In tough times women and p/t workers are first to get the bullet

Jun, 2009

By Isabel Metz
Organisational Behaviour Senior Lecturer
Melbourne Business School

 

Women and part-time workers are the first groups to be retrenched in tough economic environments, according to research just concluded in Australia, the UK and the US.

The reason? Women make up the vast majority-more than 85%-of part-time employees. Often, part-timers are considered ‘non-core' employees and as organisations grow or contract, so too do the number of part-timers. In an economic downturn, non-core employees (many of whom are part-timers) are the first group to be targeted for retrenchment.

As women make up the bulk of part-time workers, they bear the brunt of downsizing.

Women working full-time are also more likely to lose their jobs than their white, male colleagues. This is because individuals in positions of power-who are more likely to be male than female-will tend to "look after" those like themselves (the in-group) in competitive environments.

Tough economic conditions exacerbate competition, as workers vie for a reduced number of work and promotion opportunities.

My research also shows that good diversity practices are a third victim of tough economic conditions.

With demands for improved financial outcomes and diversity practices seemingly incompatible, many organisations reduce their commitment to diversity programs in times of economic uncertainty, allowing old discriminatory practices to resurface.

For example, my analysis of women's representation in management in Australia shows that women benefit more than men when the management pool expands but are more affected than men when the management pool downsizes. In other words, men are not really threatened with losing their jobs to women when opportunities abound, but fewer jobs and resources tend to make men more protective of other "like" men and treat women as outsiders.

To be able to succeed in tough economic environments, organisations more than ever need their best and brightest employees. Therefore, organisations need to be vigilant that retrenchment decisions are not influenced by stereotypes or perceptions, but by robust assessments of the match between the individual's capabilities and of the organisation's needs.