They designate the advancement of women as a formal business priority.
Women, leadership, and missed opportunities
Advancing gender equity is a clear win. But doubling down on pre-COVID approaches won’t get organizations where they need to be.
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In 2019, IBM launched its first women in leadership study. Our goal was to see if the attention and resources devoted to aiding women’s professional advancement had made a demonstrable difference in closing the gender gap. Two years and a global pandemic later, we wondered: Have things changed?
Our findings suggest they have, but not for the better. Despite increased awareness of gender imbalances, the number of women serving in senior leadership positions has barely budged over the past 2 years. Only 1 in 4 organizations are making the advancement of women a top 10 priority. And, perhaps most concerning, there are now fewer women in the pipeline to fill executive roles than there were in 2019.
While many factors may be inhibiting progress, companies can make bolder breakthroughs if they commit to taking action now. Organizations need to treat gender equity and diversity as though their survival depends on it. Not only is leveling the playing field the right thing to do, it is undeniably good for business.
Gender-inclusive organizations that prioritize the advancement of women reap a variety of benefits.
They report a rate of revenue growth as much as 61% higher than other organizations.
60% report they are more innovative than their competitors.
73% say they lead their field in customer satisfaction.
“Let’s start with how real gender bias in the workplace is. It has never been more apparent than this moment when we see in actual data how much the COVID-19 crisis has impacted women more than men.”
— Women’s Leadership Jam participant
We’ve (not really) come a long way, baby
If awareness is the first step to action, then it’s hard to imagine circumstances more rattling than the events of 2020. In the span of a year, the pandemic upended generations of working women, with more than 5 million just in the US losing or leaving their jobs. In addition, the Black Lives Matter protests shone a light on persistent racial disparities, revealing barriers that especially disadvantage Black women and other women of color.
The disruptions brought renewed attention to the challenges women face as they endeavor to advance their careers, from the “second shift” that women work after their day jobs to the steep onramp many face when returning from a career break, and much more. These challenges are not new. Some organizations did step up interventions over the past year, expanding access to childcare and introducing flexible work programs to accommodate women, who globally continue to bear majority responsibility for childcare and eldercare in their families. But the IBM survey found most gender-equity efforts move too slowly and, in some cases, are slipping backward.
The sobering reality is that executive boardrooms and C-suites globally look essentially the same as they did 2 years ago. Our data indicates they comprise the same small percentage of women (8% for executive boards and 10% for C-suites) despite a heavy push for diversity, along with national mandates in a growing list of countries that includes Norway, Spain, France, Iceland, and Germany.
Alarmingly, these low percentages risk shrinking further. Our data indicates the pipeline of women needed to fill open executive positions has narrowed. Fewer women hold senior vice president, vice president, director, and manager roles in 2021 than in 2019. This contraction aligns with other dire statistics showing that women in the early and middle stages of their careers are most vulnerable to pandemic-related job displacements, with those aged 20 to 34 among the hardest hit. Without effective, immediate interventions, the loss of future leadership talent poses a long-term risk for organizations and for the economy as a whole.
The disruptions brought renewed attention to the challenges women face as they endeavor to advance their careers, from the “second shift” that women work after their day jobs to the steep onramp many face when returning from a career break, and much more. These challenges are not new. Some organizations did step up interventions over the past year, expanding access to childcare and introducing flexible work programs to accommodate women, who globally continue to bear majority responsibility for childcare and eldercare in their families. But the IBM survey found most gender-equity efforts move too slowly and, in some cases, are slipping backward.
The sobering reality is that executive boardrooms and C-suites globally look essentially the same as they did 2 years ago. Our data indicates they comprise the same small percentage of women (8% for executive boards and 10% for C-suites) despite a heavy push for diversity, along with national mandates in a growing list of countries that includes Norway, Spain, France, Iceland, and Germany.
Alarmingly, these low percentages risk shrinking further. Our data indicates the pipeline of women needed to fill open executive positions has narrowed. Fewer women hold senior vice president, vice president, director, and manager roles in 2021 than in 2019. This contraction aligns with other dire statistics showing that women in the early and middle stages of their careers are most vulnerable to pandemic-related job displacements, with those aged 20 to 34 among the hardest hit. Without effective, immediate interventions, the loss of future leadership talent poses a long-term risk for organizations and for the economy as a whole.
