Focus on the pipeline - Everywoman clients to build integrated talent solutions on a global ......
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Focus on the pipeline: Engaging the full potential of female middle managers
Transcript of Focus on the pipeline - Everywoman clients to build integrated talent solutions on a global ......
Focus on the pipeline:Engaging the full potential of female middle managers
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Foreword from AMS and everywoman
Alexander Mann Solutions (AMS) is built upon the cornerstone that “people are the foundation for success”. On the basis of this fundamental belief, we work with our clients to build integrated talent solutions on a global basis - extending from workforce planning to recruitment, development and mobility agendas. When we say people are the foundation for success, we mean all employees, not just some. We know the approach that organisations take to the diversity and inclusion agenda has an extraordinary effect on the whole culture. We’ve seen significant impact in companies that support managers and employees in maintaining an open and inclusive mind-set. We share this passion with everywoman and are very excited about our partnership, focussing on gender diversity and about this distinctive research into what we have long suspected was the lynch-pin of a successful diversity strategy – Female Middle Managers.
Rosaleen BlairFounder and CEOAlexander Mann Solutions
everywoman has been driving change for the advancement of women in business for the past 13 years - lobbying government and working with corporations to challenge and change the mindsets of their business leaders. Why? Because although young women enter the workplace in equal numbers to men, most organisations experience a high drop-out of female talent. This loss becomes more pronounced the further up the organisation you go. There is a high cost associated with attrition and a more diverse workforce brings many benefits, the best being increased profitability. It has been well documented that companies with three or more female board directors experience better financial performance. This is why we have formed a dynamic partnership with AMS, harnessing our complementary areas of excellence to help companies retain and develop future leaders within their own female talent pipeline.
Karen Gill MBE & Maxine Benson MBEFounderseverywoman
Contents
Executive Summary 4
Focus on the pipeline 6
- Performance & diversity 6
- Female Middle Managers and company performance 8
Unblocking the pipelines – practical solutions 12
In Summary 22
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Executive Summary
BackgroundGender diversity has a positive impact on company performance by improving innovation, increasing representation of consumers in employee teams, helping to ensure compliance with legal and moral obligations, and building more effective team participation by men and women. A cohesive approach to gender diversity needs to encompass the entire workforce. However, while non-executive appointments have increased board-level diversity, many companies continue to report shortages of female senior managers. As most senior management positions are filled by internal candidates, the internal talent pipeline is not effective in delivering gender diversity. AMS and everywoman believe that female middle managers should be a particular focus in understanding diversity issues in the talent pipeline. Not only do middle managers play a vital role in operational performance, but are also a source of future leadership talent and role models for women in their early careers. However, many female middle managers feel there is room for improving their satisfaction with their current role. Concerns about career progression are a key factor in this.
The ResearchAMS and everywoman commissioned Loudhouse, an independent marketing research company, to conduct a comprehensive survey about the factors affecting female middle managers’ advancement to more senior roles. The survey sample included two complementary groups: a representative cross section of over 400 UK-based female middle managers and 200 HR leaders. Exploring the views of both groups provided valuable insights into the common ground they share and striking differences in perspective on certain issues.
Recommendations1. Focus on the business case for gender diversity (Page 12). The power of gender diversity to drive better business performance is not yet fully recognised - only 40 percent of HR leaders see improved business performance as a benefit of increasing the number of women in senior roles. Establishing the business case will push gender diversity higher up the corporate agenda, generate stronger interest in measurable outcomes and justify prioritising gender-focused initiatives.
2. Align HR leaders’ perceptions with female middle managers’ ambitions (Page 12). There are striking differences between HR leaders’ views and the concerns of female middle managers. Organisations can close this gap by conducting their own detailed analysis to ensure they understand the particular aspirations of their female middle managers and reach out to individuals who want to progress.
3. Include female middle managers in succession planning (Page 13). Succession planning is particularly important in the current economic climate; training, development and support for middle managers are HR leaders’ top succession planning priorities. But female managers are not prioritising their own training and development, believing ability and drive will lead to promotion. Businesses can improve female middle manager progression by ensuring they have full access to training and development programmes which put them on the senior management track.
4. Encourage female middle managers to take more responsibility for their own careers (Page 15). Female middle managers do not push themselves forward and they underestimate how much personal responsibility they need to take for developing their careers. Many expect their employers to take much of the responsibility for career path clarity and opportunities for progression. HR leaders, on the other hand, expect women to drive their progression themselves. Employers and female middle managers need to work together to resolve this issue.
5. Extend flexible working options further along the pipeline (Page 16). Although 74 percent of female middle managers are satisfied with the level of flexibility available in their current job, HR leaders and female middle managers agree that individual or lifestyle decisions are the main factors holding women back. Women with children who cannot achieve the work-life balance they want may already have left the pipeline; some female middle managers may be ‘opting out’ of promotion if more senior roles do not appear to offer similar flexible working options to those available in their current role. Organisations need to investigate this issue, and identify ways of addressing it.
