McKinsey & Company 2 Our
Eighth year This year… 333 Participating companies 12 million+ Employees in participating companies 34 in-depth 1-on-1 interviews 40,000+ Employees surveyed on workplace experiences Note: In this document, “women” includes cisgender and transgender women. Due to small sample sizes for transgender women, data are reported for “women overall” or “LGBTQ+ women” in aggregate. Women of color include Black, Latina, Asian, Native American/American Indian/Indigenous or Alaskan Native, Native Hawaiian, Pacific Islander, Middle Eastern, or mixed-race women. Due to small sample sizes for other racial and ethnic groups, reported findings on individual racial/ethnic groups are restricted to Black women, Latinas, and Asian women. Source: 2022 Women in the Workplace research Women in the Workplace is a multi-year joint research effort by McKinsey & Company and LeanIn.org. It is the largest comprehensive study of the state of women in corporate America Since the launch of the report in 2015, 810+ companies have participated in the study, and 400,000+ employees have been surveyed on their workplace experiences.
McKinsey & Company 4 Despite
modest progress, women are still dramatically underrepresented in leadership Employees by level as of year-end 2021, % End of 2016 47 37 33 29 21 20 ’16 to ’21 change 1pp 3pp 3pp 3pp 7pp 6pp 48 End of 2021 40 36 32 28 26 Men of color White women Women of color White men % of women1 Women’s representation has shown signs of progress throughout the pipeline, but women of color continue to lose ground at every step Women also remain deeply underrepresented in technical roles; women in technical roles are 2X as likely as women overall to say they’re the “only woman in the room” 13 21 61 13 23 58 14 24 54 16 26 47 19 27 41 19 29 33 5 6 8 10 C-suite SVP VP Sr. Manager / Director Manager Entry level 19 14 Note: Total percent of women and men per level in the race and gender pipeline may not sum to overall corporate pipeline totals, as the race pipeline does not include employees with unreported race data. Some percentages may sum to 99 percent or 101 percent due to rounding. Pipeline data in this report are based on data from the end of 2021 and do not reflect changes through 2022 Source: 2022 Women in the Workplace research 4 McKinsey & Company
McKinsey & Company 5 ‘The
great breakup’ - women leaders are leaving their companies at the highest rate in years Source: 2018-2022 Women in the Workplace research Voluntary attrition for women vs. men leaders from 2017 to 2021, % 7.4 9.0 7.9 10.5 +22% +33% Historical average 2021 rate “1 up, 2 out” For every woman director promoted to the next level, two women directors are choosing to leave their company Men Women Note: Voluntary attrition rates for men and women leaders (L4 to L1) were calculated by weighting each employee level’s voluntary attrition rate by the end of year composition. “Voluntary attrition” refers to employees who left their organization of their own volition. Women and men leaders refers to employees at the senior manager / director, vice president, senior vice president, and c-suite levels; 4-year average voluntary attrition from 2017-2020 5 McKinsey & Company
McKinsey & Company 6 The
“broken rung” is still broken – women of color especially are less likely to overcome this barrier For every 100 men promoted to manager …and only 82 women of color are promoted, compared to 85 women of color last year …only 87 women are promoted This is as broken as last year for women overall.. ..And more broken for women of color Source: 2022 Women in the Workplace report and analysis Note: Assumes an equal number of men, women, and women of color at entry level available to be promoted 6 McKinsey & Company
McKinsey & Company 8 Women
leaders want to advance, but face stronger headwinds than men Women leaders are overworked at work and at home and under-recognized Women leaders are seeking a different culture of work Source: 2022 Women in the Workplace report and analysis Note: “Women leaders” refers to women employees at the senior manager / director, vice president, senior vice president, and c-suite levels 3 primary factors are driving women leaders’ decision to leave 37% have had a coworker get credit for their idea 2x more likely to be mistaken for someone more junior 43% are burned out 2x as likely to spend substantial time on DEI, despite it going unrecognized in performance reviews 49% say flexibility is a top three consideration in deciding to join or stay at a company Women leaders… 8 McKinsey & Company
McKinsey & Company 9 Women
leaders are also overworked at home and as women advance, they continue to shoulder most of their household labor 9 McKinsey & Company 2X as likely as men to be doing all the family’s housework (for entry-level women) 4X as likely as men at their level to be responsible for family’s housework and caregiving (for women leaders) 13 52 30 58 21 58 Entry Level First-level manager Senior manager and up Source: 2022 Women in the Workplace research 1. Height, not width, represents differences in household labour Note: “Women leaders” refers to women employees at the senior manager / director, vice president, senior vice president, and c-suite levels Men leaders Women leaders Responsible for most or all housework and/or childcare by gender, %1
McKinsey & Company 10 Companies
are also at risk of losing young women The reasons why women leaders are switching jobs are factors that are becoming increasingly important to women – especially young women1 66 76 31 58 31 41 42 56 55 68 Source: 2022 Women in the Workplace research Factors that have become more important in the past 2 years, % 1. Reasons women leaders are switching jobs include the opportunity to advance, flexibility, company commitment to DEI, an unsupportive manager, and an unmanageable workload Note: “Women leaders” refers to women employees at the senior manager / director, vice president, senior vice president, and c-suite levels; young women is defined as women under 30 Flexibility Opportunity to advance Company commitment to DEI Level of manager support Company commitment to well-being Women under 30 Women leaders 10 McKinsey & Company
