1. The Power of Parity European Parliament | 9 July 2018
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of McKinsey & Company is strictly prohibited

2. Closing the gender gap globally could deliver up to $28 trillion of additional GDP in 2025
2015
Full-potential scenario
$28 trillion
Best-in-region scenario
$12 trillion
11% increase in global GDP from women matching men in three key areas
from more women participating in the workforce
~60% 1
~20% 2
from women working in more productive sectors
~20%
from women working ~30 min/day more, or with flexibility to balance the full time / part time mix 3
Western Europe
Full-potential:
$5.1 trillion (+23%)
Best in region:
$2.1 trillion (+9%)
SOURCE: McKinsey, Power of Parity (2015)

3. Sector productivity, GVA
To achieve parity women will need to be able to move into more productive sectors and higher paid jobs
Associated Professional/Technical
Managers, Directors and Senior Officials
Professional
Administrative and Secretarial
Skilled Trades
Caring, Leisure and Other Services
Sales and Customer Service
Process/Plant/ Machine Operatives
Elementary occupations
Low
High
Mostly
male
female
Near parity
Occupational skill & pay level, £000s
Sector productivity, GVA
Energy/ Water
Agriculture/ Fishing
Public Admin/ Education/ Health
Other Services
Manufac-turing
Construction
Banking/ Finance/ Insurance
Distribution/ Hotels/ Restaurants
Transport/ Comm-unication
High
Low

4. The public and private sectors must act decisively across six areas to address the factors contributing to gender inequality
Effective action across these areas alone would move more than 75% of women affected by gender inequality globally closer to parity
Targeted, comprehensive, and sustained interventions:
Public sector
Private sector 1 2 3 4 5 6
Offer incentives and support
Provide technology and infrastructure
Create economic opportunities
Build capabilities
Engage in advocacy and shape attitudes
Implement laws, policies, and regulations
SOURCE: McKinsey, Power of Parity (2015)

5. The positive business case for women on executive teams is clear
Increased likelihood of financial outperformance (2017)
In our 2017
dataset of companies, the link
between
profitability and
diversity on executive teams was stronger than previously found
21%
Profitability1
27%
Value creation2
Difference between 1st and 4th quartile likelihood of financial performance1 above national industry median
Percent
1 Average EBIT margin,
2 Average economic profit
SOURCE: McKinsey “Delivering Through Diversity” (2018)

6. Final thoughts
Sizeable progress towards closing gender pay gap achievable by increasing representation of women in more productive areas of the economy, and in senior decision-making roles
Scope to enhance legislative and transparency initiatives with articulation of the growth opportunity for businesses and other stakeholders
The future of work will be reshaped by technology, presenting opportunities (e.g., facilitating agile working) and risks for gender diversity and therefore the gender pay gap

7. THANK YOU