6. Reshape female middle managers’ relationship with senior women role models (Page 18). Female middle managers would like more senior women role models, but many also say that senior women do not help other women progress in their organisation. HR leaders are overestimating the contribution made by senior women as role models. Senior women may not always see or present themselves as role models. If individuals are perceived as unrepresentative in terms of their personal style or work-life issues, female middle managers will not engage with them. Companies need to ensure that role models are relevant and reachable.
ConclusionImproving women’s progression from middle to senior management will have a “multiplier effect” by generating a healthy pipeline of female talent for executive and board appointments, stronger operational performance and positive role modelling for the next generation. Priorities for organisations include:
• Increasemomentumofgenderdiversityinitiativesbyfocusingonthebusinesscase
• Alignperceptionsoffemalemiddlemanagerswiththeirrealaspirationsandopinions
• Encouragefemalemiddlemanagerstobeassertiveabouttheircareergoals
• Ensurewomenareaccessingmiddlemanagementtraininganddevelopmentprogrammes
• Reviewwhetherflexibleworkingoptionsextendintoseniorroles
• Understandhowseniorfemalerolemodelsareperceived
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Focus on the pipeline
Engaging the full potential of female middle managers Thousands of talented female middle managers in the UK are unable to break into senior management ranks, despite a significant opportunity to boost profits and productivity if their capabilities were more effectively utilised. What can businesses do to ensure that more female middle managers achieve their full potential to help deliver better performance?
AMS and everywoman expect a potential benefit of £5bn* to the UK from unblocking the talent pipeline:
• OvertwomillionwomenintheUKworkinmanagerialpositions,withaboutaquarterofthoseinmiddlemanagement roles1. Women at all levels of management are affected by the pipeline and progression issues facing female middle managers.
• Themoreeffectivelythepipelineworks,themoretalentedwomenwillincreasetheirengagementastheysee opportunities to fulfil their management and leadership potential.
• ResearchsuggeststhatincreasinggenderdiversityinbusinesscouldhaveasignificantpositiveimpactonGDP2 generating a potential uplift of up to 2 percent.
• Improvingopportunitiesforwomentoadvancetoseniorrolesbuildsengagementbetweenemployersand female middle managers, and also with women at an earlier stage of their career. Higher levels of employee engagement result in greater productivity, improving companies’ operating performance by almost 20 percent3.
* McLeod’s 2009 report Engaging for Success found companies with high levels of engagement increased profits by 19.2 per cent. High engagement could equate to additional profits of between £70bn and £80bn across UK companies. 2m female managers represent 7% of the UK workforce which therefore equates to a £5bn benefit.
PERFORMANCE AND DIVERSITY Gender diversity makes excellent business sense
Business leaders increasingly accept that gender diversity is vital for strong governance and effective decision-making. There is evidence that it has a direct impact on business performance: a recent study showed thatcompanieswithhigherdiversityachieveagreaterreturnonequityandEBIT4. Businesses whose gender diversity falls behind their competitors are putting themselves at risk.
Why does gender diversity have a positive impact on performance? AMS and everywoman highlight four key reasons:
• Diversityinteamsleadstobetterinnovation5
• Representation of consumers in employee team profiles enhances connection to markets
• Respectinglegalandmoralobligations avoids negative costs of non-compliance
• Moreeffectiveparticipation - men and women perform better in gender-balanced teams6
“ You do need a mixture between male and female leaders for different views, objectives and skills in the company.” (HR Leader, Retail SME)
“ Our key aim is that we want to represent our customers and make sure we have a diverse workforce.” (HR Leader, STEM7 Corporate)
Gender diversity must be addressed across all levels of the organisation
A cohesive approach to gender diversity needs to encompass the entire workforce including board, senior executives, graduates and MBAs, entry level employees and even pre-employment strategies. However to date, the debate about gender diversity has often focused on the group board. Lord Davies’ 2011 report Women on Boards made important recommendations for accelerating boardroom gender diversity and is already having a positive impact particularly within the FTSE 1008.
Businesses have increased board-level diversity through non-executive appointments, but only 6 percent of FTSE executive (‘C-Suite’) directors are female and over 80 percent of FTSE 250 companies have no female executive board directors at all9. Just below board level, 57 percent of companies report shortages of female senior managers10. Given that over three quarters of senior management appointments are filled by internal candidates, the internal talent pipeline is not functioning effectively in delivering gender diversity.
AMS and everywoman believe a more proactive approach towards diversity in other segments of the workforce is therefore needed, and that female middle managers should be a particular focus. The fundamentally important role played by middle managers in successful organisations has three dimensions:
• Centraltoeffectiveoperationalperformance
• Talentpooloffutureseniorexecutivesandboarddirectors
• Rolemodelsforthenextgenerationofwomenintheirearlycareers
Female middle managers are central to the gender diversity debate
Role models for next generat on
Stag
ing
post
to exe
cut ve and the board Operat onal perform
ance
MIDDLE MANAGERS
FEMALE
Board
Executive
Graduates and MBAs
Pre-employment Entry Level
1 Estimated by AMS and everywoman
2 Shaping a Fairer Future (Women and Work Commission, 2006)
3 Towers Perrin-ISR, 2006 quoted in Engaging for Success (David McLeod 2009)
4 Is There a Pay-off from Top Team Diversity? (McKinsey & Co, 2012)
5 Fostering Innovation Through a Diverse Workforce (Forbes Insights, 2011)
6 Men & Women in Teams, London Business School/Lehman Brothers Centre for Women in Business, 2007
7 Science, Technology, Engineering and Manufacturing
8 Female FTSE 2012, Cranfield School of Management
9 Female FTSE 2012 Cranfield School of Management
10 AMS everywoman Diversity Study, 2012
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Middle management is key to effective operational performance
Middle management is the engine room of organisational performance: middle managers implement and execute strategy, bridge the divide between senior management and the workforce, and ensure the smooth running of the company’s operations11. How can companies ensure that female middle management talent is fully engaged and achieving its maximum potential?
