Mending Gap Leaders

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www.pwc.com

M en d i n g t h e

gen d er ga pdvancing tomorrows

women leaders today

uly 2013


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Mending the gender gap

Con t en t s

Foreword

Introduction ..................................................................................................... 1

The call for more women leaders is louder than ever ..................................... 4

A closer look: the arc of womens careers ........................................................ 5

Whats blocking the pipeline of women leaders? ............................................ 8

Developing a womens talent strategy ........................................................... 10

Implementing the four prerequisites: setting the foundationfor an effective talent strategy ....................................................................... 12

Getting started ............................................................................................... 18


3/22

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Mending the gender gap 1

The lack of women in leadershippositions could take a significantfinancial and competitive toll oncompanies across all industries.

And time is about to run out.

Despite making up over one-third of the workplace, women continue to todramatically lag behind their male counterparts in leadership roles. Dataacross industries and around the globe shows that women, on average

comprise 35% of employees, but only 17% progress through the leadershipranks to senior level roles.1 Board and CEO representation is even morealarming: women hold only 12% of board seats and a mere 5% of CEOpositions.2

The lack of women leaders is grabbing the global spotlight, from SherylSandbergs book Lean Into a proposal for legislation in the EU to requiremore women on boards. Thats because its far more than a social issue its a problem with financial, legislative, risk management, and talentretention implications.

Consider the following:

Studies suggest that companies with a gender-diverse board performsignificantly better than their competition. This includes a 42% higherreturn in sales, 66% greater return on invested capital, and 53% higherreturn on equity.3

In the United States alone, women control 50% of the private wealth.Whats more, women head one-third of all US households.4 Womenleaders bring a unique vantage point for attracting and serving thispowerful and profitable customer segment.

Recognizing the need for greater diversity, some countries areconsidering or adopting initiatives that require companies to

significantly raise the number of women serving on boards.

1World Economic Forum, The Corporate Gender Gap Report 2010, 2010

2Ibid. Data reflects average across survey respondent pool

3European Commission, Women in Economic Decision Making in the EU: Progress Report, 2012

4Investment News, Women and investing: How to attract a key demographic, May 7, 2012

I n t r o d u c t i o n

San dbe r g ha s

b r o u g h t r en ew ed

a t t en t i o n t o t h e

c r i t i c a l c ha l l e n ge of

d i v e r s i f y i n g

c o r p o r a t e

l ea d er sh i p . W h i l e

San dbe r g f o cuses oni n sp i r i n g w om en t o

em b r a ce am b i t i o n ,

I bel i eve bu si n ess

l eader s ha ve a

r esp o n s i b i l i t y t o

l ea n i n a s w el l .

Robert E. MoritzUS Chairman and Senior Partner,

PwC

Women hold only:

17% of senior levelpositions

12% of board seats

5% of CEO roles


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L ack o f p r og r ess r a i ses t h e l evel o f

u r g e n c y

Although gender diversity has come far when compared with past decades,the progress made in the last several years has been painfully slow.

Among the European Union member states, the number of women boardmembers has increased by an average of only 0.6% per year since 2003.6 Thepace of change in the United States is trailing as well. The following cross-industry statistics for Fortune 500 companies illustrate this point.7 In 2012:

16.6% of board seats were held by women, unchanged for sevenconsecutive years.

14.3% of executive officer positions were held by women, unchangedfor three consecutive years.

Yet some companies are taking action. In a 2012 survey that askedparticipants to rank the importance of gender diversity when addingdirectors to their boards, 25% answered very important (see Figure 1).8By moving quickly, these companies will see the benefits of gender-diverseleadership. However, if your organization is among the majority that haventelevated the issue of women in leadership, the time for action is now.

Figure 1: Criteria for board member eligibility

How would you currently describe the importance of adding directors with the

following to your board?