McKinsey & Company 11 Some
women face more bias… Don’t worry they’ll be penalized for mistakes 57 56 61 56 61 51 44 45 Feel comfortable disagreeing with co- workers 62 54 59 52 57 51 45 44 Rarely feel excluded 52 48 54 49 52 44 39 37 All men All women LGBTQ+ Women Women with disabilities White women Asian women Latinas Black women All women LGBTQ+ Women Women with disabilities White women Asian women Latinas All men Black women Others comment on their appearance 4 7 14 13 7 5 7 9 They've been criticized for their demeanor 10 14 23 25 15 9 14 18 Others make assumptions about their culture or nationality 5 7 9 8 2 17 16 13 Source: 2022 Women in the Workplace research Worse experience Better experience 10 16 21 23 16 15 16 19 They've been mistaken for someone more junior 24 31 39 47 31 24 28 36 Their judgement is questioned 21 27 33 36 27 25 24 26 Others get credit for their ideas Respondents experiencing or agreeing with the following statements, % Microaggressions Psychological safety Demeaning and "othering" comments Challenges to competence
McKinsey & Company 12 …and
receive less support at work Has strong allies on team 59 63 65 73 62 67 59 63 Senior coworker publicly praised their skills 49 53 54 59 52 56 51 48 Senior coworker advocated for a raise for them 23 31 31 33 29 33 24 27 Manager support All women LGBTQ+ Women Women with disabilities White women Asian women Latinas All men Black women Manager checks in on their well-being 60 64 70 64 66 60 60 60 Manager promotes inclusion on their team 53 53 61 53 55 52 48 47 Manager shows interest in their career 39 38 42 44 53 41 46 45 Sponsorship & allyship All men All women LGBTQ+ Women Women with disabilities White women Asian women Latinas Black women Source: 2022 Women in the Workplace research Worse experience Better experience Respondents experiencing or agreeing with the following statements, %
McKinsey & Company 14 Flexibility
is here to stay 82% of employees want flexible work options1 71% of HR leaders say remote work has helped them hire and retain diverse employees 86% of companies plan to keep or expand their flexible work options 47% of employees say flexible work options factor into their decision to join or stay with an organization Source: 2022 Women in the Workplace research 1. Employees that said they want to work mostly remotely or split time evenly between remote and onsite 14 McKinsey & Company
McKinsey & Company 15 Women
experience fewer microaggressions when they work remotely at least some of the time 19 24 29 27 37 39 31 38 43 23 30 36 Work mostly remote Work hybrid Work mostly on-site Source: 2022 Women in the Workplace research Note: An “othering microaggression” refers to: Having had others comment on your appearance in a way that makes you uncomfortable; People making assumptions about your culture or nationality (e.g., asking you where you're “really from”); Being criticized for your demeanor (e.g., being told you look mad or should smile more); Hearing or overhearing negative comments about your accent or way of speaking Women with disabilities are almost 1.5x as likely to experience microaggressions when they work mostly on-site Women who experienced “othering” microaggressions when they work mostly remote, hybrid and mostly on-site, % All women LGBTQ+ women Women with disabilities Women of colour 15 McKinsey & Company
McKinsey & Company 16 Employees
who can choose their work arrangements have better experiences and are less likely to leave 81 61 67 47 64 41 30 21 Source: 2022 Women in the Workplace research Note: “Women work where they want” refers to women who work mostly remotely and want to work mostly remotely or women who work mostly on-site and want to work mostly on-site. “Women don’t work where they want" refers to women who work mostly remotely and want to work mostly on-site or women who work mostly on-site and want to work mostly remotely. Neither group includes women who work or want to work in a hybrid environment Women who do not work where they want Women who work where they want Women who report the following by alignment of work preference,% I’m happy with my job I feel like I have equal opportunity I am unlikely to leave in the next year I am rarely burnt out 16 McKinsey & Company
McKinsey & Company 17 17
McKinsey & Company Managers are key to retaining women —but they need more support to get this right
McKinsey & Company 18 Expectations
for managers are high, but they aren’t always rising to the challenge or receiving the right training 53 80 Inclusion Encouraged respectful and inclusive behavior on your team Promote inclusion on their teams 50 43 60 Career development Help employees develop their careers Showed interest in career advancement Made sure you got credit for your work 62 38 78 Well-being Support employee well-being Checked in on your personal well-being Worked with you to make sure your workload is manageable Expectations of people managers % of HR leaders who say expectations for managers have increased Actions consistently taken by managers % of employees who say their managers consistently do these actions Source: 2022 Women in the Workplace research Although expectations have risen, companies are not providing the training needed for managers to effectively manage hybrid and diverse teams
McKinsey & Company 19 When