2019 vs. 2021: The pipeline of women for leadership roles has gotten smaller
Yet, the events of 2020 showed that organizations can move boldly when they want to. When the global economy went into a tailspin following coronavirus lockdowns, diversity and inclusion initiatives were among the first casualties. But the Black Lives Matter protests propelled diversity and equity to center stage, spurring new, bold commitments and optimism. Adidas, for example, plans to fill at least 30% of open positions with Black or Hispanic candidates. PepsiCo has announced it will add more than 250 Black employees to managerial positions, including a minimum of 100 Black employees to executive positions. And Estée Lauder commits to increasing the percentage of Black employees at all levels of its company, including the management layers, over the next 5 years, mirroring the percentage of Black people in the US.
These examples show that organizations can make big commitments in short order. To boost gender equity, and their own performance, businesses need to demonstrate the same energy and dedication. But success will require a different playbook.
These examples show that organizations can make big commitments in short order. To boost gender equity, and their own performance, businesses need to demonstrate the same energy and dedication. But success will require a different playbook.
INSIGHT
Gender-inclusive companies that prioritize the advancement of women report as much as a 61% higher rate of revenue growth compared to other organizations.
Where organizations are falling short
Numerous studies confirm that organizations with high scores in gender equity gain not only a performance bump, but have happier employees.Organizations with the most women at the top can potentially deliver share performance and profits that are close to 50 % higher than those organizations with the fewest, according to McKinsey analysis.Our own study found that more men who work for organizations with a higher ratio of female executives report being satisfied with their jobs versus men at companies with fewer women in top roles.These sentiments are all the more striking given that the survey was fielded during the stressful COVID - 19 crisis.
But despite best intentions, only a small number of companies are achieving these benefits. Our research suggests efforts to improve equity and inclusion are falling short in four ways:
- Compared to 2019, data shows that more organizations are instituting more initiatives to improve gender equity and inclusion. Gender-blind job screenings and parental leave for women are among the most commonly applied interventions.More organizations require diversity training on gender topics28%in 201952%in 2021But looking at the 429 encore organizations (those that participated in both our 2019 and 2021 studies) provides a longitudinal view suggesting <i>more programs</i> haven’t necessarily translated to <i>better</i> outcomes. Organizations may be using lots of tools, but the tools they’re employing aren’t getting at the fine edges—those mindsets and behaviors that create a welcoming, inclusive corporate culture and deliver business advantage.Compared to 2019, for example, fewer encore organizations agreed that senior executives openly challenge gender-biased behaviors and language, despite an increase in diversity training. And fewer confirmed that high-performing women receive promotions as often as high-performing men. Additionally, the percentages increased among those who chose a neutral response for these items. This suggests that in the most important areas, female as well as male employees are uncertain about the progress being made.
“I work for a great team, but in a small group I recently brought up the need to address gender bias. A female colleague was confused. She said, ‘What bias? I haven’t seen that on our team.’ Afterwards, I shared some of my own experiences with her. She realized that she had dismissed it as ‘just the way things are.’”
—Women’s Leadership Jam participant
Mindsets matter, of course, but programmatic interventions don’t appear to address them sufficiently. The survey found notable perceptual differences between men and women—notably among mid-level managers, who are often the first to recognize and support promising employees for career growth opportunities.
- Less than half (48%) of respondents say their organizations set targets for gender equity, down from 66% in 2019. And while the majority (57%) of survey respondents say their senior management is held accountable for gender equity, nearly a third (32%) aren’t so sure, and the rest (11%) say this is not happening at their organizations. A major reason for the lackluster attention is that only 1 out of 4 respondents report that their companies make the advancement of women a top 10 formal business priority. Instead, the majority—58%—say their organizations adopt a “do it when they can” approach.Fewer organizations are setting workforce gender equity targets66%in 201948%in 2021The lack of formal commitment and vision can muddy the path to value, leading organizations to fund a diverse array of initiatives, but without a cohesive strategy to help ensure program goals lead to substantive culture change. Hampered by scattershot accountability, efforts to improve gender equity and diversity can limp along—supported by good intentions, but without the muscle to sustain them.Our data suggests hints of fatigue and disillusionment setting in for both women and men. In 2019, 71% of women said they expected their organizations would significantly improve gender parity over the next 5 years. Most men—67%—were on board with this prediction. Just 2 years later, these percentages dropped to 62% of women and 60% of men. While the majority of both genders remain optimistic that change is possible, the trend is declining.