5European Commission, Women in Economic Decision Making in the EU: Progress Report,

20126

European Commission, Questions and Answers: Proposal on Increasing Gender Equality inthe Boardrooms of Listed Companies, 20127

Catalyst, Catalyst 2012 Census of Fortune 500: No Change for Women of Leadership, 20128

PwC, Insights from the Boardroom 2012, Board evolution: Progress made, yet challengespersist, 2012

Studies suggest that companies

with a gender-diverse boardperform significantly betterthan their competition,including:

4 2% higher return onsales

6 6% greater return oninvested capital

53% higher return onequity5

25.0% 47.4% 27.7%

Very important Somewhat important Not currently seeking this skill or attribute

31.7%

35.4%

42.7%

44.8%

46.9%

44.0%

32.8%

39.7%

21.4%

20.6%

24.5%

15.4%

Risk management expertise

Operational expertise

Financial expertise

Industry expertise

5.2%

6.3%

18.2%

22.1%

30.4%

38.3%

29.0%

35.5%

47.2%

50.3%

38.3%

27.3%

65.8%

58.2%

34.6%

27.6%

31.3%

34.4%

Legal expertise

Human resources expertise

Marketing expertise

Racial diversity

Technology/digital media expertise

International expertise

25.0% 47.4% 27.7%Gender diversity

72.4%


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In this paper, we take a closer look atthe shortage of women in leadershipand describe some strategies thatcompanies across the industryspectrum can take to expand theirpipeline of women leaders. Thisstrategy can help close the gender gap

and position companies for the manybenefits that accompany a gender-diverse workforce.


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Ra i s e f em a l e boa r d r ep r esen t a t i o n o r face san c t i o n s?

The European Commission recently adopted a proposal for legislationrequiring women to make up 40% of board director seats by 2020. To avoidsanctions, many companies will need to take urgent measures to comply.

Organizations in other markets may soon feel the ripple effect of the policy.And it could make the global talent race even more competitive.Organizations that dont actively develop and promote female talent couldsoon see well-qualified women leave to join companies that do.

I n v est o r d em a n d s a r e m o u n t i n g The level of investor concern over board diversity is rising. Diverse groups

tend to have a well-rounded view on business issues and risks. Studies havefound that gender-balanced boards are more likely to focus on riskmanagement throughout the organization.9 Recently, institutional investorshave filed shareholders resolutions with 20 cross-industry US companiesthat lack female board members. The investors are asking the companies toadopt charter language that supports board diversity and to include womenand minorities on their boards. These shareholder resolutions are a followup to letters sent to 168 companies without female board members, co-signed by institutional investors with more than $1.2 trillion in assets undermanagement.10

Bey ond t h e boa r d gend er d i v er si t y a t

a l l l evel s o f l ead er sh i p can ha ve a

t a n g i b l e im p a ct

While studies have suggested that companies with more women on theirboards have a higher return on sales, invested capital, and equity, thebenefits of gender diversity reach well beyond the board level.

Women control $12 trillion or 65% of the $18.4 trillion in consumerdiscretionary spending around the globe. Female clientele, and the potential

value they represent, are too important to ignore.11

Without more women in leadership, myriad organizations could struggle tounderstand and win over this crucial customer demographic.12

9European Commission, Women in Economic Decision Making in the EU: Progress Report, 2012

10Business Wire, Institutional Investors File Shareholder Resolutions Encouraging Diversity in

Company Charter Language and in the Corporate Boardroom, February 28, 201311

International Herald Tribune (The New York Times Company), Rebalancing Child-careEquations: The Female Factor, November 21, 201212Source: The Conference Board: Women on Boards Review and Outlook by Julie C. Norris,2012.

Women in industry: By the numbers12

T h e ca l l f o r m o r e w om en l ea d er s i s

l o u d er t h a n ev er

G lo b a l l y , w ome n c o n t r o l

$12 trilliono f consum er

d i s cr et i o n a r y s p en d i n g .

W i t h o u t m o r e w om en i n

l eader sh i p , com pan i e s cou l d

st r u g g l e t o u n d e r st a n d a n d w i n o v er t h i s c r u c i a l c u s t om er

d emo g r a p h i c .

