Glass Ceiling for Women: Cracked but Far from Shattered

Glass Ceiling for Women: Cracked but Far from Shattered

Deborah Merrill-Sands, Dean, Simmons School of Management
Deborah Kolb, Deloitte Ellen Gabriel Professor of Women and Leadership, Simmons School of Management

Much has been said about progress in shattering the glass ceiling in business. But recent studies show women have not attained the level of leadership opportunities that would have been expected by 2010.This has considerable implications for business in these uncertain economic times.

In a study of 4,100 graduates of elite MBA programs Catalyst, a research organization on women’s advancement, found that women consistently lag behind men in compensation, rate of salary growth, and promotions. What is perhaps most surprising is that the disparity starts from their very first post-MBA position. Moreover, contrary to conventional wisdom, the success gap persisted even when researchers controlled for aspirations for leadership and for parental responsibilities.

These findings of persistent gender inequities stand in bold relief to the findings of a second study of 1,800 executives presented by Bain and Co. at the 2010 World Economic Forum.  This study revealed that men and women hold markedly different perceptions of the extent of gender parity in leadership opportunities. Approximately two-thirds of the men queried said that promotions to executive and board levels are equally attainable by both sexes compared to one-third of the women. Yet, the stark reality, as portrayed by the Catalyst study, counters these perceptions.

If inequities in hiring and promotion begin with the first job of the most talented MBAs, and if this disparity is not recognized by business leaders, then we have significant cause for concern – both for women and for our business organizations.

Studies by Catalyst and McKinsey have shown that stronger financial performance is positively correlated with greater representation of women in executive and board positions. Further, gender analyses of male and female managers in standardized assessments have shown that women are consistently rated higher than men in the majority of leadership skills needed to run effective organizations, such as setting high standards, driving for results, motivating staff, and building high performing teams.

To understand the different career outcomes of men and women and ensure strong organizational performance, we must dig under the formal systems of hiring, promotion, and compensation to uncover the subtle ways that gender may be operating. In hiring, for example, access to informal networks can provide potential employees with a way to gather information and to negotiate roles and compensation. Many of these networks, however, are male-dominated and can leave women at a disadvantage. It is often claimed that that women do not negotiate hard enough for positions and pay.  However, research shows that women are often penalized when they do, thus putting them in a double bind.

Gender assumptions can also shape specific paths to leadership. For example, women are more likely to be given leadership opportunities in human resource management vs. strategic business development. There are numerous examples of women not being approached for global assignments on the assumption that they will not be willing to relocate their families.

These findings are a clarion call to action. With women now earning more academic degrees, they represent the majority of the talent pool available to organizations. High performing organizations must eschew complacency about gender parity and tackle these issues head on in order to be successful. This will require more than reexamining systems of hiring and promotion, or strengthening policies for workplace flexibility.

Organizations need to look closely at themselves to understand how subtle gender assumptions shape the leadership opportunities and career outcomes of men and women differently. And they need to intervene strategically to change these gender assumptions and the work practices that perpetuate them so that the cracks will enlarge enough to shatter the glass ceiling.