The centre of the pipeline for women in leadership has become hollow, according to a new global study by IBM, the Institute for Business Value (IBV), and Chief titled "Women in leadership: Why perception outpaces the pipeline—and what to do about it."
In the C-suite and Board of Directors, women currently make up 12% of the workforce, according to a study* of 2,500 businesses in 12 countries and 10 industries. Also, women now hold 40% of entry-level professional and specialised positions, up from 37% in 2021. The pipeline for top leadership positions hasn't yet fully recovered from the pandemic, with 14% of women in senior vice president roles (18% in 2019) and 16% in vice president roles (19% in 2019).
To formalise the elevation of more women into leadership roles as a top business priority, less than half (45%) of the organisations surveyed claim to have done so.
Although we're pleased to see some improvement in the representation of women at the C-suite and Board levels, organisations must do more to fill the pipeline that leads to these powerful roles, according to Chief co-founder and chief brand officer Lindsay Kaplan.
In practically every level of the workforce, women are conspicuously underrepresented. If companies prioritise gender diversity across their whole organisations via policies, investments, and a culture that actually supports women, we will witness a revolutionary impact — equity for everyone in the workplace and stronger, more resilient businesses.
"Enabling equity and inclusion provides organisations a competitive edge, yet many enterprises do not operate as if their success depends on it," claims Kelly Chambliss, Senior Vice President and COO of IBM Consulting. If organisations want to flourish in a world that is changing swiftly, they must prioritise advancing women and all historically under-represented groups and take action to overcome structural barriers and unconscious bias.
Studies have also found that:
- Optimism is rising, but it doesn't reflect reality. In contrast to 2019 when the average industry prediction was 54 years, respondents predict that their sector would have gender parity in leadership in 10 years. Yet, based on survey data, gender parity is still decades away at the present rate of development.
- Structural barriers and unconscious bias continue to hinder women's advancement. Since the pandemic's peak, more companies have included diversity training, professional development planning for women, and the formation of women's networking clubs. The majority of respondents think that women with dependent children are just as committed to their professions as women without children, which is what their organization's leaders believe, except male managers, who only agreed to a degree of roughly 40%. Nonetheless, prejudices still exist.
- The attributes perceived as critical for leadership also remain gendered. Respondents agreed that women should be bold and strategic but also people-oriented, whereas males are largely recognized for their ingenuity and ability to achieve achievements while maintaining integrity.
- The pandemic continues to have a disproportionate impact on women at work. In light of the severe and long-lasting effects it has had on women, respondents rank the epidemic as the most critical disruption that women are now experiencing.
According to Salima Lin, Senior Partner and Vice President of Strategy, Transformation, and Thought Leadership at IBM Consulting, "the research data reveals the hollowing out in the middle is true."
"Structural adjustments can provide new avenues for women to ascend to more senior roles," according to the report. "These improvements include redesigning leadership tracks and role descriptions, boosting pay transparency, and defining representation targets."
Based on the research's results on leadership techniques, the report also provides a road map for long-term advancement:
- Reframe the progress of women in leadership in terms of business outcomes, for example, by quantifying the direct financial benefits that might arise from addressing gender disparities.
- Give your approach some heft by supporting your organization's action plan with precise directions and metrics, such as establishing quantifiable targets for women's growth.
- Implement a strategy to promote gender equity throughout the whole leadership pipeline, such as going beyond awareness-raising training and utilizing experiential learning methods like role-playing and reverse mentoring to assist in the eradication of prejudices.
- Redesign leadership positions to attract top talent, for instance, by focusing only on a small number of gender-neutral standards.
