa- under the Employment Strategy and cur- rate changing rooms for women and men) rently under government review, aims to and sexual harassment in the workplace. improve women’s labor market access, ad- dress gender-based barriers to successful careers, promote women’s involvement in the private sector, and encourage wom- en’s entrepreneurship. This document also includes provisions for vocational training and education for unemployed women. • The 2022-2026 Socio-Economic Devel- opment Strategy of the Republic of Azer- baijan, which envisions an enhanced focus on women’s access to economic opportu- nities, particularly in male-dominated sec- tors. Initiatives such as career guidance, counselling, and robust employment strategies will be promoted to facilitate women’s employment. The strategy also aims to increase women’s average month- ly salary, closing the gender wage gap by increasing the ratio of women’s pay from 64.8 percent of that of their male counter- parts in 2021 to 80 percent. 25 2.2. Women’s participation in the labor market Significant gender disparities exist in Azer- sented in nationally important sectors that baijan’s labor market, with 62 percent of offer opportunities for higher pay, including women and 75 percent of men participating transport and storage (16.5 percent), en- in the labor force and 58 percent of women ergy (10.7 percent), mining (10.4 percent), and 71 percent of men employed (State Sta- and construction (7.5 percent) (see figure 2). tistical Committee 2023a). The starkest gen- The gender divide is also evident in occupa- der divide occurs by sector and occupation: tional roles within sectors, with women often women are disproportionately concentrat- serving administrative positions such as hu- ed in lower-paying sectors and occupations. man resource management and account- For example, women comprise a large share ing, while men predominate in technical and of employees in education, health, social managerial roles. work, and other services sectors, which are often associated with comparatively low- er pay. In contrast, women are underrepre- Photo credit: Shutterstock 26 Figure 2. Share of Women and Men among Employees Aged 15+ by Economic Sector, as of 1 January 2023 Construction 7.5 92..5 Electricity, gas and stream production 10.7 89.3 Mining 12.2 87.8 Transportation and storage 16.5 83.5 Agriculture, forestry and fishing 23.1 76.9 Public adminstratation and defence; social security 26.4 73.6 Manufacturing 26.4 73.6 Trade; repair of transport means 27.6 72.4 Information and communication 30 70 Administrative and support service activities 30.2 69.8 Accommondation and food service activities 30.2 60.8 Real estate activities 30.4 69.6 Other services activities 34.3 65.7 Water supply; waste treatment and disposal 34.9 65.1 Financial and insurance activities 36.5 63.5 Professional, scientific and technical activities 43.5 56.5 Art, entertainment and recreation 61 39 Education 73 27 Human health and social work activities 77.3 22.7 Source: State Statistical Committee 2023b. women men These structural labor market dynamics con- well as their underrepresentation in manage- tribute to a notable gender pay gap at the ment roles (State Statistical Committee 2017; national level. On average, in 2022, women’s Pastore et al. 2016)2. Longer periods of time monthly nominal wages were 33 percent away from employment among women, such lower than those of men across Azerbaijan as career breaks for maternity leave, also (State Statistical Committee 2023b), reflect- contribute to the gender pay gap (Guluzade ing women’s disproportionate concentration 2015). in lower-paying sectors and occupations, as 2 It is noteworthy that the gender pay gap is broadly comparable for employees in public and private sectors, indicating that horizontal (occupational) and vertical gender-based segregation is not restricted to private sector enterprises. 27 2.3. Key challenges to Table 1: Share of Enrolled Female Students and Graduates from STEM women’s employment in Disciplines in Specialized Secondary and male-dominated technical Tertiary Education and in Technical Fields within Vocational Education, 2022-2023 sectors Academic Year 2.3.1. Technical education and skills Education levels and Share of Share of disciplines enrolled female female graduates The low share of women among employees students (%) in technical and industrial sectors, including (%) transport, is linked to their low representa- Specialized secondary tion among students in STEM education. In education in STEM 35.5 39.6 2023/2024, young women accounted for just 30.1 percent of graduates from tertiary Vocational education 21.4 19.1 education in STEM fields at the undergradu- in technical fields ate level. Similarly, women represent only 19.1 percent of graduates from technical fields Tertiary education in 32.4 30.1 STEM (undergraduate) within vocational education (see table 1). The lack of STEM and vocational education and Tertiary education in skills is a significant barrier for women to ac- 38.5 46.5 STEM (graduate) cess employment and entrepreneurship op- portunities in technical sectors such as trans- port. It may also hinder employed women from progressing to higher-paying technical 2.3.2. Gender bias and stereotypes and managerial roles. Gender bias and stereotypes about the suitability of women and men for specific roles and occupations present a key chal- lenge to women’s employment in high- er-paid male-dominated sectors. So- Note [1] STEM disciplines in specialized secondary cietal perceptions of certain industries education include technical and technological specializations; and technical roles as inappropriate for women significantly impact education- Note [2] STEM disciplines in tertiary education include al and career choices, contributing to few- technical and technological specializations and specializations in natural sciences; er women choosing to pursue education Note [3] Technical fields within vocational education Note [4] The category ‘enrolled’ includes all the students include power engineering, electrical engineering, device studying for this level (e.g., four years of bachelor’s degree). manufacturing and optical engineering, radio engineering, communication and information technology, metallurgy, Source: The figures in table 1 were calculated by the research mechanical engineering and metal processing, aviation, team based on the data of the State Statistical Committee of space rocketry, marine equipment and vehicles, chemical the Republic of Azerbaijan 2023c. Education. and biochemical technology, primary demand and food https://www.stat.gov.az/source/education/?lang=en. technology, construction and architecture. 