4 0 %The percentage of board seats thatmust be filled by women by 2020under a proposal for legislationadopted by the European Commission.

54

22

18

14

14

11

Consumer

Industrial

Financial services

Energy/utilities

Life sciences

Technology, media &telecom

F1000 Boards with three or morewomen

2952

9

25

4

20

Consumer

Industrial

Financial services

Energy/utilities

Life sciences

Technology, media &telecom

F1000 boards with no womendirectors


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In many industries, there is a stark contrast between staff level and gender:as staff level rises, the percentage of female employees shrinks (Fig. 2).13

And because women make up only 24% of middle management, companieshave a limited pipeline to feed senior-level roles.

Figure 2: Average representation of women

But an underlying question remains: why arent women rising through theleadership ranks on par with their male counterparts?

13World Economic Forum, The Corporate Gender Gap Report 2010, 2010

35%

24%

17%

12%

5%0%

5%

10%

15%

20%

25%

30%

35%

40%

% of womenemployees inthe industry

% of womenin middle

management

% of womenin senior level

roles

% of boardseats filled by

women

% of womenwith CEOpositions

A c l o ser l o o k : t h e a r c o f w om en s

c a r e e r s


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When looking at the career progression of men versus women, a clearpattern emerges (see Figure 3). Regardless of where it starts, femalerepresentation falls dramatically between the mid-manager level and theexecutive ranks; mens representation takes the opposite trajectory andincreases significantly when approaching the executive level.

Figure 3: Career progression in the US across several major industry groups 14

14US Equal Employment Opportunity Commission, 2011 Job Patterns For Minorities And

Women In Private Industry

Women Men

48.0%53.2%

38.5%

28.7%

52.0%46.8%

61.5%

71.3%

National Aggregate, US Industries

28.4%32.6%

27.0%23.0%

71.6%67.4%

73.0% 77.0%

Industrial Products

25.3% 28.4%

20.1% 19.3%

74.7% 71.6%

79.9%80.7%

Utilities

77.6%78.0%

67.2%

51.8%

22.4% 22.0%

32.8%

48.2%

Health Indus tries

TotalEmployment

Professional,Technical andSales Workers

First/Mid LevelOfficials &Managers

Executive/SeniorLevel Officials &Managers

TotalEmployment




TotalEmployment




TotalEmployment





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Figure 3: Career progression in the US across several major industry groups, continued

Women Men

52.1%58.5%

40.4%

26.6%

47.9%

41.5%

59.6%

73.4%

Retail & Consumer

42.9%

37.0% 38.4%

27.2%

57.1%

63.0% 61.6%

72.8%

Entertainment, Media &Communications

58.9%

49.4% 47.9%

28.8%

41.1%

50.6% 52.1%

71.2%

Finance & Insurance

TotalEmployment




TotalEmployment




TotalEmployment





11/22


Not only are women currently underrepresented in leadership roles, but thelack of progression along the leadership continuum also means the pipelinefor future female leaders in many industries is in danger of running dry.There are many contributing factors clogging the pipeline, including:

Promotingskilled seniorwomen leaders

Unintentional discrimination. Sometimes unintentionaldiscrimination occurs, resulting in senior executives filling leadershippositions with more men than women. Consider the following study onthe role that gender plays in performance evaluations at the most seniorlevels. When asked to consider prospective successors, senior maleexecutives associated strong leadership with widely held beliefs aboutmale behavior. Additionally, not only was a womans gender considered

a relevant issue in performance assessment, it was seen as a factor thatcould interfere with her ability to fit in with other executives.15 A recent

broad-scale field study supports these findings: despite scoring higheron measures of job performance, women lagged behind men on ratingsof promotability.16

Lack of clarity about the factors used to select future leaders .This creates an atmosphere of discontent among capable women whoare ready to advance.