Middle management is a critical staging post on the journey to the C-suite
Middle management is a key source of future senior executive talent, where emerging leaders build up essential experience and skills. However, capable women who have proved themselves at middle manager level all too often find themselves stuck, unable to gain access to senior management roles – the talent pool from which C-Suite leaders emerge. What can be done to increase their chances of reaching those senior positions - thus unlocking more of the value that diversity at senior levels can deliver?
Middle managers are vital role models for the next generation
Women at an earlier stage of their careers who would like to progress are influenced by the experiences and example of female colleagues who have already reached the next level. How can companies ensure that those experiences enable female middle managers to be inspiring and motivational role models, an important factor in keeping the talent pipeline healthy?
The AMS everywoman Diversity Study therefore focuses on female middle managers’ experiences
AMS and everywoman commissioned Loudhouse, an independent marketing and research company, to conduct a comprehensive survey about the factors affecting female middle managers’ advancement to more senior roles. The survey sample included two complementary groups: a representative cross section of over 400 UK-based female middle managers and 200 HR leaders. Exploring the views of both groups provided valuable insights into thecommongroundtheyshareandstrikingdifferencesinperspectiveoncertainissues.In-depthqualitativetelephone interviews with ten respondents from each group illustrated the survey data with examples and personal experiences.
We defined ‘middle managers’ as meeting the following criteria:
• Theyhaveresponsibilityforteams,budgetsandprojects• Theirroleincludesimplementingstrategyandplansdeterminedatahigherlevel• Theyareaccountabletoseniormanagement
To provide insights into a range of different experiences, the sample was split between SMEs (50-250 employees) and Corporates (750+ employees) and across four industrial sectors: Science, Technology, Engineering and Manufacturing (STEM); Retail; Professional Services; and Finance.
FEMALE MIDDLE MANAGERS AND COMPANY PERFORMANCE
Female middle managers play a key role, but how engaged are they?
From an employers’ perspective, female middle managers are a richly experienced talent resource, with mature networks and deep professional expertise: over 60 percent of our sample have been with their current employer for six years or more, and 52 percent have been in their current role for at least three years.
“A lot of the women here are problem solvers, very proactive, good at communicating and cognisant of relationships.” (HR, STEM Corporate)
Ensuring that this engine room is fully engaged should therefore be high on the business agenda. The importance of engagement as a driver of financial performance is well understood12 and a key priority for 69 percent of HR leaders we surveyed. However, two thirds of employers do not measure engagement by gender and over 70 percent do not measure it by seniority [Fig 1].
[Fig 1] By which of the following criteria do you measure a) employee churn / attrition and b) employee engagement / satisfaction? (200 HR leaders)
11 ‘ New Centre of Power’, Willcocks and Griffiths, Professional Outsourcing Magazine, Spring 2011
12 Engaging for Success,, (David McLeod, 2009)
Do targets and quotas work?
• Only11percentoffemalemiddlemanagerswantquotasforthenumberofwomeninseniormanagementpositions
• 56percentwouldlikethegovernmenttodomoretopromotegenderdiversityincompanies
• 59percentthinkthatquotasystemsfailtoaddresstherealissues
• 89percentthinkpeopleshouldbepromotedonmerit,notgender
“ The idea is that if we have targets eventually it will force people into what just becomes a habit and then they don’t think about it, so then it does drive that cultural change” (HR Leader, STEM Corporate)
“ I think we’re still in tick box territory. I don’t really see any consequences if we don’t comply with internal targets” (HR Leader, STEM Corporate)
Attrition
Engagement
Don't measure at all
Only measure at topline level
By level/seniority
By age
By gender
By location/site
By tenure/length of service
By department/function46%
39%
45%
39%
35%
29%
34%
22%
33%
24%
29%
37%
9%
14%
16%
15%
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Our research highlighted the need for employers to focus more closely on the engagement of female middle managers. Although the majority of female middle managers – 58 percent – are ‘satisfied’ in their current role, only 11 percent describe themselves as ‘extremely satisfied’. This raises the uncomfortable possibility that almost 90 percent of female middle managers feel there is some room for improvement in their satisfaction with certain aspects of their current role. Almost a third is actively dissatisfied or indifferent [Fig 2].
