Women in the Workplace

Women in the Workplace 2018

2 | WOMEN IN THE WORKPLACE: TABLE OF CONTENTS THE REPORT AT A GLANCE Women in the Workplace 2018 03 INTRODUCTION We know that many companies are committed to gender diversity and are taking some action. But this year’s findings make it clearer than ever that companies need to double down on their efforts. 04 THE CORPORATE PIPELINE A closer look at the corporate pipeline 05  Women remain significantly underrepresented 06  Attrition is not the problem 07  Women are left behind from the get-go 09 THE UNEVEN PLAYING FIELD Women face an uneven playing field and view the workplace differently 10  Women receive less support from managers 23 It feels harder to advance for women 12   Women get less access to senior leaders 25 Women see a workplace that is less fair 15 Women face everyday discrimination 28 Women are asking for more 18 Sexual harassment remains prevalent 30 Women think differently about top jobs 20 Women are too often the “Only” one 32 A ROAD MAP TO GENDER EQUALITY Six actions companies should take to make progress on gender diversity 33 Get the basics right—targets, reporting, 43 Foster an inclusive and respectful culture and accountability 47 Make the “Only” experience rare 35 Ensure that hiring and promotions are fair 51 Offer employees the flexibility to fit work into their lives 39 Make senior leaders and managers champions of diversity 55 LOOKING AHEAD Change starts with treating gender diversity like the business priority it is. The benefits of diversity are proven: new ideas, better results, and happier employees. 56 Acknowledgments 57 Corporate pipeline by industry 59 Report authors 60 Methodology

1 | WOMEN IN THE WORKPLACE About the study Women in the Workplace 2018 is the largest comprehensive study of the state of women in corporate America. Since 2015, LeanIn.Org and McKinsey & Company have published this report annually to give companies and employees the information they need to advance women and improve gender diversity within their organizations. McKinsey & Company also conducted similar research in 2012. This year, 279 companies employing more than 13 million people shared their pipeline data and completed a survey of their HR practices. In addition, more than 64,000 employees were surveyed on their workplace experiences, and we interviewed women of different races and ethnicities and LGBTQ women for additional insights. Since 2015, 462 companies employing almost 20 million people have participated in the study. Sign up for the 2019 study at womenintheworkplace.com

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3 | WOMEN IN THE WORKPLACE: INTRODUCTION INTRODUCTION To achieve equality, companies must turn good intentions into concrete action For the last four years, companies have reported that they are highly committed to gender diversity. But that commitment has not translated into meaningful progress. The proportion of women at every level in corporate America has hardly changed. Progress isn’t just slow. It’s stalled. Women are doing their part. They’ve been earning more bachelor’s degrees than men for decades. They’re asking for promotions and negotiating salaries at the same rates as men. And contrary to conventional wisdom, they are staying in the workforce at the same rate as men. Now companies need to take more decisive action. This starts with treating gender diversity like the business priority it is, from setting targets to holding leaders accountable for results. It requires closing gender gaps in hiring and promotions, especially early in the pipeline when women are most often overlooked. And it means taking bolder steps to create respectful and inclusive workplaces. Everyday discrimination, which women of color and lesbian women are more likely to face, and sexual harassment have no place in today’s workplace. All women—and all employees—should feel safe and supported at work. We know that many companies, especially those that participate in this study, are committed and are taking some action. But this year’s findings make it clearer than ever that companies need to double down on their efforts. This report includes concrete, evidence-based steps that organizations can take right now that will make a difference. We hope companies seize this opportunity. We can’t achieve equality until they do.

4 | WOMEN IN THE WORKPLACE: THE CORPORATE PIPELINE A closer look at the corporate pipeline Based on four years of data from 462 companies employing almost 20 million people, including the 279 companies participating in this year’s study, two things are clear: 1. Women remain significantly underrepresented, particularly women of color. 2. Companies need to change the way they hire and promote entry- and manager-level employees to make real progress.

