Healthy Women, Healthy Economies Report

Merck, a leading science and technology company, released the findings of its comprehensive report on factors impacting working women in China and recommends gender diversity policies and practices to address them.

A 2020 World Bank report, for example, found that if women earned as much as men, the total gain in human capital wealth from gender equality is estimated at US$ 172 trillion – twice the value of GDP globally. And, given that female labor force participation in the APEC region has been estimated just below 60% over the past few years, there is plenty of room for improvement to ensure that women play a more significant role.

Merck is committed to empowering women in the workplace. Their global initiative Healthy Women, Healthy Economies seeks to unleash the economic power of women by partnering with local experts to identify the culturally specific factors that impact women’s wellbeing. For the China-focused report, Merck partnered with SCHSAsia to understand working women’s lived experiences and HR professionals’ perspectives in China. Earlier today, the key findings were launched at the “Empowering Women Drives Economies” forum co-hosted by Merck and SCHSAsia .

Consistent with global trends, the study reveals that Chinese women suffer the “double burden” of working and managing disproportionate household responsibilities such as childcare, elderly care, and housework. Societal expectations pressure women into conventional roles at home which has a direct impact on their career prospects. 50% of women reported being asked personal questions about their childbearing and marital status during job interviews, despite this discriminatory practice being outlawed in China. According to the report, some HR professionals see this as a “practical issue” and consider the likelihood of a female candidate taking maternity leave to be “an important risk factor when the team’s workload and headcount are stretched”.

In addition to job prospects, biased perceptions and struggles with work-life balance also negatively impact Chinese women’s opportunities and advancement in the workplace. While many organizations are making a concerted effort to increase representation of women in the workforce and in leadership, women are more likely to be represented in support functions as opposed to P&L functions that directly affect the bottom line. Men are still viewed as “stronger leaders and risk-takers” and working mothers may choose to adhere to a more fixed work schedule and take fewer business trips in order to attend to their familial responsibilities.

For those women who succeed in progressing up the pipeline, they are faced with a final hurdle, the retirement gap. According to current Chinese law, which is set to be adjusted, women are required to retire between five to ten years earlier than men. This disincentivizes employers to develop female leadership and, consequently, decreases women’s financial power and increases pressure on grandmothers to take primary childcare responsibility for their grandchildren.

These challenges not only affect Chinese women’s ability to be hired, advance, and succeed at work, they also negatively impact women’s mental health and wellbeing. Nearly 40% of women reported having experienced psychological issues such as stress, burnout, and insomnia.

What can organizations do to combat these issues and create a level playing field that supports women’s success and wellbeing? The study offers three recommended strategies taken from leading multinational companies (MNCs) in China.

• Make everyone accountable for Diversity, Equity and Inclusion (DE&I) by setting clear targets, implementing inclusive hiring measures, and integrating financially incentivized KPIs into staff performance reviews.
• Offer Flexible Work Arrangements (FWAs) to support work-life balance, for example through career and replacement planning for new mothers prior to maternity leave, engagement during leave, and flexibility upon their return.
• Cultivate a healthy pipeline of female talent by providing a range of coaching, mentorship, sponsorship, and assistance programs to develop and advance women into leadership roles and support their overall wellbeing.

Creating equitable work environments that support and empower women is in line with China’s national agenda. Beyond MNCs, domestic companies are taking innovative approaches to do so through employer-funded childcare. Hong Chow, Head of China & International, Healthcare at Merck boldly stated, “according to the World Economic Forum, it will take 268 years to close the economic gap between men and women. We believe China can do it faster.”

Following the report launch, leaders engaged in a productive dialogue to discuss further strategies for closing the economic gender gap. The discussion highlighted the power of women leaders and male allies to bring about transformative change.

Allan Gabor, President of Merck China and Managing Director of Merck Electronics China, Merck offered an inspiring parting message, “There are no differences between men and women or other genders when it comes to being innovative – there are no female or male genes for creativity. A diverse workforce, combined with an inclusive company culture, is good for business and the society.” He hopes the report will “inspire actions that can lead China to be the first country to achieve full gender economic equality”.