[Fig 2] Overall, how would you rate your satisfaction in your job role at this time? (400 female middle managers)
Concerns about career progression are a key factor in this. Female middle managers like what their job entails, where and with whom they work, feel they are making a difference, and – perhaps surprisingly – are happy with the flexible working options available to them. They are less satisfied with how valued their organisation makes them feel through support, development, recognition and pay – key engagement themes. But the most frustrat-ing aspects are lack of opportunities and likelihood of progression, and clarity of career path – female middle managers strongly sense the risk of becoming stuck in a middle management bottleneck [Fig 3].
[Fig 3] How satisfied are you with the following aspects of your current role? (400 female middle managers)
These are not idle concerns: 57 percent of HR leaders report a shortage of women at senior level but only 37 percent in middle management; a significant proportion of female middle managers and HR leaders both say achieving promotion is more difficult for women than for men; and female middle managers believe that men are more likely to be promoted on their potential. For many women, it really is more difficult to progress.
“ I have to work harder to prove I deserve the position than my male colleagues and that I am as capable as they are” (Professional Services, Corporate)
“ It has taken years for male colleagues to recognise my capabilities despite my higher qualifications and experience” (Finance, SME)
“ It would be fair to say there is a bit of a boys’ club. A lot of promotions were basically on personal relationships or one director’s say-so. Also when we interviewed working mums we found the company wasn’t flexible enough. Some female role models also have a stay-at-home husband or a different support structure at home.” (HR Leader, STEM Corporate)
The bottleneck creates risks for businesses Contrasts between female middle managers’ ‘ideal’ and ‘realistic’ career outcomes two years from now provide further insights into the challenges for businesses which can result from frustration and lack of engagement:
Leave or stay?
43 percent would ideally like to leave their current employer: 24 percent would ideally join another company (in many cases a competitor) while 19 percent would pursue other plans.
• Howcanbusinessesrebuildengagementwiththisgrouptomaximisethevaluablecontributiontheymake in their current roles and retain their future leadership potential?
• A quarter say, realistically, they will leave within two years. Given their collective skills and experience, is this significant resourcing and training challenge manageable?
Same or different role?
45 percent think realistically, they will be in the same company in the same or a sideways role in two years’ time.
• 16percentideallywantthatoutcome–theyneedsupporttocontinuegrowinganddevelopingwithintheir current roles.
• Theother29 percent are potentially frustrated – what impact will that have on engagement?
Progress or stand still?
36 percent ideally want to be in a more senior role in their current organisation within two years.
• Only25 percent realistically expect that outcome.
• Another16 percent realistically expect to be at another company, almost half in a more senior role.
• Cancompaniessupportmoreoftheseaspirationalfemalemiddlemanagerstoachievetheirambitions,retaining key skills and generating more value?
Clarity of career path within your company
Likelihood of progression
Opportunities for progression
Salary
Recognition for your contribution
Level of support you receive
Training and development opportunities
Ability to make a difference/contribute to company's success
Relationship with your manager
Actual job/what you do day to day
Flexibility/where, when & how you work 76%
73%
67%
64%
52%
52%
51%
51%
48%
47%
40%
Extremely dissatisfied
Dissatisfied
Neither satisfied nor dissatisfied
Satisfied
Extremely satisfied 11%
58%
17%
10%
3%
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What steps can companies take to help female middle managers advance?
UNBLOCKING THE PIPELINE – PRACTICAL SOLUTIONS
1. Focus on the business case for gender diversity
Given the evidence of the benefits of gender diversity at senior levels, it should perhaps be a priority for all businesses, yet only 52 percent of HR leaders think lack of female progression is a problem for organisations. Some organisations do not focus on diversity at all:
“ Diversity is not something we talk about or measure. We’ve deliberately chosen not to…it’s about having open-minded individuals who are objective and who are going to do what is right for the business.” (HR, Professional Services SME)
A key missing link in the diversity story which organisations are telling is the business case. The power of gender diversity to drive better business performance is not yet fully recognised - even amongst HR professionals. Only 40 percent of HR leaders we surveyed mentioned improved business performance as a benefit of increasing the number of women in senior roles [Fig 4]. Achieving cultural change and attracting more women applicantswerementionedmorefrequently.
[Fig 4] What benefits can you see in helping women progress beyond middle management into more senior roles in your organisation? (200 HR Leaders)
“ If you are an ethical business, gender diversity should be a natural part of your culture” (HR Leader, Retail Corporate)
The lack of a business case also means many companies do not allocate resources to funding gender diversity initiatives:
• 56 percent of companies say they have a diversity policy which includes gender…
• …But 60 percent of companies have no diversity budget...
• And for those that do, only 22 percent of the budget is spent on gender issues.
Establishing the business case will push gender diversity higher up the corporate agenda, generate stronger interest in measurable outcomes and justify prioritising gender-focused initiatives.
2. Align HR leaders’ perceptions with female middle managers’ ambitions
Our research highlighted some striking differences between HR leaders’ views and the concerns of female middle managers themselves. If organisations do not close these gaps, they risk underestimating the importance of progression to female middle managers and miss the opportunity to treat it as a priority.
• Although81 percent of female middle managers feel lack of progression is a problem for women themselves, just 62 percent of HR leaders agree.
