New Gender Parity Regulations: Polish Companies to Implement Women on Boards Directive by 2026

CAREERSNew Gender Parity Regulations: Polish Companies to Implement Women on Boards Directive by 2026

The government is working on regulations implementing the provisions of the Women on Boards Directive. According to preliminary assumptions, from January 2026, large state treasury companies, and from July 2026, other large listed companies will be required to maintain a 33% gender parity in management boards and supervisory boards. The regulations will apply to companies employing at least 250 people, with an annual turnover not exceeding 50 million euros or a total annual balance sheet not exceeding 43 million euros. This will therefore apply to less than half of the companies listed on the Warsaw Stock Exchange (WSE), and for non-compliance, the Polish Financial Supervision Authority will be able to impose a penalty of up to 10% of the annual income.

Comment: Anna Barbachowska, HR Director at ADP Poland

Currently, women are significantly underrepresented in the boards of listed companies. According to a study by the Polish Economic Institute in 2021, conducted among the largest listed companies, the representation of women is 12 percent in management boards and 17 percent in supervisory boards, one of the lowest in the European Union.

The proposed regulations will cover a relatively small part of the companies (410 companies are listed on the WSE), but this will affect entities with a significant influence on the rest of the market. Many companies, including those listed, are already implementing a strong diversity and equal opportunity policy (DEI – diversity, equity and inclusion) – a much-needed approach to achieving gender parity at the highest levels of management. However, it’s clear that the current strategies, although effective in many areas, do not result in major change in the area of gender parity in management and supervisory boards. We must therefore ponder upon why this is happening.

According to available data on employment and education, the low representation of women in management does not result from a lack of suitable female managers. In my opinion, it’s rather a question of ‘low demand’, which is reflected in the recruitment system for management positions. Often, the deciding factor in choosing board members is past experience at high managerial positions, with long tenures within the company’s structures being particularly valued – this relates to internal recruitment. Therefore, if a company does not have women at the highest positions, it does not have internal female candidates for the board either.

This is all tied together with the DEI policy that organisations conduct to some degree. The question arises: does the company’s policy also cover the highest levels of management and ensuring appropriate employment parity? Does the organization also offer career advancement pathways in agreement with the employee, or is it implementing solutions that facilitate work-life balance? The latter strongly affects the development of women’s careers. Economists often speak of a ‘motherhood penalty’. Lower wages, hindered access to promotions, and even difficulties in returning to work is the unfortunate reality for many women after having a child. The motherhood penalty and the broader issue of women in the workplace was the subject of last year’s Nobel laureate in economics, Claudia Goldin. She has shown, with the example of auditions for symphony orchestras, that in some sectors, a ‘blind’ recruitment system increases women’s chances of getting a job: absence of gender information during the application process rules out the possibility of activating even unconscious biases in the recruiter, or decisions being guided by non-meritocratic considerations.

The lack of women in management could have the exact same source. Companies to which the proposed regulations apply can already take steps towards achieving a balanced representation of men and women on management boards. These actions can be initiated by HR departments and should include:

– Analysing the initial situation – this includes examining the percentage representation of both genders in various managerial positions.
– Preparing a timeline for changes, including the end of term for current company authorities and scheduling new elections.
– Review the company’s DEI policy, particularly with regard to overseeing employee career development, maintaining work-life balance, facilitating parental leave and return to work for parents of both genders, and mentoring offered to employees at different levels.
– Engaging workers in discussions or anonymous written surveys to identify current issues related to career development and suggested changes and solutions.
– Reviewing both external and internal recruitment processes in terms of fostering equality and diversity.

Some companies are already required to report on ESG-related matters, and soon more will be required to do so, as it depends on the size and turnover of the company. It is worth remembering that S in this acronym stands for society. ESG issues partially overlap with DEI, so a conscious equality and diversity policy helps to achieve two goals at once and streamline the entire reporting process.

Another point to consider is that DEI matters are much more significant for Generation Z, who will gradually gain an advantage in the labour market. The latest “People at work” study, conducted by ADP Research Institute, clearly shows that the youngest employees are the quickest to recognize positive changes in the field of DEI. As many as 44% of surveyed employees in Poland aged 18-24 and 35% of those aged 25-34 observed positive changes in the DEI policy at their workplace in the last three years. Among those surveyed aged 45-54 this percentage was already 25%, and in the group over 55 years – just under 17%. In terms of reducing the pay gap, positive changes were observed by 40% of the youngest employees and just under 10% of the oldest. A conscious DEI policy that responds to the needs of employees will therefore become an increasingly important element of employer branding, whether we are talking about small companies or listed corporations.

Source: https://ceo.com.pl/jak-przygotowac-firme-do-wdrozenia-dyrektywy-women-on-boards-50812

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