28 in STEM fields. Family support also plays numbers of women in senior and manageri- a particularly important role in influencing al positions are also attributed to insufficient women’s employment choices in Azerbaijan: talent pipelines, limited mentorship oppor- many families often do not support wom- tunities, and workplace cultures that per- en working in traditionally male-dominated petuate biases favoring traditional gender fields, and instead encourage them to pur- norms. sue careers in line with established gender norms, for example, in positions with fami- Germany’s national railway com- ly-friendly working hours (ADB 2019). Ad- ditionally, there is a persisting perception of pany Deutsche Bahn has adopt- traditionally male-dominated sectors such ed numerous measures to attract as transport as being too physically demand- and retain more women. Its re- ing and unsafe for women, despite techno- cruitment strategy and job ad- logical advancements that have reduced vertisements specifically target physical demands in these industries. Con- women for technical positions, cerns about safety and well-being, including including in engineering, IT, and issues of physical, psychological, and sexual maintenance. The company part- harassment, both real and perceived, add ners with schools and academic to the challenges women face in accessing these workplaces. institutions to raise awareness of railway sector jobs among young Outdated views on gender roles also impact women and girls. Deutsche Bahn progression in the workplace, with tradition- has also implemented flexible al notions of masculinity closely tied to deci- working arrangements, mentor- sion-making authority, technical expertise, ing programs for women return- and breadwinner status within the family, ing to work after maternity leave, while women are primarily perceived as care- as well as operating a crèche and givers, impacting hiring and promotion deci- sions made by managers (Halim et al. 2023; reserving places for employees’ Boudet et al. 2023). In the highly competitive children in other childcare insti- labor market of Azerbaijan, gender norms tutions. These measures have that position men as financial providers enabled Deutsche Bahn to con- contribute to women’s employment and in- tinuously increase women’s share comes being seen as secondary, resulting in in the workforce (reported at 24 men being given priority for promotions and percent in 2023) and win numer- raises (UNFPA and SCFWCA 2018). There is ous awards as the country’s ‘most no national strategy to combat these views, female-friendly company.’ and the problem is compounded by biased portrayals in media and educational materi- als, as well as women’s underrepresentation Source: Dailey 2024. in decision-making roles in the government, academia, judiciary, and public service. Low 29 2.3.3. Care responsibilities and lack of flexible working arrangements One of the key barriers to women’s employ- 14 days of paternity leave following the birth ment in technical roles in male-dominated of a child, or they can apply for 7 days unpaid sectors across Azerbaijan is a lack of flexi- leave to settle family, domestic, and other ble working arrangements and insufficient social issues (Labor Code Articles 128 and availability of support for employees’ care 130). However, paternity leave is rarely used responsibilities. Technical jobs such as crane in practice due to persistent gender stereo- operators and mechanical technicians often types that assign care work to women, and require work in shifts, night work, overtime the unpaid nature of paternity leave nega- and substantial work travel, which are diffi- tively impacts household budgets. cult to balance with family responsibilities, particularly for women who typically bear primary responsibility for caregiving and household duties within families (ADB 2019; To support women’s econom- UNDP 2018). Yet, few employers offer flex- ic participation, the United Arab ible working hours or workplace childcare Emirates adopted legal reforms in facilities to enable women to access employ- 2020 that introduced paid paren- ment in technical roles, contributing to wom- tal leave for male and female em- en’s greater concentration in administrative, office-based positions which are deemed ployees in the private sector and a more family-friendly. mandate for equal pay for work of equal value. Moreover, women often find it difficult to re- turn to work after maternity leave. Despite Source: World Bank 2022. Azerbaijan’s law providing for 126 days of paid leave during and after pregnancy and up to 3 years of semi-paid maternity leave, organizing leave can be difficult in practice due to a lack of flexible timetables and a lack of clarity regarding possibilities and proce- dures for returning to work after leave. Many women thus choose not to re-enter paid em- ployment after having children. The absence of paid paternity leave further limits wom- en’s participation in the workforce: Azerbai- jan’s labor law only entitles fathers to up to 30 2.3.4. Gender-based violence and harassment Gender-based violence and harassment in the workplace is a significant barrier to wom- India’s 2013 Prevention of Sexu- en’s employment, particularly in male-dom- al Harassment Act is a landmark inated industries in Azerbaijan. More than example of policymakers taking one in five workers worldwide are said to have decisive action to combat gen- experienced violence and harassment in the workplace, with women particularly likely to der-based violence and harass- be affected by sexual violence and sexual ment in the workplace. This leg- harassment at work (Maruo et al. 2023). Al- islation requires employers to though recent data on violence against wom- establish mechanisms for the pre- en in Azerbaijan is not available, estimates vention, prohibition, and redressal from 2017 indicate that as many as 211,800 of sexual harassment at work. By women (or about 4 percent of Azerbaijan’s providing a clear framework for female population) may have experienced addressing grievances and ensur- gender-based violence in that year (UNF- ing a safer working environment, PA and SCFWCA 2020), with the economic cost of violence against women amounting to the Act aims to create a more USD 764 million, or 1.8 percent of the coun- inclusive and supportive atmo- try’s GDP. Concerns about workplace ha- sphere for women’s employment. rassment are reported to deter women from pursuing jobs in Azerbaijan’s private sector Source: Ministry of Women and Child Devel- in particular, as well as contributing to fami- opment ly members’ reluctance to support women’s employment in male-dominated teams and customer-facing roles (UNDP 2018; ADB 2019). There is scope to strengthen the legis- lative framework on gender-based violence and harassment in the workplace. Although workplace sexual harassment is prohibited by the Law on Gender Equality (2006), it is not effectively addressed in the Code of Ad- ministrative Offences. 