Group2

Gender Equality in HRM

of MSMEs
Kanon Sato - 2106808951
Miyu Bise - 2106808882
Sekar Helmie - 2006607135
Segu Mohamed Basith Ahmed - 2006512901
Almuntasirbillah Hamza - 2006513040
Reyhan Dahananto A - 1706066453
Ezra Pratama Syahriar - 2006519164
Rayhan javier I - 2006519486
Introduction: What is HRM?
Human Resource Management
“The practice of recruiting, hiring, deploying and managing an organization’s
employees”
・Company/organization is responsible for creating, improving, and overseeing
policies related to governing workers and the relationships between organization
and their employess
・HRM’s Goal：
Make effective use of employees, reducing risk and maximizing return on
investment while emphasizing employees as assets in the business (human
capital)
Introduction: What is the basics of HRM?
1. Recruitment and selection
-provide and maintain productive workers

2. Performance management
-efficiently have abilities of each worker

3. Learning and development

-proper training for workers

4. Succession planning
-for sustainable growth

5. Compensation and benefits

-for motivating and ensuring equality/fairness

6. HR Information systems
7. HR data and analytics
-to make better and informed decisions, support all milestones
for decision making process
Introduction: Gender Equality in HRM
Gender gap score is widening still (The Global Gender Gap Index 2021)
Indonesia = 101st place/ 156 countries

Gender inequality in HRM

〇Gender pay gap
- no sector pay women more than men
- women are earning 18% less than men in UK
〇Less female leaderships
- only 6% are female CEOs in the Fortune 500
〇Gender bias in recruiting process
〇Less flexible working environment
⇒enabling more women to join MSMEs will increase human capital
The current situation in Indonesia From a number perspective

・According to the data from World Bank, the labor force participation rate of female has been gradually increasing since
2006.
https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?locations=ID
World Bank data

・However, it is clear that there is still a large gap in the work ratio
compared to men.
According to Indonesia’s Central Bureau of Statistics census,
per August 2020,
Women’s labor force participation rate was 53 percent.

Indonesia’s Central Bureau of Statistics

The current situation in Indonesia From a number perspective

・Women’s representation at four managerial levels

first-line managerial (supervisor) positions: 61%

middle manager positions: 70% ⇨The relatively low number of women
senior management positions: 49% represented in top executive positions is one
top leadership positions (top executives): 22% issue

・The low participation of women in the field of Information Technology, especially in relation to STEM
(Science, Technology, Engineering, and Mathematics).

⇨Especially, women’s participation is extremely low in the IT sector.

Only 20% of all professional female workers work in the IT industry.
The current situation in Indonesia Background non gender equity

・Gender Gap in Wage Employment

In 1990 the median woman earned just 57% as much as the median man, but by 2011 this figure increased to 84%.

However, relative to men, women wage workers are positively selected (e.g., more educated),
yet they remain notably underrepresented in leadership and management positions.

→Much of the remaining gender gap reflects gender-based discrimination in the labor market.

・The Problem of the Workplace Policies

While employers are required to pay 100% of prior earnings for 6 weeks of maternity leave,
the law only applies to less than a third of employed women.

→Moreover,not all workers who are entitled to this benefit receive it.

Maternity benefits are funded by employers rather than social security insurance, and paid time-off is not offered
during nursing breaks.

→Employers hesitate to hire women of childbearing age and women are being deprived of opportunities to work.
Problem in Indonesia’s Gender Equality
● In Indonesia, institutional and informal institutions define women's duties,
which are reinforced by long-held gender stereotypes
● These traditions often prevent women from claiming their rights and
opportunities in areas such as education, health, and money
● The gender gap in Indonesia has narrowed but remains considerable
1. Stakeholders should take into account gender norms when
designing programs and policies
○ These widespread practices may limit the efficacy of initiatives and policies aimed at
empowering women. Various studies show that stakeholders should be aware of and
cautious about these rules when creating a program.
○ For example, in India, creating a personal bank account for female employees and
teaching them how to use it increased female employment. Instead of a joint account,
the program allowed women to deposit their paychecks directly into their own accounts.
2. Having supportive regulatory frameworks is crucial to achieving a
gender-transformative outcome
○ Tax and labor policies may indirectly contribute to low female employment participation
rates.
○ For example, tax policies in Indonesia penalize women who work part-time or do not
work at all.
○ Enforced maternity leave and government-sponsored childcare may assist working
women stay in the workforce, but they are not mandatory.
Characteristics in Indonesian MSMEs’ Gender Equality