• HRleadersthink35 percent of female middle managers want to be promoted in the next two years. However, when we asked female middle managers, 56 percent responded that they would like to be promoted within that timeframe.
• HRleadersbelieve27 percent of female middle managers who want to progress to a more senior role in the next two years will succeed. However, within the group of female middle managers who would like to achieve that, 75 percent had some degree of confidence that they could succeed.
Organisations can conduct their own detailed analysis to ensure they understand the particular aspirations of their female middle managers and reach out to individuals who want to progress.
Different perceptions do not always reflect a lack of understanding. For example, HR leaders are more likely than female middle managers to say unsupportive organisational cultures and hierarchical structures work against women’s progression. HR teams can have insights into particular situations which illustrate organisational factors at play. Can organisations leverage this knowledge and insight to remove more barriers to female progression and help women develop strategies for career success?
3. Include female middle managers in succession planning
For the current generation of middle managers – male and female – one effect of the global financial crisis has been to expose them to greater competition for a limited number of promotions. This potentially has many implications for HR planning:
• Howbigisthe‘backlog’oftalentwhichhasbuiltupinthepipelineduringaperiodofretrenchment?
• Hasrestructuringandnewtechnologyledtoapermanentshiftinthelocationofandskillsrequiredinmore senior roles?
• Willa‘leapfrog’generationofjuniormanagersemergeasbusinessescomeoutofrecession?
Perhaps not surprisingly after an economic downturn, female middle managers and HR leaders both identified a general lack of senior level opportunities as the single biggest barrier to middle managers’ advancement [Fig 5]. At the same time, 74 percent of HR leaders say succession planning is particularly important in the current economic climate.
[Fig 5] Why do you not feel confident about achieving promotion to a more senior role? (400 female middle managers)
None of the above
Other (please specify...)
I don’t have the right attitude/determination
I don’t have the right skills
Company culture/mindset does notsupport progression of women
I don’t know the right people
I am not getting the right training and development
I am not getting the right support
Few opportunities for women atsenior management level
I am not on a defined career path laid out by my company
Few opportunities at seniormanagement level 61%
34%
27%
21%
20%
17%
9%
5%
3%
4%
2%
None of the above - no benefit
Good for company image/brand
Improved retention of women within the company
Improved business performance/competitive advantage
Improved recruitment of womeninto the company
Improved company culture 46%
42%
40%
37%
25%
9%
14
“A key challenge is attracting quality at the management end, people who are really good at what they do and are committed to it and are able to deliver that point of difference to the business. Also, when you’re looking at downsizing and restructuring, you’ve got a smaller talent pool, succession planning becomes even more important.” (HR, Retail Corporate)
Better training, development and support for middle managers wanting to progress are HR leaders’ top succession planning priorities [Fig 6].
[Fig 6] What do you see as key to improving leadership development and succession planning in your organisation? (200 HR leaders)
“ I’m currently working on putting a training plan in place for all levels of management with a view to developing the middle managers ready to be the next leaders of the business.” (HR, STEM SME)
But although female managers confident of achieving promotion emphasise they have the skills and determination to succeed, they ascribe much lower importance to receiving the right training and development to help them put their plans into action [Fig 7].
[Fig 7] Why do you feel especially confident that you will be promoted to a more senior role? (Female middle managers who feel confident that they will move to a more senior leadership role within their organisation)
This suggests that some women managers optimistically assume ability and determination will automatically lead to promotion despite intense internal competition for senior roles and issues with lack of recognition for female middle managers.
“ It is up to an individual, if they wish to progress through the company, to prove themselves and to try and achieve training in order to be in a position to be promoted or even considered for succession planning. It is also up to the company to identify that as well.” (HR, Retail SME)
Participation in succession planning, training and development programmes is an essential component of improving female middle manager progression. Businesses need to ask whether women are accessing fully the programmes which put them on the senior management track, and if not, why not. The design of those programmes should also be reviewed to ensure they are addressing the issues around female managers’ progression.
4. Encourage female middle managers to take more responsibility for their own careers
HR leaders – particularly male HR leaders - are more likely than female middle managers to consider that ‘lack of confidence’ is a reason why women are not progressing [Fig 8]. One explanation for this is that they perceive low confidence, because female middle managers tend to ‘wait to be asked’ rather than pushing themselves forward. Both sample groups agreed that this is a factor holding women back.