31 Photo credit: Vusala Asadova/World Bank 32 3. Increasing women’s participation in the transport sector: Azerbaijan Railways and Port of Baku 33 This section presents an overview of efforts on equal opportunity and women’s work- Both ADY and PoB have demon- force participation in two state-owned or- strated a commitment to increas- ganizations in Azerbaijan’s transport sector: ing women’s representation in the ADY, which manages and operates Azerbai- workforce. For example, PoB has jan’s national railway infrastructure and em- set a corporate target to achieve a ploys approximately 15,000 staff, and PoB, 20 percent female workforce share which employs around 600 workers. by 2030. As part of ongoing coop- eration with the World Bank, both companies have adopted gender action plans outlining concrete 3.1. Workforce profile3 steps and timelines to strengthen organizational policies and proce- Women in workforce: dures to ensure gender equality in • ADY – 17% of all employees all aspects of employment. PoB – 8% of all employees • Head office versus other business units ADY – women account 35% of • employees at head office, and 13% in supporting business units • PoB – women account for 36% of employees at head office but less than 5% of employees in other business units 3.2. Attraction: Women in technical engineering (male- Encouraging more women dominated) roles: • ADY – 10.7% of all employees to pursue careers in the • PoB – 2.5% of all employees transport sector Leadership roles THE CHALLENGE • ADY – 7.6% of leadership roles PoB – 5% of leadership roles. • Existing societal perceptions about work in the transport sector discourage women from pursuing technical careers with ADY and PoB. Focus group discussions with staff at the two transport compa- nies indicate that there are significant sociocultural barriers discouraging young women from pursuing technical careers at ADY and PoB. For example, many families 3 Figures represent workforce data between 2020-2022 (average of three years). 34 reportedly discourage their daughters from pur- suing vocational education and technical jobs The UN Women’s Empowerment deemed more appropriate for men. Addition- Principles (WEPs): In the context ally, respondents state that many people per- ceive technical jobs as requiring physical strength of their ongoing cooperation with and male-dominated industries as not safe the World Bank and building on for women. their existing membership in the UN Global Compact, both ADY and PoB are considering signing THE RESPONSE the CEO statement of support for Since 2023, ADY and PoB have taken active steps the UN Women’s Empowerment to highlight women’s contributions to the sector. Principles (WEPs). The WEPs are For example, PoB held a historical photo exhibi- tion on “Unsung Heroes” to showcase the critical a joint initiative of the UN Global role of women in the development of Azerbaijan’s Compact and UN Women and transportation and logistics system, with the pho- tos now on display in PoB’s main building. Similarly, set out seven principles to guide ADY’s exhibition on “Women in Railways” high- companies on how to empower lighted the key role women have played within the women in the workplace and be- railway industry. PoB hosted a “Women in STEM” event to recognize the importance of women’s yond. The signature of the WEPs representation in STEM, with more than 5,000 vis- sends a strong public signal of the itors attending. The company also tries to present companies’ commitment to equal a positive image of the workplace for women in all external communications, such as booklets, flyers, opportunities and gender equal- calendars, and notebooks, as well as by featuring ity that can help dispel miscon- female employees as part of the company’s “Faces ceptions about the ‘suitability’ of of the Port” campaign careers in the sector for women. Both ADY and PoB staff highlight the strategic importance of their companies for Azerbaijan’s development. They also present their work as in- teresting and dynamic, with opportunities for em- ployees to gain specialized experience to advance their careers. To raise awareness of career oppor- tunities in transport and encourage students to pursue railway and port specializations, ADY and PoB offer information sessions and site tours for partner academic institutions and high schools. To date, these initiatives have not specifically targeted female students, but the companies are working to develop more targeted outreach and enhanced external communications to engage and encour- age girls and young women to pursue careers at the companies. 35 3.3. Recruitment: Increasing the number of women joining the company THE CHALLENGE Companies face challenges to recruit more wom- To support recruitment efforts, ADY and PoB col- en, particularly in technical roles. Data reveal a laborate with educational institutions, including lower recruitment rate for younger women (aged universities and vocational schools, to offer intern- 18-30) at both ADY (16 percent) and PoB (11 per- ships for current students. In 2020-2022, women cent). Women with university degrees account for represented 16 percent of university students who a slightly higher proportion of all recruits (22 per- participated in ADY’s internship program (with 65 cent in ADY, 31 percent in PoB) than those with vo- percent subsequently hired for permanent em- cational degrees (18 percent in ADY, 12 percent in ployment) and 4 percent of interns from vocation- PoB). At both companies, women are significantly al schools. At PoB, the female share of internships more likely to be recruited in administrative and of- totaled 14 percent in 2022. To further expand the fice-based roles compared to technical positions. female talent pool for recruitment into technical roles, companies could consider introducing in- ternship placements specifically reserved for fe- male students in technical fields, particularly in vo- cational education, where the numbers of female THE RESPONSE interns and recruits