Why women are being left behind in the workplace
While the business case for increasing women’s leadership representation couldn’t be clearer, many companies aren’t doing enough to retain talented women. In fact, according to previous data from management consultancy DDI, women are 1.5 times more likely than men to feel they have to leave their companies to advance their careers.
The biggest driver of departures is their level of trust in senior leaders. Several factors contribute to feelings of trust, but a big part of trust depends on how well leaders follow through on their promises — one area where companies are failing.
While DEI initiatives encompass a broader spectrum than gender diversity, they are intertwined. According to new data analysis by DDI on women in leadership, companies with comprehensive DEI programs have an average of at least 35% women in leadership positions, compared to 25% in companies lacking or possessing low-quality DEI programs. Shockingly, 20% of companies have no DEI program in place, an increase from 15% in 2020.
So what lies ahead? Will companies lose momentum for DEI efforts, including their support for women in leadership? Or are they adapting their approaches to seamlessly integrate inclusion into business operations? While there have been many advances in women’s workplace equity, DDI’s research reveals multiple areas where women are being left behind.
Based on the findings, I’ve summarized three core areas for improvement:
Fewer women receive formal mentors
On average, 24% of female leaders have had a formal mentor, compared to 30% of men. This gap widens at the senior leadership level, where 27% of women have had a formal mentor versus 38% of men.
Educating early-career women on networking, mentorship and sponsorship is crucial to advancement. In the hybrid work world, barriers to strengthening these connections create further challenges. Companies should build formal programs for mentor connections and regularly measure success.
Women miss opportunities for key executive responsibilities
Women are less likely to be given profit and loss (P&L) responsibility, a crucial stepping stone for advancing into C-Suite roles. Among men at the senior-executive and C-suite level, 79% had managed a P&L function. However, only 67% of executive and C-suite women reported having P&L responsibility.
Companies can remove this blocker by giving women alternative opportunities to demonstrate bottom-line impact and hone their business acumen.
Women lag in receiving critical development support
In their current roles, women were 12% less likely than men to receive leadership-skills training and 15% less likely to be assessed to gain insights on their strengths and development gaps as leaders.
Career-advancing feedback from managers is crucial for leadership growth. Establishing formal review processes can foster a feedback culture supporting development and career advancement. Women should feel empowered to actively seek specific feedback on performance, behaviors and alternative actions.
“It’s not just about giving women a seat at the table. Real inclusion is about women having a key role in the conversations happening and impacting their sense of belonging and career progression,” DDI CEO Tacy M. Byham says. “Great leadership is inclusive leadership, and you cannot be a great leader if you don’t know how to engage and develop everyone to perform their best. Companies need to turn their attention toward creating workplaces that enable women to thrive.”
The clear lesson is this: Companies wanting to retain female leaders must clearly show their investment in their development and career growth. Even more importantly, they need to follow through on what they promise.