- Few companies would dream of launching a major product initiative without pulling in their best data, analytics, and talent. But some organizations rely on conventional wisdom to guide gender and inclusion initiatives. They choose interventions because of reputations for good practice without testing whether these “done before” efforts are the best route to deliver desired outcomes—or whether alternative approaches might generate better results.
“I have not experienced first hand any man calling out discriminatory behavior. I think this distinction is important, because without male leaders role modeling, reinforcing, and rewarding the behaviors that show more active allyship, younger employees won’t have the example to follow.”
—Women’s Leadership Jam participant
For example, diversity training is a mainstay in most organizations. But a study by Harvard University found that in the typical ways such training is deployed—mandatory tutorials followed by questionnaires—the positive benefits rarely last beyond a day or two. Employees are good at guessing the right answers, which results in superficial learning. Far more effective, the study found, is creating experiential and voluntary programs. Either way, organizations won’t know what works without testing and tailoring. Similarly, many organizations cling to the convention that a bachelor’s degree is a necessary precondition for employment. They fail to confirm whether this standard is relevant for success in the intended role—and whether it creates an unwarranted barrier for otherwise qualified applicants.
- Bringing about gender equity involves difficult math and even tougher choices. To mirror outside demographics, one executive told us that every open leadership position in her organization would need to be filled by a woman or person of color. Few organizations have the stomach for change of that magnitude. And even less dramatic shifts can seem threatening to those already in place.For example, data shows that men are aware of the importance of gender equity and support women’s advancement generally. More than half report gender inclusion is part of their organization’s mission statement, and 40% of men agree with the idea that gender-inclusive organizations are more successful financially. These men see gender-equity as a win-win for both employees and their business. But those men who perceive women’s advancement as hindering their own opportunities, or compelling them to adopt new ways of working, may be reluctant to modify their attitudes and behaviors. When survey respondents were asked why they don’t see more women in leadership roles today, the top answers had nothing to do with policy inertia. Instead, they reflected the pain of change and lack of accountability.
Top five explanations for why we don’t see more women in leadership roles
1. Assumptions that employees prefer to work for a man
2. Assumptions that male leaders are unwilling to share leadership responsibilities with women
3. Assumptions that fewer women want to take on leadership roles
4. Inadequate managerial accountability for promotion of women into leadership roles
5. Society’s gender bias or sexism
“I think that most men are focused on not rocking the boat, rather than making contributions to correct and steer the ship towards equality.”
—Women's Leadership Jam participant
First Movers are leading the way
A subgroup of organizations that we call “First Movers” stands apart in several important ways:
They view gender inclusivity as a driver of financial performance.
hey are highly motivated to continue making changes to achieve gender equity.
First Movers, importantly, report a higher percentage of women for each of the executive positions we queried. While these businesses have yet to reach parity, gender and racial inclusion have become a force multiplier—driving above-average financial growth and innovation, along with customer and employee satisfaction.
First Movers are reaping the benefits of more gender-balanced leadership:
Stronger financial performance
First Movers report a rate of revenue growth that’s as much as 61% higher than other organizations in our study. Their performance speaks not only to raw sales growth, but also to underlying attitudes, with individuals who work at First Mover organizations expressing much more confidence in their companies’ prospects.
Stronger innovation
A study by the International Labour Organization found that gender-inclusive organizations report a 54% increase in creativity, innovation, and openness. First Movers report similar benefits, with 60% stating their businesses are more innovative than competitors—a 22% premium over the other organizations.
Stronger customer satisfaction
More diverse perspectives enable inclusive companies to be more receptive to outside ideas and more attenuated to the needs of others, including and especially their customers. That outside-in focus pays off: nearly three-fourths (73%) of First Movers say they lead their field in customer satisfaction compared to less than half (46%) of respondents from other businesses.
