Steady Increase in the Proportion of Female Executives in Companies Under Performance- and Ability-Based HR Systems
The notable HR keywords among major companies in 2021 are ‘young talent,’ ‘women,’ and ‘diversity.’ Bold personnel moves were made, such as appointing millennial executives and the largest-ever number of female executives, mainly in large corporations. As the uncertain business environment due to COVID-19 continues, it is interpreted that companies aimed to accelerate innovation through performance- and ability-based personnel decisions, moving away from past criteria such as age and gender.
In particular, despite reducing the number of executives due to COVID-19, the trend of expanding female executives that has continued in recent years persisted. According to the '2020 Survey on Female Executives in Korea’s Top 100 Companies' released by global headhunting specialist Unico Search, the number of female executives in the top 100 companies increased by 17% compared to the previous year, and the number of companies with female executives doubled from 30 in 2011 to 60 in 2020.
What is the actual working environment like in companies that continuously expand female executives? We introduce representative companies that consistently create a favorable environment for women to work and provide equal opportunities regardless of gender, resulting in a high proportion of female executives.
CJ CheilJedang
CJ Group promoted a record eight female executives in 2021. Among its affiliates, the proportion of female executives at CJ CheilJedang was 18.7% as of the end of 2019, steadily increasing every year. This is significantly higher compared to the 4.1% female executive ratio among all executives in the top 100 companies. CJ CheilJedang applies gender equality in its HR systems, including compensation, evaluation systems, and wage structures to strengthen female capabilities. It does not differentiate jobs by gender and conducts leadership training for female employees to foster managers. Additionally, it operates various programs such as the workplace daycare ‘CJ Kidsville,’ employee IDs for pregnant women, and infertility support leave to help women build careers without interruption due to childbirth or childcare.
Amorepacific
In the 2020 Gender Equality Index evaluated by the nonprofit Women Innovation and CEO Score for Korea’s top 500 companies, Amorepacific scored full marks in female employment rate and female executive ratio. The number of female employees was twice that of males, and the female executive ratio was 24.6%, placing it among the top ranks. Amorepacific runs various support programs for its employees to help female talent steadily build their careers. It operates a shortened work program for pregnant employees and an in-house childcare program, and has established an on-site clinic at headquarters to create a comfortable work environment.
Essilor Korea
Global eyewear lens brand Essilor Korea is one of the companies where female leadership stands out due to a high proportion of female executives. According to Essilor Korea, the female executive ratio is 60%, which is significantly higher than the 4.1% female executive ratio among Korea’s top 100 companies. Both the APAC president and the head of the Korean branch are women. Essilor Korea’s CEO, So Hyosoon, is a representative female leader who started as a customer service manager and rose to become the head of the Korean branch.
The background to this includes a performance-based HR system that provides equal opportunities to both men and women and institutional support. In fact, the average maternity leave usage period for Essilor Korea employees over the past three years, including prenatal and postnatal leave and parental leave, is 290 days, actively encouraging employees to balance family and work. As a result, the return-to-work rate after parental leave over the past three years is 100%, with a career interruption rate of 0%.
As securing diversity is demanded worldwide, the trend of expanding female executives in domestic companies is expected to continue. However, the female executive ratio in Korea is still significantly lower than in advanced countries, and the female talent pool remains small. Attention is focused on the need for domestic companies to establish cultures and institutional measures that allow diverse members to work based on ability without discrimination.
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