Retaining highperforming mid-level women

Fewer opportunities for advancement. Organizational hierarchiescontinue to flatten, limiting the number of high-level roles available. Asa result, flight risk among mid-level women is increasing. Because

women are already underrepresented in leadership roles, attrition could

have a compounding effect and leave an even greater gender gap.

Millenials high turnover rate. PwCs study on millennials (thoseborn between 1980 and 2000) found that 54% expect to work forbetween two and five employers over the course of their careers. The badnews for employers is that only 18% of those questioned planned to stay intheir current role in the long term, and only one in five (21%) said theydlike to stay in the same field and progress with one employer.17 This staffchurn could take promising female talent out of the leadership pipelineand negate investments that companies make to prepare internalcandidates for leadership positions.

15Human Resource Planning, Genders Unspoken Role in Leadership Evaluations, September

2007, reprinted with permission from HRPS, Volume 30, No. 4, 2007. Published by HR People& Strategy, all rights reserved. www.hrps.org16

Journal of Management,A Meta-Analysis of Gender Group Differences for Measures of JobPerformance in Field Studies, February, 201217

PwC, Millennials at Work: Reshaping the workplace, 2012

W ha t s b l o ck i n g t h e p i p el i n e o f

w om en l ea d er s?


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Identifying andaddressingoccupation-related gendersegregation

Women are less likely than men to stretch out of theircomfort zones.A recent field study found that female employees hadfewer challenging experiences in their jobs than their malecounterparts. The ramifications of this gender bias are significant

because these challenging tasks are essential toward developing criticaljob experiences that prepare women for leadership roles.18

Womens networks lack broad support from men. While manyfirms sponsor groups and networks to help women develop theircareers, many women find that membership in these groups canthreaten their credibility and perceived capability with some malecolleagues. Involvement from both women and men is critical inadvancing the issue of women in leadership.

Considered holistically, these dynamics prevent many companies fromcapitalizing on the talented women leaders they recruit. At the same time,high-performing women remain hindered by many factors, ranging fromunstated criteria for promotion, to lack of clarity around leaderships ideas,to the remains of hidden bias from a bygone era. This signifies a critical needfor organizations to fundamentally re-evaluate how they define leadership,and how they identify and nurture talent.

M i l l en n i a l s m i n d t h e g a p

In a recent PwC survey, 55% of Millennials stated that organizations talk aboutdiversity but I dont feel opportunities are really equal for all.

The perception of gender bias is a critical concern for these female employees: amere 36% feel that employers are getting it right in terms of equality when itcomes to women. Their male counterparts? Forty-six percent believe employersare on the right track. When it comes to corporate advancement, 29% of femaleMillennials said they felt employers were too biased towards men whenpromoting internally (compared to 16% of men who felt that there was a female

bias).

Its clear a change in mindset is needed: When questioned about the potential

to rise to the top: 61% of men said they were optimistic they could rise to themost senior level of their organization, compared with 51% of women.20

18Gender Differences in Job Challenge: A Matter of Task Allocationgwao_477 433.453

Irene E. De Pater*, Annelies E. M. Van Vianen and Myriam N. Bechtoldt, 2009Blackwell Publishing Limited19

Americas Talent Gap, The Huffington Post, 11/5/2-12: http://www.huffingtonpost.com/bob-moritz/americas-talent-gap_b_2080162.html20

PwC, Millennials at Work: Reshaping the workplace, 2012

A n o t h er t h i n g w e

m us t b e bet t e r a t i s

m en t o r i n g a n d

dev el o p i n g t a l e n t a n d

en su r i n g t h a t t h i s

t a l en t t h en h as p l a c es

t o go w i t h i n

o r g a n i za t i o n s. Peop l e

a r e m o r e l i k el y t o

w a n t to w o r k a t

com pa n i e s i n w h i c h

t h ey see a f u t u r e f o r

th em selv es.