Stronger employee retention and satisfaction
More women in the workforce, robust programming that leads to substantive change, and more inclusive environments translate to happier employees. 68% of First Movers say their companies top their competition in employee satisfaction and 64% say retention rates are higher.
From basic to breakthrough: Excellence in gender equity requires a shake-up
From basic to breakthrough: Excellence in gender equity requires a shake-up
Here are five steps organizations can take to build gender equity:
1. Pair bold thinking with big commitments.
Treat gender equity and diversity as though your business’s survival depends on it. As with business goals, if leaders are entirely comfortable with the status quo, they are not doing enough. Make gender equity a top strategic priority.
Define success in clear and concrete terms. Move beyond well-meaning but abstract notions of “closing the gender gap.” Outline what gender and racial equity mean for your organization and, specifically, what success looks like.
Drive accountability and don’t settle for acknowledgement. Managers from the senior leadership level down should be assigned measurable goals, with frequent tracking and reporting to maintain focus and momentum.
Define success in clear and concrete terms. Move beyond well-meaning but abstract notions of “closing the gender gap.” Outline what gender and racial equity mean for your organization and, specifically, what success looks like.
Drive accountability and don’t settle for acknowledgement. Managers from the senior leadership level down should be assigned measurable goals, with frequent tracking and reporting to maintain focus and momentum.
2. Insist on making room.
Make it a mantra to ask, “Who’s missing?” To source fresh perspectives and foster workplace health, heterogeneous teams must become the new normal.
Set the rules of engagement. When business is on the line, change happens quickly. Assess your key partner relationships and make it clear that you refuse to do business with any whose teams are not diverse.
Reward the rock stars and hold the line on others. Empower leaders to operationalize the concept of a diverse and inclusive workforce and celebrate those who do. Make equally clear that homogenous teams will not receive support.
Set the rules of engagement. When business is on the line, change happens quickly. Assess your key partner relationships and make it clear that you refuse to do business with any whose teams are not diverse.
Reward the rock stars and hold the line on others. Empower leaders to operationalize the concept of a diverse and inclusive workforce and celebrate those who do. Make equally clear that homogenous teams will not receive support.
3. Identify specific, crisis-related interventions.
Focus on the middle. Leaders should pay particular attention to the junior and middle ranks of their organizations to fill a diverse pipeline.
Seek solutions that deliver exponential gains. Recognizing the need to move quickly and the fact that no organization has limitless resources, companies should prioritize interventions that generate compounded benefits
Show visible commitment. Diversity task forces and women’s leadership groups are an effective way to demonstrate the organization is serious about making concerted change.
Seek solutions that deliver exponential gains. Recognizing the need to move quickly and the fact that no organization has limitless resources, companies should prioritize interventions that generate compounded benefits
Show visible commitment. Diversity task forces and women’s leadership groups are an effective way to demonstrate the organization is serious about making concerted change.
4. Use technology to accelerate performance.
Surface and validate new ideas. Jams and other forms of virtual brainstorming can help crowdsource innovative approaches and test the efficacy of existing women’s advancement efforts.
Expand “routes to market.” Invest in collaborative tools and teaming practices that allow women and men to engage effectively in physical and remote environments even after the pandemic abates
Hardwire fairness into screening. When effectively designed, AI can flag gender, age, and ethnicity-biased language. This can trigger the re-wording of a job posting so it appeals to a broader spectrum of qualified candidates.
Expand “routes to market.” Invest in collaborative tools and teaming practices that allow women and men to engage effectively in physical and remote environments even after the pandemic abates
Hardwire fairness into screening. When effectively designed, AI can flag gender, age, and ethnicity-biased language. This can trigger the re-wording of a job posting so it appeals to a broader spectrum of qualified candidates.
5. Create a culture of intention.
Move from a program focus to a growth mindset. Women want equal opportunities for learning, advancement, and career success, not shortcuts that pop them to the head of the line.
Be an amplifier. An IBM Women’s Leadership Jammer said, “One thing I have found helpful is for men to be advocates. In a meeting, encourage women to speak, and if you see someone is having difficulty getting a word in, step in to recognize that person.”
Have the courage to embrace discomfort. Truly revitalizing performance means tackling complexity and persuading people to work in new ways. That work is messy and challenging, which is why many organizations seek to avoid it.
