Gender Inclusion in the Workplace: A Cornerstone of Sustainable Transformation People

It is always important to consider the regulatory environment. Looking at the “S” in ESG, one must reflect on the pillars of diversity, equity, and inclusion (DEI). In the South African context, gender inclusion is no longer just a moral imperative: it is a regulatory, social, and economic necessity.

While progress has been made through policies such as the Broad-Based Black Economic Empowerment (B-BBEE) Act and the Employment Equity Act (EEA), the lived reality for many women in the workplace tells a more complex story. Gender representation, especially at the C-Suite and board levels, remains disproportionately low. For South Africa to truly achieve its transformation agenda, both the public and private sectors must take bold, measurable steps to address this imbalance.

The Department of Higher Education and Training says in its’ FACT SHEET ON GENDER FOR STUDENTS IN PSET INSTITUTIONS, 2022 published in July 2024, more than 62% of all enrolled students in our Tertiary institutions are female.

However, according to the Commission for Employment Equity - CEE Annual Report 2023, women make up only 45.5% of the economically active population and remain underrepresented in executive management (24.6%) and top management positions (16.9%). This underrepresentation is particularly stark for Black African Women, who face the dual challenge of race and gender inequity in accessing leadership roles.

The gender pay gap further highlights systemic inequality. A 2021 study by the Southern Africa – Towards Inclusive Economic Development, SA-TIED programme found that women in South Africa earn, on average, 23% less than men for comparable work. This gap is even wider in male-dominated industries such as engineering, mining, and technology.

Globally, the pattern persists. The World Bank, 2022 noted that only 47% of women participate in the labour force. Within the corporate sector, the IMF 2023 reported that only 8% of CEOs globally are women, a figure that may underscore the structural barriers that persist across geographies.

A report by the McKinsey Global Institute 2020, suggests that advancing gender equality could add R2.1 trillion to South Africa’s GDP by 2030. Inclusive leadership teams are proven to deliver stronger business outcomes: they are 21% more likely to outperform on profitability and 27% more likely to demonstrate superior value creation McKinsey, 2019.

From an ESG perspective, the “S” dimension, social impact, is now a critical driver of investor confidence and regulatory compliance. Increasingly, investors, employees, and customers want to engage with companies that demonstrate a commitment to inclusion, fairness, and equity.

Research has shown that over 60% of women in South Africa are the primary purchaser within the household and so decision-making in the consumer market is increasingly influenced by women, from organisations that do not necessarily reflect them.

In short, gender inclusion is not charity; it is strategy.

The Employment Equity Amendment Act 2023, marks a significant turning point in South Africa’s transformation journey. The amendments give the Minister of Employment and Labour the authority to set sector-specific numerical targets for workforce representation. These targets are intended to:

• Address systemic exclusion of women and other designated groups.
• Ensure equity across occupational levels (from junior staff to executive management).
• Provide measurable benchmarks for compliance.

Employers are now required to align their Employment Equity Plans with these sectoral targets to obtain an EE Compliance Certificate, a prerequisite for doing business with the State and of course, a function of being a “good citizen”, as a requirement for governance. 

Despite legislative progress, several barriers continue to limit meaningful gender inclusion:

1. Cultural and social norms: Persistent stereotypes about “male” versus “female” roles create invisible ceilings for women in technical and leadership positions.
2. Work-life integration: Women disproportionately carry the burden of unpaid care work. The UN Women South Africa Report, 2023/24 highlights that women spend three times more hours on unpaid care work compared to men.
3. Recruitment and retention gaps: Companies often recruit women at entry-level but fail to retain or promote them into leadership roles.
4. Pay inequity: The wage gap continues to reinforce structural exclusion.
5. Limited mentorship opportunities: Access to influential networks and mentorship remains skewed in favour of men, with women needing to prioritise this aspect of doing business.

Added to this, the dilemma of target-setting as an approach to equality, does not necessarily give women a seat at the table as they are (can be) perceivably there for quotas and not considered an authentic participant in strategic decision or operations.

While the challenges are significant, they are not insurmountable. Organisations can implement practical strategies to ensure real progress: 

1. Align Policies with ESG and principles of non-discrimination: Organisations need to address exclusion and discrimination at every level in order to achieve a different result. This means policy, practice and control measures to ensure that real or perceived discrimination, at any level, and on any basis, is systematically eradicated.
2. Invest in Leadership Pipelines: Building a pipeline of future leaders requires deliberate investment in:
   1. Graduate recruitment programmes hiring without discrimination
   2. Learning pathways to develop not only today, but tomorrow’s pipeline of leaders
   3. Developing programmes that are multi-year, multi-faceted programmes drive excellence in the employee experience and drive brand loyalty, achieve risk mitigation and depth of skill which drive business performance
   4. Creating an environment for each employee to meet their full potential needs to be considered including people with physical disabilities, women who may need flexi-time to accommodate motherhood without dropping out of the active employment pool and addressing physical limitations for women at work such as safety, risk, ablutions, living conditions and intimidation. 
3. Flexible Work Models: Hybrid and flexible work arrangements can reduce barriers for women who shoulder home and care responsibilities, ensuring they remain competitive in the labour force and are able to achieve their career goals without exiting the workplace.
4. Transparent Pay Practices: Conducting annual pay equity audits helps to identify and close wage gaps. Transparency in remuneration policies is a critical trust-builder with employees.
5. Data-Driven Reporting: Transformation cannot be achieved without data visibility. Companies must collect, analyse, and publish gender-disaggregated data to measure progress and guide interventions. Focus groups and communication forums are vital as often discrimination is embedded, inadvertently and unintentionally as an organisational norm and there needs to be active lines of communication that allow for introspection.
6. Accountability and Compliance: Executives and managers should be held accountable for any acts of discrimination and it should be accepted as an organisational value or norm that discrimination is not tolerated. 

We recognise that transformation can be complex and is more than reporting and regulation. Any “people” strategy is a journey towards authentic, sustainable change. Over the years, we have:

• Partnered with business and public sector to align EE plans with the latest legislative amendments.
• Designed custom-developed and focused leadership development programmes that follow learning pathways to create depth of skill in all races, genders and abilities
• Converted Transformation and empowerment strategies into business strategies that make commercial sense
• Leveraged digital platforms to simplify compliance reporting while ensuring accuracy and visibility.

Our commitment is not only to support compliance but to drive lasting cultural and structural change within organisations. 

The introduction of sectoral targets under the amended Employment Equity Act will create new urgency for companies to prioritise gender inclusion. Those that succeed will not only comply with legislation but also unlock innovation, resilience, and growth.

True transformation means creating workplaces where all employees, regardless of gender, have equal opportunities to thrive, lead, and contribute. It requires courage from leadership, accountability from boards, and a culture of inclusion across all levels.

The journey toward gender inclusion is not optional. It is the cornerstone of a transformed and sustainable South Africa.

If you’d like to learn more about how we can partner with your organisation to drive meaningful transformation and sustainable impact, reach out to:

Rorisang Chochi

E: This email address is being protected from spambots. You need JavaScript enabled to view it. | T: +27 (0) 11 706 9006