DATA SCIENCE AND ITS RELATIONSHIP TO BIG DATA AND DATA DRIVEN DECISION MAKING

Women in the Workplace

2023

About the study

Women in the Workplace is the largest study on the state of women in corporate America.1 In 2015, McKinsey & Company and LeanIn.Org launched the study to give companies insights and tools to advance gender diversity in the workplace. Between 2015 and 2023, over 900 companies participated in the study, and more than 450,000 people were surveyed on their workplace experiences. This year, we collected information from 276 participating organizations employing over 10 million people, surveyed more than 27,000 employees, and conducted interviews with people of diverse identities, including women of color, LGBTQ+ women, and women with disabilities.2

Sign up to participate in the 2024 study at womenintheworkplace.com.

2 | WOMEN IN THE WORKPLACE: ABOUT THE STUDY

9

13

16

22

PART 1 State of the pipeline5

Table of Contents

Introduction 4

3 | WOMEN IN THE WORKPLACE: TABLE OF CONTENTS

PART 2 Debunking four myths on the state of women

On women’s ambition

On women’s career progression

On women’s everyday experiences

On flexibility and the future of work

8

PART 3 Recommendations for companies29

Acknowledgments

Report authors

Corporate pipeline by industry

Methodology

Endnotes

42

43

44

46

48

Debunking Four Myths That Hold Women Back

For the ninth year of the Women in the Workplace report, we start with the corporate pipeline because it offers a bird’s-eye view of the state of women in corporate America. The story is both encouraging and frustrating. Over the last several years, there have been sizable gains in senior leadership.3 This is an important step in the right direction and shows what companies can accomplish when they focus their efforts on a well-understood problem. However, with lagging progress in the middle of the pipeline—and a persistent underrepresentation of women of color—true parity remains painfully out of reach.4

This year’s report debunks four myths about women’s workplace experiences and career advancement. A few of these myths cover old ground, but given the notable lack of progress, they warrant repeating. A few have re-emerged and intensified with the shift to flexible work.5 We hope highlighting them will help companies find a path forward that casts aside outdated thinking once and for all and accelerates progress for women. The future of work for women depends on getting this right.

INTRODUCTION

4 | WOMEN IN THE WORKPLACE: INTRODUCTION

State of the Pipeline

PART 1

ENTRY LEVEL MANAGER SR. MANAGER/ DIRECTOR VP SVP C-SUITE

2023 TOTAL WOMEN 48% 40% 36% 33% 27% 28%

% CHANGE FROM 2015–2023 7% 8% 13% 22% 17% 65%

% POINT CHANGE FROM 2015–2023 +3pp +3pp +4pp +6pp +4pp +11pp

% of employees by level at the start of 2023

REPRESENTATION IN THE CORPORATE PIPELINE BY GENDER AND RACE7

Despite gains at the top, women remain underrepresented Over the past nine years, women—and especially women of color—remain underrepresented across the corporate pipeline.6

However, we see a growing bright spot in senior leadership. Since 2015, the number of women in the C-suite has increased from 17 to 28 percent, and the representation of women at the VP and SVP levels has also improved significantly.

6 | WOMEN IN THE WORKPLACE: PIPELINE

WOMEN OF COLOR

WHITE WOMEN

MEN OF COLOR

WHITE MEN 34%

18%

29%

18%

42%

18%

27%

13%

48%

16%

27%

9% 7% 7% 6%

26% 21% 22%

14% 15% 15%

53% 58% 56%

WOMEN MEN

Women represent roughly 1 in 4 C-suite leaders, and women of color just 1 in 16.

These hard-earned gains are encouraging yet fragile Progress remains slow for women at the manager and director levels, creating a weak middle in the pipeline and impacting the majority of women in corporate America. And the “Great Breakup” continues for women at the director level, the group next in line for senior leadership positions.8 Similar to last year, women directors are leaving at a higher rate than in past years—and at a notably higher rate than men at the same level. As a result of these two dynamics, there are strikingly fewer

women in line for top positions.9

Moreover, progress for women of color is lagging behind. At nearly every step in the pipeline, the representation of women of color falls relative to white women and men of the same race and ethnicity. Until companies address this inequity head on, women of color will remain severely underrepresented in leadership positions—and mostly absent from the C-suite.

7 | WOMEN IN THE WORKPLACE: PIPELINE

“People need to see leaders who look like themselves to understand that it’s possible for them.”

