Posts Tagged ‘bottom line’
Women on Board?
Canadian and American women dominate the ice— but not the boardroom.
Our new Canadian Census reveals that women make up 47% of the labor force in Canada, but only 14% of board directors in FP500 companies. In the United States, the numbers are also low. Women comprise 47% of the U.S. labor force, but occupy just 15% of the board seats. What’s worse, these numbers have remained virtually unchanged the last few years.
You may think board directors are so high in the org-chart stratosphere that they couldn’t possibly affect you or your job path. But they do. That’s why it’s important to look for diversity when deciding where to work.
The boardroom sets the tone for the organization. The more women on a corporate board, the higher the percentage— five years later— of women in senior positions, especially senior line positions.
Companies with more women board directors, on average, financially outperform those with the fewest. In fact, the more women on board, the better the performance. And companies with three or more women on their boards, on average, perform even better! Chances are that these more successful companies afford women greater opportunity for advancement and development.
So when you are looking for a job, first check that annual report. Skip the pretty pictures, and head for the board listing. If it doesn’t include at least one woman— and preferably three or more—your odds of developing a satisfying career and rising to leadership have just taken a serious hit.
Choose an organization that invests in women. Vote with your feet.
Zero-Sum Myth
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.
Think We Did It? Think Again
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?
Bottom Line on Work-Life Effectiveness
A CEO on Catalyst’s Board of Directors recently told me, “The business world is 24/7/365—people are not.” In managing her employees, she works from that mindset. She places more value on their levels of engagement and productivity and less emphasis on the hours they log at their desks.
Why is it that so many people consider this an issue of “work-life balance?” I don’t like to use the word “balance” because it infers that equilibrium is the norm and puts the onus of achieving that equilibrium squarely on the shoulders of the individual. I am not alone—many others have abandoned the untenable concept of “balance.” As noted by working dad and blogger, Paul Nyhan, in an online chat last year:
“The word I think is needed is rhythm. I have said work-life balance is a crock, and what I aspire to is a sense of rhythm, there will be crazy busy times and quieter times, but having the tools and flexibility to gain a rhythm to balancing work and family.”
Over the years, Catalyst has developed a workforce approach we call WLE, short for “work-life effectiveness.” Our reports on WLE—Making Change—Beyond Flexibility I, Making Change—Beyond Flexibility II, and Making Change: Building a Flexible Workplace—outline a team-based approach that shifts the traditional request for flexibility from “me” to an organizational tool for “us.” At its core, WLE recognizes that people who work have lives outside of work. Pretty cutting edge, no?
