Diversity & Inclusion in the APAC Region

DBP RESEARCH REQUEST

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Report Overview

Over three in five people worldwide live in the APAC region, representing well over 50% of the total global workforce, a share that's been steadily increasing for two decades. Approximately 750 million new workers are expected to enter the APAC workforce within the next five years alone, with four of the five fastest growing labor economies in the world concentrated in the region.

The growing presence of established multinationals, coupled with the dramatic spike in emerging businesses and the regional startup ecosystem, means that the competition for top talent in APAC will intensify in the coming years. In a region where compensation has historically been the key differentiator for most job candidates, initiatives like employer branding, work-life balance, and diversity and inclusion are rapidly emerging as key drivers to attract and retain top talent.

This report provides a wide range of information related to the state of diversity and inclusion in the APAC region, including:

• Population and workforce demographics (where available)• Description of country-specific cultural norms and barriers• Strategies for advancing diversity, equity and inclusion• Case study examples of company initiatives to advance diversity and inclusion in the region

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Female Representation APAC Labor Force

Women in Asia are on average 70% less likely than men to be in the labor force. The gender gap persists despite steady economic growth, increased access to education, and the desire of most working-age women to become employed.

The gender imbalance limits productivity and curbs economic growth. Estimates show that the removal of gender bias in education, the labor market, and the household in a typical Asian economy would increase per capita income by 30% and aggregate income by 6% over a generation.

The explanation for low female representation is not the same in each APAC country. In some, it may be the result of political indifference to the issue; in others, it may be the result of a masculine or patriarchal culture; in others, it may be the result of inadequate resources to support working mothers.

Source: OliverWymanPage 2

Female Representation in Leadership Positions

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According to a 2017 McKinsey study, key enablers to attract and

retain women in the APAC region are:

§ Logistical flexibility

§ Opportunity to work remotely

§ Freedom to change roles to tide over a critical time period, such

as maternity

§ Meetings scheduled only during work hours

§ Childcare facilities

§ Specific support for sick children.

Women in middle management want these enablers the most.

However, for many mid-career women, the costs outweigh the

benefits, and they choose to step back from their careers. Put

another way, there is a mid-career conflict that is resolved with

attrition.

Source: McKinsey 2017

Female Representation

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Talent Shortage in the Region

Inadequate education: Educational systems in the region do not make students and young talent immediately employable, driving the need for bridge programs focused on developing technical and leadership skills. While several countries have invested significantly in education for their growing populations, particularly in technology skills, even this influx of new, talented populations isn’t managing to keep pace with demand. In addition, many APAC economies have become the training ground for leading-edge companies in North America and Europe, creating further shortfalls in talent supply for APAC.

Lack of leadership skills. Because leadership skills are not prioritized early on, many of APAC’s job candidates lack the necessary know-how to succeed in high-level management positions and the ability to work across boundaries in a highly networked world.

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• The most widely used technology in the region continues to be job boards, although these vary significantly across APAC. Zhopin and 51Jobs enjoy significant market share in China, while DaiJob, GaijinPot and Indeed are the primary players in the Japanese market.

• Over four in five of all APAC internet users use social networks. While Western job seekers leverage LinkedIn, Facebook, and Twitter, these networks remain blocked in China, where employers use WeChat and Sino Weibo to engage and attract prospective candidates.

• Due to cultural considerations, social media sourcing has seen far slower adoption in the Japanese market, where it is considered uncouth for employers to publicly engage on personal social networks; this market remains reliant largely on online advertisements and published job postings, since passive recruiting is rarely done without a personal introduction and considerable discretion.

• Many employers are reliant on legacy ATS/CRM systems to provide the backbone of their recruitment efforts; approximately 80% of these systems do not support mobile devices.

• Across all APAC markets, from employer branding to online applications, the lack of mobile capabilities stand out as perhaps the biggest area of opportunity for technology to impact regional recruiting.

Recruitment Challenges in the Region

Source: AllegisAPACPage 5

Attracting – and Keeping - Top Talent

Worker turnover across APAC reached an all-time high of nearly 30% in 2017, according to the International Monetary Foundation, a trend that’s expected to continue.

It’s no longer enough to provide competitive compensation packages to attract top talent in competitive APAC markets—organizations need to differentiate themselves through employer branding.

Tap into business schools and universities to find and hire promising talent. Partner with universities and colleges that offer vocational courses around skill development.

