Three steps forward, two-and-a-half back: that characterizes the state of women in the workplace, in Georgia and in the United States as a whole. And that halting progress is both bad for business and for society at large. In 2019, for example, McKinsey found that companies in the top quartile of gender diversity on executive teams were 25 percent more likely to have above-average profitability than those in the bottom. in the fourth quartile.
On the positive side, the results of a major survey, “Women in the Workplace,” by McKinsey and LeanIn.Org of more than 270 companies representing over 10 million employees, found that U.S. women’s representation in the C-suite has risen from 17 percent in 2015 to 28 percent now. There are also more women at the vice president and senior vice president levels.
Credit: contributed
Credit: contributed
In this year’s Fortune 500, a record 52 firms were led by women, up from last year’s 44. In this regard, though, Georgia falls short. The state is home to 19 Fortune 500 companies, but only one is led by a woman, Carol Tomé of UPS. In terms of board memberships, in 2022, McKinsey analysis found women accounted for 26 percent of directors in Georgia’s 10 biggest public companies, compared to 17 percent in 2013. That is progress but not parity, and short of the national average of 29 percent.
Credit: contributed
Credit: contributed
One reason for these results is the persistent problem of the “broken rung” that stalls women’s progress up the corporate ladder. For the ninth consecutive year, the survey found that women face great difficulty in making the first step up to manager. For every 100 men promoted from entry level to manager, only 87 women were — and only 73 women of color. For Black women specifically, it was just 54, and for Latinas, 76. In fact, women of color are persistently underrepresented at all levels. At the senior manager and vice president level, for example, white women account for more than a quarter of these positions; women of color for 9 and 7 percent, respectively.
The broken rung is a major reason that women fall behind and then don’t catch up. The “great attrition” — people leaving their jobs or even the workforce — is another factor. At the director level, for example, women are leaving at a higher rate than in past years and much more so than men.
What are the solutions to these persistent problems? Here are three approaches that can help.
Know what is going on: What gets measured gets managed is a truism that is actually true. But fewer than half of the companies surveyed keep tabs on employee advancement by race and gender. To ensure that women have a fair shot at advancement, companies should track metrics such as hiring, promotions and attrition, as well as qualitative indicators like performance ratings and job satisfaction. Then the insights revealed should be mined to determine further action. If one division is doing conspicuously better than another in terms of women’s advancement, what is it doing differently?
Fix the broken rung: Top-performing companies from this year’s report show that it can be done — and how. As noted above, data is essential. So is asking the right questions: Where are the gaps? What does the data say about possible causes? With information and insights in hand, it is possible to create career development programs with content relevant to the challenges that women, particularly women of color, may face, such as lack of mentorship or access to career-enhancing opportunities. By knowing where the disparities are, companies can make adjustments in real time and help women prepare for the next level.
Involve and incentivize managers: The report revealed a sizeable gap between company rhetoric and on-the-ground reality. Only 36 percent of employees surveyed say their manager treats DEI as a top priority, even though 73 percent of companies agreed that fostering DEI is a top-three driver of future success. To narrow the gap, organizations need to get managers actively engaged. In terms of day-to-day work, help managers to counteract unconscious bias through organizational processes, such as programs that are orchestrated to avoid bias (such as assignment of sponsors and mentors) and automating routines that are prone to unconscious bias. Managers need to be equipped with the tools and resources to implement people leadership actions, such as practice on initiating difficult conversations. Consider using alternative training methods, such as peer-to-peer coaching, to focus on forming positive habits and creating a support network. Finally, make people development and DEI a core part of performance reviews.
In important ways, Georgia is in a good place economically, with below-average unemployment and strong job growth; it is regularly ranked as one of the top states in which to do business. But none of this can be taken for granted: we have to build on our strengths. The most important of these is people. That is why it is in Georgia’s interest to fix the broken rung: only by bringing to bear women’s talents to the fullest degree can we build the sustainable and inclusive growth we all want.
Tiffany Burns is a senior partner in consulting firm McKinsey & Co.’s Atlanta office, where Elizabeth Murthy is a partner.
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