Currently, there’s a lot of movement at senior level for a number of reasons. These include a change in the requirements of executive leaders and C-suite members, the need for digital, technological, and transformational capabilities, and the increasing numbers of companies diversifying into new or more markets.

But there are other reasons why women specifically at the senior level are moving jobs, as I explore below. In McKinsey’s recent “Women in the Workplace” report, which is the inspiration for this article, they state three main reasons that women leaders are switching jobs:

• They want to advance but face stronger headwinds than men
• They are overworked and under-recognized
• They want a better work culture

Women in leadership stats

Those three reasons show that women still have a battle to face for real equity in leadership, but – in the US at least – we are heading in the right direction.

In January 2023, it was announced that women CEOs run more than 10% of Fortune 500 companies for the first time ever. In 2002, this figure was less than 2%. Of course, while this feels like something to be celebrated, it does mean that 90% of Fortune 500 CEOs are men…

In financial services specifically, the proportion of women in leadership is 24%. This is projected to grow to 28% by 2030 – a figure that’s still very far from being equal.

What are women’s barriers in the workplace?

According to the McKinsey report, “women leaders are as likely as men at their level to want to be promoted and aspire to senior-level roles.” So, why isn’t it happening?

One of the reasons is that while women may want to advance their careers, they are more likely to feel that their current role or organization is not providing enough growth opportunities. And, therefore, they switch jobs. Women also face different barriers and challenges than men:

• Assumptions about their home life, especially if they have children – and sometimes if they are simply of child-bearing age
  Being mistaken for someone more junior (women leaders are twice as likely as men leaders to be mistaken for someone more junior, according to McKinsey)

  They are seen as not up to the job and their judgment is called into question

• Their contributions are not recognized or valued in their current organization
• Women often face pay disparities, even in senior roles

How can we overcome these barriers?

Overcoming barriers for women in the workplace requires company-wide, sustained effort and commitment. It’s only by working together, at all levels, that we can create more equitable and inclusive workplaces that benefit everyone.

Some strategies that can help women overcome barriers at work include:

• Education and awareness-raising campaigns can help dispel myths and stereotypes about women’s abilities and roles in the workplace. This can be achieved through training programs, workshops, and other initiatives that help people understand the value of diversity, equity, and inclusion.
• Mentoring and sponsorship programs can help women build networks and access opportunities that may not be available otherwise. These programs can also help women build confidence and navigate complex workplace dynamics.
• Employers can offer flexible work arrangements such as remote work, part-time work, and job sharing to help women balance work and personal responsibilities.
• Employers can conduct regular pay equity assessments to ensure that women and men are paid fairly for the same work. This can help close the gender pay gap and create a more equitable workplace.
• Employers can offer family-friendly policies, such as parental leave, childcare subsidies, and flexible work schedules to support working parents. This can help women who are caregivers to balance work and family responsibilities.
• Inclusive leadership practices that value and leverage diverse perspectives, experiences, and skills are also beneficial in helping to create a culture of respect, trust, and collaboration.

Women & DE&I: the unspoken workload

The McKinsey report states that “Compared to men at their level, women leaders do more to support employee well-being and foster diversity, equity, and inclusion – work that dramatically improves retention and employee satisfaction, but is not formally rewarded in most companies.”

In a nutshell, women do more work on DE&I than men, but they aren’t recognized for it. In fact, women leaders are twice as likely as men leaders to spend substantial time on DE&I, and 40% of women say this work isn’t acknowledged in performance reviews.

How do we address this? Well, one way is to bring DE&I into all senior leader KPIs. Ingraining this work into the day-to-day puts it on everyone’s agendas.

Again, it’s all about education, and everyone taking responsibility and working together to bring about a more equitable workplace.

Because a very real knock-on effect of this on women is burnout from the workload. Not only that, but women in senior leadership positions also tend to be older and therefore also more likely to be going through perimenopause, an added strain that can affect women quite severely.

Menopause education is something that is definitely needed across businesses to bust the taboo and the stigma.

The battle for a stronger workplace culture

A final point of difference from men in the reasons women switch jobs is that women are significantly more likely to leave their workplace than men for a position that offers greater flexibility.

According to McKinsey, 49% of women leaders say flexibility is one of the top three things they consider when deciding whether to join or stay with a company, compared to 34% of men.

Women want more flexibility, and for their employer to be focused on well-being and DE&I. If companies don’t provide this, they’re at risk of losing good women leaders. Not only that, but they lose role models and mentors for younger women coming through the business.

And it’s this next generation that simply expects flexibility, a focus on DE&I, and a strong company culture. It’s no longer
going to be a nice-to-have.

Do you want to diversify your leadership teams and bring more women in at the senior level? Contact us to arrange a call and find out how we can support you.