● Based on the data by development of MSMEs in Indonesia in

2014-2018, 99% of the 64 million business units in Indonesia
are MSMEs, and around 60% of MSMEs are managed by
women
● Data by IFC in 2016 shows that MSMEs contributed 22% of
Indonesia’s GDP, with women’s MSMEs contributed 9.1% in it
● So, women MSMEs have a huge role and potential in
supporting the nation's economy and family resilience,
especially when facing the Covid-19 pandemic in this digital
era
● LPEM FEB UI (2020) shows the number of female MSME who
started a business from scratch via online during the
pandemic was 1.5 times more than men, in the culinary,
home, and fashion business categories
● It is needed to widely implement women empowerment and
training as has been done by East Kalimantan government as
a capital city and W20
Characteristics in Indonesian MSMEs’ Gender Equality

● Increasing the capacity of women's empowerment service

provider institutions can encourage women entrepreneurs
to innovate and protect women from various
stigmatizations, stereotypes, gender-based violence, and
other harmful social constructions
● Other possible solutions are:
○ Ease loan access and bank bureaucracy for women’s
MSMEs
○ Intensify news spread about government’s support
program information
○ Ease the procedure and cost of making the firm
legal, more than half MSMEs are informal shaped
○ Increase quality of service by trained staff to increase
frequency and quantity of loan for women’s MSMEs
Possible Solution:

1. Remove the gender pay gap

Employers can promote gender equality in the workplace by being transparent about wages, to ensure
women aren’t receiving less than men in equivalent roles.

Pay brackets can encourage female applicants and employees to negotiate their wage by giving an indication
of reasonable expectations for a particular role.

2. Use skills-based assessments

By using skills-based assessments and structured interviews when recruiting, to reduce the risk of unfair bias.

Recruiters are also urged to use structured interviews, where all candidates are asked the same questions in a
predetermined order and format. Grading the responses using standardized criteria reduces the risk of
unconscious bias.

Asking candidates to perform tasks they would be expected to carry out in the role they are applying for,
enables organizations to assess their suitability based on their performance. These tasks need to be
standardized across all applicants to ensure fairness.
3. Build an inclusive culture

Integrate gender equality into our organizational culture to ensure that no employee is underrepresented.
Sometimes far-reaching changes must be made to establish a culture free of gender discrimination. This starts by
having high-level leaders committed to promoting gender equality and exemplifying this when appointing CEOs. It is
also important to remind employees at all levels to use gender-neutral language so that no employee feels alienated.
Examples include the use of pronouns such as "they" and "they" in formal business communications, whether written
or spoken. Encourage managers to offer an equal amount of responsibilities to everyone on their team and extend
parenting benefits to everyone, regardless of gender.

4. Improve gender equality awarness

Conducting ongoing training programs for gender mainstreaming is key to enabling a positive work
environment where employees respect, support and lift each other up. Training will also help your employees
identify and overcome any unintended biases that may influence key decisions in the organization. Over time,
these decisions may prevent some employees from applying simply because of their gender.

Gender training should be mandatory for everyone in your organization, including those who help identify
promotions, salary increases, and candidate assignments. Set clear goals to explain why employees need to
receive this training and what they can expect from the course.
Conclusion
Gender inequality has always been an issue especially in Indonesia. If this is not
immediately minimized, it will gradually block the national development. As we can
see from the data, there are still a lot of problems regarding to this issue such as
gender pay gap, gender bias, and less flexible working environment. Even so,
there are solutions that can be made to help eradicate it such as removing gender
pay gap, using skills-based assessments, and improving gender equality
awareness. With those solutions, it is hoped that gender equality will then take
over for a better Indonesia.
References
https://www.povertyactionlab.org/fr/node/7800796

https://www.adb.org/sites/default/files/publication/180251/ewp-474.pdf

https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?locations=ID

https://dkp3a.kaltimprov.go.id/2021/11/04/perempuan-pelaku-usaha-mayoritas-berasal-dari-umkm-memiliki-peran-dan-potensi-sangat-besar/

https://www.digiserve.co.id/en/insights/blogs/ilo-research-77-of-indonesian-companies-report-gender-equality-initiatives-to-boost-innovation-and-productivity-what-about-the-it-industry

https://www.ifc.org/wps/wcm/connect/8496be45-d4d4-4480-a9f5-49c073294b26/SME+Indonesia_Final_Ind.pdf?MOD=AJPERES&CVID=lj8lVuj

https://www.weforum.org/agenda/2021/03/gender-equality-in-the-workplace-ways-to-improve/

https://www.aihr.com/blog/human-resource-basics/

https://www3.weforum.org/docs/WEF_GGGR_2021.pdf

https://www.reed.com/articles/4-issues-of-gender-equality-facing-hr

https://www.techtarget.com/searchhrsoftware/definition/human-resource-management-HRM