Empower women to reignite careers

MALAYSIAN women face significant hurdles in re-entering the workforce after career breaks despite being among the most educated demographics.

This female “returners” shortage has significant economic implications for the country and as such, diversity, equity and inclusion workplace policies must effectively capture their value.

The good news: Malaysia is outperforming other Asian nations when it comes to gender representation.

A study in 2023 shows that women comprise 28% of directors at large companies and 40% of senior management teams.

A closer inspection however reveals a worrying trend: despite comprising 61% of university graduates, Malaysian women are more likely than their male counterparts to leave their jobs mid-career.

Statistics show a “single peak” pattern in female labour force participation – in which women enter the workforce after graduating but often exit and do not return later.

As of 2022, Malaysia’s female labour participation rate was just 55.6%, relative to the male labour participation rate at 82.3%.

Besides feeling a lack of purpose, encountering biased hiring managers, and possessing outdated skills, women also contend with longstanding socio-cultural factors, often disproportionately bearing the responsibilities of childcare (42% cite this as the reason for not working) and elderly care in a rapidly ageing society.

A lack of accessible, available and affordable care infrastructure contributes to women exiting the workforce.

A 2021 Gartner study reveals that 53% of women reported that the pandemic caused them to question the purpose of their day-to-day job, underscoring the importance of creating a conducive workplace to convince women to return and contribute productively at their jobs, beyond the fulfilment that many get from caring for children and elderly relatives.

Women matter, greatly

The World Bank estimates economic growth is constrained when a country fails to fully utilise its human capital from both genders and points out that increasing female workforce participation could boost the country’s per capita income by 26.2%, which translates to a potential of around RM10,000 annual gain for each Malaysian.

With over 1.3 million additional women joining the workforce in the last decade, imagine the potential if barriers to re-entry were reduced or removed.

These gains, or rather, missed opportunities, highlight the necessity for comprehensive support systems and a shift in cultural and organisational attitudes or we risk losing out on nearly half of our workforce within a matter of 10 or 15 years.

These are often highly educated and capable workers who are being lost with significant productivity detriment for the whole society.

Rethinking gender norms

In this regard, a new norm is emerging.

While many companies have started providing extended maternity leave and affordable childcare as a means to support women in their careers, some European countries and multinational companies have offered paid time off work for fathers for up to six months to fulfil their parenting duties.

Research points out that men taking extended paternity leave tend to reduce the gender wage gap, while accruing benefits at home – including some studies showing lower divorce rates, and closer relationships between fathers and their children even years later.

While it involves some short-term costs, more generous paternity leave can provide substantial long-term economic gains for businesses and national economies. By normalising equal responsibility in childcare and rethinking entrenched gender norms in parenting, women returners do not need an extended hiatus to mind the “home ministry” and by returning to work sooner, can continue to deepen their skill sets and remain relevant to the workforce.

Making the ‘comeback’ attractive

On hiring policy, a lot more needs to be done. Today, 92% of employers in Asia do not have a recruitment strategy targeted at returning women.

According to Robert Walters’ recent findings on understanding employers attitudes towards women returning to work, close to half (46%) of hiring managers have yet to employ any returning women.

Recognising this, the Malaysian government launched the Career Comeback Tax Exemption programme and increased childcare allowances to incentivise women returners.

PwC Malaysia, for example, launched its Career Comeback initiatives with flexible arrangements to attract and retain women re-entering the workforce after career breaks.

AirAsia, for instance, has rehired many of its female pilots and crew, including many mothers. It has redesigned their uniforms to provide mothers with privacy when pumping breast milk.

“A small step but a great way to welcome them back” says Capital A chief executive officer Tan Sri Tony Fernandes.

Other companies such as RHB Bank are investing in upskilling their female employees in senior positions.

The bank, with the University of Melbourne’s business school, co-created a six-month women’s leadership programme that broadened participants’ perspectives, enhanced decision-making, fostered compassion for challenges faced by women, and reaffirmed leadership aspirations.

Such initiatives drive gender diversity and inclusion, unlocking a competitive advantage by accessing a wider talent pool.

New roles are also emerging – in critical areas such as environmental, social and governance – which offer a chance for women to realise their natural potential while providing a sense of greater purpose through impactful work.

Beyond programmes for reskilling, coaching, tax benefits and facilitating job opportunities for women returners, broader cultural shifts are still needed.

The private sector can also open up opportunities for internships, mentorship, flexible work arrangements and leadership development programs for returnees on a full time, part time, project of flexi basis.

For many companies looking to tackle diversity and inclusion at the workplace, there is room to reintegrate women into the workforce which unlocks competitive advantages in the business of a better tomorrow.