managers show up consistently, women are happier, less burned out, and less likely to leave Employees who reported these outcomes, by number of manager actions1, % +37 92 55 Happy with job Would recommend organization Rarely burned out Unlikely to leave in the next year +33 92 59 +19 38 19 +38 75 37 Source: 2022 Women in the Workplace research When managers take all key actions When managers take no key actions 1. Outcomes when managers take all or none of the following actions for employees: give helpful feedback, help manage workload, show interest in career, check-in on well-being, ensure credit for work, encourage inclusivity and respect on team
McKinsey & Company 21 Table
stakes Over the years we have seen certain DEI policies become ‘table stakes’: • Tracking DEI data • Providing unconscious bias training • Offering benefits, including healthcare, mental health support, bereavement support, or paid sick and family leave • Providing career development Leading policies Top performing companies differentiate themselves through several ‘leading’ policies: • Setting DEI goals and holding leaders accountable • Training managers on fostering diverse, inclusive and hybrid teams • Offering leading benefits • Implementing targeted sponsorship programs Next horizon practices We are also seeing the emergence of some ‘next horizon’ DEI policies: • Tracking outcomes for remote, hybrid and onsite employees • Linking progress on diversity to financial incentives • De-biasing core processes like recruiting and promotions Note: Table stakes are practices offered by ≥75% of 2022 participants. Leading policies are less standard (e.g., offered by < 75%) and are more prevalent in companies that have both improved women’s representation and outperformed their industry from 2019 to 2022 when compared to other companies with data from the same time period. Next horizon practices are those implemented by (< 30% participants in 2022) but are emerging with promising early results We are seeing the emergence of leading DEI practices Not exhaustive Source: 2022 Women in the Workplace research 21 McKinsey & Company
McKinsey & Company 22 Deep
dive: “Top performing” companies share a focus on priority practices to overcome DEI challenges Top performers Non-top performer companies Practices in place, by company performance, % of respondents (n=97) Employee benefits Career development Source: 2022 Women in the Workplace research Note: Leading policies are offered by < 75% of 2022 participants and are more prevalent in companies that have both improved women’s representation and outperformed their industry from 2019 to 2022 when compared to other companies with data from the same time period Manager trainings Data tracking 0 100 80 60 40 20 Personal leave for mental health care Ability for caregivers of adults to take extended time off and return to a similar role Support for miscarriage Emergency backup childcare services Ability for parents to take extended time off and return to a similar role Formal sponsorship program focused on women Formal sponsorship program focused on women of color Companies provide opportunities to learn and develop skills in employee retention efforts Train managers on how to facilitate team conversations about diversity issues Train managers on how to make sure promotions on their team and fair & equitable Train managers on communicating with remote employees Train managers helping employees set boundaries on their availability Preferences for flexible scheduling in employee surveys Set numeric goals for representation at senior levels of management for race/ethnicity Diversity metrics are shared publicly outside the organization Not exhaustive
McKinsey & Company 23 Actions
companies can take Source: 2022 Women in the Workplace research De-aggregate the data Track metrics at a granular level to understand pipeline and experiences of specific job roles and intersectional groups to inform more targeted solutions Equip managers to meet the new bar Upskill managers on topics critical to managing hybrid and diverse teams, including how to manage workload, enable connectivity, and ensure equitable promotions and career development Re-define how work can be done Communicate hybrid work guidelines, gather regular feedback from employees, foster connectedness, and be purposeful about in-person work Close the gap between paper and practice Move beyond offering a program to ensuring efficacy by tracking participation, outcomes, and satisfaction, with a rigorous program to improve Support the whole employee Minimize impact of imbalances outside workplace by providing enhanced emergency care benefits, and expanded support for mental health and broader wellness Create a culture of accountability for DEI Reward leaders who are stepping up, hold those who are not delivering accountable, and increase transparency on progress against DEI goals 23 McKinsey & Company
McKinsey & Company 24 Actions
leaders and individuals can take Make sure women’s ideas are heard Role model allyship by calling out microaggressions so women (especially women of color) don’t have to always self advocate for inclusive culture Interrupt bias in the moments that matter Challenge the likeability penalty, ensure balanced language in reviews, challenge hiring and promotion criteria that creates gatekeeping Mentor and sponsor women Reflect on personal sponsorship model (your “top ten list”) and how balanced it is, set a bar for true sponsorship (not just mentorship) Give women direct feedback Women often receive less constructive feedback — often vague, couched in communications vs. business metrics Celebrate women’s accomplishments Recognize the valued work of great leaders – as sponsors, managers and DEI champions, and ensure it is rewarded Rebalance the small moments Ensure the informal representation is as balanced as the formal – airtime in meetings, presenting at conferences, stretch assignments Source: 2022 Women in the Workplace research 24 McKinsey & Company
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