The focal article by Gloss, Carr, Reichman, Abdul-Nasiru, and Oestereich (Reference Gloss, Carr, Reichman, Abdul-Nasiru and Oesterich2017) makes a very convincing case that industrial-organizational (I-O) psychology as a profession needs to consider a realignment—from one focused primarily on professional workers in Western companies to the wider world of workers, especially those in poverty.
This argument seems logical if you consider the most basic tenet of I-O psychology: it focuses on the human side of work. However, historically I-O psychologists have studied and worked for Western companies, primarily the so-called Fortune 500 companies. When examining the proportion of workers in the world that I-O psychology has typically focused on as a profession, employees in Fortune 500 companies represent only 0.002% of all workers in the world. There are approximately 3 billion other workers in formal economy jobs across the globe. There are also approximately 3 billion workers in the informal legal economy, which is cash-based and involves work such as street vendors and crafts people. There are more women than men in the informal economy, which is often precarious and insecure work.
It is well-known that, globally, women earn less than men, equivalent to no more than 75 cents to the dollar (UN Women, 2015; World Bank, 2016b). This pay gap is persistent, and there is not a single country in the world with parity in pay between men and women (World Economic Forum, 2016). Women make up only 23% of parliamentarian seats (International Parliamentary Union, 2017), and less than 5% of countries have a female head of state (UN Women, 2015). Women account for less than 10% of negotiators at peace tables (UN Women, 2012). Women make up only 8% of the world's executives and less than 5% of CEOs (UN Economic and Social Council, 2016). Most countries have at least one law restricting women's economic opportunities and many have laws that restrict the type of work women can do; in 18 economies, husbands can legally prevent their wives from working (World Bank, 2016a). Half of working women globally face vulnerable employment situations, and are often unprotected by any labor laws (International Labour Organization, 2012).
Women across the globe are disproportionately working in poverty. Areas of conflict in the world exacerbate the issue of women in poverty and lack of economic empowerment. As Melinda and Bill Gates of the Gates Foundation have stated, “poverty is sexist” (Gates, Reference Gates2016). Their foundation has a number of programs aimed at addressing the “tragedy” that “the potential of so many women is going unrealized. . . .” The unfortunate prediction is that at current rates of gender progress, it will take over 100 years to reach gender parity (emphasis added, World Economic Forum, 2016).
There are complex reasons for this state of women and work globally. However, many of the underlying reasons are topics that have been studied extensively and have been addressed by I-O psychology, issues such as norms, stereotypes, and discrimination. I-O psychologists have addressed these types of issues for decades in organizations and are well-positioned to help. This could include assisting with training, leadership development, and entrepreneurial activities. Entrepreneurship is one of the most effective means to alleviate poverty in developing countries, and I-O psychology researchers have demonstrated the value of entrepreneurial training to uplift people in poverty (Frese, Gielnik, & Mensmann, Reference Frese, Gielnik and Mensmann2016). Additionally, I-O-related research and science-based practice have been shown to have positive impact for women at work and their career development (Lyness & Terrazas, Reference Lyness and Terrazas2006). There is a wide range of I-O psychology expertise areas that could be applied to address issues for women and work globally, especially for those in poverty. For example, Schein (Reference Schein, Olson-Buchanan, Bryan and Thompson2013), based on her work in Nicaragua, outlines an I-O research agenda for understanding the issues of women and work in developing countries. More research on women and work, especially those in poverty, to build on current I-O psychology knowledge would enhance I-O expertise to assist in this important area.
Numerous studies indicate that positive outcomes are possible by improving issues related to the employment of women. As examples, consider the following: For each additional year of secondary schooling a girl receives, it increases her future earnings by 15% to 25% (UNICEF, 2011). When 10% more girls go to school, a country's GDP increases by an average of 3% (Chaaban & Cunningham, Reference Chaaban and Cunningham2011). Eliminating barriers to employment for women could raise labor productivity by 25% in some countries (Revenga & Shetty, Reference Revenga and Shetty2012). Companies with female leadership on their boards have a higher return on equity (Lee, Marshall, Rallis, & Moscardi, Reference Lee, Marshall, Rallis and Moscardi2015), and start-ups that have women on their executive teams show higher likelihood of succeeding (Women in Venture Capital Study Research Team, 2012). Corporations led by women are more likely to be focused on sustainability (McElhaney & Mobasseri, Reference McElhaney and Mobasseri2012). If female farmers had the same access to resources as men, it is predicted there would be 150 million fewer hungry people in the world (FAO, 2011).
A humanistic focus by I-O psychology that includes a lens on women globally, especially those in poverty, is consistent with a focus at the United Nations (UN). At the UN it is recognized that gender issues cut across all major issues and initiatives, especially the recently announced Sustainable Development Goals (SDG) for 2030. Women's economic empowerment and the realization of women's rights to and at work are seen as essential for 2030 Agenda for Sustainable Development. Addressing issues for women, who are disproportionately in poverty, will not only help toward the SDG goal of gender parity but will also help address the goal to end all poverty by 2030.
A major entity at the UN focuses specifically on women, including issues of decent work, expanded opportunities for women, and increasing the numbers of women in leadership roles. Every year since 1947, a meeting focused on women is held at the UN with all member states to assess progress and set new goals. It is recognized that progress on the important UN 2030 Strategic Development Goals cannot be achieved without a specific focus on women.
In conclusion, along with a call for an important humanistic focus by I-O psychology on workers globally, especially those in poverty, it would also be appropriate and beneficial to have a specific focus on women and work. I-O psychology contributions could help reduce the number of women in poverty globally and reduce the time—hopefully less than 100 years—to achieve gender parity.