BLACK WOMAN DIRECTOR, WORKS HYBRID

Women of color face the steepest drop-off in representation from entry-level to C-suite positions. As they move up the pipeline, their representation drops by two-thirds.

LATINAS OFTEN DON’T SEE THEMSELVES IN LEADERSHIP

Latinas stand out as being the least likely of any group of women to receive a raise in the last year and also face the steepest climb up the corporate ladder: only 1 percent of C-suite executives are Latina. “It’s disheartening to be part of an organization for many years and still not see a person like me in senior leadership,” explains one Latina professional. “Until I see somebody like me in the C-suite, I’m never going to really feel like I belong.”

Four Myths on the State of Women at Work

PART 2

REALITY

Women are becoming less ambitious

MYTH

Women are more ambitious than before the pandemic—and flexibility

is fueling that ambition

Recent headlines suggest that women’s ambition is diminishing. Our data tell a different story. Women remain highly ambitious, and flexible work is helping them pursue their ambitions.

Women are equally as ambitious as men At every stage of the pipeline, women are as committed to their careers and as interested in being promoted as men. Women and men at the director level—when the C-suite is in closer view—are also equally interested in senior leadership roles. And young women are especially ambitious.10 Nine in 10 want to be promoted to the next level, and 3 in 4 aspire to become senior leaders.

Moreover, the pandemic and increased flexibility did not dampen women’s ambitions. Roughly 8 in 10 women want to be promoted to the next level this year, compared to 7 in 10 in 2019.11 And the same holds true for men.

% of women and men and those 30 and under who say their career is important to them and they are interested in being promoted to the next level

WOMEN ARE JUST AS COMMITTED TO THEIR CAREERS AND ADVANCING AS MEN

96% 97%

MEN WOMEN

81% 81%

MEN WOMEN

94% 93%

MEN WOMEN

96%

MEN WOMEN

96%

View career as important Interested in getting promoted to the next level

All employees Age 30 and under All employees Age 30 and under

“In my next role, I hope to be a director. I like my current role, but I would like to see myself moving up.”

LATINA MOTHER SENIOR MANAGER, WORKS ON-SITE

10 | WOMEN IN THE WORKPLACE: AMBITION

Women of color are even more ambitious than white women: 96% say that their career is important to them, and 88% want to be promoted to the next level.

Women who work hybrid or remotely are no more likely than women who work on-site to consider reducing their hours or switching to a less demanding job.

Workplace flexibility helps unlock women’s ambitions Women who work hybrid or remotely are as ambitious as women and men who work on-site. Also, women who work flexibly are just as ambitious as women who don’t work flexibly. In fact, flexibility is allowing women to pursue their ambitions. One in 5 women say flexibility has helped them stay at their organization or avoid reducing their hours. A large number of women who work hybrid or remotely point to feeling less fatigued and burned out as a primary benefit. And a majority of women report having more focused time to get their work done when they work remotely.

% of women and men who are interested in being promoted to the next level

WOMEN WHO WORK HYBRID OR REMOTELY ARE AS AMBITIOUS AS WOMEN AND MEN WHO WORK ON-SITE

11 | WOMEN IN THE WORKPLACE: AMBITION

“Flexible work has made me more productive because I can build work around whatever I’ve got going on with my personal life. If I wake up early in the morning, I can jump online and go through emails real quick.”

WHITE WOMAN, MOTHER DIRECTOR, WORKS REMOTELY

WOMEN MEN

On-site

Hybrid

Remote

On-site

Hybrid

Remote

79%

85% 80%

79% 80%

83%

Interested in getting promoted to the next level

Women’s ambition remains high even as they prioritize their personal lives more The pandemic showed women that a new model of balancing work and life was possible. Now, few want to return to the way things were. Most women are taking more steps to prioritize their personal lives, but at no cost to their ambition—they remain just as committed to their careers, and just as interested in advancing, as women who aren’t. These women are defying the outdated notion that work and life are incompatible—and that one comes at the expense of the other.

“The house is crazy. A dog, our four kids, a wife. Being able to juggle all that is going on in the personal life by having flexibility at work is extremely important. It leads to a healthy balance from my perspective between work and personal life.”

WHITE MAN, FATHER DIRECTOR, WORKS HYBRID

Men are also prioritizing both life and career: Roughly 60% of men are taking more steps to prioritize their personal lives, and like women, they are just as ambitious as men who aren’t.