[Fig 8] What are the reasons why women in particular at middle management may find it difficult to progress into senior roles within your company? (400 female middle managers, 200 HR leaders)
HR Leaders
Female Middle Managers
None of the above – it is not difficult
Other
Too many levels, too much bureaucracy
Company culture/mindset does not support progression of women
Senior management resistance/block progression of women
Lack of confidence
Lack of senior female role models
Lack of flexibility in how and where the job is done
Exclusion from the informal networks needed to progress
They are happy where they are and don’t want to be promoted
Lack of sponsors in senior management to create opportunities
They wait to be asked rather than push themselves forward
Getting back on career path after returning from mat leave/break
34%37%
24%28%
20%20%20%
27%19%
23%18%
21%
17%27%
15%20%
14%15%
18%14%
4%3%
14%27%
21%
Other
There are lots of opportunities for women at senior management level
I am on a defined career path laid out by my company
I know the right people
There are lots of opportunities at senior management level
Company culture/mindset supports progression of women
I am getting the right support
I am getting the right training and development
I have the right attitude/determination
I have the right skills 76%
73%
36%
35%
24%
18%
17%
14%
13%
3%
Other
More information around aspirations of middle managers
Clearer career paths for middle managers
Ensuring all internal career opportunities accessible to all
More support for middle managers wanting to progress
Better training/developmentfor middle managers 78%
61%
57%
55%
46%
1%
16
“ I think the main reason women don’t have more senior roles is they…believe they should be promoted on merit and don’t push themselves forward.” (Finance, SME)
“ We see real differences in the ways that men and women will project themselves – men self-promote much better than women.” (HR Leader, STEM Corporate)
And – an uncomfortable home truth - female middle managers underestimate how much personal responsibility they need to take for developing their own careers. 63 percent of HR leaders want to see individuals driving their advancement themselves, but many female middle managers expect their employers to take much – if not all - of the responsibility for career path clarity and opportunities for progression, the aspects of their current role which they find most frustrating [Fig 9]. However, 52 percent of HR leaders did agree they could invest more in supporting female middle managers who want to progress.
[Fig 9] Who do you see as being primarily responsible for improving the following aspects of your role? (400 female middle managers)
“ You need to have conditions which actively support women and create opportunities. But once you’ve got that, which I think we have, it’s down to individuals to decide whether they’re interested in that particular role, whether they are mobile enough or whether they are prepared to move to do the role.” (HR, STEM Corporate)
Employers and female middle managers need to work together to resolve this issue. Organisations can help women improve their communication skills through personal development and clear feedback. Networks targeted at women can have a positive impact in helping female middle managers build assertiveness.
“ It is difficult to network unless you become ‘one of the lads’, so chances are you will be excluded from the group of management during social after-work gatherings.” (Professional Services, SME)
“ There was a lot of joy and excitement about the chance to have more networking opportunities that were more female-focused…we’ve created an outlet for our people to speak together and create a bit of action about it. We’ve now got a really huge women’s networking forum.” (HR, Finance Corporate)
5. Extend flexible working options further along the pipeline
“ Flexible working at all levels is the key to opening up opportunities for women” (Professional Services, Corporate)
At first sight the issue of flexibility did not appear significant in our report as 74 percent of female middle managers are satisfied with the level of flexibility available in their current job – in fact, no other aspect of working life scored a higher satisfaction rating.
However, HR leaders consider flexibility to be the single most important factor in improving female middle managers’ progression. HR leaders and female middle managers agreed that returning from maternity leave presents the greatest challenge for women seeking to progress [Fig 8]; they also both said that ultimately individual or lifestyle decisions are the main factors holding women back [Fig 10].
[Fig 10] On balance which one of the following do you see as the key reason female middle managers do not progress into senior roles at the same rate as their male colleagues? (400 female middle managers, 200 HR leaders)
HR Leaders
Female Middle Managers
Don't know
Other
Lack of flexibility
Individual reasons/lack of confidence or resilience
Structural reasons/lack of opportunity, clear structure or support network
Women do progress at the same rate as male colleagues
Cultural reasons/company mindset
Individual reasons/lifestyle choices28%
27%
18%
16%
16%
12%
4%
10%
1%
2%
7%
5%
8%
21%
24%
0 20 40 60 80 100
My employer/company
Joint effort between myself and my employer/company
Myself
Likelihood of progression
Opportunities for progression
Training and development opportunities
Level of support you receive
Recognition for your contribution
Clarity of career path within your company 8% 42% 50%
10% 24% 66%
10% 42% 48%
13% 49% 39%
16% 45% 39%
20% 38% 42%
SMEs vs Corporates
“ It would be lovely to have a female on the senior leadership team but it’s difficult because our labour turnover is so low, so for the last few years we haven’t had any vacancies at a senior level.” (HR Leader, STEM SME)
“We have a relatively flat structure so it’s difficult for anyone, irrespective of gender, to progress.” (HR, STEM SME)
• 27percentofHRLeaderssaymorebureaucracy/levelsofmanagementareholdingbackwomen’sprogression.Supportingthis, 69 percent of corporates reported a shortage of women at board level compared to 57 percent of SMEs. Ironically, 65 percent of corporates have a diversity policy compared to 46 percent of SMEs.
• 52percentofcorporateswantmorefemalerolemodelscomparedto37percentSMEs.
• 71percentofcorporatesreportfewerjobopeningsataseniorlevelthan12monthsago,comparedto60percentofSMEs.
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“ I have experienced issues returning to work where a manager didn’t want me anymore as they said I was an operational liability” (STEM, Corporate)
“ Although my line manager is supportive of my need for work-life balance, I feel that others in the company see my strict adherence to my hours as a sign of laziness or disaffection.” (Finance, SME)
This apparent paradox is perhaps explained by the profile of female middle managers. Of the sample, 67 percent do not have children at home, and 94 percent work full-time, most for employers offering some form of flexible working arrangements. The likelihood of female middle managers having delayed starting a family, returned to their career full time after having children, or chosen not to have children at all also appears to be higher than for working women in the UK in general.
