Women in the Workplace

McKinsey release ninth edition of its Women in the Workplace report; surveying over 27,000 employees for their insights on policies and practices

This is the ninth year of the Women in the Workplace report. Conducted in partnership with LeanIn.Org, this effort is the largest study of women in corporate America and Canada. This year, we collected information from 276 participating organizations employing more than ten million people. At these organizations, we surveyed more than 27,000 employees and 270 senior HR leaders, who shared insights on their policies and practices. The report provides an intersectional look at the specific biases and barriers faced by Asian, Black, Latina, and LGBTQ+ women and women with disabilities. This year’s research reveals some hard-fought gains at the top, with women’s representation in the C-suite at the highest it has ever been. However, with lagging progress in the middle of the pipeline—and a persistent underrepresentation of women of color1—true parity remains painfully out of reach. The survey debunks four myths about women’s workplace experiences and career advancement. A few of these myths cover old ground, but given the notable lack of progress, they warrant repeating. These include women’s career ambitions, the greatest barrier to their ascent to senior leadership, the effect and extent of microaggressions in the workplace, and women’s appetite for flexible work. We hope highlighting these myths will help companies find a path forward that casts aside outdated thinking once and for all and accelerates progress for women. The rest of this article summarizes the main findings from the Women in the Workplace 2023 report and provides clear solutions that organizations can implement to make meaningful progress toward gender equality. State of the pipeline Over the past nine years, women—and especially women of color—have remained underrepresented across the corporate pipeline (Exhibit 1). However, we see a growing bright spot in senior leadership. Since 2015, the number of women in the C-suite has increased from 17 to 28 percent, and the representation of women at the vice president and senior vice president levels has also improved significantly. These hard-earned gains are encouraging yet fragile: slow progress for women at the manager and director levels—representation has grown only three and four percentage points, respectively—creates a weak middle in the pipeline for employees who represent the vast majority of women in corporate America. And the “Great Breakup” trend we discovered in last year’s survey continues for women at the director level, the group next in line for senior-leadership positions. That is, director-level women are leaving at a higher rate than in past years—and at a notably higher rate than men at the same level. As a result of these two dynamics, there are fewer women in line for top positions. Moreover, progress for women of color is lagging behind their peers’ progress. At nearly every step in the pipeline, the representation of women of color falls relative to White women and men of the same race and ethnicity. Until companies address this inequity head-on, women of color will remain severely underrepresented in leadership positions—and mostly absent from the C-suite. Four myths about the state of women at work This year’s survey reveals the truth about four common myths related to women in the workplace. Myth: Women are becoming less ambitious Reality: Women are more ambitious than before the pandemic—and flexibility is fueling that ambition At every stage of the pipeline, women are as committed to their careers and as interested in being promoted as men. Women and men at the director level—when the C-suite is in closer view—are also equally interested in senior-leadership roles. And young women are especially ambitious. Nine in ten women under the age of 30 want to be promoted to the next level, and three in four aspire to become senior leaders. Moreover, the pandemic and increased flexibility did not dampen women’s ambitions. Roughly 80 percent of women want to be promoted to the next level, compared with 70 percent in 2019. And the same holds true for men. Women of color are even more ambitious than White women: 88 percent want to be promoted to the next level. Flexibility is allowing women to pursue their ambitions: overall, one in five women say flexibility has helped them stay in their job or avoid reducing their hours. A large number of women who work hybrid or remotely point to feeling less fatigued and burned out as a primary benefit. And a majority of women report having more focused time to get their work done when they work remotely. The pandemic showed women that a new model of balancing work and life was possible. Now, few want to return to the way things were. Most women are taking more steps to prioritize their personal lives—but at no cost to their ambition. They remain just as committed to their careers and just as interested in advancing as women who aren’t taking more steps. These women are defying the outdated notion that work and life are incompatible, and that one comes at the expense of the other. Myth: The biggest barrier to women’s advancement is the ‘glass ceiling’ Reality: The ‘broken rung’ is the greatest obstacle women face on the path to senior leadership For the ninth consecutive year, women face their biggest hurdle at the first critical step up to manager. This year, for every 100 men promoted from entry level to manager, 87 women were promoted (Exhibit 2). And this gap is trending the wrong way for women of color: this year, 73 women of color were promoted to manager for every 100 men, down from 82 women of color last year. As a result of this “broken rung,” women fall behind and can’t catch up. Progress for early-career Black women remains the furthest behind. After rising in 2020 and 2021 to a high of 96 Black women promoted for every 100 men—likely because of heightened focus across corporate America—Black women’s promotion rates have fallen to 2018 levels, with only 54 Black women promoted for every 100 men this year. While companies are modestly increasing women’s representation at the top, doing so without addressing the broken

