Gender quotas in the workplace: why progress on gender equality remains slow in 2025

18 September 2025

While this year’s World Economic Forum’s Global Gender Gap Report shows that the global gap has narrowed to 31.2%, the fact remains that full gender equality is still more than a century away. For while women now surpass men in higher education, they hold just 28.8% of management roles worldwide (World Economic Forum, 2025).

In a sobering 2020 statistic, it came to light that there were more CEOs named Peter in UK FTSE 100 companies than there were female CEOs (The Pipeline, 2020). Today, five years on, women still hold just 7% of those top roles (FTSE Women Leaders, 2025).

The challenge extends beyond the C-suite. Across all management levels, female representation is stubbornly low, and for women of colour, the gap is even wider. While white women face an estimated 22-year wait for pay parity, women of colour are looking at nearly half a century (McKinsey & Company, 2024).

But what the business world struggles with most? How to fix it...

What are gender quotas?

Gender quotas involve setting fixed percentages to ensure women are fairly represented in organisations. Unlike targets or benchmarks, which are aspirational or comparative, quotas are binding. They can apply across entire organisations or specific teams, roles, or regions, and are used in both politics and business to accelerate gender equality.

Quotas are closely tied to the gender pay gap; the difference in average hourly earnings between men and women. This isn’t the same as unequal pay (which is illegal in the UK); the gap largely exists because men still dominate higher-paid, senior roles. Women are more likely to be found in lower-paid or part-time positions, often due to structural barriers, caregiving responsibilities, and occupational segregation.

Current quota landscape

Research shows quotas can help; in 2024, women accounted for 39.6% of the board members of the largest listed companies in countries with binding gender quotas, compared to 33.8% in countries with soft measures, and just 17% in countries that have taken no action at all (European Commission, 2025). However, there is no global consensus on whether to impose quotas, or how. The UK favours voluntary targets over binding quotas: the 2011 Davies Report recommended 25% women on FTSE 100 boards by 2015, later raised in 2015 to 33% for FTSE 350 boards by 2020 (UK Government, 2011; 2015). The current voluntary goal, under the FTSE Women Leaders Review, is 40% female representation on FTSE 350 boards and leadership teams by 2025 (UK Government, 2022). Other countries take a firmer stance with penalties for non-compliance. For example, Norway was the first country to introduce a mandatory quota in 2003 requiring 40% of board directors to be women (Storvik, 2011). France followed with legally binding quotas from 2011, requiring at least 20% female board representation in large companies by 2014, rising to 40% by 2017 (Eurofound, 2011).

Arguments for, and against, gender quotas

Quotas are often framed as a fair way to ensure workplaces reflect a balanced mix of men and women, especially given how slow progress has been. Supporters argue that they accelerate change, promote diversity beyond gender by encouraging varied backgrounds and experiences, and help dismantle tokenism rather than reinforce it. Research backs this up: in their analysis, Hertner and Wolfs (2024) found that political parties with gender quotas saw more women rise to leadership, and in some cases, achieved full gender parity.

The business case is also compelling; gender-balanced leadership is linked to better performance, creativity, and decision-making. However, while some argue quotas can eventually be phased out once balance is reached, others raise valid concerns. Critics, including former Australian House Speaker Bronwyn Bishop, worry that quotas reduce women to numbers and undermine merit, reinforcing stereotypes rather than breaking them.

There’s also a risk of tokenism or resentment, with appointments seen as box-ticking rather than earned. And as Professor Ruth Sealy of Exeter University points out, increasing representation doesn’t always equal cultural change as the challenge doesn’t just lie in the numbers, but in shifting mindsets and structures to ensure lasting inclusion (Sealy, 2022).

Finding a way forward

At ESGmark®, we believe gender equality policies must reflect each company’s unique context; ‘one size fits all’ doesn’t work. That said, we strongly support gender parity at all levels. Our members operate under a range of frameworks, from legal quotas to none at all, but the goal remains the same: equal representation. It's not a quick fix, but it's achievable.

We encourage companies to set their own quotas using SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound. You may not hit 50/50 overnight, but progress requires a plan and a clear timeline. Start by auditing your workforce, as gender balance often varies by department. Use blind recruitment (removing names from CVs) to reduce unconscious bias, and look into job shares. With caregiving responsibilities still falling largely on women, flexible roles can unlock untapped leadership potential.

While gender equality remains a complex and noisy debate, at ESGmark®, we encourage peer-to-peer learning and believe together, we can move the conversation forward.

For organisations seeking support to improve gender balance, please contact us.

Sources:

Eurofound (2011). French law to increase number of women directors. Europa.eu. [online] 13 Apr. Available at: https://www.eurofound.europa.eu/en/publications/all/french-law-increase-number-women-directors#overview.

European Commission (2025) Press release: New EU rules to improve Gender Balance in corporate boards enter into application. European Commission Press Corner. https://ec.europa.eu/commission/presscorner/detail/en/ip_25_22

Fortune (2025) Fortune 500 companies run by female CEOs in 2025. Fortune, 2 June. https://fortune.com/2025/06/02/fortune-500-companies-run-by-female-ceos-women-2025

FTSE Women Leaders (2025). Progress. https://ftsewomenleaders.com/progress/

Gender and the Economy (2019) The debate about quotas. Gender and the Economy. https://www.gendereconomy.org/the-debate-about-quotas/

Hertner, I. and Wolfs, W. (2024) A Man’s World? The Descriptive Representation of Women Inside Europarties, Journal of Common Market Studies. https://onlinelibrary.wiley.com/doi/10.1111/jcms.13707 

King’s College London (2024) Quotas 'only effective method' of ensuring gender equality in leadership roles. King’s College London, 19 November. https://www.kcl.ac.uk/news/quotas-only-effective-method-of-ensuring-gender-equality-in-leadership-roles

McKinsey & Company (2024). Women in the Workplace. [online] McKinsey. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/women-in-the-workplace.

Sealy, R. (2022) ‘Three lessons for leaders looking to improve workplace diversity’, Exeter Business School Expertise, 8 March. https://business-school-expertise.exeter.ac.uk/article/three-lessons-for-leaders-looking-to-improve-workplace-diversity/

Storvik, A. (2011) Women on boards – experience from the Norwegian quota reform, CESifo DICE Report, 1/2011. https://www.ifo.de/DocDL/dicereport111-rm2.pdf

The Pipeline (2020) Women Count 2020: Role, value, and number of female executives in the FTSE 350. The Pipeline. https://www.nedaglobal.com/assets/files/New_site_PDFs/The-Pipeline-Women-Count-2020-FINAL-VERSION.pdf

UK Government (2011). FTSE 100 companies should aim for 25% women board members – Lord Davies recommends. [online] GOV.UK. Available at: https://www.gov.uk/government/news/ftse-100-companies-should-aim-for-25-women-board-members-lord-davies-recommends.

UK Government (2015). Lord Davies: FTSE 350 boards should be 33% female by 2020. [online] GOV.UK. Available at: https://www.gov.uk/government/news/lord-davies-ftse-350-boards-should-be-33-female-by-2020.

UK Government (2022). Sea-change in UK Boardrooms as Women Make up Nearly 40% of FTSE 100 Top Table Roles. [online] GOV.UK. Available at: https://www.gov.uk/government/news/sea-change-in-uk-boardrooms-as-women-make-up-nearly-40-of-ftse-100-top-table-roles.

World Economic Forum (2025) Global Gender Gap Report 2025. World Economic Forum. https://www.weforum.org/publications/global-gender-gap-report-2025/