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2017 Women in the Workplace - Full presentation
Women remain underrepresented in corporate leadership. While women earn 57% of college degrees, they hold only 20% of senior roles. They face challenges including unequal pay, lack of support from managers, carrying a larger burden of household work, and perceiving their gender as a disadvantage. However, companies that focus on accountability, flexible work policies, and fair hiring/promotions see faster progress getting more women into management and leadership. Individual actions like calling out bias, sponsoring women, and changing biased language can also help close the gender gap.
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Discusses women's earnings compared to men's, the importance of meritocracy, and the economic penalties women face.
Highlights the necessity of attracting women for competitive advantage and the correlation between company diversity and financial performance.
Explains that consumer demographics are diverse, with women controlling significant household spending.
Discusses the potential GDP growth from achieving gender equality, citing significant possible economic contributions.
Describes the slow pace towards gender equality in corporate America and highlights the drop-off of women of color in workplaces.
Analyzes employees' intentions to stay or leave and the disparity in promotions between men and women.
Investigates the lack of support women receive from managers compared to men and shortcomings in addressing diversity.
Examines the disproportionate amount of household work women undertake compared to men.
Addresses how gender impacts career progression and highlights discrepancies in perceptions of gender representation.
Outlines actions companies can take to promote diversity and highlights results achieved by top performing companies.
Encourages individual actions towards promoting gender diversity in the workplace.
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2017 Women in the Workplace - Full presentation
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- 2. 1 1 “Firm Value”defined as total company market cap SOURCE: Institute for Women’s Research “The Gender Wage Gap: 2015”; Federal Reserve Bank of New York “Gender and Dynamic Agency: Theory and Evidence on the Compensation of Top Executives” MenWomen 79 cents average earned by a woman for every dollar earned by a man VALUES Meritocracy is important but not yet achieved $500K average income that a woman loses out on over the course of her career 2x penalty in compensation for changes in firm value for women vs. men1 $ -63% -33%
- 3. 2 57% College graduates 43% SOURCE: NationalCenter for Education Statistics, Table 318.10 TALENT Anybody who doesn’t think about how to bring in more women won’t be able to compete, because they’re just cutting out half the talent from their opportunity set. - Jenny Johnson, Franklin Templeton Winning the war for talent requires winning the war for women
- 4. 3 PERFORMANCE Diverse companies outperform SOURCE:McKinsey Diversity Matters Database, 2017 1 Average EBIT margin, 2011-15 2 Varies by geography, but in most cases includes all non-white ethnicities. In the US, we also include Hispanic of any race. In Singapore, we include only people of Malaysian decent. Diversity Matters I (2014) 15%Gender Diversity 35%Ethnic Diversity2 1st vs. 4th quartile likelihood of financial performance1 above national industry median Percent In our expanded dataset, the link between profitability and representation of women in top teams was even stronger Diversity Matters II (2017) 22% 35%
- 5. 4 CUSTOMER Customers are morediverse than most companies 8% 92% Vacations Auto- mobiles Homes Consumer Electronics 49%51% 9% 91% 40%60% SOURCE: Silverstein and Sayre, “The Female Economy” HBR (2009) Who controls household spending by gender
- 6. 5 1 Excluding Indiaand China 2 Excluding Central Asia SOURCE: McKinsey “The Power of Parity: How advancing women’s equality can add $12 trillion to global growth” (2016) … if women achieve full parity – the size of the current US and China economies combined $28 trillion globally $2.1 trillion in the US … bigger than the GDP of Texas, and would drive… What is the power of parity? + 6.4 million jobs+ 1% U.S. GDP growth per year through 2025 12 15 10 13 22 9 19 N. America & Oceania Latin America Africa Europe 2China India Asia1 Incremental 2025 GDP (% of $28.3 trillion)
- 7. 6 Yet the gapto close is wide… SOURCE: : McKinsey “The Power of Parity: How advancing women’s equality can add $12 trillion to global growth” (2016) McKinsey Global Institute’s Gender Parity Score points to where 95 countries stand on gender parity 0.71 Western Europe 0.67 Eastern Europe, Central Asia 0.57 Sub-Saharan Africa 0.48 Middle East N. Africa 0.48 India 0.61 China 0.44 South Asia (Excl. India) 0.62 East & South East Asia (Excl. China) 0.74 North America, Oceania1 0.64 Latin America Gender inequality (1.00 = gender parity) High Extremely high These 95 countries, grouped into 10 regions, are home to 93% of the world’s female population
- 8. 7 Corporate America isnot on a path to gender equality At current rates, it would take more than 100 years to reach gender equality in the C-suite
- 9. 8 The corporate pipelineis leaky … and women of color face the steepest drop off1 1 Women in workplace 2017 study includes 222 companies and is North America focused SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study White men Men of color White women Women of color 2017 Pipeline % women 36% 16% 31% 17% 47% 16% 26% 11% 54% 13% 26% 8% 61% 11% 23% 6% 70% 9% 18% 4% 67% 12% 18% 3% 47% 37% 33% 29% 21% 20% C-suiteSVPVP Sr. Manager/ Director ManagerEntry level MenWomen
- 10. 9 Women are evenless represented in the industrial and manufacturing sectors1 Men Women 2017 All companies2 pipeline % women 74% 26% 80% 20% 80% 20% 82% 18% 84% 16% 87% 13% 47% 37% 33% 29% 21% 20% C-suiteSVPVP Sr. Manager/ Director ManagerEntry level 1 Women in workplace 2017 Automotive & Industrial Manufacturing benchmark includes 12 companies and is North America focused 2 Women in workplace 2017 study includes 222 companies and is North America focused SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study MenWomen
- 11. 10 For most companiesattrition is not the problem % OF EMPLOYEES WHO REPORT THEY PLAN TO STAY OR LEAVE THEIR COMPANY WITHIN THE NEXT TWO YEARS Taking a role at another company Leaving the workforce to focus on family 72% 73% 2% 1% Planning to stay Planning to leave 73% 27% 26% 74% Why employees plan to leave MenWomen SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study
- 12. 11 Women are 18%less likely than men to be promoted to manager Women are progressing more slowly than men SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study
- 13. 12 What do women’sand men’s experiences tell us?