are especially low. PoB has already committed to increasing the rep- Other measures include the development of ed- resentation of women in its labor force by 20 per- ucational programs that correspond to company cent by 2030. Setting specific and measurable tar- skills needs. ADY’s ongoing partnership with the gets to increase the recruitment of women across Azerbaijan University of Technology has resulted all levels of organizations is a best practice that in the creation of four new academic degrees in should be embraced by other male-dominated in- railway transport, helping the company fill antici- dustries. These targets should align with broader pated skills gaps by equipping graduates with the diversity and inclusion objectives and reflect the skills and knowledge required for employment in proportion of women in the available talent pool. the sector. ADY has also taken active steps to en- courage women’s recruitment into traditionally HR departments of ADY and PoB display high male-dominated fields, launching the program to awareness of gender gaps in the organization. train women to work as locomotive drivers. Both companies are working to strengthen equal opportunity in recruitment as part of ongo- ing efforts to improve HR policies and practic- es to ensure gender equality and support wom- en’s employment. These include the introduction of explicit provisions prohibiting discrimination based on gender and marital status in recruitment. 36 Robust community engagement is crucial for broadening youth awareness of diverse ca- Following the removal of legisla- reer pathways. PoB has taken this approach tive restrictions on women’s em- in Alat, a small town within the Baku munici- pality. Initiatives include collaborating with lo- ployment as locomotive drivers in cal schools, participating in community events, 2022, ADY launched the program and providing educational support for boys and in late 2023 to train the country’s girls. The establishment of the Alat EcoPark, fea- turing eco-friendly amenities, such as installing so- first female locomotive drivers. lar panels in the park, planting trees, and creating The announcement, made on In- children’s playground and a place for community members to come together, further demonstrates ternational Day of the Girl Child this commitment. Organizing school children’s and was widely praised. university students’ visits to the port, STEM festival for girls, and featuring women’s historic contribu- tion to the port by the “Faces of Port” exhibition are some of the examples showcasing varied career paths in the port industry to young people. Photo credit: Shutterstock 37 3.4. Inclusion at work: Building a respectful and safe work environment for all employees THE CHALLENGE THE RESPONSE Difficulty balancing work with family responsibil- ADY and PoB have introduced family-friend- ities negatively impacts retention among female ly policies to address these barriers. For exam- staff. Women’s turnover rate is higher than that of ple, staff at both SOEs may take time off to at- men at both ADY and PoB, with significant num- tend to personal and family matters. PoB also bers of women not returning to work after hav- offers financial assistance for employees starting ing children. At ADY, women’s turnover rate was a family and a one-time payment upon the birth 8 percent, compared to 6 percent among men, of a child, while staff at ADY are provided with while women’s turnover rate at PoB was 15.1 per- school supplies when their child starts school, cent, versus 10 percent among men. In the period as well as reduced rates for family holidays at the 2020-2022, an average of 23 percent of female company’s resort. The two companies recognize employees left their jobs within a year of returning the need to further support working parents in from maternity leave, with many citing family and balancing work with family responsibilities and household responsibilities as reasons for leaving. strengthen the retention of female staff, including through measures such as, flexible or part-time Real or perceived concerns about workplace safe- working arrangements, childcare support, paid ty and insufficient basic infrastructure for female paternity leave, and ‘return to work’ schemes to fa- employees, such as separate changing rooms and cilitate women’s transition back into employment bathrooms for women, can deter women’s em- after maternity leave. ployment in traditionally male-dominated tech- nical roles. Focus group discussions with ADY The companies are also taking measures to ensure employees indicate that some of the company that workplace facilities meet the needs of female facilities would benefit from separate changing staff. For example, PoB provides separate chang- rooms and bathrooms for women. Discussions ing rooms and bathrooms for women and men at with employees of both companies also revealed all worksites. These facilities are new, well-lit, and concerns about workplace harassment and ste- secure. PoB territory is also under camera surveil- reotypes about male-dominated being unsuitable lance, which staff report helps them feel safe in for women that discourage women from engaging the workplace. ADY’s newer train stations provide in fieldwork and gaining the technical experience women-only spaces to meet the needs of female necessary for career advancement. cleaners and conductors, and the company is committed to improving older facilities to accom- modate the diverse needs of men and women. 38 As part of ongoing cooperation 3.5. Progression: with the World Bank, ADY and Supporting women’s PoB have adopted gender action professional development plans outlining concrete steps and and advancement to timelines to strengthen company policies and procedures to ensure leadership roles gender equality in all aspects of employment. These include spe- THE CHALLENGE cific provisions on diversity and in- Companies are losing out on the benefits of gen- clusion, non-discrimination, pre- der diversity in leadership. Women account for vention of gender-based violence only 7.6 percent of leadership roles in ADY and 5 percent at PoB. Many women lack sufficient tech- and harassment in the workplace, nical and field experience, which are often required and procedures for their imple- for progression to leadership positions. Accord- mentation. ing to focus group discussions with employees, male colleagues tend to adopt a protective atti- tude towards female staff, resulting in women be- Both ADY and PoB are develop- ing discouraged or even barred from engaging in fieldwork even when it is part of their job respon- ing their Environmental, Social and sibilities. This confines women to office-based Governance (ESG) strategies. Gen- roles, limiting their exposure to crucial emergency der equality, a fundamental aspect response experiences in the field and impeding career advancement. Biases and stereotypes that of ESG’s social dimension, ensures deem men to be better suited to decision-making fair pay, treatment, diversity, and in- roles, alongside a lack of female role models, ca- clusion. By embracing equality and reer guidance, and professional connections re- quired for advancement further hinder women’s empowering women across all lev- progression. els, the companies aim to enhance innovation, improve corporate per- formance, and foster well-rounded decision-making essential for ESG success. 