Women Leaders

November 7, 2022 by

Women are leaving top roles in U.S. firms at higher rates than ever before. Women leaders are switching jobs at higher rates than men in leadership, too, according to “Women in the Workplace 2022, ” the largest study on the state of women in corporate America by McKinsey & Co. and LeanIn.org. The organizations, which analyzed data from 12 million employees at more than 330 companies, have been tracking the state of female workers since 2015, with the findings published in an annual report.

The study says this trend could have serious implications for companies going forward.

“Women are already significantly underrepresented in leadership,” the study said. “For years, fewer women have risen through the ranks because of the ‘broken rung’ at the first step up to manager. Now, companies are struggling to hold on to the relatively few women leaders they have. And all of these dynamics are even more pronounced for women of color.”

This trend in no way shows that women leaders are less ambitious than their male counterparts. However, the study reveals that woman leaders face obstacles their male leader peers do not.

“Women leaders are just as ambitious as men, but at many companies they face headwinds that make it harder to advance,” the study said. “They’re more likely to experience belittling microaggressions, such as having their judgment questioned or being mistaken for someone more junior.”

For example, they are far more likely than men leaders to have colleagues question their judgment or imply that they aren’t qualified for their jobs. Women leaders are also more likely to report that personal characteristics, such as their gender or being a parent, have played a role in them being denied or passed over for a raise, promotion, or chance to get ahead.

Also, the study’s authors pointed out that it’s increasingly important to women leaders that they work for companies that prioritize flexibility, employee well-being, and diversity, equity, and inclusion.

“If companies don’t take action, they won’t just lose their women leaders; they risk losing the next generation of women leaders, too,” the study said.

Although women are broadly underrepresented in corporate America, the talent pipeline varies by industry. Some industries struggle to attract entry-level women (e.g., Technology: Hardware; IT and Telecom; Engineering and Industrial Manufacturing), while others fail to advance women into middle management (Energy, Utilities, and Basic Materials) or senior leadership (Oil and Gas).

The good news: The study found that women in insurance industry leadership roles fared pretty well in representation compared to other sectors. For insurance, women leaders held manager roles at 53%, senior managers at 40%, vice presidents at 40%, senior vice presidents at 35% and C-suite at 31%.