According to a recent analysis by working women’s advocate group LeanIn.org and consulting firm McKinsey & Company, there has been a significant increase in women in corporate leadership roles in the US since 2015, but there is still a long way to go to achieve true equality.
The report, released Tuesday, outlines both progress and persistent challenges that prevent women from achieving full parity with men, particularly at the senior vice president and C-suite levels.
Where women have made progress
The 2024 analysis is based on data from multiple sources, including interviews with HR leaders and female employees, as well as insights from 281 companies employing 10 million people. In addition, a survey of 15,000 employees from 27 companies was conducted to provide a comprehensive overview of the current position of women in the corporate world.
Key findings show that women now make up 29% of C-suite positions, up from 17% in 2015. However, most of these roles are “staff” roles such as chief executive officers, rather than “line” roles such as CEO that are directly linked to the organization’s profits and core operations.
The report also noted that since 2018, there has been an increase in women being promoted to vice president and senior vice president positions, primarily in staff roles.
More companies are taking steps to promote fairer hiring practices and performance reviews: 69% of companies, for example, now offer anti-bias training for raters, up from 53% in 2015. Additionally, the importance of the role of direct managers in women’s career progression has been highlighted, with the majority of companies now offering supervisor training to promote employee well-being and inclusion.
Improving the work environment
The survey results also reflect an overall improvement in the workplace for women compared to 10 years ago: 60% of women surveyed believe their opportunities for growth and development have improved, and 73% report an increased focus on creating a respectful and inclusive workplace.
Companies are also stepping up to support employees who are juggling work and family responsibilities. Nearly all companies now offer essential support for parents, caregivers and people with health issues. For example, half of the companies surveyed offer emergency back-up child care services, up from one-third in 2016. Additionally, 50 percent of companies offer support for employees who are caring for sick family members or elderly parents.
Challenges to achieving equality
Despite these positive developments, significant disparities remain. Promotion rates for women early in their careers have barely improved. The report found that for every 100 men promoted to a management role for the first time, just 81 women got the same opportunity, up slightly from 79 in 2018. For women of color, the situation is even more stark, with only 54 Black women and 65 Latina women promoted to a management role for every 100 men.
The decline in programs focused on recruiting women, particularly women of color, further highlights the challenge: Currently, only 18% of companies offer recruiting programs targeted at women of color, a significant decrease from 30% in 2022. Similarly, internship programs for women of color have also decreased to 8% from 14% last year.
Corporate commitment to gender and racial diversity appears to be waning. The percentage of companies prioritizing gender diversity fell from 87% in 2019 to 78% this year. A similar decline was seen for prioritizing racial diversity, dropping from 77% to 69%. Additionally, less than half of women surveyed felt they received adequate support from their managers, and women of color reported being more likely to experience this lack of support.
Decades until true equality
Based on a decade of data, the report concludes that true equality in leadership positions is still decades away. It estimates that while it could take another 22 years for white women to achieve parity, it could take nearly 48 years for women of color. This slow progress has significant implications for business performance.
“Research shows that companies with more female leaders benefit from increased innovation, healthy culture and stronger financial performance,” the report said, highlighting that female leaders also serve as role models and inspire the next generation to pursue leadership roles.
First Published: 17th September 2024 | 06:13 PM IST