Why companies lose more female leaders than male

Why companies lose more female leaders than male

Why companies lose more female leaders than male

It's a well-known fact that companies lose more female leaders than male.

According to a study by LeanIn.org and McKinsey & Company, only 27% of women in the workforce hold managerial positions, compared to 72% of men.

While analysis by the Chartered Management Institute (CMI) found that fewer than half (41%) of management roles in the UK workplace are held by women.?

For its 2021 Gender Diversity Index,?European Women On Boards (EWOB) ?reviewed and ranked over 600 listed corporations on a national and European level. Their findings were that on average there are 35% of women on corporate boards which is a long way short of the European Commission’s objective of 40%, set out 10 years earlier.

This disparity is even wider for women of colour and other marginalised groups.

Interestingly in 2022, Deloitte predicted that one in four leadership positions in large global technology companies would be held by women.

According to McKinsey, about 10.5% of female leaders left their company in 2021, compared with 9% of male leaders. This is the highest rate of voluntary departures since McKinsey started collecting data in 2017.

This higher rate at which female leaders leave companies is a significant issue that needs to be addressed. When companies lose talented female leaders, they miss out on valuable diversity of thought, perspective, and experience.

So, what causes companies to lose more female leaders than male?

One factor is the lack of women in leadership positions to begin with. When women are underrepresented in leadership roles, it creates a culture that is not supportive or inclusive of women. This can make it more difficult for women to advance and succeed in their careers.

In addition, the lack of representation can also lead to biases and stereotypes that can further marginalise and discriminate against women.

For example, a study by the Harvard Business Review found that women are often seen as less competent than men, even when they have the same qualifications and experience. This can lead to women being passed over for promotions or given fewer challenging assignments.

Another factor is the "leaky pipeline," or the tendency for women to drop out of the workforce or leave leadership positions at a higher rate than men.

This can be due to a variety of reasons, such as the lack of flexible work arrangements or the lack of support for women who are balancing caregiving responsibilities with their careers.

For example, a study by the Center for American Progress found that women who are caregivers are more likely to leave the workforce or reduce their hours, which can have a negative impact on their careers and earning potential.

The motherhood penalty, or the negative impact that becoming a mother can have on a woman's career, can also contribute to the loss of female leaders.

A study by the Harvard Business Review found that mothers are less likely to be hired, promoted, or receive fair pay compared to non-mothers.

Discrimination and bias are also major factors in the loss of female leaders. Women may face barriers to advancement or be passed over for promotions due to their gender.

They may also be paid less than their male counterparts for the same work, which can make it more difficult for them to advance and succeed in leadership roles. A report by the National Women's Law Center found that women in the United States are paid on average 80 cents for every dollar paid to men, with even wider pay gaps for women of colour.

In the UK, women are paid 83p for every £ a man is paid.?This pay gap can add up over time, making it more difficult for women to achieve financial security and advance in their careers.

This is a complex issue

In conclusion, the loss of female leaders in companies is a complex issue that is influenced by a variety of factors.

By addressing these issues and creating more supportive and inclusive environments for women, companies can retain and support the female leaders they have and help to bridge the leadership gap.

This is not only good for women, but also for companies, which benefit from the increased profitability, diverse perspectives and skills that female leaders bring to the table.

If you'd like to talk through the female talent development and retention initiatives in your organisation and how effective they will be in 2023 so that you stop losing your female leaders,?book a no-pressure consultation call with me in my diary here .?

About Sherry Bevan

Leadership consultant, podcast host and speaker,?Sherry Bevan?is a former Global Head of IT Service for a City law firm. In 2012, after 25 years of technology leadership in the City, she set herself up as an?independent consultant and coach .

Sherry specialises in partnering with?cybersecurity and technology companies?to develop and retain their female talent so that they get promoted which means that you?close the gender pay gap, through workshops, development programmes and 1:1 executive coaching.

Get in touch?by email ?or via LinkedIn to book an exploratory call to find out how you can work with Sherry to develop and retain your top female leaders.

Sherry also works privately with ambitious women who want to fully unlock their leadership potential. For private 1:1 coaching, visit?The Confident Mother .

Andie Kramer

Lawyer, Author and Advocate – Founding Member, ASKramer Law

1 年

Could not agree more, Sherry Bevan. While there has been some shift in how people — and society more broadly — think, talk, and fight gender inequality, it’s still not enough. Increasing the proportion of women in leadership is a key way to bring about systemic change in the workplace. I would love to collaborate with you and make a real impact. Best, Andie

Ady Dike

Helping organisations to transform - SC Cleared Enterprise (ICE-EC, SPC) and Executive Coach (ICF-PCC)/Non-Executive Director

1 年

Sherry Bevan This is an excellent article. It helped me to see how diversity requires equality and inclusion to be meaningful and how companies who are serious about recruiting and retaining women leaders need to do oh so much more to retain women leaders and the diversity of perspective to be successful.

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