12 | WOMEN IN THE WORKPLACE: AMBITION

% of women and men who are and aren’t taking more steps to prioritize personal lives who see career as important and want to be promoted 12

WOMEN WHO ARE INVESTING MORE IN THEIR PERSONAL LIVES ARE JUST AS AMBITIOUS MEN WOMEN

Taking more steps to prioritize their lives

View career as important

Interested in getting promoted to the next level

97%

82%

83%

97%

Not taking more steps

View career as important

Interested in getting promoted to the next level

80%

80%

96%

96%

The biggest barrier to women’s advancement is the “glass ceiling”

The “broken rung” is the greatest obstacle women face on the path

to senior leadership

MYTH

REALITY

The glass ceiling—a term coined over 40 years ago to describe an invisible barrier preventing women from reaching senior leadership—is often cited as the primary reason more women don’t rise to the top. Our data point to a bigger problem much earlier in the pipeline.

For every 100 men promoted to manager, far fewer women are promoted

100

ALL MEN

ALL WOMEN

WHITE WOMEN

ASIAN WOMEN

BLACK WOMEN

LATINAS

87 91 89

54

76

Ratio of promotions to manager for men vs. women

WOMEN LOSE THE MOST GROUND AT THE FIRST STEP UP TO MANAGER

14 | WOMEN IN THE WORKPLACE: BROKEN RUNG

The broken rung remains the biggest barrier women face For the ninth consecutive year, women face their biggest hurdle at the first critical step up to manager. This year, for every 100 men promoted from entry level to manager, 87 women were promoted. And this gap is trending the wrong way for women of color: this year, 73 women of color were promoted to manager for every 100 men, down from 82 women of color last year. As a result of this broken rung, women fall behind and can’t catch up.13

2018 2019 2020 2021 2022

58 58 82 96 54

Progress for early career Black women remains the farthest out of reach.14 After rising in 2020 and 2021, likely in response to heightened focus on their advancement, the number of Black women promoted to manager for every 100 men has fallen back to 2019 levels.15

100%

50%

“I’ve always done every task, every project ahead of schedule and under budget, and I still couldn’t get the promotions I saw my white colleagues getting.”

BLACK WOMAN C-SUITE, WORKS HYBRID

Here are three things every company should know about the broken rung:

15 | WOMEN IN THE WORKPLACE: BROKEN RUNG

Women are not responsible for it

Outdated thinking often points to two explanations for the broken rung: women are not asking for promotions, and they’re more likely to step away from work. Neither is true. Women at the entry and manager levels ask for promotions as often as men do, and they are no more likely to leave their company—this year, 17 percent of entry-level men chose to leave, compared to 16 percent of women at the same level.

Bias is a strong driver of the broken rung

If women’s career choices don’t explain the broken rung, what does? Women are often hired and promoted based on past accomplishments, while men are hired and promoted based on future potential. This unfair thinking—rooted in what social scientists refer to as “performance bias”—can be particularly challenging.16 Because women early in their careers have shorter track records and similar work experiences relative to their men peers, performance bias can especially disadvantage them at the first promotion to manager.17

Until the broken rung is fixed, gender parity in senior leadership remains out of reach

While companies are increasing women’s representation at the top, doing so without addressing the broken rung offers only a temporary stopgap. Because of the gender disparity in early promotions, men end up holding 60 percent of manager-level positions in a typical company, while women occupy 40 percent. Since men significantly outnumber women, there are fewer women to promote to director, and the number of women decreases at every subsequent level.

“A president of a tech company said something that stuck with me. She said, ‘Women are hired for what they have done. Men are hired for what they can become.’ Women have to have a proven record, but men do not.”

SOUTHEAST ASIAN WOMAN VICE PRESIDENT, WORKS HYBRID

Almost a quarter of women 30 and under say that their age has contributed to them missing out on a raise, promotion, or chance to get ahead.

Microaggressions have a large and lasting impact on women

REALITY

Microaggressions have a “micro” impact

MYTH

The term microaggressions implies they’re insignificant. This is simply not true. In reality, microaggressions take a heavy toll on women and inhibit their career progression.

17 | WOMEN IN THE WORKPLACE: MICROAGGRESSIONS

Microaggressions are demeaning or dismissive comments and actions— rooted in bias—directed at a person because of their gender, race, or other aspects of their identity.

Self-shielding, also known as self-monitoring, refers to efforts to avoid or protect oneself from mistreatment by continuously modifying one’s behaviors. This includes code-switching, restricting self-expression, or hiding aspects of one’s identity.