Organizations can also alleviate recruitment challenges by taking steps to build a comprehensive employee value proposition.

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Source: OliverWyman

Advancing Women in the Region

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Invest in shifting attitudes about the role of women in society and workInstead of limiting parental leave to maternity leave – which reinforces the idea that women are the rightful caregivers at home - adopt a gender neutral parental leave. A host of companies have already started adopting the policy: Deutsche Bank, Aviva, Johnson & Johnson, Schneider Electric, CIMB Bank, and Facebook.

Increase access to and equal provision or family-friendly policies in the workplaceImplement flexible working policies – but not grudgingly. Encourage employees (both male and female) to make use of these policies, and ensure that pay raises and promotions don’t get affected. Have a look at how Telstra does it.

Increase economic incentives for women to remain in the workplaceEmployers should ensure that wages are determined solely by performance and not gender. To do so, a concrete and transparent performance management is needed. Another way is to let employees going on maternity leave know what their role will be when they return.

Encourage higher participation of women in STEM fieldsEmployers can work with universities inspire young girls to pursue a career in STEM like what Mastercard is doing, or create support and networking groups such as what women from Citi have come together to do.

Promote skills development for women working in lower-growth sectors and/or lower-paid rolesEmployers shouldn’t hesitate to invest in corporate training and lifelong learning. Better still, create a learning culture at your organization.

Achieving Gender Equality in the Region

Source: McKinsey Page 8

Source: EYReport

Advancing Women in the Region

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D&I Initiatives in the Region

3M believes diversity is essential to innovation, and inclusiveness is an integral part of culture in the matrix organization. As part of its global sustainability goal, 3M will double its pipeline of diverse talent in management by 2025:

• 3M’s D&I plan covers the entire employee life-cycle including talent acquisition, development, advancement, retention, and engagement.

• In the current focus in Singapore is on gender diversity. Whenever the company fills a position at its Singapore operations, they require the slate has adequate female representation.

• The company has targeted local strategies to recruit female talent from STEM disciplines to strengthen diversity in the areas of R&D and manufacturing.

• 3M Singapore launched a local women leadership forum (WLF) chapter in 2016 with the goal of attracting and developing female leaders at all levels of the organization through various initiatives, including lean-in circles, WLF dialogue sessions with senior executives, and mentoring programs.

3M Singapore

Source: HumanResourcesPage 10

Microsoft Japan created a paid internship of about six months to help women prepare to return to the workforce. The company recruits participants for the internship from among women who had quit Microsoft or other companies in the region. Interns are allowed to decide on their work days and hours in order to physically and mentally prepare themselves for full-time work. They are paid 250,000 yen ($2,213) to 450,000 yen per month depending on their assignments. After the internship, Microsoft Japan will decide whether to hire participants based on appraisals of their competence.During the internship, Microsoft will conduct programs — including career-readiness sessions conducted by LinkedIn — designed to encourage women in Japan to return to work through "telework opportunities." Telework, which allows people to do their jobs remotely, is still a new concept in Japan where corporate culture still emphasizes fixed working hours at an office.

The company plans to continue the internship for several years with a goal of employing dozens of workers to reinforce its core cloud computing business.

Microsoft Japan

Source: CNBC2018ReportPage 11

FedEx SingaporeAt FedEx Express Singapore, over 50% of management is composed of females. The company recently launched the FedEx women’s network (FWN) in Singapore – a first for the Asia-Pacific region.

FWN is addressing challenges specific to females in the workplace, facilitating professional development opportunities for high potential women, and serving as an outlet for networking and relationship building.

FWN members can connect with senior executives for mentoring and support. The network also hosts regular “coffee and connect” sessions for members, ranging from meet-and-greets with visiting female executives who share personal career growth stories, to simple catch ups and networking.

Q&A round table sessions are regularly scheduled with FedEx leaders to provide a direct line for FWN members to bring up questions on matters they are concerned with, in a manner that encourages candid conversation and a free exchange of ideas.

Citi’s Global Affinity Model extends to workers in Singapore, where Citi staff come from over 57 different countries and where one in three employees in the organization’s operations and technology division is female.

One recent initiative taken by Citi in the region is a training program to help participants uncover and deal with unconscious bias that hinder the establishment of a truly inclusive work environment. Managers are encouraged to step out of their comfort zone by mentoring a member of the opposite sex or someone from a different background.

