Catalyst Blog

If a woman lands a job, does a man lose one?  Online commentary about our latest report, Pipeline’s Broken Promise, suggests that many people still believe this.

The study revealed that women MBAs from top business schools begin their careers, on average, in lower-level positions, are paid less, and receive fewer promotions than their male counterparts— regardless of global region, industry, and whether or not they have children, among other factors. I was disheartened by the findings, as were the CEOs quoted in the report. James S. Turley, Chairman and CEO of Ernst & Young, called them “surprising and disappointing.” Janice L. Fields, President and CEO of McDonalds USA, used the word “deflating.”

But online voices took a markedly different tone.

The majority of comments on the stories by ABC News and The Globe and Mail about the report expressed skepticism toward the findings. Some harbored a sexist point of view. At their core, I think the comments rested on a single fear: more women at work hurts men.

Nothing could be further from the truth.

Our report, Engaging Men in Gender Initiatives: What Change Agents Need to Know, revealed that men have much to gain, including better psychological and physical health and more rewarding relationships with their families. Not to mention the money angle.  Think about it like this: if your wife lands a great job or gets a raise, your whole family benefits— not just your wife. So does the economy, as women control the majority of consumer spending. More cash in hand… more money to contribute.

Companies benefit as well. Catalyst research shows that companies with more women in leadership have, on average, better financial outcomes than those with fewer women in those roles. So not only are your wife, daughter— even your mother— given a fair shake in the workplace, your company gets a potential boost as well.

Diversity is not a zero-sum game. The notion that “women are taking over” at the expense of men sounds like a plot from a cheesy 1950s sci-fi flick. It’s a myth, and it’s outdated, so much so that it was recently lampooned by the Daily Show. It must be laid to rest.

Recent headlines such as “Schools Close the Gender Gap,” “Women Now a Majority in American Workplaces” and “We Did It!” give the impression that women have finally hit parity with men. Change has come. Women and men are equal. Hurray!

Not so fast.

Not only is the glass ceiling firmly in place— it is a lot lower than we think. As Catalyst’s Pipeline’s Broken Promise details, a woman’s first job largely seals her fate in the business world. Female MBA grads start at lower positions than men, get fewer promotions, and are paid less. Not surprisingly, they are also less satisfied with their careers.

The report surveyed 4,143 women and men who earned their MBA degrees between 1996 and 2007 at 26 leading business schools in Asia, Canada, Europe, and the United States. The results accounted for, among other factors, industry, global region, prior experience, career aspirations, time elapsed since earning the MBA and parenthood status. All these being equal, the survey found:

- Men on average began their careers in jobs that were at higher levels than those for women.

- Women were paid on average $4,600 less than men in their first post-MBA job.

- Men’s salary growth outpaced that of women, regardless of differences in starting salary.

- Even if both women and men started at the entry level, men progressed more quickly than women.

- Women were treated differently than men by their first managers— 25% of women versus 16% of men cited a “difficult manager” as the reason for quitting their first job out of business school.

- Men reported greater career satisfaction than women— 37% of men said they were “very satisfied” with their overall advancement versus 30% of women.

What does this mean for you and your company?

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