This article presents highlights from the full report and presents six actions that could spark progress. These biases could show up in new ways during COVID-19: for example, when colleagues see young children playing in the background on video calls; when coworkers assume, consciously or unconsciously, that women are less committed to their jobs; or when managers are evaluating women in performance reviews. To retain the women most affected by the challenges of COVID-19, companies need to take steps to reduce the additional pressures theyre experiencing. This research revealed that were amid a Great Breakup. Women are demanding more from work, and theyre leaving their companies in unprecedented numbers to get it. Exhibit 1 McKinsey_Website_Accessibility@mckinsey.com When employees say their company is highly committed to gender diversity, they are happier and plan to stay at their company longer. And they need to do the deep cultural work required to create a workplace where all women feel valued. And they have fewer interactions with senior leaders, which means they often dont get the sponsorship and advocacy they need to advance. Right now, theres a significant gap between what companies offer and what employees are aware of. But womens day-to-day experiences are shaped primarily by their interactions with managers and colleagues, which means that deep cultural change is possible only if all employees are empowered to be part of the solution. They are also more likely than men to take allyship actions such as mentoring women of color, advocating for new opportunities for them, and actively confronting discrimination. Women of color, lesbian and bisexual women, and women with disabilities are having distinctand by and large worseexperiences than women overall. But companies need to focus their efforts earlier in the pipeline to make real progress. Although we have seen important gains since 2016, women are still significantly underrepresented at all levels of management. Finally, its important to reflect on organizational customs, rituals, and norms to make sure theyre inclusive. This suggests that managers need to touch base with their teams more consistently, and that these check-ins should be more explicit. As a result, one in five C-suite leaders is a woman, and fewer than one in 30 is a woman of color. A majority of employees believe they personally have equal opportunity to grow and advance, but they are less convinced the system is fair for everyone. And it hurts companies and all employees, because progress is rarely made on efforts that are undervalued. In addition, people welcome having women as their leaders. This starts with identifying where the largest gap in promotions is for women in their pipeline. Of the 24 female senators, 16 are Democrats and eight are Republicans. Young women care deeply about the opportunity to advancemore than two-thirds of women under 30 want to be senior leaders. Over time, more companies are putting the right mechanisms in place, and employees are noticing this progress. This is equally true for women and men.22Seventy-six percent of employees are satisfied with their job when they feel that their company prioritizes gender diversity, compared to 57 percent of employees who do not feel like their company prioritizes gender diversity. Foster an inclusive and respectful culture. Women remain underrepresented at every level in corporate America, despite earning more college degrees than men for 30 years and counting. Women leaders are significantly more likely than men leaders to leave their jobs because they want more flexibility or because they want to work for a company that is more committed to employee well-being and DEI. Im thinking of leaving. Women leaders are seeking a different culture of work. As a result, they most often feel pressure to perform, on guard, and left out. Companies should use targets more aggressively. Mothers are more than three times as likely as fathers to be responsible for most of the housework and caregiving during the pandemic. Finally, companies need to impress upon managers that the work they do to support employee well-being is critical to the health and success of the business. This is just another reason why it is critically important to hold leaders accountable for progress on DEI efforts and to formalize this accountability. Companies need a comprehensive plan for supporting and advancing women. Companies can also encourage employees to set their own boundaries and take full advantage of flexible work options. Black women also deal with more day-to-day bias in their workplaces. #1: Female Bosses Outperform Their Male Counterparts One can cite countless studies on this topic, but Gallup's is one of the largest sample groups. Companies need to address the distinct experiences of Black women, who face obstacles rooted in both racism and sexism. And they want to work for companies that are prioritizing the cultural changes that are improving work. Working at home can help women with disabilities be healthier and more productive since its easier to manage mobility issues, chronic pain, and mental-health conditions when you have more control over your work environment. Women are often held to higher performance standards than men, and they may be more likely to take the blame for failureso when the stakes are high, as they are now, senior-level women could face higher criticism and harsher judgement. The first women to serve in a state legislature were three Republicans elected to the Colorado House of Representatives in 1894. We hope companies seize this opportunity. Alexis KrivkovichandIrina Starikova are partners in McKinseys Silicon Valley office;Kelsey Robinson is a partner in the San Francisco office, where Rachel Valentino is a consultant, andLareina Yee is a senior partner. The events of 2020 have turned workplaces upside down. Women are less likely to be hired into manager-level jobs, and they are far less likely to be promoted into themfor every 100 men promoted to manager, 79 women are (Exhibit 2). By Alexis Krivkovich, Marie-Claude Nadeau, Kelsey Robinson, Nicole Robinson, Irina Starikova, and Lareina Yee. Remote and hybrid work can offer a reprieve from bias, but its not a substitute