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Multigenerational Workforce Needs Multigenerational Boards
Diversity on boards is increasingly, and deservedly, gaining prominence across the world and is now considered a business imperative. Various research has proven that a diverse board is better placed to achieve sustainable financial performance as well as improve boardroom dynamics, and investor relations.
In the workplace, we are now seeing four or sometimes five, generations working alongside each other with Baby Boomers working past the age of retirement, and the arrival of Gen Z. This generational diversity is sometimes seen as a negative element as each generation seems to have different mindsets, expectations, and communication styles, yet they have one thing in common – they all feel misunderstood. Being aware of each other’s needs, challenges, viewpoints, strengths, and even fears, is key to unlocking the power of intergenerational collaboration – and perhaps is something a diverse board can have better oversight on?
In terms of gender diversity, ICDM is supportive of the mandatory appointment of at least one woman director on all Malaysian public listed companies (PLCs) as announced in the 2022 Budget. This is an important push to accelerate gender diversity on boards and is also in line with Malaysia’s goal of achieving at least 30% women representation on all Malaysian PLC boards, and as recommended in Practice 5.9 of the MCCG 2021. As per the CG Monitor 2021, we now have 25.5% women on the board of the top 100 PLCs. In support of this major initiative, ICDM is working closely with the 30% Club to continuously growing our directors talent pool with qualified female candidates.