Citi is also rolling out its Maternity Matters program across Asia; Singapore will be one of the first countries to implement the program. Under the new program, Citi allows maternity expense claims to be processed per new-born instead of per delivery, providing additional benefits to parents of multiples.

This benefit also covers adoption expenses. Working adoptive mothers are now eligible for 12 weeks of adoption leave; an increase from the four weeks offered previously. Additionally, starting in 2018, fertility treatment-related expenses are claimable from Citi’s flexible benefits program.

Strategies to Advance and Support Women

Source: HumanResourcesPage 12

Credit Suisse realigned its global diversity strategy to allow regional CEOs and senior managers to create programs that addressed the unique needs of their regions. In Asia Pacific, Credit Suisse executives created The Edge, a women’s development program targeted at middle level and senior women.The program helps women become better acquainted with the company’s corporate culture and gives them insight into how they can better achieve their career goals. For women in the Asia Pacific region, this means helping women develop confidence, working on communication skills, and learning how to navigate through the ranks.

Participants benefit from the program’s personal branding and mentoring components, as well as its networking element which allows women to mix with other women across divisions to share ideas, information and support on a personal and professional basis.

The Edge program has been successful with female executives in Asia Pacific; 61% of female directors and 37% of female vice presidents have participated.

Case: Localized D&I Strategies Key

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Roche Diagnostics SingaporeIn Singapore, Roche Diagnostics offers flexible working hours, and the same maternity and childcare benefits for all women, regardless of nationality or marital status.

The company also offers free diagnostic testing like the HPV DNA test and Non-Invasive Prenatal Testing (NIPT) to all women employees, and the spouse or partner of male employees with the belief that early testing and detection can save lives.

Today, 36% of the company’s regional leadership team comprises women and at country level women represent 50% of the local leadership teams.

The Citi Women’s Leadership Development Program is designed for female leaders at the VP level and above. To date, 31 women from Singapore have participated in the Program.

The company’s EDGE development program, designed for women holding the rank of assistant VP, stretches over six months and is designed to help female AVPs develop skills in areas such as personal branding, networking, work life integration and communicating with impact.

Citi implemented activities aimed at career as part of International Women’s Day in Singapore, engaging nearly 10,000 Citi staff. The events also engaged female clients in a dialogue addressing gender diversity and ways to create more opportunities for women.

Citi has contributed over S$1.87 million to the Tsao Foundation as of 2016. The Foundation’s Financial Education Programme for Mature Women equips low-income women with the essential financial knowledge and skills in planning for their silver years.

Strategies to Advance and Support Women

Source: HumanResourcesPage 14

JP Morgan targeted a 63% rise in the number of students to be recruited for roles located in China in 2018. In 2017, 39% of campus recruits came from a background outside of finance, accounting and business in the Asia Pacific excluding India. In China, 28% of campus recruits in 2017 were from majors including mathematics, human resources, public affairs, energy management, English literature, and psychology.

The company recently launched its first careers pop-up campaign called All Minds Wanted to encourage students from all disciplines, not just finance and business, at the Shanghai University of Finance and Economics, which attracted over 200 students.

The event enables students to interact with the bank's executives in a less formal environment to encourage a more relaxed interaction between the parties.

On average, the company draws around 30,000 applications for its graduate and internship positions in Asia Pacific. It employs about 1,000 students as full-time analysts and interns each year.

JP Morgan Invests in Women

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The Bank of Tokyo-Mitsubishi with more than 35,000 employees, supports various measures to retain working mothers and fathers. Before going on maternity or childcare leave, all employees are interviewed and receive training to motivate them to return to work. Employees can take special leave prior to childbirth, choose shorter work hours, receive an exemption from overtime, and schedule hospital appointments during work hours.During leave, the bank continues to provide information through its “wiwiw,” a website that supports skill-building for employees on maternity or childcare leave. Employees are also interviewed before they return from maternity or childcare leave. After returning from leave, employees receive back-to-work training. This is designed to motivate employees to work efficiently within a limited time and help them consider their mid- to long-term career path and work-life balance. Parents can take advantage of shorter work hours for childcare, exemption from overtime work, nursing care leave, flex-time, childcare services, daycare subsidy, and babysitter discounts.

Mothers receive additional childcare benefits when they return to work until their children reach one year to encourage them to return to work. The bank operates globally; policies and programs differ among countries depending on their social, cultural, economic, and political contexts.

Improving Parental Leave Benefits

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