- 14. 13 Have you everasked for a promotion? Yes No
- 15. 14 Women are justas interested in being promoted as men, but men move up more often without asking SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study MenWomen % of women who asked for a promotion Entry level Senior management 31% 32% 40% 38% % that got a promotion without asking 13% 17%
- 16. 15 Do you getsupport from managers and senior leaders? Yes No
- 17. 16SOURCE: 2017 McKinseyand LeanIn.Org Women in the Workplace study Women receive less support from their managers… women than men report their manager provides advice to help them advance women than men report they interact regularly with senior leadership 10% less 20% less People who receive advice from their managers are statistically more likely to receive a promotion
- 18. 17 … and managerscontinue to lag in key practices to improve gender diversity SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study MenWomen 32% 45% Managers ensure that a diversity of voices are heard Disrespectful behavior toward women is quickly addressed 34% 55% How is your company performing on gender diversity? Percent who agree… 30% of managers regularly address gender-biased language and behavior when it happens
- 19. 18 Do you domost or all of the household work? Yes No
- 20. 19 19McKinsey & Company19McKinsey & Company …this holds even for primary bread winners on average 12% of men report doing all or most of the household work 43% of women compared to SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study Women carry most of the burden at home MenWomen 54% 22% % OF MEN AND WOMEN THAT DO ALL OR MOST OF THE HOUSEWORK Women do most housework…
- 21. 20 Has your genderbeen a disadvantage as you’ve progressed in your career? Yes No
- 22. 21SOURCE: 2017 McKinseyand LeanIn.Org Women in the Workplace study % OF WOMEN AND MEN WHO THINK … MenWomen Gender impacts women’s opportunities and day-to-day experience 37% 8% My gender has played a role in missing out on a raise, promotion, or a chance to get ahead I have equal opportunity for growth as my peers My gender will make it harder to get a raise, promotion, or chance to get ahead 39% 15% 57% 62%
- 23. 22SOURCE: 2017 McKinseyand LeanIn.Org Women in the Workplace study WhiteAsianLatinaBlack % OF WOMEN WHO THINK … HOW WOMEN VIEW OPPORTUNITY They have equal opportunity for growth as their peers The best opportunities go to the most deserving employees 48% 29% 55% 38% 55% 40% 59% Promotions are based on fair and objective criteria 34% 39% 40% 41% 40% … and this is particularly stark for women of color
- 24. 23SOURCE: 2017 McKinseyand LeanIn.Org Women in the Workplace study Nearly 50% of men think women are well represented in leadership where only one in ten senior leaders is a woman Remarkably 33% of women agree Despite this, we do not all see that there is an issue – this is particularly true for men
- 25. 24 So how dowe change the game?
- 26. 25 Six actions companiescan take to accelerate diversity Focus on accountability and results Have managers drive day-to-day change Give employees the flexibility to fit work into their lives Ensure hiring, promotions, and reviews are fair Offer trainings geared towards making the workplace more diverse Make a compelling case for gender diversity
- 27. 26 More men committedto gender diversity Faster promotion rate of women across the pipeline More women in C-suite, SVP and VP levels More women as managers 5x 2x 80% 15% 1 Results based on top performing vs. bottom-performing companies SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study Top performers are seeing results1
- 28. 27 Steps you cantake today Talk about why gender diversity matters to you – both up and down Call out bias when you see it – it only takes one voice Create an account scorecard Commit to sponsoring three junior women Change your own language to eliminate bias Share women’s success stories
- 29. 28 THANK YOU To read our2017 study go to www.womenintheworkplace.com