for systemic change. If women are promoted and hired to first-level manager at the same rates as men, we will add one million more women to management in corporate America over the next five years. The fact that so many employees feel always on signals that companies need to define expectations more explicitly. Based on the percentage of women CEOs at the time of the annual published Fortune 500 list. About a third of companies set targets for the representation of women at first-level management, compared to 41 percent for senior levels of management. Among mothers who are thinking about downshifting or leaving, a majority cite childcare responsibilities as a primary reason. Today, 87 percent of companies are highly committed to gender diversity, compared to 56 percent in 2012, when McKinsey & Company first conducted a similar study on the state of women at work. And contrary to conventional wisdom, they are staying in the workforce at the same rate as men. And the emotional toll of repeated instances of racial violence falls heavily on their shoulders. The culture of work is equally important. 2. 3. To change the numbers, companies need to focus where the real problem is. The nature of these encounters is often different for them: lesbian women are far more likely than other women to hear demeaning remarks in the workplace about themselves or others like them. In the past year, one in three women has considered leaving the workforce or downshifting their careera significant increase from one in four in the first few months of the pandemic. But this years findings make it clearer than ever that companies need to double down on their efforts. Moreover, only 60 percent of employees think a sexual-harassment claim would be fairly investigated and addressed by their companyand just one in three believe it would be addressed quickly. Women make up only 28% of youth sports coaches. In fact, we looked at a number of factors that prior outside research has shown influence employee satisfaction and retentionincluding leadership accountability and manager supportand together opportunity and fairness stand out as the strongest predictors by far. However, due to the challenges created by the COVID-19 crisis, as many as two million women are considering leaving the workforce7Leaving the workforce is defined in this report as taking a leave of absence or leaving the workforce altogether. Notably, nearly one in four employees at the entry level is a woman of color, though this falls to one in 20 at the C-suite levelon par with both the financial-services and cross-industry average. No Black or Hispanic women head Fortune 500 companies, while three Asian American women serve as CEOs. Women make up 28.1% of state senate seats and 31.8% of state house or assembly seats. The share of female CEOs of Fortune 500 companies reached an all-time high of 7.4% in 2020, with 37 women heading major firms. Companies that dont take action may struggle to recruit and retain the next generation of women leaders. It conducts public opinion polling, demographic research, media content analysis and other empirical social science research. Fortunately, sponsorship is trending in the right directionjust a year ago, a quarter of employees reported having a sponsor. Black women have always faced huge barriers to advancement. Open and frequent communication with employees is critical, especially in a crisis; when employees are surprised by decisions that have an impact on their work, they are three times more likely to be unhappy in their job. Managers are on the front lines of employees day-to-day experiences, which means their actions have a significant impact on employee burnout and well-being. The company I work for is really strict about time off, which I think has led a lot of people in the organization to become really burned out. There are simply too few women to advance. For this work to feel like a real priority, it needs to be tied to concrete outcomes for managers, including performance ratings and compensation. And because theyve become comfortable with the status quo, they dont feel any urgency for change. Are team events held in spaces where everyone feels welcome and safe? There are 118 women serving as voting members of the House of Representatives at the outset of the 117th Congress, comprising 27.3% of House members. Not surprisingly, given the negative experiences and feelings associated with being the odd woman out, women Onlys are also 1.5 times more likely to think about leaving their job. Although a majority of companies provide general training for managers, far fewer address specifics that are critical to managing teams today, such as how to minimize burnout and ensure promotions are equitable. For every 100 men promoted to manager, only 85 women were promotedand this gap was even larger for some women: only 58 Black women and 71 Latinas were promoted. About 1 in 5 C-suite executives is a womanand only 1 in 25 C-suite executives is a woman of color. We look back on data and insights since 2015 from close to 600 companies that participated in the study, more than a quarter of a million people that were surveyed on their workplace experiences, and more than 100 in-depth one-on-one interviews that were conducted. Women Onlys have a more difficult time. Now, companies are struggling to hold onto the relatively few women leaders they have. Equal access to mentorship and sponsorship is also key, yet less than half of companies offer virtual mentorship and sponsorship programs. The pandemic continues to take a toll on employees, and especially women. This is the seventh year of Women in the Workplace, the largest study of women in corporate America. There are no Black women currently serving in the Senate. Companies also need to create a culture that fully leverages the benefits of diversityone in which women, and all employees, feel comfortable bringing their unique ideas, perspectives, and experiences to the table. But outside research shows that diverse slates can be a powerful driver of change at every level. Additionally, the gains in representation for women overall havent translated to gains for women of color. To mitigate this, leaders can assure employees that their performance will be measured based on resultsnot when, where, or how many hours they work. An increasing number of companies are seeing the value of having more women in leadership, and theyre proving that they can make progress on gender diversity. 