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HR Tech Outlook | Monday, December 13, 2021
Bridging the gender gap in the workplace is one prospective factor to drive economy growth in Central and Eastern Europe (CEE). It is noted that women are underrepresented in the business leadership and they aim to eradicate this issue to improve the economic growth.
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FREMONT, CA: Since the region's transition to a market economy three decades ago, Central and Eastern Europe (CEE) has experienced what many have referred to as a golden age of growth. In the 15 years between 2004 and 2019, the region's per capita GDP increased by roughly 110 percent. However, the conditions that drove that growth, such as low labour costs and strong core sectors, are now losing steam. CEE must develop new sources of competitiveness and bridging the gender gap in the workplace is one prospective source of growth. In business leadership, it is noted that women are underrepresented in the seven CEE countries namely Croatia, the Czech Republic, Hungary, Poland, Romania, Slovakia, and Ukraine as per the study.
According to the analysis, increasing measures to eliminate the gender gap in CEE may generate up to 146 billion euros in annual GDP by 2030, which is nearly the size of the economies of Slovakia and Croatia combined. This incredible gender opportunity has the potential to put the region squarely back on the path to dynamic growth. McKinsey studies show that a higher proportion of women in top management positions correlates to better financial performance by individual companies and they supplemented a five-year global analysis of 1,000 large organizations with fresh data from more than 200 major companies in the Czech Republic, Hungary, and Poland to confirm that this correlation also applies to companies in CEE. Their review of the whole data set indicated that organizations with the most gender diversity in their executive teams outperformed those with the least diversity 26 percent more frequently. Companies in Central and Eastern Europe who want to expand women's presence and power in the workplace encounter distinct hurdles. Their civilizations lag behind their Western European counterparts in terms of gender balance, according to the McKinsey Global Institute's Gender Parity Score.
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