Why the “micro” in microaggressions?

The term microaggressions was coined in 1970 by researchers to refer to the prejudiced and exclusionary acts that may be more subtle than overt discrimination, but nonetheless have a big impact on well-being.23

The popular misunderstanding that microaggressions are minor or insignificant minimizes the real harm they cause.

Despite the “micro” in their name, microaggressions have a macro impact Microaggressions signal disrespect, cause acute stress, and can negatively impact women’s careers and health.18 Years of data show that women experience microaggressions at a significantly higher rate than men: they are twice as likely to be interrupted and hear comments on their emotional state. For women with traditionally marginalized identities, these slights happen more often and are even more demeaning. As just one example, Asian and Black women are seven times more likely than white women to be confused with someone of the same race and ethnicity.19

As a result, the workplace is a mental minefield for many women, particularly those with traditionally marginalized identities. Women who experience microaggressions are much less likely to feel psychologically safe, which makes it harder to take risks, propose new ideas, or raise concerns.20 The stakes just feel too high. On top of this, 78 percent of women who face microaggressions—so the vast majority—self-shield at work, or adjust the way they look or act in an effort to protect themselves.21 For example, many women choose not to speak up or share an opinion to avoid seeming difficult or aggressive to their colleagues. The stress caused by these dynamics cuts deep. Women who experience microaggressions—and self-shield to deflect them—are three times more likely to think about quitting their jobs and four times more likely to almost always be burned out.22 By leaving microaggressions unchecked, companies miss out on everything women have to offer and risk losing talented employees.

Women with traditionally marginalized identities face more microaggressions at work

ALL MEN ALL WOMEN LGBTQ+ WOMEN

WOMEN WITH

DISABILITIES WHITE

WOMEN ASIAN

WOMEN LATINAS BLACK

WOMEN

MICROAGGRESSIONS 24

Challenges to competence

14% 21% 26% 32% Others get credit for their ideas 21% 17% 15% 22%

17% 23% 33% 39% Their judgment is questioned 24% 16% 17% 27%

5% 9% 11% 14% They’ve been mistaken for someone more junior

9% 8% 6% 9%

10% 22% 30% 35% They’re interrupted or spoken over more than others

22% 19% 19% 24%

Demeaning and “othering”

2% 5% 13% 12% Others comment on their appearance

5% 3% 5% 6%

6% 12% 21% 25% Others comment on their emotional state

12% 7% 10% 13%

10% 14% 23% 25% They’re criticized for their demeanor 25 15% 9% 14% 18%

2% 4% 6% 6% They’re confused with someone else of the same race/ethnicity

2% 14% 6% 15%

3% 4% 5% 5% They feel judged because of their accent

2% 7% 10% 8%

5% 7% 8% 9% Others make assumptions about their culture 26 2% 17% 16% 13%

BETTER EXPERIENCE WORSE EXPERIENCE

18 | WOMEN IN THE WORKPLACE: MICROAGGRESSIONS

ASIAN WOMEN ARE OVERLOOKED AT WORK

Asian women are significantly more likely than women overall to be mistaken for other colleagues of the same race or ethnicity. This experience, which is all too common for Black women as well, is not only disrespectful, but it means their contributions at work may go unnoticed. In addition, assumptions about their culture signal a lack of attention and respect. “I’ve gotten mistaken for Chinese,” explains one Filipino manager. “People will ask me about some kind of Chinese delicacy assuming that all Asian backgrounds are the same.”

As microaggressions harm women and threaten their psychological safety, they self-shield to protect themselves

BETTER EXPERIENCE WORSE EXPERIENCE

ALL MEN ALL WOMEN LGBTQ+ WOMEN

WOMEN WITH

DISABILITIES WHITE

WOMEN ASIAN

WOMEN LATINAS BLACK

WOMEN

SELF-SHIELDING BEHAVIORS 27

4% 8% 20% 17% They feel pressure to change their appearance to look more

professional 9% 7% 7% 9%

23% 32% 47% 49% They tone down what they say to avoid being unlikable

32% 28% 26% 37%

4% 6% 35% 29% They hide important aspects of their identity to fit in

6% 3% 6% 5%

9% 15% 28% 29% They have to code-switch to blend in with others

12% 15% 15% 36%

22% 31% 42% 48% They don’t speak up or share an opinion to avoid seeming difficult