3) Take a close look at performance reviews. 2 They earn 47 percent of all law degrees and 48. Companies that offer flexible work options have also been able to diversify their talent pipelines; 71 percent of HR leaders say remote work has helped their organizations hire and retain more employees from diverse backgrounds. Using the Gender Bias Scale for Women Leaders along with open-ended questions, we compared perceptions and experiences of gender bias for 1,606 women leaders in these fields across 15 factors . However, a majority of companies are concerned that employees who work remotely feel less connected to their teams and say that remote and hybrid work are placing additional demands on managers. All the progress weve seen over the past six years could be erased (see sidebar, A closer look at the challenges that could force women out of the workforce). Female leadership is assertive, inclusive, and empowering. And yet: despite facing more pitfalls to advancement, women of color have higher ambitions to be a top executive than White women. In most organizations, what gets measured and rewarded is what gets done. Perhaps because of the challenges they face in the workplace, for example, Black women are also the most interested in going out on their own. In the fourth year of our ongoing research, we probe the issues, drawing on data from 279 companies employing more than 13 million people, as well as on a survey of over 64,000 employees and a series of qualitative interviews. Women in Leadership Statistics In 1972, only 18% of managerial positions were held by women. For some women the experience is far more common. A heightened focus on racism and racial violence triggered a reckoning on diversity, equity, and inclusion. Without action on these fronts, the numbers will not move: We know many companiesespecially those that participate in this studyare committed and taking action. (+1) 202-419-4300 | Main The shift toward remote and hybrid work has been particularly beneficial for women with disabilities. Young women are also more likely than current women leaders to say theyre increasingly prioritizing flexibility and company commitment to well-being and DEI (Exhibit 4). Since 2015 the number of women in senior leadership has grown, particularly in the C-suite where the representation of women has increased from 17% to 21%. As companies roll out new remote- and hybrid-work norms, they will want to keep a regular pulse on whats working for employees and what needs to be improved. However, there is a large racial gap: people of color are significantly more likely to leave their organizations. LGBTQ+ women, and women with disabilitiesto get an intersectional look at biases and barriers. To make meaningful and sustainable progress toward gender equality, companies need to go beyond table stakes. Seventeen women serve in one of the top leadership posts in state senates, and an additional seven are speakers of state houses. Many women experience bias not only because of their gender but also because of their race, sexual orientation, a disability, or other aspects of their identityand the compounded discrimination can be much greater than the sum of its parts. Under Biden, three of the top Cabinet posts the vice president, secretary of treasury and director of national intelligence would each be held by women for the first time. Cynthia DuBois, The Impact of Soft Affirmative Action Policies on Minority Hiring in Executive Leadership: The Case of the NFLs Rooney Rule,. Women in the Workplace by Corporate Level Statistics Women hold 23% of executive positions, 29% of senior management positions, 37% of manager positions, 42% of professional positions, and 47% of support staff positions globally. To put the scale of the problem in perspective: for every woman at the director level who gets promoted to the next level, two women directors are choosing to leave their company (Exhibit 3). (+1) 202-857-8562 | Fax It was the first time I had to solve problems that so directly impacted peoples mental and physical health. However, womenespecially women of colorremain significantly underrepresented in leadership (Exhibit 1). Women of color include Black, Latina, Asian, Native American/American Indian/Indigenous or Alaskan Native, Native Hawaiian, Pacific Islander, Middle Eastern, or mixed-race women. It builds on the Women in the Workplace reports from 2015, 2016, 2017, 2018, and 2019, as well as similar research conducted by McKinsey in 2012. Source: Catalyst, Deloitte and Heidrick & Struggles. COVID-19 has made it much harder for employees to draw clear lines between work and home, and many employees feel like they are always on. Companies should look for ways to reestablish worklife boundaries. Evaluation tools should also be easy to use and designed to gather objective, measurable input. Roughly 60 percent of all employees plan to remain at their companies for five or more years. Being an Only also affects the way women view their workplace. Outside research shows that sponsorship accelerates career advancement,19 Center for Talent Innovation, The sponsor dividend, 2019, talentinnovation.org. Companies risk losing women in leadershipand future women leadersand unwinding years of painstaking progress toward gender diversity. Performance reviews are an important part of running an effective organization and rewarding employees for their contributions. Given that hiring and promotions are powerful levers in driving pipeline diversity and employee satisfaction, theres a strong business case for adopting more of these best practices. More companies are committing to gender equality. Moreover, less than a third of employees say they get the sponsorship needed to advance their career. This means being intentional about working normsfor example, having everyone join meetings via videoconference so that its easier for employees to participate when they are working remotely. The factors that prompt current women leaders to leave their companies are even more