Executive Summary Katie Rapp & Joy Yoon Question: What are organizational and cultural barriers in the workplace to women advancing to the C-Suite? Introduction Although gender diversity in the workplace has been a “hot topic” and corporate priority for many years, women’s participation in the labor market has not significantly increased since 1990. Today, women are underrepresented in organizations across the United States and globally, and the gender disparity in the pipeline proves greatest at senior leadership levels. This executive summary focuses on the organizational and social barriers that hinder women’s career advancement as well as strategies for addressing these obstacles. Women in the Workplace The benefits of women in the workplace are clear. Women bring diverse perspectives and experiences which can prompt creativity, stability and resilience within organizations. This supports a company’s ability to innovate products and services that drive the bottom linei. Despite these benefits, studies reveal that women are promoted 30% less than men during early career stages, and women spend more time on average in the same role than men. Additionally, women are less likely to receive feedback, have access to senior level sponsors, and negotiate for promotions and salary raises.ii Organizational Barriers Three organizational barriers emerge as most critical for impeding women’s career advancement: 1. Non-inclusive work environment and culture These situations are characterized by the following: a) women are the numerical minority, b) there is a male-dominated, “good old boy” culture and diversity is not explicitly valued, and c) there is a lack of flexibility (very conservative and non- consensus).iii Together, these factors result in situational/cultural stereotype threat cues that decrease women’s motivation and engagement.iv Additionally, because women are not reaching senior level positions, junior women are suffering from lack of role models and lack of female sponsors/advocates with influencing power (i.e., social capital).v 2. Unequal development opportunities Research shows that, during early career stages, women are less likely to participate in important meetings and be assigned to challenging projects. Similarly, women in senior management roles have more than 20% less of an opportunity than men to receive critical feedback, and fewer opportunities to interact with company leaders.vi 3. Heightened stress and pressure 60% of women in the technology industry indicated stress and pressure as the primary reason why they are not pursuing top executive roles.vii Per the “glass cliff phenomenon,” women are far more likely to be appointed CEO of a struggling firm or receive promotions during times of crisis, restructuring or performance declines. As a result, women tend to take greater risks in order to prove credibility and leadership capacity.viii While taking greater risks can sometimes provide growth opportunities, it is more likely that, for young women, it will result in the challenging obstacle of more stress and pressure.ix Executive Summary Katie Rapp & Joy Yoon Social Barriers: "Opting Out" Organizational barriers work in tandem with social barriers to prevent women from successfully advancing in their careers. While most women aspire to be promoted, only 40% of women aspire towards the most senior levels of the organization.x Even when women desire these roles, only 24% of women (as opposed to 32% of men) believe it is likely that they will achieve them.xiThere are several reasons why women may choose to leave the workforce, or “opt out.” Popular media depicts familial obligations as the prime motivation; because women tend to be more relational than men, they often leave the workforce to care for children or elderly parents.xii Additionally, they may leave the workforce because a spouse’s job has been relocated.xiii However, to distill the issue down to familial obligations is a simplified explanation, especially because women and men both cite work and family balance as a major area for concern.xivWomen’s reasons for leaving the workforce are complex and the Kaleidoscope Careers framework demonstrates how careers are impacted by changing personal needs and interests. With three outlined factors shaping career decisions -- authenticity, balance and challenge -- Cabrera argues that women begin careers with an emphasis on challenge, and move towards valuing balance over time.xv Solutions Build the business case for gender diversity Using data and storytelling, companies should communicate the benefits that greater gender diversity has for individual employees, customers, the company and society in general.xvi For example, greater gender equality can save financial and brand costs by avoiding discrimination lawsuits.xvii Specifically, it is important to engage middle managers with hiring responsibilitiesxviii as well as senior leaders (e.g., the CEOxix) who can role model a commitment to gender diversity and equality.xx Address gender biases through employee training To combat bias, employees can be educated on unconscious biasxxi and how it influences decision making with regards to talent planning (e.g., hiring, promotions, etc.) and performance management.xxii Additionally, companies can reinforce training material with aligned communication and behaviors by leaders; as such, the true effectiveness of training often lies in continuing the learning process after the training is over.xxiii Drive the change for inclusive culture To counter a long history of emphasizing masculine-typed competencies, companies can develop and adopt a new leadership model to create standards for evaluation and