The focal article by Gloss, Carr, Reichman, Abdul-Nasiru, and Oestereich (Reference Gloss, Carr, Reichman, Abdul-Nasiru and Oesterich2017) makes a very convincing case that industrial-organizational (I-O) psychology as a profession needs to consider a realignment—from one focused primarily on professional workers in Western companies to the wider world of workers, especially those in poverty.
This argument seems logical if you consider the most basic tenet of I-O psychology: it focuses on the human side of work. However, historically I-O psychologists have studied and worked for Western companies, primarily the so-called Fortune 500 companies. When examining the proportion of workers in the world that I-O psychology has typically focused on as a profession, employees in Fortune 500 companies represent only 0.002% of all workers in the world. There are approximately 3 billion other workers in formal economy jobs across the globe. There are also approximately 3 billion workers in the informal legal economy, which is cash-based and involves work such as street vendors and crafts people. There are more women than men in the informal economy, which is often precarious and insecure work.
It is well-known that, globally, women earn less than men, equivalent to no more than 75 cents to the dollar (UN Women, 2015; World Bank, 2016b). This pay gap is persistent, and there is not a single country in the world with parity in pay between men and women (World Economic Forum, 2016). Women make up only 23% of parliamentarian seats (International Parliamentary Union, 2017), and less than 5% of countries have a female head of state (UN Women, 2015). Women account for less than 10% of negotiators at peace tables (UN Women, 2012). Women make up only 8% of the world's executives and less than 5% of CEOs (UN Economic and Social Council, 2016). Most countries have at least one law restricting women's economic opportunities and many have laws that restrict the type of work women can do; in 18 economies, husbands can legally prevent their wives from working (World Bank, 2016a). Half of working women globally face vulnerable employment situations, and are often unprotected by any labor laws (International Labour Organization, 2012).
Women across the globe are disproportionately working in poverty. Areas of conflict in the world exacerbate the issue of women in poverty and lack of economic empowerment. As Melinda and Bill Gates of the Gates Foundation have stated, “poverty is sexist” (Gates, Reference Gates2016). Their foundation has a number of programs aimed at addressing the “tragedy” that “the potential of so many women is going unrealized. . . .” The unfortunate prediction is that at current rates of gender progress, it will take over 100 years to reach gender parity (emphasis added, World Economic Forum, 2016).
There are complex reasons for this state of women and work globally. However, many of the underlying reasons are topics that have been studied extensively and have been addressed by I-O psychology, issues such as norms, stereotypes, and discrimination. I-O psychologists have addressed these types of issues for decades in organizations and are well-positioned to help. This could include assisting with training, leadership development, and entrepreneurial activities. Entrepreneurship is one of the most effective means to alleviate poverty in developing countries, and I-O psychology researchers have demonstrated the value of entrepreneurial training to uplift people in poverty (Frese, Gielnik, & Mensmann, Reference Frese, Gielnik and Mensmann2016). Additionally, I-O-related research and science-based practice have been shown to have positive impact for women at work and their career development (Lyness & Terrazas, Reference Lyness and Terrazas2006). There is a wide range of I-O psychology expertise areas that could be applied to address issues for women and work globally, especially for those in poverty. For example, Schein (Reference Schein, Olson-Buchanan, Bryan and Thompson2013), based on her work in Nicaragua, outlines an I-O research agenda for understanding the issues of women and work in developing countries. More research on women and work, especially those in poverty, to build on current I-O psychology knowledge would enhance I-O expertise to assist in this important area.
Numerous studies indicate that positive outcomes are possible by improving issues related to the employment of women. As examples, consider the following: For each additional year of secondary schooling a girl receives, it increases her future earnings by 15% to 25% (UNICEF, 2011). When 10% more girls go to school, a country's GDP increases by an average of 3% (Chaaban & Cunningham, Reference Chaaban and Cunningham2011). Eliminating barriers to employment for women could raise labor productivity by 25% in some countries (Revenga & Shetty, Reference Revenga and Shetty2012). Companies with female leadership on their boards have a higher return on equity (Lee, Marshall, Rallis, & Moscardi, Reference Lee, Marshall, Rallis and Moscardi2015), and start-ups that have women on their executive teams show higher likelihood of succeeding (Women in Venture Capital Study Research Team, 2012). Corporations led by women are more likely to be focused on sustainability (McElhaney & Mobasseri, Reference McElhaney and Mobasseri2012). If female farmers had the same access to resources as men, it is predicted there would be 150 million fewer hungry people in the world (FAO, 2011).
A humanistic focus by I-O psychology that includes a lens on women globally, especially those in poverty, is consistent with a focus at the United Nations (UN). At the UN it is recognized that gender issues cut across all major issues and initiatives, especially the recently announced Sustainable Development Goals (SDG) for 2030. Women's economic empowerment and the realization of women's rights to and at work are seen as essential for 2030 Agenda for Sustainable Development. Addressing issues for women, who are disproportionately in poverty, will not only help toward the SDG goal of gender parity but will also help address the goal to end all poverty by 2030.
A major entity at the UN focuses specifically on women, including issues of decent work, expanded opportunities for women, and increasing the numbers of women in leadership roles. Every year since 1947, a meeting focused on women is held at the UN with all member states to assess progress and set new goals. It is recognized that progress on the important UN 2030 Strategic Development Goals cannot be achieved without a specific focus on women.
In conclusion, along with a call for an important humanistic focus by I-O psychology on workers globally, especially those in poverty, it would also be appropriate and beneficial to have a specific focus on women and work. I-O psychology contributions could help reduce the number of women in poverty globally and reduce the time—hopefully less than 100 years—to achieve gender parity.