Mexico Leads Latin America in Gender Leadership Parity

Mexico’s private companies have made significant strides in advancing gender leadership parity, with women now holding 38% of senior management positions in 2023, according to a Grant Thornton study. This metric represents an increase of 5 percentage points and has effectively propelled the country to regional leadership; however, protracted progress underlines the importance of concerted gender-parity actionable initiatives. 

“The 30% target was thought to be a tipping point that would trigger accelerated action towards more gender-balanced workplaces. But a gradual change has been seen since the middle market companies in our study reached 30%; it is clear that now we must act with more determination to take full advantage of the increase in diversity,” highlights Beatriz Guerra, Regional Partner, Grant Thornton. 

One of the key factors that have contributed to the significant increase in the number of women in senior management positions in Mexico is the implementation of flexible work arrangements. Flexible, hybrid and telework models enable women to work while also attending family needs, allowing women with sustained performance to advance to senior management roles. This is further supported by the observation that organizations with traditional face-to-face work models have a significantly lower rate of gender leadership parity, with only 29% of senior managers being women.

While flexible work models have been a contributing factor to the progress of gender leadership parity, the Grant Thornton study underscores that they are not a comprehensive solution. The study highlights a marginal half-percentage point increase in global progress since 2004, when data was first recorded. To accelerate the presence of women in management positions, companies need to take deliberate actions to expedite progress including: forming diverse teams, establishing mentoring and coaching programs, investing in leadership development and implementing well-being initiatives. On a positive note, external pressures from venture capital firms are compelling companies to prioritize ESG factors, including building diverse and inclusive organizational cultures, as a measure of competitiveness. 

Meanwhile, the Mexican government is considering a more heavy-handed approach, voting to reform the Federal Labor Law (LFT) so companies are obligated to pay men and women alike or face a fine of up to MX$260,000. The reform has been passed to the Upper House for review; however, its fate is uncertain given that a similar motion was introduced in 2021 but remains stuck in the Labor and Social Welfare Commission.