communicate company values. This refreshed leadership model should highlight female- typed traits such as priority-setting, delegating, growing talent, collaborating, communicating through complex layers and having a global mindset.xxiv A model as such would expand the company’s profile of success to include traits that are inherent strengths for both men and women. Conclusion Understanding organizational and social barriers is helpful for diagnosing the current state of women's career advancement within organizations. Continuous and special attention paid to the business case, development programs and culture will enable organizations to shape workplaces that support women leaders. Women, in turn, add value to the business by bringing diverse perspectives and skill sets. Executive Summary Katie Rapp & Joy Yoon Appendix Suggested Further Reading Opting Back In • Lovejoy, M., & Stone, P. (2012). Opting Back In: The Influence of Time at Home on Professional Women’s Career Redirection after Opting Out. Gender, Work & Organization (6), pp. 631-653. • Herman, C. (2015). Rebooting and Rerouting: Women’s Articulations of Frayed Careers in Science, Engineering and Technology Professions. Gender, Work & Organization (4), pp. 324- 338. Specific Implications/Experiences for Women of Color • Bagati, Deepali. (2009). Women of Color Continue to Face Barriers in U.S. Law Firms, According to Catalyst Report. Diversity Factor (3), pp. 1-7. • Page 8 of McKinsey Report Additional Solutions McKinsey highlights the additional strategies: • Ensure that hiring, promotions, and reviews are fair by employing practices such as blind resume reviews. • Focus on accountability and results by developing, implementing and judging leader performance against metrics and targets related to representation of women. CAHRS highlights the additional strategies: • Adopt flexible working arrangements for both female and male employees such as flex-time, job sharing, telecommuting, adoption benefits and on-site child care as well as provide health and wellness benefits such as on-site yoga and meditation classes. • Give women more job opportunities by positioning them closer to the business through stretch assignments, line management positions and international experience. • Give women a network to support career advancement through the introduction of networking events, employee resource groups (ERGs) and sponsorship programs. Executive Summary Katie Rapp & Joy Yoon References i Wenting, R. M., & Thomas, S. (n.d.). Workplace Culture that Hinders and Assists the Career Development of Women in Information Technology. Information Technology, Learning, and Performance Journal, 25(1), 26-27. Retrieved from http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=14&sid=663949b5-0236-42d5-9fae- e5f95998ab0f@sessionmgr4009&hid=4207 ii McKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ iii Wenting , R. M., & Thomas, S. (n.d.). Workplace Culture that Hinders and Assists the Career Development of Women in Information Technology. Information Technology, Learning, and Performance Journal, 25(1), 26-27. iv Hoyt, C. L., & Murphy, S. E. (2016). Managing to clear the air: Stereotype threat, women, and leadership. The Leadership Quarterly, 27(3), 387-399. doi:10.1016/j.leaqua.2015.11.002 vCabrera, E.F. (2007). Opting out and opting in: understanding the complexities of women’s career transitions. Career Development International (12), pp. 218-237. vi McKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ vii McKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ viii Glass, C., & Cook, A. (2016). Leading at the top: Understanding women's challenges above the glass ceiling. The Leadership Quarterly, 27(1), 51-63. doi:10.1016/j.leaqua.2015.09.003 ix Glass, C., & Cook, A. (2016). Leading at the top: Understanding women's challenges above the glass ceiling. The Leadership Quarterly, 27(1), 51-63. doi:10.1016/j.leaqua.2015.09.003 xMcKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ xi McKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ xii Cabrera, E.F. (2007). Opting out and opting in: understanding the complexities of women’s career transitions. Career Development International (12), pp. 218-237. Executive Summary Katie Rapp & Joy Yoon xiiiCabrera, E.F. (2007). Opting out and opting in: understanding the complexities of women’s career transitions. Career Development International (12), pp. 218-237. xivCabrera, E.F. (2007). Opting out and opting in: understanding the complexities of women’s career transitions. Career Development International (12), pp. 218-237. xvCabrera, E.F. (2007). Opting out and opting in: understanding the complexities of women’s career transitions. Career Development International (12), pp. 218-237. xvi McKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ xvii Heller, R. & Stepp, P. (2011). Re-Examining the Female Path to Leadership Positions in Business. Ithaca, NY: CAHRS. xviiiHeller, R. & Stepp, P. (2011). Re-Examining the Female Path to Leadership Positions in Business. Ithaca, NY: CAHRS. xixHeller, R. & Stepp, P. (2011). Re-Examining the Female Path to Leadership Positions in Business. Ithaca, NY: CAHRS. xx McKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ xxi McKinsey &Heller, R. & Stepp, P. (2011). Re-Examining the Female Path to Leadership Positions in Business. Ithaca, NY: CAHRS. xxii McKinsey & Company. Women in the Workplace 2016. Retrieved from https://womenintheworkplace.com/ xxiiiHeller, R. & Stepp, P. (2011). Re-Examining the Female Path to Leadership Positions in Business. Ithaca, NY: CAHRS. xxivHeller, R. & Stepp, P. (2011). Re-Examining the Female Path to Leadership Positions in Business. Ithaca, NY: CAHRS.