Robert E. MoritzUS Chairman and Senior Partner,PwC19


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To resolve the shortage of women in leadership and overcome the critical

challenges, companies need to define and develop a a strategy andframework to advance the women in leadership agenda, with the rightstructure and governance around it. Below, we describe a framework for a

womens talent strategy.

Figure 4: Womens talent strategy: key considerations

Womens talent strategy: key considerationsImplementprerequisites

Build a business case

Develop a universal definition of leadership

Evaluate your leadership development infrastructure

Deploy a common talent assessment process

Planworkforce

Identify top strategic imperatives and organizationalcompetencies needed to drive business objectives

Evaluate competency gaps and develop talent strategies toaddress those gaps

Align leadership on vision, strategy, and measures of

success Implement steering committee of cross-functional

leadership to implement measures and monitor successesand gaps

Develop program parameters and action plan for placinghigh-performing women in leadership roles

Develop womens succession plans

Ensure executive scorecards include specific metrics onwomen leaders

Implementprerequisites

Planworkforce

Recruit andonboard

Develop anddeploy

Measure andmanage

Reward andrecognize

Transitionworkforce

Talent

lifecycle

D evel o p i n g a w om en s t a l en t

s t r a t e g y


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Womens talent strategy: key considerations

Recruit andonboard Inventory specific mid-level and senior positions and

categorize as critical, near-term, and long-term needs

Identify high-performing women already within theorganization that can carry the business needs forward inthese roles

Source high-performing women leaders from themarketplace to fill competency gaps

Provide high-touch onboarding for external women leaderhires to facilitate integration to firm culture and roleexpectations

Develop anddeploy

Assign targeted women to level-appropriate talent pools

Align women candidates with leader mentors to support

learning, networking Assess the women candidates for strengths and gaps

compared with critical competencies

Design career experience and learning roadmaps,including succession plans, based on assessment results

Assign high-potential women candidates to short-termassignments in visible roles for skill-building, networking

Develop high-performing women by involving them instrategic decision making

Align women to peer networking groups to supportlearning, sustain engagement

Measure and

manage

Monitor mid-level and senior-level role creation and role

vacancy, and align talent to positions Evaluate high performers and talent pool members on

performance history, leader behaviors, career potential

Identify success stories high-performing and high-potential women based on multiple criteria and sources

Reward andrecognize

Proactively market the candidate slate to executive andmid-level business leaders to enable broad-basedselection practices

Align talent to strategic roles, critical competencies

Compensate and promote upwardly capable women topositions according to customized career plans

Transitionworkforce Assess executive scorecards for fiscal year performance

metrics on advancing women leaders in aggregate byfunction, business units

Identify win-loss ratios, scorecard performance, and gaps

Convene steering committee to evaluate results, keysuccesses, and develop action plan for subsequent fiscal

year


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Before companies can develop a womens talent strategy, they should firstfocus on four prerequisites that serve as the foundation to establish aleadership competency framework. These prerequisites are not just applicableto gender diversity. They can be used as the basis for creating a universalleadership development framework, including one that promotes widespreaddiversity in the leadership ranks. Once the prerequisites are in place,companies can then tailor and implement the strategy.

1.Bu i l d a bu si n ess case fo ro r g a n i za t i o n a l b u y -i n

Leadership diversity is a business issue that will need buy-in from a wide arrayof champions, sponsors, leaders, and participants from across theorganization. Working with key stakeholders to co-develop and implement aleadership development program will be a key component in its success,acceptance across the organization, and long-term sustainability.

To build consensus and pave a smooth transition with broadsupport across the enterprise, companies should:

Assess leadership attitudes and readiness for addressing the topic ofdiversity

Build the business case and secure C-suite sponsorship

Engage top leadership, stakeholders, and sponsors, and develop mutuallyagreed upon measures of success

Embed the program into executive sponsors goals and objectives; developmeasures that reflect stretch goals and hold executive sponsorsaccountable for driving tangible results (e.g., women senior vicepresidents, executive vice presidents, etc.)