39 THE RESPONSE To support professional devel- Both PoB and ADY recognize the importance of opment among women employ- ensuring that women and men have equal ac- ees, ADY established a women’s cess to training opportunities and fieldwork ex- network aimed at fostering peer perience that support career development. PoB’s collective agreement requires that fair- support and providing valuable ness is a fundamental aspect of employee career career guidance to female profes- advancement, and both companies are com- sionals within the organization. mitted to ensuring that gender bias does not impact opportunities available to women and men as part of the ongoing efforts to improve HR policies and practices to ensure gender equal- ity. In addition, ADY offers training on manage- ment and leadership to support staff progression into leadership roles; in the period 2020-2023, 64 women and 575 men completed this training. Although ADY and PoB do not currently offer any specific programs aimed at facilitating career ad- vancement for women, both transport companies recognize the need for proactive action to increase women’s representation in leadership—including through internal rotation, on-the-job training, and other leadership development programs specifi- cally designed to streamline women’s career paths towards leadership positions. 40 Photo credit: Shutterstock 41 Photo credit: Shutterstock 42 4. Examples of best practices on equal opportunity and women’s empowerment in Azerbaijan 43 Recognizing gender diversity as a source of This chapter presents a selection of exam- competitive advantage, numerous compa- ples of best practices in gender equality and nies in Azerbaijan are proactively implement- equal opportunity from various companies ing strategies to boost gender diversity, pro- operating throughout Azerbaijan. mote equal opportunity in employment, and support female staff in their career progres- sion. 4.1. Technical skills training, STP’s “Power of Tomorrow” is a first-of-its- mentoring, and scholarships for kind initiative in Azerbaijan focused on train- female engineering students: Sumgait ing students specializing in industrial en- Technologies Park (STP) Group of gineering. Since its inception in 2022, the Companies program has benefited 300 students, 50 percent of whom are women. It fosters pro- fessional development by equipping stu- dents with the skills required by modern in- dustry. It contributes to the country’s human capital strategy through various trainings to enhance technical knowledge, soft skills, and mentorship from experienced STP employ- ees. This holistic approach prepares grad- uates for potential job opportunities within Sumgait Technologies Park (STP) Group STP and other industrial companies in Azer- of Companies is a key industrial player with baijan. large-scale production facilities in Azerbai- jan, offering high-quality “Made in Azer- STP’s “Fine Engineers” project is a targeted baijan” industrial products to consumers initiative that supports high-achieving fe- throughout the region, including Russia, male students from low-income families who Georgia, Kazakhstan, Kyrgyzstan, Turkmen- are pursuing technical degrees. By providing istan, and Türkiye. STP employs up to 2,000 academic scholarships alongside specialized workers across its 12 plants and more than 30 training by STP experts, the program equips production sites. women with the skills and knowledge to excel as professional engineers. “Fine Engineers” also aims to break down stereotypes around gender roles in the industry empowering women to explore new avenues for person- al and professional growth within technical fields. 44 4.2. Building respectful and inclusive CCI Azerbaijan’s Domestic Violence Policy workplaces: Coca-Cola Içecek seeks to foster a safe and supportive work environment by raising awareness about all forms of domestic violence. It empowers employees experiencing domestic violence by ensuring their careers are not adverse- ly affected and by guaranteeing confiden- tial support under company policies. CCI recognizes that a safe home life leads to a more productive and fulfilled workforce. CCI Azerbaijan’s Gender-Inclusive Lan- CCI is a multinational enterprise that pro- guage Guide was developed to support in- duces, distributes, and sells beverages of The clusion and respectful communication in the Coca-Cola Company across 12 countries, workplace. This guide empowers all employ- including Azerbaijan. CCI employs more ees to use inclusive language in everyday than 10,000 people at its 31 bottling and interactions, going beyond simply avoiding three fruit processing plants in the region, offensive terms to actively raise awareness of serving about 600 million people through the importance of gender-sensitive commu- approximately 1.2 million sales points.   nication and provide practical guidance. The CCI Human Rights Policy, which CCI’s Equal-Salary certification covers com- views equal opportunity and gender equal- pany employees in the region, including in ity as fundamental human rights, serves Azerbaijan. The international certification is as a foundation and guide for all em- issued based on a statistical analysis of all the ployee-related processes. The policy salaries and an independent on-site audit. is available in the language of each country The certification demonstrates CCI’s com- and is complemented with online training/ mitment to equal pay and equal opportunity communication campaigns to enhance em- for women and men. ployees’ self-awareness about their rights. It establishes an independent mechanism that supports a ‘Speak Up’ culture, where employees can comfortably raise grievances when needed. 