“ I have put off having a family to progress my career. It has worked but oh, what a sacrifice!” (Finance, Corporate)
“ A lot of the women we have in the UK and Ireland are extremely passionate about the jobs they do and they will always want to come back, more in a bid to make their children proud or they want to be a working mum, all of those things.” (HR Leader, STEM Corporate)
Women with children who cannot achieve the work-life balance they want often move out of middle management roles where full-time working is the norm or leave the pipeline completely - over 60 percent of female middle managers say they are outnumbered by men at their level. Only 22 percent of companies track attrition rates by gender; many more could benefit from this simple and helpful indicator of whether current policy and practice are supporting retention of female talent.
Although most female middle managers are satisfied with the level of flexibility available in their current role, some may be ‘opting out’ of promotion if more senior roles in their organisation do not appear to offer the same flexible working options. 42 percent of female managers admitted that they would not take a promotion if it would affect their work-life balance.
“ One of the female managers we’ve got is on a flexible working pattern because she has a young child. She works reduced hours and I believe, because of that, if a more senior position came up, she wouldn’t put herself forward for it. It really is only personal circumstances that would affect a female’s progression to a senior role rather than company issues.” (HR, STEM SME)
Employers need to challenge themselves: Is real flexibility only theoretically available to more senior employees, and if so, what can be done? Can female middle managers interested in progressing talk about flexibility without fear of prejudicing their chances by appearing as ‘weak’ promotion candidates?
6. Reshape female middle managers’ relationship with senior women role models
“ I work for a company where gender is not an issue and an equal split has naturally occurred through all levels of the company, but we have a female MD.” (Finance, SME)
“ I personally think if we had more role models at that level then we would see more people coming up and going through.” (HR, Finance Corporate)
Female middle managers view more senior women role models as the most powerful means to improving female career progression: after all, success leads to success. HR leaders agreed that role models are important [Fig 11]. Yet only 51 percent of female middle managers currently have female role models in senior executive management - the group they most directly aspire to join - so there is clearly a challenge for some companies to ensure their few role models are highly visible [Fig 12].
[Fig 11] What do you see as the most effective ways to increase the number of women that progress into senior roles within your company? (400 female middle managers)
[Fig 12] Are there any women in either senior management or Board roles within your company? (400 female middle managers, 200 HR leaders)
Don’t know
None of the above
Other
Better parental leave policies
Imposing quotas to ensure a set % of women fill senior roles
Specific support networks for women
Specific training and development targeted at women
Providing better access to support from senior female role models
A stronger focus on gender diversity at all levels
Making it easier for women to leave and come back to work (e.g. after having children)
Providing more options for flexible working
More female role models/mentors at Board level/in senior positions 47%
43%
39%
29%
25%
20%
19%
11%
2%
5%
8%
17%
HR Leaders
Female Middle Managers
Neither
Yes, there are women in senior managementpositions in my company outside the Board
Yes, there are women at Board level in my company
63%
61%
51%
50%
10%
12%
20
“ Sometimes certain jobs are a bit of a boys’ club and male managers find it hard to relate to women and start up conversations. This can lead to women feeling isolated if there are no strong female role models within the team.” (Professional Services, Corporate)
However female middle managers and HR leaders had contradictory views about current role models. 40 percent of female middle managers find that senior women do not help other women progress in their organisation compared to just 16 percent of HR leaders. And astonishingly, while 65 percent of HR leaders think senior women are supporting women in middle management with face-to-face advice, only 36 percent of female middle managers agree. HR leaders also overestimate senior women’s contribution through seminars and mentoring schemes [Fig 13].
[Fig 13] In which of the following ways do women on your company’s board help other women progress within your organisation? (400 female middle managers, 200 HR leaders)
Why does HR overestimate the contribution from senior role models? Senior women do not always see themselves as role models, not realising ‘the length of the shadow they cast’. Others may not have been adequatelypreparedtobeconfidentrolemodels,orinsomecasesmayhavedeeperconcernsaboutbeingmarginalised if they become too closely associated with gender issues. Also, women need to be able to identify with their role models: if female senior managers are perceived as unrepresentative in terms of their personal style or work-life issues, female middle managers will not engage with them.
Establishing a business case for diversity gives women a mandate to champion their own cause, while examples of best practice can help senior women become more effective role models. Linking individual female role models’ progression to specific training and development initiatives targeted at women moves the debate away from personality stereotypes and towards practical advice. However, companies need to ensure that senior role models are relevant and reachable to encourage female middle managers to identify with them; the flexibility available to senior employees can be a factor in this.