Be an amplifier. An IBM Women’s Leadership Jammer said, “One thing I have found helpful is for men to be advocates. In a meeting, encourage women to speak, and if you see someone is having difficulty getting a word in, step in to recognize that person.”
Have the courage to embrace discomfort. Truly revitalizing performance means tackling complexity and persuading people to work in new ways. That work is messy and challenging, which is why many organizations seek to avoid it.
How organizations can create exponential gains through gender diversity
Basic
- Diversity initiatives in place, often managed by HR, with broad targets for inclusion and advancement
Breakthrough
- Gender parity a top priority, with quarterly board-level and public reporting, and CXO accountability
- Bold, organizationwide initiatives that show visible commitment
Enablers
- Digital dashboards that provide management visibility, enable early intervention, and drive better results
How organizations can create exponential gains through gender diversity
- Basic
- Diversity initiatives in place, often managed by HR, with broad targets for inclusion and advancement
Breakthrough- Gender parity a top priority, with quarterly board-level and public reporting, and CXO accountability
- Bold, organizationwide initiatives that show visible commitment
Enablers- Digital dashboards that provide management visibility, enable early intervention, and drive better results
- Basic
- Initiatives that frequently include staples such as mentorship, affinity groups, and unconscious bias training
- Companywide events recognizing key days such as International Women’s Day and Juneteenth
- Periodic employee “pulse” surveys that gauge efficacy of programs and shape future design
Breakthrough- Outcome-based initiatives focused on high-priority needs—one example is SOAR, which provides mentorship and leadership skills training for women, including those of color
- Outreach, such as reverse mentoring, that challenges conventional norms to instill new perspectives and cultural adaptation
Enablers- Design Thinking principles that use data, testing, and agile development
- Rapid prototyping
- Continual test-and-learn cycles
- Automatic feedback loops, powered by machine learning
- Basic
- Recruitment and retention planning tailored to specific underrepresented segments
Breakthrough- Individualized “whole person” approach
- Initiatives backed by layered supports—for example, flexible working arrangements and more robust childcare and eldercare resources
- Personalized development plans
Enablers- AI enablers to reduce bias in hiring and performance evaluation
- Personalization technology that helps ensure users actively participate in co-creating responsible AI-powered tech
- Empathetic technology and digital “nudges,” such as issuing reminders or friendly competitions using push notifications, SMS, and email
- Basic
- Easy access to Zoom, Slack, Trello, and other virtual collaboration tools
Breakthrough- A virtual ecosystem comprising core tools such as Zoom, but also core practices, such as virtual war rooms and virtual agile teams
- The democratization of training or project opportunities, with access to remote sessions conducted by experts using augmented reality solutions
Enablers- AI technology that can enable team members to work “side-by-side,” digitally placing participants in a shared background
- Augmented reality (AR) that enables digital information to overlay a physical environment that can be shared virtually through the use of smart glasses and mobile devices
Bridget van KralingenSenior Vice PresidentGlobal Industries, Platforms and Blockchain
Global Research Leader for Customer Experience and DesignIBM Institute for Business Value
ContributorsTraci BermissIBM Global Diversity and Inclusion LeaderBlack CommunityHaynes CooneyResearch DirectorIBM Institute for Business ValueJennifer KnechtVice PresidentIBM Consulting CommunicationsValerie LemieuxIBM Marketing Performance Analytics LeadMonica LoganSenior PartnerIBM Business Transformation ServicesObed LouissaintSenior Vice PresidentIBM Transformation and CultureAnthony MarshallPartner, Offering LeaderIBM Institute for Business ValueJulie McDougalIBM Diversity and Inclusion LeaderGlobal Women CommunityRachael MorinIBM Global Advertising ManagerPaul PapasGlobal Managing PartnerIBM Business Transformation ServicesCarla Grant PickensIBM Global Chief Diversity & Inclusion OfficerInhi Cho SuhGeneral ManagerIBM Strategic PartnershipsMolly VannucciPartnerIBM Business Transformation ServicesMaria Bartolome WinansCMOIBM Americas MarketingIrina YakubenkoIBM Executive Communications Lead to the CMO & SVP
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