FEMALE LEADERSHIP IN KAZAKHSTAN’S ENERGY INDUSTRY
The Energy Sector Still Lacks a Female Face. What should energy companies do to increase the number of female employees?
In Kazakhstan's predominantly "male" energy sector, tens of thousands of women work, comprising up to a quarter of all employees according to various estimates, and play an important role in ensuring the industry's stable development. At the request of the KAZENERGY Association and the European Bank for Reconstruction and Development (EBRD), Ergon Associates conducted a special thematic study, publishing the final report "The Role of Women in the Energy Sector of Kazakhstan."
This work is the first industry-specific gender study in energy and aims to:
- understand the position of women in the sector based on the data obtained (including managerial, technical, and other positions);
- highlight the economic benefits and advantages associated with paying attention to gender equality and equal opportunities for companies;
- increase awareness of specific barriers and challenges women face in the industry.
The report provides information on women's employment share in energy, education, hiring and promotion, remuneration, corporate policies and programs, leading international and national examples of supporting women in the industry, and more.
Key Findings and Results of the Survey of Companies Participating in the Study
- Women are underrepresented in the overall workforce in the energy sector. Women make up about 25% of the entire workforce in the energy sector, with no significant positive changes observed in recent years.
- Energy companies are not fully utilizing the potential of women in managerial and leadership teams. Only 12% of senior executives and 17% of board and members are women. The proportion of women gradually decreases from non-managerial positions (26%) to mid-level management positions (20%) and senior management levels (12%), indicating a still persistent situation of underutilized potential of women on their path to career and professional advancement in this sector.
- Women are primarily in administrative positions and are underrepresented in technical roles. Women account for 50% of administrative-management positions but less than 20% in technical and production positions (where most jobs are concentrated).
- Nonetheless, when women are employed in technical/production roles, they are often higher-qualified specialists. Women in the energy sector's technical and production specialties generally have higher initial qualifications, especially as "professional specialists" (engineers, etc.). However, more than 60% of production positions in the sector are for skilled workers who are not specialists, where the share of employed women is only 12% (compared to 31% among "professional specialists").
- The smallest number of women in the energy sector is among employees of mature and younger ages. The representation of women in the workforce is noticeably lower among age groups at the initial stages of their careers (23%) and those at the stage of concluding their careers (22%), compared to age groups in the mid-career stage (26%). The reduction in the number of women among the mature age group and more experienced workers may contribute to the insufficient representation of women in leadership positions due to a decrease in the proportion of women in the talent pools for senior executive positions.
- Women in this sector have a higher level of education than men. In total, 64% of women working in energy have higher education, compared to 48% of men. While these data indicate that the energy sector in Kazakhstan is an attractive employment option for highly qualified women, it is equally clear that a lack of qualified women cannot explain the underrepresentation of women in leadership positions.
- The representation of women in energy is unlikely to increase based on current recruitment and turnover rates. The share of women among newly hired employees matches the current share of women in the overall workforce over the three years for which data were collected during the survey, indicating a slight likelihood of fundamental changes in women's participation in this sector in the absence of active measures in policies and practices by companies and policymakers.
- Similarly, survey data show insignificant changes over time regarding the proportion of women in leadership positions. The share of women among employees promoted at work generally matches the current share of women in the overall workforce, and the share of women among employees promoted to functional and senior management levels is lower than the share of women among employees deemed "suitable" candidates. These trends indicate slight prospects for increasing women's representation at higher management levels within their organizations.
- The average salary of women is lower than that of men across the entire workforce in the energy sector. The average salary of women is approximately 81% of the average salary of men, according to data collected for this study.
- These proportions, overall, match estimates from national statistical sources on the energy sector and indicate the need for energy companies to pay more attention to ensuring equal working conditions, including equal pay for work of equal value.
- Only a few companies have taken active measures to promote gender equality or developed a specific policy to combat physical and verbal sexual harassment. Despite 40% to 60% of companies in the sample noting that they collect data and report on the workforce composition by gender, as well as have an officially approved policy for implementing the principle of equal opportunities, only 32% have taken active measures to promote the principle of equal opportunities beyond the requirements established by law. And only 16% have developed specific strategies and mechanisms to combat physical and verbal sexual harassment.
Recommendations for Energy Companies Based on the Study Results
Recommendation 1. Seek opportunities for collaboration and experience sharing with other companies and industry platforms, such as the KAZENERGY Association.
While it's crucial for individual energy companies to develop their gender equality policies and strategies, companies can have a much greater impact on women's participation in the energy sector if they also collaborate with others. This is because many of the barriers to expanding women's participation in energy, such as widespread gender stereotypes or legislative restrictions on women's employment, extend beyond the level of a single enterprise, and it's very challenging for companies to tackle them alone. Collaboration can also provide invaluable opportunities for companies to learn from each other and share experiences about successful approaches and lessons from promoting equal opportunities.
The KAZENERGY Women's Energy Club is an important tool for collaboration between energy companies in Kazakhstan and can provide a platform for sharing best practice examples, coordinating policy dialogue with stakeholders on issues related to education and women's employment, and promoting women's participation in the sector.