Communicate the program

Align management to expectations

Determine the role of the human resources function

Build realistic tracking mechanisms and publish results

Monitor and evolve the program on a continual basis

21PwC 16

thAnnual Global CEO Survey

CEO i n s i gh t s CEOs across the globe agree thattalent is a top priority, with 77%expecting to change their talentmanagement strategies and 45%planning to increase headcount in

the coming year.

With a look to the leadershippipeline, global CEOs agree on top-level strategies:21 79% say involving managers

below board level in strategicdecision making is an effectivestrategy

71% cite active successionplanning as an effectivestrategy

58% deploy programs to

encourage diversity amongstbusiness leaders

These important components areincluded in the womens talentstrategy and lifecycle. (see figure 4)

I m p l em en t i n g t h e f o u r p r er eq u i si t es:

set t i n g t h e f o u n da t i o n f o r a n ef f ect i v e

t a l en t st r a t eg y


16/22


2 .Devel o p a un i v er sa l d ef i n i t i o n o f l e ade r sh i p

By promoting a universal definition of leadership one that specifiesleadership performance requirements, valued capabilities, and needed

behaviors to drive results by career level companies can improve the waythey select, develop, and recognize leadership strength in the ranks.

For example, a competency like envisions can potentially carry bias in someorganizations. Due to pride in their practical approach for driving results,

women are sometimes perceived as lacking in vision.22 By contrast, develops

winning strategies is a competency that is outcome-oriented, can be evaluatedand measured, and requires a leader regardless of gender or culture to usetheir abilities to deliver results.

Implementing a set of universalleadership competencies clarifies performanceexpectations, provides the foundation for a firm-wide and global culture,reduces risk from rogue behavior, and opens the leadership pipeline to a fulland diverse range of female talent.

Taking a closer look at the behaviors of key leaders and the climate thosebehaviors create is the first step toward assessing the need for a change.

Consider the following questions and how they apply to your

organization:

What critical leadership competencies provide the foundation for ourorganizations performance? Can we measure the behaviors in action?How do we evaluate their impact?

What leadership competencies are needed to deliver on tomorrowsstrategic imperatives? How do they compare with todays priorities?

What leadership competencies do we value? Do these values vary bycountry? Does performance vary among businesses or regions? How do weaddress the variations?

22Ibarra, Herminia and Obodaru, Otillia, Harvard Business Review, Women and the Vision Thing,

2009


17/22


Case

s t u d y

M u l t i n a t i o n a l b a n k d ev el o p s a u n i v er sa l d ef i n i t i o n

o f l eade r sh i p

Despite a range of initiatives, a persistent lack of diversity remained withinthe officer ranks of a multinational bank. Additionally, the bank wascontending with recent headline-making leadership decisions andincreasing pressure from regulators and customers. The CEO recognizedthat without a significant shift in leadership thinking and composition,efforts to expand operations in new markets could be impaired.

The ap p r o a c h The bank collected feedback from a range ofleaders across the business to capture whichleadership practices were working and whichneeded improvement.

They found that select management functionswithin the bank resisted participating inorganizational initiatives, and turnover amongleaders at and above the officer level was at an all-time low.

The r esu l t Based on the findings, the bank realized it needed toaddress gaps in its leadership culture. The companydeveloped a new leadership competency framework,

working with the COO and human resources, to raisethe bar on performance expectations across the firm

and set a new standard for leadership. Through selectleadership mobility, the bank also enabled a renewal ofits collective leadership capability and broadened therange of eligible talent reaching key decision-makingroles.

3 .Eva l u a t e y ou r l ea der sh i p devel o pm en t i n f r a s t r u c t u r e

Many firms have programs that target leadership and succession planningexclusively at the senior-most levels. But few have programs that identifytalent in the mid-tier ranks. This can leave a large gap in the talent pipeline.

Its especially important to have a leadership infrastructure in place at themiddle management level, when people often need information and supportthe most. This approach can help shorten developmental milestones andexpedite top performers readiness for advancement.

