Arab News, Thu, Mar 14, 2024 | Ramadan 4, 1445
Women returning to work after career break could add $385bn to MENA economy: PwC
Saudi Arabia:
Women rejoining the workforce after a career gap could contribute $385 billion
to the economies of nine Middle East and North Africa countries, a survey
showed.
According to a study conducted by PwC Middle East,
this opportunity to increase the gross domestic product highlights significant
employment potential in the region. This will prompt companies to adopt
supportive measures facilitating a smooth transition for women reentering the
workforce.
The survey indicates that nearly 50 percent of
working women in the MENA region have taken career breaks, often influenced by
family and caregiving responsibilities, with over 68 percent at experienced
levels and above.
The findings are derived from insights gathered
from over 1,200 women in Saudi Arabia, the UAE, and Qatar, as well as from
Egypt, Bahrain, and Jordan, with respondents also from Kuwait, Lebanon, and
Oman.
While 82 percent of women returning to work
believe they can climb to the top levels, 49 percent acknowledge rejected
applications due to resume gaps.
The report, which integrated crucial perspectives
from CEOs in the region, suggests that implementing flexible working models for
women could generate approximately $4.3 billion in GDP gains across the nine
surveyed countries.
It emphasizes the need for employers to take
action, particularly through returnship programs, which 83 percent of women view
as crucial in influencing their decision to rejoin the workforce.
The professional services firm revealed that
implementing equitable parental leave policies, along with well-designed
returnship programs, can encourage more women to return to employment.
Norma Taki, Middle East inclusion and diversity
leader, transaction services partner and consumer markets leader at PwC, said:
“Women returning to work face obstacles to career advancement as employers do
not view career breaks favorably, which results in a negative impact on earnings
and career progression.”
However, she said career breaks can offer profound
personal growth opportunities.
The study underscored the importance of providing
flexible or remote working models for women, enabling them to balance their work
and home responsibilities.
“Our experiences have shown us a clear link
between the well-being of a community and the participation of women in the
workforce. That is why we believe that every voice needs to be valued and every
individual must be empowered to channel their talent for the greater good,” said
Taki.
She warned that failure to bring back women to the
workforce would be a significant loss of talent for organizations. “By
facilitating the return of women to the workplace after a career break,
organizations can improve their human capital, contributing to the region’s
future success.”
The report further pointed out that rapid economic
and social transformation in the region, where national development strategies
and policies have played a crucial role in bridging the gender gap in the labor
market, is elevating the number of women in the workforce.
At the same time, businesses must address the risk
of unconscious bias by implementing inclusive workplace policies and providing
training for teams, leaders, and talent acquisition, as emphasized by the PwC
study.
However, some employers assume that returning
women lack experience or have diminished skills, resulting in the rejection of
their job applications.
The research document highlights that women
rejoining the workforce face several challenges, including employer stigma and
the risk of experiencing slower career advancement or reduced earnings compared
to their peers due to being “mommy tracked.”
The term is used to describe a life path for women
that prioritizes motherhood, often resulting in delayed career growth.
The survey results also indicated that the longer
the time spent out of work, the more challenging it is to return.
“Ultimately, the onus is not just on the female
professionals – it requires concerted effort and shared responsibility among
employers, governments and societies at large,” added Taki.
The report underscored that the vast pool of
talent brought by women re-entering the workforce is crucial for the success of
businesses across the region.
Hani Ashkar, Middle East senior partner, PwC
Middle East said: “We’ve made continuous progress in increasing the
representation of women across our firm, and while we have more work to do,
we’re proud of the progress we've made in addressing biases and inequalities
that contribute to gender disparities — especially for experienced professionals
who have taken career breaks.”
PwC concluded the report by stating that embracing
women’s roles in the workforce is not only a moral imperative but also a key
catalyst for growth in the region.
"By taking proactive action, businesses can move
the needle from awareness to action and results," Ashkar added.
In November 2023, the World Bank stated that Gulf
Cooperation Council countries have witnessed “a remarkable increase” in female
labor force participation as the region steadily pursues its economic
diversification journey.
A report by the International Monetary Fund the
following month noted that countries in the GCC region have increased their
average female labor force participation by more than 10 percent over the past
two decades.