The percentage of women board members on the corporate boards of companies in the Russell 3000 index exceeded 20% in the second quarter of 2019, marking the first time women have held more than one-fifth of Russell 3000 seats, according to the findings of a quarterly index that tracks gender representation on corporate boards released by corporate governance solutions provider Equilar.
The “Equilar Q2 2019 Gender Diversity Index” (GDI), published on September 11, is the latest report since the GDI was first published in January 2017. Researchers noted that at that time, just 15% of boards seats in the Russell 3000 index—an index that seeks to serve as a benchmark of the entire U.S. stock market by tracking the performance of the 3,000 largest publicly-traded U.S. companies—were held by women, and less than 25% of board vacancies that came open were being filled by women.
The latest GDI found that the percentage of women on Russell 3000 boards increased to 20.2% in Q2 2019, up from 19.3% in the previous quarter, and from 16.9% in Q1 2018. This acceleration caused the GDI to increase to 0.40, with 1.0 representing parity among men and women on corporate boards across the Russell 3000. The index also reported that 41.9% of newly appointed directors in Q2 2019 were women, down slightly from 46.8% in Q1 2019.
In addition, the index showed that as of Q2 2019, just 10.8% (309) Russell 3000 boards were still without a single woman member. Researchers pointed out that this represents a significant decline from the 376 boards without a woman member in Q1 2019. They also noted that the percentage of women who joined these boards as first-time public company board members has surpassed 50% three of the past four quarters.
The index also revealed, however, that just 48 Russell 3000 companies have currently achieved gender parity, while 2,811 have not. According to researchers, the Russell 3000 would require an annual growth rate of women on boards of 8.56% to reach full gender parity by 2030. The GDI Q4 2018 report had projected that based on the rate of growth observed at that time, gender parity on Russell 3000 boards would be achieved by 2034.
New Systems Approach Is Needed To Promote Workforce Development
While some U.S. workers are finding that their knowledge and skills are no longer up-to-date or in demand on the labor market, many employers are struggling to recruit workers who have the skills and knowledge required to keep their company competitive over the long term, according to a study published by the public policy research organization the RAND Corporation.
The report, “A System That Works: How a New Workforce Development and Employment System Can Meet the Needs of Employers, Workers, and Other Stakeholders,” was published on September 19. The authors observed that as the American workplace changes in response to new technologies, globalization, and demographic shifts, employers still need workers with industry-specific knowledge, but they also increasingly value skills like effective communication and critical thinking.
Applying a systems approach to reconceiving the current workforce development and employment system, researchers attempted to identify the ways in which the system is failing both workers and employers, and to craft a plan for how educators, employers, workers, and other stakeholders can rebuild the current system to bring about the necessary changes.
First, the authors observed, the U.S. workforce development and employment system has changed little since the mid-20th century, and underperforms in a fast-paced and rapidly changing environment in which lifelong learning has become essential. They pointed out that as automation and shifting consumer demands have rendered some of the skills individuals learned years ago obsolete, many workers have an immediate need to acquire new knowledge and skills. In particular, researchers noted, there is greater demand for workers who can master information synthesis, creativity, problem-solving, communication, and teamwork; even as there is still substantial demand for skilled workers in positions that do not require post-secondary degrees or specific credentials.
The study also warned, however, that there is currently no well-defined path for workers to get the training they need. According to researchers, post-secondary training and education institutions generally offer the same structure of credentials and degrees they did years ago, and may be constrained in their ability to respond to changing job requirements by a lack of funding. Meanwhile, they added, in the workplace, employers are often willing to pay for additional training only for their more educated employees.
To tackle these challenges, the study’s authors called for the creation of a workforce development and employment system that provides multiple on-ramps for transitioning workers to access training and employment opportunities, while matching workers and jobs. To build this system, the authors recommended developing data, metrics, and tools to monitor the current system in order to identify where it is failing, and where new approaches are warranted. They also suggested using gaming, competitions, and other strategies to measure the impact of policy interventions, and to create an open clearinghouse that collects and shares information about promising approaches.