Women Are Rising to Be the Leaders Companies Need, But Work Is Going Unrecognized and Unrewarded

9/27/2021 12:23:50 AM

(MENAFN- PR Newswire) SAN FRANCISCO, Sept. 27, 2021 /PRNewswire/ -- Today, LeanIn.Org and McKinsey & Company released the seventh annual Women in the Workplace report, the largest study on the state of women in corporate America. The findings point to three key trends: A year into the COVID-19 pandemic, it's clear that women are burned out and at risk of leaving the workforce. Women are stepping up as stronger leaders, but their work often goes unrecognized. At the same time, corporate America is still failing women of color despite two years of increased focus on racial equity.

The report is based on data and insights from 423 companies representing more than 12 million people, along with survey responses from over 65,000 individual employees. It shows that despite important gains since 2016, women remain significantly underrepresented at all levels of management in corporate America.

At the same time, women in leadership are rising to the moment as stronger people leaders and more active champions of diversity, equity, and inclusion (DEI)—and are taking on the extra work that comes with it. Compared to men at the same level, women in senior leadership are 60 percent more likely to provide emotional support to employees and 24 percent more likely to ensure their teams' workloads are manageable. Senior women leaders are also twice as likely to spend a substantial amount of time doing DEI work outside of their formal job responsibilities—from recruiting candidates belonging to underrepresented communities to leading employee resource groups. And at every level, women are more likely than men to show up as allies to women of color.

Companies have benefited significantly from women's leadership during this year of unprecedented workplace changes. However, this critical work is largely going unrecognized and unrewarded. Despite companies signaling a high commitment to DEI and employee wellbeing, only 25 percent say that their formal performance review process recognizes this type of work to a substantial degree. This has serious implications. Companies risk losing the very leaders they need right now.

"Women are contributing more yet are often less recognized. Burnout is at an all-time high. While women have been resilient, it is a moment of reflection," said Lareina Yee, a senior partner at McKinsey & Company. "Companies cannot afford to miss the signals of talent attrition. It's time to invest in the leaders who have kept companies afloat throughout the challenges of the past two years."

While all employees are more burned out than last year, women have been hit particularly hard. Forty-two percent of women report being burned out, as compared to 35 percent of men. And 24/7 cultures are driving this exhaustion. More than one in three employees feel as if they are expected to be "on" at all times, and those who feel this way are more than twice as likely to be burned out.

"This year's report should serve as a wake-up call. Despite bold commitments to racial equity, the experiences of women of color aren't getting better," said Rachel Thomas, co-founder and CEO of LeanIn.Org. "This points to the critical need to engage employees as change agents and allies, so we can truly transform the culture of work."

Despite a greater awareness of DEI issues and increased focus and investment on racial equity in corporate America, women of color continue to experience similar types of microaggressions at similar frequencies as they did two years ago. These experiences can take a heavy toll: compared to women of color who don't experience microaggressions, women of color who do are more than twice as likely to feel negatively about their job, twice as likely to be burned out, and three times as likely to say they've struggled to concentrate at work due to stress. And while more white employees see themselves as allies to women of color this year, they are no more likely to take action. Seventy-seven percent of white employees say they're allies to women of color, but only 39 percent confront discrimination when they see it and only 21 percent regularly advocate for new opportunities for women of color. This points to the critical need for businesses to equip employees at all levels to challenge bias and show up as substantive allies.

In addition to steps companies can take to recognize women's leadership, create a more inclusive culture, and reduce burnout, the 2021 Women in the Workplace report includes best practices for eliminating bias in hiring and promotions, a detailed look at what HR leaders and employees see as the benefits and risks of remote work, and data-driven vignettes on the distinct experiences of Asian women, Black women, Latinas, lesbian and bisexual women, and women with disabilities.

The complete Women in the Workplace report is available at womenintheworkplace.com .

ABOUT THE STUDY The Women in the Workplace study is conducted in partnership with LeanIn.Org and McKinsey & Company. The first study was released in 2015, and each year examines current issues facing women in corporate America. This year's report is the second study conducted during the eighteen-month-long pandemic and is based on data and insights from 423 companies representing more than 12 million people, along with survey responses from over 65,000 individual employees. The complete Women in the Workplace report is available at womenintheworkplace.com .

ABOUT LEANIN.ORG An initiative of the Sheryl Sandberg & Dave Goldberg Family Foundation, LeanIn.Org helps women achieve their ambitions and works to create a more equal world. LeanIn.Org conducts original research on the state of women, supports a global community of small peer groups called Lean In Circles, and provides companies with programs to address the biases and barriers women face in the workplace. Lean In recently released Allyship at Work , a new training program designed to help employees take meaningful action as allies. For more information about LeanIn.Org and its programs, visit leanin.org . The Sheryl Sandberg & Dave Goldberg Family Foundation, which also runs OptionB.Org, is a private operating nonprofit organization under IRS section 501(c)(3).

ABOUT MCKINSEY & COMPANY McKinsey & Company is a global management consulting firm committed to helping organizations create Change that Matters. In more than 130 cities and 65 countries, our teams help clients across the private, public and social sectors shape bold strategies and transform the way they work, embed technology where it unlocks value, and build capabilities to sustain the change. Not just any change, but Change that Matters – for their organizations, their people, and in turn society at large.

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SOURCE LeanIn.Org