45 4.3. Supporting women’s access to 4.4. Professional development education through scholarships: program for women: Nobel Energy AGA Group of Companies AGA Group of Companies is a leader in Azer- baijan’s non-residential construction sector. The group provides services to over 500 lo- cal and foreign companies and embassies. AGA offers an ‘Iron Scholarship’ program for female students in their third and fourth year of university studies. The program is financed Nobel Energy, part of NEQSOL Holding, is by AGA Group’s Fuzzy Coffee & Wine restau- an integrated energy production, develop- rant. In 2024 100 percent of the restaurant’s ment, and services company, with 18 years of monthly revenue will be donated to fund the experience. Nobel Energy focuses on peo- scholarships. The ‘Iron Scholarship’ program ple, technology, and sustainable resourc- reflects AGA Group’s commitment to foster- es to meet the evolving energy landscape. ing women’s development. The Nobel Energy Women’s Empowerment Program (NEWEP) is designed to empower female employees to reach their full poten- tial, forming part of the company’s commit- ment to promote gender equality, foster an inclusive workplace environment, and in- vest in women leaders. This eight-week ex- pert-led program provides participants with dedicated support to identify their career aspirations and professional development needs. Through targeted training and re- sources, NEWEP equips female employees with the tools and skills necessary to build successful and fulfilling careers at Nobel En- ergy. 46 4.5. Organizational diversity and Azerconnect also introduced other pro- inclusion strategy and flexible working grams to support women’s employment, arrangements: Azerconnect including gender-neutral job grading sys- tems, amendment of job descriptions to eliminate gender bias, regular analyses to identify and rectify gender pay gaps, an anti-harassment policy, and targeted pro- grams to support women’s progression into leadership and attract women to tech- nical roles. These initiatives are continu- ously evaluated to ensure their effective- ness, and the company has already seen positive business performance results: Azerconnect is the first business-to-business DEIB practices contributed to a reduction provider of ICT and other technical services in voluntary turnover from 16 percent in 2021 in Azerbaijan, offering solutions that enable to 12 percent in 2023, as well as a substantial an increase in quality metrics and cost opti- increase in women’s recruitment in technical mization to businesses across the country. roles. The company is one of the largest employers in the ICT sector. Azerconnect’s ‘Flexcellence’ program, in- troduced in 2021, offers employees flexible Azerconnect’s Diversity, Equity, Inclusion working arrangements that allow staff to and Belonging (DEIB) strategy represents work both from the office and remotely. The the company’s commitment to nurturing an transition to hybrid work aims to support tal- inclusive working environment. As part of ent acquisition and employee wellbeing. The the DEIB strategy, Azerconnect’s HR policies introduction of hybrid working arrangements and procedures were revised and updated to resulted in an increase in employee engage- ensure that principles of diversity and equal ment from 75 to 85 percent, higher levels of opportunity are incorporated at every stage customer satisfaction, as well as substantial of the employee lifecycle, from hiring to pro- cost savings as a result of resource optimiza- motion. The company also implemented an tion and reduced office space requirements. internal communication campaign to raise staff awareness of the strategy and provided tailored training to enable managers to rec- ognize and manage DEIB issues. 47 5. Recommendations 48 Photo credit: The State Agency for Vocational Education of the Republic of Azerbaijan. A young woman trains for a license to operate rail transport in a program by Azerbaijan Railways. 49 Women play an important role in key strate- Although this report focuses on the gender gic sectors of Azerbaijan’s economy, such as assessments in two transport companies, transport; however, there are significant and the recommendations are also informed by persistent gender gaps in their participation. international good practice and are rele- These gaps are particularly evident in rela- vant for other male-dominated companies tion to leadership and technical positions. in Azerbaijan and beyond. The recommen- Strengthening women’s representation in dations below are accompanied by a menu historically male-dominated sectors is com- of target indicators that can be adopted to plex and will require concerted and coordi- measure progress. nated efforts from policymakers and public and private sector companies across multi- ple fronts. 5,1. Recommendations for policymakers Action Rationale Target indicators Thematic pillar Promote women’s increased Women are underrepresented Number of female/male participation in technical and in many of the technical fields beneficiaries of STEM scholarships vocational training and STEM fields and STEM occupations that are or apprenticeship schemes of study. most in-demand in sectors such as transport, logistics, and other Number of employer / educational For example, the Ministry of traditionally male-dominated partners participating in scholarship Science and Education can partner sectors. or apprenticeship schemes with educational institutions and employers to promote women’s Skills gaps contribute to persistent Public awareness campaigns participation in technical and patterns of gender-based delivered to highlight career STEM fields of study, including occupational segregation, with low opportunities for women in TVET through: numbers of women employed in and STEM disciplines • ✓scholarship schemes technical occupations that make up • ✓apprenticeship programs the majority of jobs in these sectors. Increase in the share of women • ✓mentoring schemes employed in STEM professions. • ✓public awareness-raising campaigns to highlight career opportunities for women in non-traditional and STEM professions. 