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The absence of women in leadership: What needs to change in Australia?

Story • 30th Sep 2024 • 5 Min Read

The absence of women in leadership: What needs to change in Australia?

LeadershipDiversity#PowerWomen#EmpowerHer#EachForEqual#HRCommunity

Author: Gabriela Paz Y Miño Gabriela Paz Y Miño
627 Reads
Despite progress in gender equality, women remain underrepresented in leadership roles. Addressing biases, fostering inclusive cultures, and implementing supportive policies are key to unlocking leadership opportunities for women.

Despite significant strides in gender equality over the past few decades, women remain underrepresented in leadership roles at top companies. In the U.S., women make up nearly half of the entry-level workforce, yet only 21% of the C-suite positions are held by women. Furthermore, a mere 6% of S&P 500 companies are led by female CEOs.

This underrepresentation isn’t due to a lack of ambition. A 2023 CNBC and SurveyMonkey survey revealed that 54% of working women describe themselves as “very ambitious,” and 15% of women aged 18-44 expect to be in the C-suite within the next decade. However, the pipeline narrows significantly as they climb the corporate ladder. 

What keeps women locked out of top leadership roles, and what changes must be made to break this cycle?

The Business Case for Gender Diversity in Leadership

The scarcity of women in leadership is not just a social equity issue—it’s a business imperative. Studies have consistently shown that companies with gender-diverse leadership teams perform better financially, are more innovative, and are better at retaining talent. 

According to McKinsey, companies with more women in executive roles are 25% more likely to outperform their peers in terms of profitability. Diverse teams bring a wider range of perspectives, which helps drive innovation, problem-solving, and decision-making. But despite these clear advantages, women continue to face significant barriers.

One of the primary hurdles women face in advancing to leadership positions is unconscious bias in hiring and promotion. Leadership is often viewed through a masculine lens, with traits such as assertiveness and decisiveness being equated with leadership potential. As a result, men are often seen as more “natural” leaders, and women are passed over for promotions or key assignments that could propel them into leadership roles.

To combat this, companies must take steps to eliminate bias from their hiring and promotion processes. This includes implementing blind recruitment practices, using structured interviews with clearly defined criteria, and offering bias training at all levels. By focusing on merit and skills rather than subjective perceptions of “fit,” organizations can create a more level playing field for women.

Creating Workplace Policies That Support Women

Leadership roles are often associated with long hours and rigid schedules, which can disproportionately affect women—particularly those with caregiving responsibilities. In many cases, women are forced to choose between advancing their careers and maintaining a work-life balance.

Flexible working arrangements, such as hybrid work models, parental leave for both genders and support for work-life integration, are crucial for enabling more women to pursue leadership roles. These policies not only benefit women but also promote overall employee well-being, reduce burnout, and improve retention rates. For example, companies that offer flexible work arrangements often report higher employee satisfaction and lower turnover.

Access to mentorship and sponsorship is vital for career advancement, yet women, especially women of color, often lack these critical resources. According to the Lean In and McKinsey “Women in the Workplace” study, women are 24% less likely than men to receive advice from senior leaders. For women of color, the numbers are even starker. This lack of mentorship can limit opportunities for growth and leadership development.

To address this gap, companies should establish formal mentorship and sponsorship programs that connect aspiring female leaders with senior executives. Sponsorship, in particular, is key—while mentors provide guidance and support, sponsors actively advocate for their mentees’ promotions and high-visibility opportunities.

Traditional leadership models have long favored masculine traits such as competitiveness, aggression, and dominance. However, the evolving workplace demands a more diverse set of leadership qualities, including emotional intelligence, empathy, collaboration, and inclusivity. These traits, often associated with women, are essential for effective leadership in today’s interconnected and globalized business world.

By broadening the definition of leadership, companies can recognize the value that women bring to the table and open up more opportunities for them to advance to top roles.

Building a Pipeline for Women Leaders

Many companies fail to nurture female talent from early career stages, resulting in a shortage of women in leadership roles later on. To change this, organizations need to actively invest in the development of female employees at all levels. This includes ensuring that women have access to high-visibility projects, profit-and-loss (P&L) responsibilities, and leadership training programs—experiences that are crucial for reaching top executive roles.

Additionally, companies should track and measure gender diversity at every stage of the employee lifecycle, from recruitment to promotions. By setting clear diversity goals and holding leadership accountable, organizations can ensure they are building a robust pipeline of future female leaders.

True progress requires accountability at the top. CEOs and boards must set clear diversity and inclusion goals, and they should be held responsible for meeting those targets. In many companies, linking executive compensation to gender diversity metrics has proven to be an effective strategy. This not only incentivizes leaders to prioritize diversity but also ensures that progress is measured and reported transparently.

A truly inclusive culture is one where women feel empowered to speak up, take risks, and share their ideas. This means addressing workplace issues such as sexual harassment, microaggressions, and unequal opportunities. Leaders must foster an environment where women are not just heard but also respected and valued. Additionally, companies need to ensure that their policies and practices genuinely support diversity and inclusion, rather than just paying lip service to these ideals.

Tips for Unlocking Leadership Roles for Women:

  • Implement Bias Training: Ensure all employees, particularly those involved in hiring and promotions, undergo unconscious bias training.

  • Offer Flexible Working Arrangements: Provide hybrid work options and parental leave policies that support women with caregiving responsibilities.

  • Establish Mentorship and Sponsorship Programs: Connect aspiring female leaders with senior executives who can advocate for their career advancement.

  • Redefine Leadership: Value traits like empathy, emotional intelligence, and collaboration in leadership roles.

  • Develop a Leadership Pipeline: Create formal programs to nurture female talent early in their careers, offering opportunities for high-visibility projects and P&L responsibilities.

  • Hold Leadership Accountable: Tie executive compensation to diversity metrics and report progress transparently.

  • Foster an Inclusive Culture: Create a safe and supportive environment where women feel empowered to contribute and take on leadership roles.

Read More

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