Currently,
there’s a lot of movement
at senior level for a number of reasons. These
include a change in the requirements of executive leaders and C-suite members,
the need for digital, technological, and transformational capabilities, and the
increasing numbers of companies diversifying into new or more markets.
But
there are other reasons why women specifically at the senior level are moving
jobs, as I explore below. In McKinsey’s
recent “Women in the Workplace” report, which is
the inspiration for this article, they state three main reasons that women
leaders are switching jobs:
- They
want to advance but face stronger headwinds than men
- They
are overworked and under-recognized
- They
want a better work culture
Women in leadership stats
Those
three reasons show that women still have a battle to face for real equity in
leadership, but – in the US at least – we are heading in the right direction.
In
January 2023, it was announced that women
CEOs run more than 10% of Fortune 500 companies
for the first time ever. In 2002, this figure was less than
2%. Of course, while this feels like something to be
celebrated, it does mean that 90% of Fortune 500 CEOs are men…
In
financial services specifically, the proportion
of women in leadership is 24%. This is projected to
grow to 28% by 2030 – a figure that’s still very far from being equal.
What are women’s barriers in the workplace?
According
to the McKinsey report, “women leaders are as likely as men at their level to
want to be promoted and aspire to senior-level roles.” So, why isn’t it
happening?
One
of the reasons is that while women may want to advance their careers, they are
more likely to feel that their current role or organization is not providing
enough growth opportunities. And, therefore, they switch jobs.
Women also face different barriers and challenges than men:
- Assumptions
about their home life, especially if they have children – and sometimes if
they are simply of child-bearing age
- Being
mistaken for someone more junior (women leaders are twice as likely as men
leaders to be mistaken for someone more junior, according to McKinsey)
- They
are seen as not up to the job and their judgment is called into question
- Their
contributions are not recognized or valued in their current organization
- Women
often face pay disparities, even in senior roles
How can we overcome these barriers?
Overcoming
barriers for women in the workplace requires company-wide, sustained effort and
commitment. It’s only by working together, at all levels, that we can create
more equitable and inclusive workplaces that benefit everyone.
Some
strategies that can help women overcome barriers at work include:
- Education
and awareness-raising campaigns can help dispel myths and stereotypes
about women’s abilities and roles in the workplace. This can be achieved
through training programs, workshops, and other initiatives that help
people understand the value of diversity, equity, and inclusion.
- Mentoring
and sponsorship programs can help women build networks and access
opportunities that may not be available otherwise. These programs can also
help women build confidence and navigate complex workplace dynamics.
- Employers
can offer flexible work arrangements such as remote work, part-time
work, and job sharing to help women balance work and personal
responsibilities.
- Employers
can conduct regular pay equity assessments to ensure that women and
men are paid fairly for the same work. This can help close the gender pay
gap and create a more equitable workplace.
- Employers
can offer family-friendly policies, such as parental leave,
childcare subsidies, and flexible work schedules to support working
parents. This can help women who are caregivers to balance work and family
responsibilities.
- Inclusive
leadership practices that value and
leverage diverse perspectives, experiences, and skills are also beneficial
in helping to create a culture of respect, trust, and collaboration.
Women & DE&I: the unspoken workload
The
McKinsey report states that “Compared to men at their level, women leaders do
more to support employee well-being and foster diversity, equity, and inclusion
– work that dramatically improves retention and employee satisfaction, but is
not formally rewarded in most companies.”
In
a nutshell, women do more work on DE&I than men, but they aren’t recognized
for it. In fact, women leaders are twice as likely as men leaders to spend
substantial time on DE&I, and 40% of women say this work isn’t acknowledged
in performance reviews.
How
do we address this? Well, one way is to bring DE&I into all senior leader
KPIs. Ingraining this work into the day-to-day puts it on everyone’s agendas.
Again, it’s all about education, and everyone taking responsibility and working
together to bring about a more equitable workplace.
Because
a very real knock-on effect of this on women is burnout from the workload. Not
only that, but women in senior leadership positions also tend to be older and
therefore also more likely to be going through perimenopause,
an added strain that can affect women quite severely. Menopause education is
something that is definitely needed across businesses to bust the taboo and the
stigma.
The battle for a stronger workplace culture
A
final point of difference from men in the reasons women switch jobs is that
women are significantly more likely to leave their workplace than men for a
position that offers greater flexibility.
According
to McKinsey, 49% of women leaders say flexibility is one of the top three
things they consider when deciding whether to join or stay with a company,
compared to 34% of men.
Women
want more flexibility, and for their employer to be focused on well-being and
DE&I. If companies don’t provide this, they’re at risk of losing good women
leaders. Not only that, but they lose role models and mentors for younger women
coming through the business. And it’s this next generation that simply expects
flexibility, a focus on DE&I, and a strong company culture. It’s no longer
going to be a nice-to-have.
Do
you want to diversify your leadership teams and bring more women in at the
senior level? Contact us to arrange a call and find out
how we can support you.
