30Oct2014
Tackling the myths about women in business
How do women get to the top in business? It’s important to separate facts from myths. KPMG recently joined forces with the 30% Club (a group aimed at boosting female board membership to, and beyond, the 30% mark) and YSC, a firm of business psychologists, to analyse a cross-section of international businesses listed in London. I believe the results could go a long way towards helping CEOs plan for a better gender balance on their boards.
Our study found that men and women have similar career aspirations and leadership traits, and are motivated by the same “push and pull” factors in what they find appealing or off-putting about a job.
But we also established that even small differences can create varying career outcomes. Currently, a man starting his career in a FTSE 100 organization is 4.5 times more likely to reach the executive committee than his female counterpart. The blockage is most pronounced at the top: senior women are half as likely to be promoted, yet four times less likely to leave the company than their male peers.
How can we still be in this position, despite most companies trying for many years to achieve a better gender balance? And if we have broad agreement on the case for diversity, what practical steps can senior leaders take?
Here are three ideas:
- Unlock the power of data. Data today is powerful, especially when it links people and business performance. Many companies are still not doing enough to track the working lives of their staff; they need to collect, interrogate and share more data to help build a clearer picture of employees’ careers. Dynamic data of this sort enables organizations to manage their talent pipeline, to identify what works best and to apply that experience to the wider organization.
- Authentic leadership. Employees of both genders want more and better conversations with their managers, with clear career mapping that leaders understand and support. It is often the quality of the conversation, rather than the quantity, that is important here. All leaders, including line managers, need to have the necessary tools and support to have authentic, credible conversations with both genders.
- Responsibility and accountability. The board should take responsibility, both collectively and individually, for gender equality, and all leaders should be held accountable for their actions. Making this a key performance indicator for the board and executive committee helps to reinforce the seriousness of the intent, and leads by example. But our research found that the old adage “what gets measured gets done” is only partly true here: commitment to measure has to be connected to relevant and practical actions that drive change in the organization.
As Helena Morrissey, CEO of Newton Investment Management and founder of the 30% Club, has put it, we need to move towards action, not reaction, to get the very basics right, whether it’s talent spotting, line management or career development. This is a precursor to broader changes within the company.
Simon Collins, KPMG’s UK senior partner, notes that as a leader, he needs to convince his partners and staff that this is a genuine, personal priority for him and he expects the same from his leadership team.
Achieving better gender diversity cannot be left to women alone, to campaign for change. Men, especially those in leadership roles, have to put in place the right systems and processes, they have to act as role models and hold genuine convictions on this issue if they are serious about inspiring women to be future leaders.
Gender inequality at the top of business is a systemic and debilitating problem. I hope that through research and collaboration, we can tackle it together.
Photo: REUTERS/Pascal Lauener