Sector stories – some intriguing differences
STEM
• Highestpercentoffemalemiddlemanagerswhowanttoprogress-80percent
• Highestpercentageofwomenwhowouldacceptpromotionevenifitaffectedwork-life balance - 65%
• Highestpercentagesayingitisharderforwomentoprogressthanmen–68percent
• Highestpercentagesayingthelackofseniormanagementsponsorshipisholdingbackwomen’sprogression - 25%
• HRleadersmostlikelytosayuptowomenthemselvestodrivetheirprogression–70percent
• Lowestpercentagewhothinkmoreflexibility(33percent)andmakingiteasierforwomentoreturn to work after having children (30 percent) will improve progression
Retail
• Lowestpercentageofwomenwhowanttoprogress-62percent
• Lowestpercentageoffemalemiddlemanagerswhosaycareerprogressionmoredifficultforwomen than men – 41 percent
• Lowestpercentageoffemalemiddlemanagerssayingmenmorelikelytobepromotedthanwomen on their potential – 47 percent
• Lowestpercentageofwomenwhowouldacceptapromotionifitaffectedtheirwork-lifebalance– 47 percent
• HRleadersleastlikelytosaylackofseniorsponsorsholdingbackwomen’sprogression–9percent
• HRleadersalsoleastlikelytosayuptowomenthemselvestodriveprogression-54percent
Finance • Highestshortageofwomenatsenior/boardlevel-78percent
• Lowestpercentagewhosayfewerjobopeningsthan12monthsago-58percent
• LowestpercentageofHRLeaderswhosaylackofprogressionanissueforthecompany- 46 percent
• Mostlikelytohavediversitypolicy–64percent.
Professional services • Highestfemalerepresentationatboardlevel–48percent
• Highestpercentagewhosayfewerjobopeningsthan12monthsago-80percent
• Highestpercentageoffemalemiddlemanagerssayingmenmorelikelytobepromotedthanwomen on their potential – 67 percent
• Highestpercentagewhothinkmoreflexibility(56percent)andmakingiteasierforwomentoreturn to work after having children (50 percent) will improve progression.
HR Leaders
Female Middle Managers
They do not help other women progress
Other
Supporting organisational women’s networks
Face-to-face advice
Mentor/buddy schemes
Workshops/seminar25%
35%
18%N/A
4%0%
40%16%
37%46%
36%65%
MIDDLE MANAGERS
FEMALE
Board
Executive
Graduates and MBAs
Align support
and aspirations
Include female middle managers in succession
planning
Nuture role
modelling
Extended flexibility
Promote ‘career ii
responsibility’
Pre-employment Entry Level
Mentoring, sponsorship
and networks
Business case
MIDDLE MANAGERS
FEMALE
Board
Executive
Graduates and MBAs
Pre-employment Entry Level
Key Issue: Vocational Stereotyping
• Industries with no pipeline (STEM)• Functional bias (Women in HR)• Gender stereotyped ‘masculine brands’
Key Issue: Engagement
• Unconcious bias• Ambition constraints• International cultural ‘norms’
Key Issue: Representation
• Lack of sponsorship• Non-inclusive executive networks• Poor pipeline of talent• Experience gap for executive roles
Key Issue: Representation
• Quotas divide opinion• Impact of executive search• Limited talent pool
Key Issue: Role Models
• Absence of public role models• Narrow careers advice• Media culture
Key Issue: Lost Potential
• Lack of focus of middle management challenge• Misalignment between expectation and ambition• Women self-selecting out of market• Challenging career ‘re-entry’• Insufficient connectivity amongst female workers
Key issues in the female middle management pipeline Practical solutions for addressing female middle management pipeline issues
Gender diversity affects business performance: organisations which have good gender diversity perform better than those which do not. And, if talented women routinely become stuck in a middle management bottleneck, this potentially undermines their engagement, which also has implications for business performance. The business case for improving the progression of female middle managers to senior roles is compelling, giving employers and female middle managers a huge incentive to work together to address the factors holding women in middle management back.
“ I think you get to gender diversity when you don’t actually think about it; when you’re not focusing on whether someone is male or female – it’s just if someone is good at their job.” (HR, Professional Services SME)
Although organisations need to take an holistic approach to addressing gender diversity, in which a focus on Boardroom diversity is essential, companies must also - as a priority - ensure that the specific issues affecting female middle managers are receiving attention.
Improving women’s progression from middle to senior management will have a ‘multiplier effect’ by generating a healthy pipeline of female talent for executive and board appointments, stronger operational performance and positive role modelling for the next generation. Priorities for organisations include:
• Increasemomentumofgenderdiversityinitiativesbyfocusingon the business case
• Alignperceptionsoffemalemiddlemanagerswiththeirrealaspirations and opinions
• Encouragefemalemiddlemanagerstobeassertiveabouttheircareer goals
• Ensurewomenareaccessingmiddlemanagementtraininganddevelopment programmes
• Reviewwhetherflexibleworkingoptionsextendinto senior roles
• Understandhowseniorfemalerolemodelsareperceived
The UKCES estimates that over 500,000 new management jobs will be needed in the UK by the end of the decade13. Can we meet the challenge of ensuring women get their fair share of those at all levels? For UK businesses, the reward for achieving this could be considerable.
IN S
UM
MA
RY
22
13 Working Futures, UK Commission for Education and Skills
Alexander Mann Solutions
www.alexandermannsolutions.com
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