Women's corporate gains slow, true leadership parity decades away: Report

While companies have improved hiring practices and support for employees balancing work and home, advancement rates for women, especially women of colour, continue to lag behind

Since 2015, women have made significant progress in breaking into corporate leadership in the US, but the path to true equality remains lengthy, according to a recent analysis by LeanIn.org, a women-at-work advocacy group, and consulting firm McKinsey & Company.

The report, released on Tuesday, outlines both the progress made and the persistent challenges that prevent women from achieving full parity with men in leadership roles, particularly at the senior vice-president and C-suite levels.

Where women have made progress
 

The 2024 analysis is based on data from multiple sources, including interviews with human resources leaders, female employees, and insights from 281 corporations employing 10 million people. Additionally, a survey of 15,000 employees across 27 companies was conducted, providing a comprehensive overview of women's current standing in the corporate world.

 

Key findings indicate that women now occupy 29 per cent of C-suite positions, a significant increase from 17 per cent in 2015. However, most of these roles are in ‘staff’ positions such as chief human resources officer, rather than ‘line’ roles like chief executive that are directly tied to an organisation’s profits and core operations. 

The report also notes gains since 2018 in women advancing to vice president and senior vice president positions, again primarily in staff roles.

More companies have implemented measures to promote fairer hiring practices and performance reviews. For example, 69 per cent now offer bias training for evaluators, up from 53 per cent in 2015. Additionally, the critical role of direct managers in women’s career advancement has been emphasised, with the majority of companies offering manager training to foster employee well-being and inclusion.

Improving workplace conditions

Survey results also reflect a general improvement in workplace conditions for women compared to a decade ago. A total of 60 per cent of women surveyed believe that growth and development opportunities have improved, while 73 per cent report seeing a greater focus on building respectful and inclusive workplaces.

Companies are also providing more support for employees juggling work and home responsibilities. Nearly all companies now offer essential support for parents, caregivers, and those facing health challenges. For instance, half of the companies surveyed provide emergency backup childcare services, up from one-third in 2016. Additionally, 50 per cent offer support for employees caring for sick family members or elderly parents.

Challenges to achieving parity

Despite these positive developments, significant gaps remain. The rate of advancement for women early in their careers has seen little improvement. The report found that for every 100 men promoted to their first managerial role, only 81 women receive the same opportunity, a slight increase from 79 in 2018. The situation is more pronounced for women of colour, with only 54 Black women and 65 Latina women advancing to managerial positions for every 100 men.

The decline in programmes focused on hiring women, particularly women of colour, further highlights the challenges. Currently, only 18 per cent of companies offer recruiting programmes targeting women of colour, a sharp drop from 30 per cent in 2022. Similarly, internship programmes for women of colour have declined to 8 per cent, down from 14 per cent last year.

Corporate commitment to gender and racial diversity appears to be waning. The percentage of companies prioritising gender diversity has fallen from 87 per cent in 2019 to 78 per cent in the current year. A similar decline is seen in racial diversity priorities, dropping from 77 per cent to 69 per cent. Moreover, less than half of the women surveyed feel they receive adequate support from their managers, with women of colour reporting a higher likelihood of experiencing this lack of support.

Decades to true parity
 

Based on a decade’s worth of data, the report concludes that true parity in leadership roles is still decades away. It estimates that White women may need 22 more years to achieve parity, while women of colour may need nearly 48 years. This slow pace of progress has significant implications for corporate performance.

“Research shows that companies with more women in leadership benefit from greater innovation, healthier cultures, and stronger performance,” the report states. It also emphasises that women leaders serve as role models, inspiring the next generation to pursue leadership roles.