50 Collaborate with companies and Successfully increasing women’s Number of companies that have business membership associations employment in strategic economic joined the coalition (by sector) to establish or support industry sectors necessitates cooperation coalitions to promote women’s between policymakers and Number/description of outputs employment and leadership in companies. A collaborative produced by the coalition (good male-dominated sectors coalition led by policymakers could practice guides, toolkits) bring together key stakeholders The industry coalition can: to foster dialogue and coordinate Changes in company member • provide a platform to discuss action to promote women’s policies and practices concerning existing challenges engagement in technical and gender equality • develop strategies for leadership positions. coordinated action to support Success stories of women women’s employment benefiting from coalition measures • serve as a forum for companies or support to exchange insights and share best practices Increased number / share • facilitate dissemination of of women in the workforce, guidance to employers on leadership of member companies. measures to support women’s employment and leadership in different kinds of workplaces and industries. Strengthen legislation to mandate Transparent accountability Revisions to legislation equal pay for work of equal value mechanisms such as public and adopt measures to close the reporting frameworks can help Definition of mandates and gender pay gap through statutory drive organizational change by allocation of responsibilities for reporting requirements and regular creating awareness of gender pay implementation among gender pay surveys. gaps in the workforce and creating focal points within relevant concrete benchmarks for progress. ministries and government Policymakers can: departments • introduce legal provisions to mandate equal pay for work of Number / share of companies equal value complying with new requirements • ✓require companies to report annually on the gender pay gap Completeness / quality / public within each organization availability of reported data • ✓ensure effective coordination among gender focal points Reduced gender pay gap over time. across all ministries and government departments by clearly defining their mandates and responsibilities for implementation 51 Strengthen legislation on A supportive legislative Revisions to legislation workplace sexual harassment by environment is key to enabling introducing employer responsibility women to access roles in some Definition of mandates and for preventing and addressing industrial and infrastructure allocation of responsibilities for gender-based violence and sectors where workplace sexual implementation among gender harassment at work. harassment can be a barrier to focal points within relevant women’s employment. ministries and government Policymakers can: departments • ✓consider strengthening the legislative framework on the Number of companies that have prevention of workplace sexual adopted dedicated policies / harassment, including with initiatives on sexual harassment respect to employer obligations • raise awareness about the Number of awareness-raising impact of violence and initiatives on the impact of violence harassment, and relevant laws, and harassment, and relevant laws, and workplace policies that and workplace policies that prevent prevent and address these issues and address these issues • ensure effective coordination among gender focal points Decrease in reported incidence of across all ministries and workplace sexual harassment. government departments by clearly defining their mandates and responsibilities for implementation. Introduce paid paternity and Paid paternity leave can help Revisions to legislation parental leave to promote a increase women’s workforce more equal distribution of care participation after maternity Definition of mandates and responsibilities among women and by promoting shared care allocation of responsibilities for men. responsibilities but must be implementation among gender accompanied by proactive efforts focal points within relevant Policymakers can: to encourage uptake among ministries and government • introduce provisions on paid parents. departments paternity or parental leave into the legal framework Number of companies that have • implement measures to adopted dedicated policies / encourage the uptake of initiatives on paternity leave paternity and parental leave among men Increased uptake of paid paternity • ensure effective coordination leave among gender focal points across all ministries and Increased parity in share of unpaid government departments by care work between women and clearly defining their mandates men. and responsibilities for implementation. 52 5.2. Recommendations for companies Action Rationale Target indicators Thematic pillar Establish a gender strategy, with To make real progress, companies Introduction of time-bound clear corporate commitment to need to treat gender equality as gender strategy, incorporating equal opportunity and visible a strategic business objective targets, indicators, senior support from senior leadership. and establish meaningful leadership responsibilities, and leadership accountability, resource allocation Companies can: targets, data measurement, • ✓develop a formal company and action plans with resource Introduction of other policies strategy on gender equality allocation. A corporate gender or programs to promote equal and equal opportunity, with strategy, accompanied by a public opportunities key performance indicators for statement of support, sends a senior leaders clear message of commitment to Increased number / share • ✓issue a public statement of internal and external stakeholders, of women in the workforce / support for gender equality, for and provides a framework for leadership / technical roles at the instance by signing up to the demonstrating and measuring company UN’s Women’s Empowerment change over time. Senior leaders Principles play a key role in driving change Reduced gender pay gap at the • ✓ensure senior leaders speak throughout the organization and company. out in support of gender leveraging their public profile equality and provide personal to speak out in support of equal support for women’s increased opportunities. participation. Implement targeted outreach Persistent stereotypes pose a Participation in career fairs, initiatives to raise awareness significant barrier to women workshops, mentorship programs of career opportunities for pursuing education and or similar initiatives women, with a particular focus employment in technical fields, on attracting more women to making it crucial for companies Number of partnerships technical roles. to actively counter these biases established with educational through targeted outreach institutions to offer scholarships for Companies can: efforts. Many companies already women in technical studies • ✓introduce outreach and implement outreach activities and communications