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Insufficient gender diversity on board and senior management among top reasons for 21% of shareholders voting against re-election of NED for leading Irish DIY retail company

Grafton Group said the company’s record on climate and gender diversity were among the reasons 21 per cent of shareholders voted against re-electing its non-executive chair. The Irish DIY retail giant, which owns the Woodie’s brand, launched a consultation after more than a fifth of investors chose not to support the resolution to re-elect Michael Roney at the firm’s annual general meeting in May. In a statement on Monday, the FTSE 250 firm said “a mix of factors” were behind the shareholder rebellion. Two institutional shareholders said they voted against his re-election because the company has not set net zero targets or published Scope 3 greenhouse gas emissions data, the firm said. Two more cited insufficient gender diversity on the board and at senior management, while another two mentioned the number of board appointments held by Mr Roney in listed companies. One shareholder also expressed the personal view that the firm should have a better chair, the company added. It comes as listed companies have come under increasing scrutiny from shareholders in recent years over their environmental and social performance. Last week, Grafton committed to delivering net-zero carbon emissions by the end of 2050 as it released its half year report for 2023. The firm said it will set science-based targets by the end of 2024 and pledged to develop a transition plan that shows how these targets will be achieved, how progress will be monitored and the estimated financial impact of implementing them. The firm’s statement said: “As also outlined in the Half Year Report, Grafton takes its climate change responsibilities very seriously and will only set targets that it has a high level of confidence can be achieved. “Setting science-based targets requires accurate Scope 3 data and this data is currently being compiled under a detailed and complex process. “The approach being adopted is to follow the Science Based Targets Methodology which is grounded in an objective scientific evaluation of what can be achieved.” Grafton Group also addressed concerns around gender diversity, saying three of its eight board directors are women (38 per cent). It said the board has committed to achieving the target set by the FTSE Women Leaders Review of having a minimum of 40 per cent of Board positions held by women by 2025. But it added that some shareholders have more stringent targets than this. “The Group seeks where possible to prioritise the appointment of women to leadership positions and is committed to increasing representation of women in senior leadership positions across the Group,” the statement said. “Grafton has introduced initiatives to provide career development opportunities for female colleagues including participation in management development programmes, mentoring, coaching and flexible working arrangements.” The firm also addressed shareholder concerns over the number of positions Mr Roney holds elsewhere, saying the nomination committee monitors all directors’ external commitments and would “take appropriate action” over any concerns about their ability to dedicate sufficient time to their roles. The company said the board believes Mr Roney has “always devoted ample time to his role as chair and that he effectively discharges the functions and obligations of the role”. It cited Grafton’s response to the pandemic, Mr Roney’s involvement in major strategic decisions in recent years and leading the search for a new chief executive, which led to the appointment of Eric Born in 2022. “Mr Roney has a distinguished track record in international business, he brings significant experience to the role, provides clear direction and leadership to the board and makes a major contribution to the strategic development of Grafton,” the firm said. “The board acknowledges Mr Roney’s influential role for the benefit of all stakeholders in the company.” The statement added that the firm will set out further details on these matters in its 2023 annual report.

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