important to the next generation of women leaders. Companies could also benefit from dedicating resources to team bonding events and, whether theyre virtual or in person, taking special care to make sure that all employees feel included and that events are accessible to everyone. They also feel more reluctant to share their thoughts on racial inequity. Over half of all employees plan to stay at their companies for five or more years, and among those who intend to leave, 81 percent say they will continue to work. That comes with its own challenges: women who are Onlys are more likely than women who work with other women to feel pressure to work more and to experience microaggressions, including needing to provide additional evidence of their competence. Theyre doing more to support employee well-being and foster inclusion, but this critical work is spreading them thin and going mostly unrewarded. However, this number dropped to 24 on Jan. 20, soon after the start of the congressional term, as Sen. Kamala Harris (D-Calif.) became vice president and was replaced by a male appointee and Raphael Warnock, the winner of the Georgia runoff election, replaced Sen. Kelly Loeffler (R-Ga.). As a result of these dynamics, more than one in four women are contemplating what many would have considered unthinkable just six months ago: downshifting their careers or leaving the workforce completely. Women of color not only still face higher rates of microaggressions, they also still lack active allies. Nancy Pelosi (D-Calif.) is the only woman to have served as speaker of the House. They are also far more likely to feel like they cannot talk about their personal lives at work. And when hiring and promotions are unbiased, the most deserving employees can rise to the topand employees feel more confident that the process for advancement is fair. Whether intentional or unintentional, microaggressions signal disrespect. Frances Elizabeth Willard became the first female college president in 1871, heading the Evanston College for Ladies in Illinois, which later merged with Northwestern University. Liz Cheney (R-Wyo. Companies that rise to the moment will attract and retain the women leaderswhich will lead to a better workplace for everyone. Three primary factors are driving their decisions to leave: 1. Managers have an important role to play in fighting burnout. This was most pronounced in senior management: between January 2015 and January 2020, representation of women in senior-vice-president positions grew from 23 to 28 percent, and representation in the C-suite grew from 17 to 21 percent (Exhibit 1). Ive asked many times what I can do to get promoted, and I dont get a good answer. This year, our report took a closer look at some of them. Two and a half years later, employees want to move forward with the workplace of the future. Women currently hold 5.2 percent of Fortune 500 CEO positions and 5.4 percent of Fortune 1000 CEO positions. And even though more than 70 percent of companies say they are committed to diversity, less than a third of their workers see senior leaders held accountable for improving gender outcomes. The case for fixing the broken rung is powerful. Companies need to take bold steps to address burnout. If women leaders leave the workforce, women at all levels could lose their most powerful allies and champions. All of this is having an impact on Black women. Source: Center for American Women and Politics, Rutgers University and U.S. House of Representatives. Data on displayWomen in management. The COVID-19 crisis has disproportionately affected Black people, and incidents of violence toward Black people in the United States have exacted a heavy emotional and mental toll on Black women. In 2020, only 47% of women of working age participated in the labour market, compared to 74% of men - a gender gap that has remained relatively constant since 1995. For more information, visit womenintheworkplace.com. Only 32 percent of women think that disrespectful behavior toward women is often quickly addressed by their companies, compared with 50 percent of men. Progress stalled during the pandemic, with the annual share of women hired into leadership positions holding at 35% between 2019 and 2020 but then increasing to 36% in 2021. Womens representation has increased across the pipeline since 2016. The disruption of the past year and half is driving a fundamental change in the way people work. Many employees think women are well represented in leadership when they see only a few. Many companies have extended policies and programs to support employees during COVID-19, from offering more paid time off to providing resources for homeschooling. As remote- and hybrid-work policies continue to evolve, its important for companies to share guidelines about who can work remotely and why so people dont feel theyre being treated unfairly. Most managers provide this type of career support, and women and men report receiving similar amounts of help from their manager. For example, weve heard from companies that have offered COVID-19 days to give parents a chance to prepare for the new school year and from companies that close for a few Fridays each quarter to give everyone an opportunity to recharge. 2. However, companies that are struggling financially may not be able to address the issue employees are most concerned about: the possibility of being laid off or furloughed. As companies continue to navigate this transition, there are three key things they should consider. This survey focuses on full-time employees in the corporate sector versus the full economy, and given the nature of sexual harassment, it is often underreported. Indeed, 40 percent of women leaders say their DEI work isnt acknowledged at all in performance reviews. Based on an analysis of HR and DEI best practices, we have highlighted select policies and programs that are more prevalent in companies that have a higher representation of women and women of color (Exhibit 7). A recent study from ResumeLab finds 38% of people prefer to work for a female boss compared with 26% who. The same is true of employees who have strong allies and believe DEI is a high priority for their company. 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