initiatives that external communication initiatives Success stories of women in target young women specifically with educational institutions (for technical roles featured in and encourage them to pursue example, by offering site tours to company communications technical education and careers school students), which could be at the company leveraged to specifically target Increased number / share of • ✓ensure that awareness-raising girls and young women. By actively women among job applicants, activities (e.g., site tours for encouraging girls to consider employees, technical roles. school students) emphasize a careers within the company, diverse range of roles open to companies can attract more women women to technical roles, fostering • ✓highlight successful women a more diverse and innovative in technical roles at the workforce while tapping into a company through external broader talent pool. communications, social media, and public events • ✓partner with educational institutions to offer scholarships for women in technical studies. 53 Implement measures to By incorporating equal opportunity Number / share of job ensure equal opportunities in elements into recruitment advertisements with wording to recruitment. materials, companies can signal reflect company approach to equal their commitment to gender opportunity Companies can: equality and encourage women • ✓incorporate equal opportunity to apply. Explicitly prohibiting Number / share women among elements into recruitment gender-based discrimination in interns and apprentices at the materials (job ads, external recruitment processes and policies company communications) sends a clear message that such • ✓introduce targets for women’s biases will not be tolerated, while Introduction and uptake of recruitment to ensure equal providing training to combat targeted skills training programs participation gender bias ensures that hiring for women • ✓introduce targeted internship managers can recognize and and job-preparation training for mitigate bias throughout the Number / share of women among women, focusing on technical recruitment process. Offering job applicants roles targeted internship and skills • ✓ensure that company training programs for women Number / share of women among recruitment processes and could further support recruitment new recruits, especially in technical policies explicitly prohibit efforts, particularly in roles roles. gender or marital status where women are typically discrimination, and provide underrepresented. training to HR staff and recruiters to combat gender bias. Foster a respectful and inclusive An inclusive work environment can Relevant policies, programs work environment in which all help companies attract and retain introduced and uptake among employees—including women— top talent and reduce costly staff staff (family-friendly policies, turnover. The availability of family- feel valued, safe, and able to “returnship” programs, and others) friendly policies is key to enabling carry out their work free from women to balance their professional discrimination and harassment. Number / attendance of staff and family responsibilities effectively, especially given that women trainings on relevant HR / sexual Companies can: typically bear primary responsibility harassment policies • ✓review HR policies and practices for unpaid care work within the to strengthen family-friendly family. Introducing return-to- Number / outcome of complaints working arrangements and work support through programs related to discrimination or introduce programs for those such as “returnships” can facilitate harassment (by issue) re-entering the workforce after women’s return to the workforce a career break after career breaks. Ensuring Improved employee satisfaction in access to appropriate facilities • ✓strengthen policies to prevent relation to workplace environment, at work and tackling attitudes and address workplace sexual safety at work that hinder women’s access to harassment, including the jobs requiring fieldwork can help introduction of a gender- address the underrepresentation Workplace infrastructure reviewed sensitive grievance mechanism of women in technical roles and and upgraded to meet needs of • review basic infrastructure support progression to leadership. female staff to ensure it corresponds to Strengthening policies and the needs of male and female grievance mechanisms to prevent Reduced staff turnover among employees (e.g., separate and address gender-based violence women employees. changing rooms) and harassment, and ensuring that • ✓ensure equal access to skills staff are aware of these through training and awareness-raising, is development opportunities, critical to ensuring that female staff including fieldwork feel safe at work. In addition, regular • ✓conduct regular staff surveys and consultation with staff satisfaction surveys to track can help companies monitor the the impact of gender equality effectiveness of efforts to build initiatives and identify additional inclusive workplaces and identify areas of improvement based on areas for improvement based on staff employee needs. needs. 54 Invest in leadership development Investing in leadership Introduction of mentoring program initiatives that specifically target development initiatives for and uptake women’s advancement. women helps ensure a pipeline of skilled talent for future leadership Number and share of women in Companies can: roles within male-dominated internal high-potential pipeline for • introduce mentoring programs sectors. Mentoring programs can management roles and succession planning efforts provide guidance, support and to cultivate a diverse leadership the connections necessary for Number and share of women who pipeline recruitment and advancement participate in leadership training • establish women’s networks to in the sector, while succession support women’s professional planning ensures there is a Women’s professional network development in the organization pipeline of qualified female established and number of and interest in the sector overall candidates for leadership roles participants • ✓consider targets or quotas as opportunities arise. Women’s for female representation in professional networks can Increased number / share of leadership roles. support career advancement by women in leadership roles. providing a platform for women to connect and share knowledge and experience, as well as raising awareness of the range of careers available to women in the sector overall. 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