The C-suite roles that can be barriers to promotion

Dear friends,

When measuring a company’s progress on gender equality, we tend to look right to the very top. And while we should absolutely consider every rung on the proverbial ladder, inequalities in the C-suite do tend to mirror the stereotypes and biases that persist throughout an organisation.?

In Australia, women hold 29 percent - less than a third - of C-suite roles; a proportion that declines rapidly, in larger, more profitable companies.?Less than 20 percent of Australian organisations have a woman CEO and of our top 200 ASX companies, a mere 19 are led by a woman.

But things are changing, we insist. There is greater awareness of the benefits women bring to leadership. There are more opportunities for women to pursue big jobs, as well as raise a family. There are more women in the pipeline, steadily making their way towards the glass walled office and big wooden desk of the executive floor. Or are there? New analysis shows that of America's S&P 100 companies, women are underrepresented as CEOs, similarly to here in Australia. But it also revealed that women are underrepresented in the roles that lead to being CEO. That is, women are significantly less likely to hold the executive positions that are most likely to go on to become CEO. Nearly half of CEOs, whether promoted internally or recruited from outside a company, have previously been Chief Operations Officers (COOs). The position next most likely to be promoted to CEO are Chief Financial Officers (CFOs).?

But of the companies analysed? Only two percent had women Chief Operations Officers and 20 percent had women Chief Financial Officers. Comparatively, in companies with at least one woman on the executive leadership team, she is most likely to be employed as Chief People Officer (CPO), a role that is only rarely a pathway to the top job.?

So what does this mean for people and culture leaders? Well, things need to change if you envision a CEO position for yourself in future. But setting self interest aside, organisations need to shift their strategies for recruitment and pipeline building, if they’re going to make real gains on gender equity.

First, recognise that simply hiring more women is not enough. Gender equity strategies should prioritise recruiting, retaining and promoting women across the breadth of organisations , and particularly in positions that are directly related to revenue. Second, consider internal perceptions about the role, relevance and influence of your organisation’s various business units. What does your salary data say about the relative importance your organisation assigns some roles over others, and is it justified??

Third, explore how your organisation might expand its consideration set for future recruitment of the CEO and other executive level positions. How can you ensure a candidate search is not inadvertently gender biassed because of a precondition for significant operational or financial experience?

After all, we should be hiring the best person for a job, not a person with the best previous job title.?

FW