By evaluating the infrastructure and investments used to identify, develop, andadvance high-potential talent, organizations can identify and fill gaps withinthe system to better support mid-level managers career momentum.


18/22


Consider the following questions when assessing yourorganizations leadership development infrastructure:

Are we identifying people for the right roles over the medium term andlong term? Do we have the right retention and acquisition strategies inplace to close gaps and reduce turnover costs? Are we proactivelymanaging our slate of high-performing, high-potential talent?

How can we adjust the talent selection processes to increase the leadershippipeline at various levels? Are the current assessments accuratelymeasuring potential?

Do we assess high-performing and high-potential staff early enough in

their careers? Are the talent management processes and tools currently inuse capturing the full range of their performance?

Do our development programs target the right set of needs or skills, basedon current and potential career level? Are there gaps in some career pathmodels? What combination of experiential, coaching, and classroomprograms makes the most sense, based on career level?

What adjustments should we make in the talent review process to seegreater success in identifying and advancing high-potential and high-performing talent? How can these individuals become more visible?

Whats the right succession planning tool to use? Are we capturing the

right data?

Figure 5 illustrates a model leadership development infrastructure.

Figure 5: Leadership development: identifying, developing, and advancing talent23

23PwC research and data

LeadershipCompetencies

Talent Acquisition &Selection

Learning &Development

OrganizationalDevelopment

PerformanceManagement

Assessment Center

Behavioral BasedInterview

Recommendation

Credentials

Experiences

Computer-basedLearning

Instructor-ledLearning

Rewards System

Career Development Coaching

SuccessionManagement

Rotation Programs

Strategic Planning

Gap Analysis

Multi-raterFeedback

Observations duringBusiness-As-Usual

Episodic Events

Culture of Leadership and Accountability

I t s especia l l y

i m p o r t a n t t o h a v e

a l e ader sh i p

i n f r a st r u c t u r e i n

p l a c e a t t h e

m i d d l e

m a n a g eme n t

l e vel , w hen peop l e

o f t en n eed

i n f or m a t i on a n d su p p o r t t h e m o st .


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Case

s t u d y

H ea l t h c a r e com pa n y u n co v er s k ey b a r r i er s t o

i m p r o v ed r et en t i o n

Like many health care organizations, the company had significant concernsregarding its nurse and other employee turnover, as well as a persistent

vacancy rate.

Th e

a p p r o a c h The company deployed a team to review, audit and

identify opportunities for improvement within recruitingand retention processes. Reviews encompassed thehuman capital board report, employee climate surveyfindings, and all recruiting and retention techniques

scholarships, employee survey action plans, benefits andretirement plans.

A gap analysis was conducted on recruiting and retentionprocesses to determine if current practice and policies

were incompliant and / or significantly different frombest practices.

Th e

re su l t Prior to the review, the company had not conducted ananalysis to understand the cost of turnover, thus was unable todrive behavior change from a fact-based position of authority,

After the audit and analyses, the organization possessedmetrics to formally evaluate the efficiency and effectiveness ofthe recruiting function; as well as more control on requisition

procedures and controls.

4 .Dep l o y a com m on t a l e n t a ssessm en t p rocess

Talent assessment is the most critical component of the leadershipdevelopment system. By applying a standard leadership assessment processand approach, you can gain a sense of your in-house talent as a whole and,more specifically, the quantity and capabilities of potential leaders.

Develop evaluation systems that provide managers with objective measures ofbehavior and performance to reduce manager bias. One such measure is abehavior-based evaluation tool. Behavior-based evaluations gauge not onlywhat people do, but how they do it, and improve evaluation results across thefollowing performance dimensions:

Business performance stemming from business results over a period oftime

Strategic competencies that are needed for the firm to fulfill near- andlong-term business imperatives


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Career potential and the level of potential effectiveness in themanagement hierarchy

Person/environmental fit for determining the right person for theright role at the right time

Once your talent assessment is complete, future leaders can take on a host ofdevelopmental assignments, which is especially important because it increasesthe readiness for senior executive roles.