31% 25% 27% 39%

15% 25% 33% 41% They feel like they have to perform

perfectly to avoid scrutiny or judgment

24% 24% 20% 33%

PSYCHOLOGICAL SAFETY

57% 56% 61% 56% They don’t worry they’ll be penalized for mistakes 28 61% 51% 44% 45%

62% 54% 59% 52% They feel comfortable disagreeing with coworkers 29 57% 51% 45% 44%

52% 48% 54% 49% They rarely feel excluded 30 52% 44% 39% 37%

19 | WOMEN IN THE WORKPLACE: MICROAGGRESSIONS

BLACK WOMEN ARE OFTEN FORCED TO CODE-SWITCH

Black women are more than twice as likely as women overall to code-switch at work by changing their mannerisms, tone, or speaking style. They are also more likely than women of other races and ethnicities not to speak up or share an opinion to avoid appearing difficult or aggressive. “I speak very differently at home than I do at work,” explains one Black woman. “I feel like I have to be careful about the way I say things.”

20 | WOMEN IN THE WORKPLACE: MICROAGGRESSIONS

Microaggressions lead to negative outcomes for women

LGBTQ+ WOMEN FEEL PRESSURE TO HIDE THEIR FULL IDENTITIES AT WORK

More than any other group of women, LGBTQ+ women feel the need to hide important parts of their identities to fit in at work.34 They are also 2.5 times more likely to feel pressure to change their appearance to be perceived as more professional. Such self-shielding behaviors make it harder for them to bring their authentic selves to work. “I had an experience where I think I got turned down for a promotion because of my hair. I wasn’t as girly as the others going for that role,” explains one director who identifies as bisexual. “And when I looked at myself compared to the other s—I didn’t wear makeup and I didn’t wear jewelry—I didn’t have an executive presence.”

“It’s like I have to act extra happy so I’m not looked at as bitter because I’m a Black woman. And a disabled Black woman at that. If someone says something offensive to me, I have to think about how to respond in a way that does not make me seem like an angry Black woman.”

BLACK WOMAN WITH A PHYSICAL DISABILITY ENTRY LEVEL, WORKS REMOTELY

Roughly 1 in 3 women with disabilities and 1 in 4 LGBTQ+ and Black women have felt invisible or like their accomplishments didn’t get noticed at work.

Women who experience microaggressions and

self-shield 31 are …

4.2x more likely

to almost always feel burned out

3.3x more likely

to consider leaving their

company

2.6x more likely

to say they wouldn’t recommend

their company 32

3.8x more likely

to feel they don’t have an equal

opportunity to advance 33

“When I was climbing the ladder to executive director, I felt that the only way that I could be successful was to do everything I possibly could to assimilate. I would watch how the white female leaders would dress, how they would communicate, how they would interact. I felt I needed to look like that, sound like that, and model that.”

LATINA MANAGER, WORKS HYBRID

IN THEIR WORDS

“There’s not as many people of color or even women, so I do feel like you need to present yourself a certain way in order to be taken seriously or even considered.”

SOUTH ASIAN WOMAN ENTRY LEVEL, WORKS HYBRID

“I had an experience with a boss … being painted as sassy, feisty, or rude. I feel like I have to be so careful about how I’m doing here —about what I’m doing here—because I just feel like I’m really going to get mischaracterized if I’m not careful with my words.”

LATINA, TRANS WOMAN ENTRY LEVEL, WORKS ON-SITE

“I can’t change the color of my skin, and that is what makes everyone afraid when I walk into a room. It’s the color of my skin. I can’t erase it. At the end of the day, if I did not have this color skin, I wouldn’t have to work as hard as I do to maintain my seat and protect my name.”

AFRO-LATINA WOMAN WITH A PHYSICAL DISABILITY C-SUITE, WORKS ON-SITE

“We experience [a] sense of un-belonging in many spaces and constant microaggressions based on our identities as indigenous people.”

INDIGENOUS WOMAN DIRECTOR, WORKS HYBRID

“Being born female, and I present very feminine, people assume that I’m straight and that I’m cisgender. [When on-site] I’m mentally preparing myself for how much I want to disclose about my gender.”

WHITE NONBINARY PERSON ENTRY LEVEL, WORKS HYBRID

21 | WOMEN IN THE WORKPLACE: MICROAGGRESSIONS

It’s mostly women who want— and benefit from—flexible work

Men and women see flexibility as a “top 3” employee benefit and

critical to their company’s success

MYTH

REALITY

Healthcare benefits

Opportunities to work remotely

Control over when you work <

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