Companies with a higher proportion of female leaders perform better financially yet global leadership consulting firm DDI has announced a worrying pattern that indicates an exodus of female leaders. They identified significant trends that highlight a disparity in access to mentorship and training, as well as the ability to progress in their careers.
Women are 1.5 times more likely to leave their company in an attempt to advance their careers, highlighting a lack of opportunity for progression. Women are 20% less likely to have a mentor assigned to them and 12% less likely to receive leadership training.
A lack of faith in leadership was cited as a key reason to leave a company. Among mid and senior-level women, 70% of those who didn’t trust their leaders said they intended to leave, compared to only 26% who trust their senior leaders.
Tacy M. Byham, Ph.D., CEO of global leadership company DDI said “Our data doesn’t show that women leaders are unhappy or feel that they’re being treated unfairly. Instead, it’s more likely that they are experiencing a range of microaggressions that are causing them to lose trust in their companies, feeling that they have no choice but to leave if they want to advance.”
The importance if investing in D&I
The findings also demonstrated that companies in the top 10% for financial performance were likely to have a higher portion of female leaders than in lower performing companies 29% vs. 23%.
Bev White, CEO of Nash Squared, the global provider of talent and technology solutions, said: “There are so many different roles and skills needed in the industry – from technical skillsets through to broader problem solvers, communicators and creative thinkers – and women can tick all the boxes just as much as men.
It’s about changing the dynamic, it’s a question of thinking about the structural governance and communication needed to create and sustain a diverse workforce. Sometimes this requires standing back and being very thoughtful and considered about how, as leaders, you’re establishing the conditions where everyone can thrive.”
And that those with an above average proportion of female leaders are twice as likely to have a successful inclusion culture. Companies that have strong DE&I programmes have more women leaders – there are 35% women leaders on average in companies with strong DE&I programmes, compared to only 25% in companies that have either no or a low-quality DEI programme.
“Investing in inclusion benefits everyone. The more women leaders there are, the more likely an organisation is to have top class financial performance and a highly inclusive culture. In fact, in workplaces with fewer women, men are more likely to feel excluded than women.” Byham comments.
“Our research also suggests that under-investment in meaningful DE&I initiatives may undermine women’s trust in senior leadership in their organisations. This means they are more likely to leave. So, a lack of focus on DE&I means increased attrition risk of the very people who can help boost the performance of your organisation.”
STEM Leadership
A clear divide in the genders approach to STEM leadership is also highlighted in the report. With female leaders focusing on solving the business’s challenges and driving the workforce, whilst male leaders focusing more on harnessing emerging technologies.
In technology and electronics: Women are 1.8x more likely to be concerned about managing an engaged workforce, whilst men are 1.7x more likely to say they are most concerned about succeeding with emerging tech.
Kris Lovejoy, Global Practice Leader, Security & Resiliency at Kyndryl said “While the gender gap has been steadily improving – particularly at the early stages of a woman’s career – we are trying to break through the proverbial glass ceiling, with far fewer women reaching management and executive level positions. In the cybersecurity field, we see women passed over, because there is an assumption that they won’t be able to balance a high tempo career with family.
"To break the cycle, organisations must realize the performance benefits of diversity and inclusion. Diverse and inclusive teams are vital for bringing a range of perspectives to decision making. Only then can we see the bigger picture, to form more nuanced and empathetic viewpoints for driving success. And ultimately, it comes down to numbers. With the ever-growing skills shortage in the IT industry – especially in cybersecurity - we need women because we need humans to address these market gaps and harness the full potential workforce.”