Some key critical role assignments that contribute to thedevelopment of leadership abilities include:

An early stretch assignment Providing lessons in risk taking, buildingconfidence, credibility, and visibility24

Operational role experience Owning profit and loss responsibility

People management responsibility Building strong teams and a sense ofauthority

Working in a different environment Seeking out new roles and newfunctions

International assignments Developing key skills such as resilience,

flexibility, adaptability, and cultural awareness

Creating something new Cultivating an entrepreneurial spirit, especiallywhen it leads to increased sales, competitive advantage, or cost reductions

Organizational change Refining stakeholder management skills andtaking on organization-wide change

Dealing with complex problems Contributing key strengths tochallenging organizational issues

24Sundaytimes.co.uk, Nine steps to win the crown; Women need time in different key roles rather

than just specialising in one area if they want to make their way to the top: Key assignments,October 22, 2011

Benef i t s o f t a l en t

e v a l u a t i o n

Identifies the best candidatesfor inclusion in high-potentialtalent pools

Prepares staff for the next levelby identifying the rightdevelopmental opportunities forhigh-potential talent

Aligns the right people to theright growth roles

Aligns roles to peoplescompetencies

Prevents costly leadershipselection or succession mistakes


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Successful organizations know that sustaining a distinctive and diverse

leadership culture is critical to thriving in the marketplace. By implementingthe prerequisites and a womens leadership strategy, organizations cancreate a compelling value proposition that serves to attract, retain, andadvance the most promising women leaders. Its a strategy whose time hascome, with benefits too significant to ignore.

To begin, consider the following questions as you assess your organizationswomens leadership strategy:

To what extent do you agree ordisagree with the following:

Fullyagree

Partiallyagree

Disagree

The organization can articulate the businesscase for advancing more women into

leadership roles.Executive leadership roles, responsibilities,and decision-making accountabilitiesaround womens leadership succession arewell defined.

Leadership supports and enables the desiredbehavior to ensure that womens talentassessment and leadership developmentobjectives are being met.

The organization communicates keymessages around development.

The existing leadership competency modelreflects the universal attributes and

behaviors of all regardless of gender orculture to drive the organizations strategyforward.

The existing talent assessment processeffectively identifies gaps in womensleadership capability.

The organization has an enterprise-wideview of high-potential women employees bybusiness function and geography.

The organization has well-definedsuccession plans and leadershipdevelopment programs for women.

Theres an effective working relationship

between human resources and businessleaders.

Human resources is delivering services thataddress leadership capacity or capabilityconcerns.

Creating and retaining a strong pipeline of female talent is a pursuit that willpay off with both short- and long-term benefits. And with the right strategyin place, organizations across all types, industries and sizes can begin to seethe many rewards that come with their new leadership formula.

Get t i n g st a r t ed


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2013 PricewaterhouseCoopers LLP, a Delaware limited liability partnership.All rights reserved. PwC refers to the US member firm, and maysometimes refer to the PwC network Each member firm is a separate legal entity Please see www pwc com/structure for further details

To hav e a deepe r d i s cus si on a r oun d t h e t h em es d i s cus sed i n t h i s pape r a nd o t h er

o r g a n i za t i o n a l c h a l l e n g es y ou m ay be fa c i n g , p l ea se con t a c t :

Bhu shan Seth i

Financial ServicesPeople & Change Leader

646 471 [email protected]

Ed Boswe l l

Products & Services IndustriesPeople & Change Leader704 350 [email protected]

M a r l a G r a eb er

Health IndustriesPeople & Change Leader267 330 [email protected]

Ch r i s t i n e Ay er s

Public SectorPeople & Change Leader703 918 [email protected]

E l a i n e M i l l er

Managing Director646 471 [email protected]

Ru t h P h i l p ot t

Manager646 471 [email protected]

www.pwc.com/us/peopleandchange

Mending Gap Leaders

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