5 | WOMEN IN THE WORKPLACE: THE CORPORATE PIPELINE Women remain significantly underrepresented Since 2015, the first year of this study, corporate America has made almost no progress in improving women’s representation. Women are underrepresented Women are dramatically at every level, and women of color are the most underrepresented group of outnumbered in senior 1 all, lagging behind white men, men of color, and white women. leadership. Only about 1 in 5 C-suite leaders is a woman, and only 1 in 25 is a woman of color. REPRESENTATION IN THE CORPORATE PIPELINE BY GENDER AND RACE % OF EMPLOYEES BY LEVEL IN 20182 SR. MANAGER/ ENTRY LEVEL MANAGER DIRECTOR VP SVP C-SUITE 6% 4% 4% 12% 8% 17% % WOMEN 2018 PIPELINE 48% 38% 34% 29% 23% 22% CHANGE 3 ’17–’18 1% 1% 1% 0% 2% 2% CHANGE 1% 0% 0% 0% -3% 1% ’16–’17 CHANGE 4 ’15–’16 1% 0% 1% 2% 1% 2% 1 In this study, women of color include Black, Latina, Asian, American Indian or Alaskan Native, Native Hawaiian, Pacific Islander, or mixed-race women. However, due to small sample sizes, reported findings on individual racial/ethnic groups are restricted to Black women, Latinas, and Asian women. 2 Due to rounding, representation by race and gender may sum to 101 percent or 99 percent within some levels. 3 This represents percentage point change. 4 The small numbers at the executive level, combined with this study’s methodology, which takes the average of companies, means that findings at the executive level are more sensitive to individual company variation.

6 | WOMEN IN THE WORKPLACE: THE CORPORATE PIPELINE Attrition is not the problem For the fourth year in a row, attrition does not explain the WOMEN AND MEN LEAVE THEIR COMPANIES underrepresentation of women. Women and men are leaving IN SIMILAR NUMBERS their companies at similar rates, and they have similar intentions % OF WOMEN AND MEN WHO LEFT THEIR JOBS IN THE LAST YEAR to remain in the workforce. More than half of all employees plan to stay at their companies for five or more years, and among those who intend to leave, 81 percent say they plan to stay in the workforce. It’s also worth noting that very few women and men say they plan to leave to focus on family. MEN WOMEN MOST EMPLOYEES PLAN TO STAY AT THEIR COMPANY OR REMAIN IN THE WORKFORCE % OF EMPLOYEES WHO PLAN TO STAY AT OR LEAVE THEIR COMPANY MEN WOMEN WHAT THEY PLAN TO DO WHEN THEY LEAVE PLANNING TO Stay in the PLANNING LEAVE WITHIN workforce TO STAY FOR THE NEXT 5 5+ YEARS YEARS Leave to focus on family

7 | WOMEN IN THE WORKPLACE: THE CORPORATE PIPELINE Women are left behind from the get-go The two biggest drivers of representation are hiring and promotions, and companies are disadvantaging women in these areas from the beginning. Although women earn more bachelor’s 5 degrees than men, and have for decades, they are less likely to be hired into entry-level jobs. At the first critical step up to manager, the disparity widens further. Women are less likely to be hired into manager-level jobs, and they are far less likely to be promoted into them—for every one hundred men promoted to manager, seventy-nine women are. Largely because of these gender gaps, men end up holding 62 percent of manager positions, while women hold only 38 percent. This early inequality has a profound impact on the talent pipeline. Starting at the manager level, there are significantly fewer women to promote from within and significantly fewer women at the right experience level to hire in from the outside. So even though hiring and promotion rates improve at more senior levels, women can never catch up—we’re suffering from a “hollow middle.” This should serve as a wake-up call: until companies close the early gaps in hiring and promotions, women will remain underrepresented. If companies continue to hire and promote women to manager at current rates, the number of women in management will increase by just one percentage point over the next ten years. But if companies start hiring and promoting women and men to manager at equal rates, we should get close to parity in management—48 percent women versus 52 percent men—over the same ten years. MEN FAR OUTNUMBER WOMEN AT THE MANAGER LEVEL % OF MANAGER POSITIONS HELD BY MEN VS. WOMEN MEN WOMEN 62% 50% 38% ALL MEN ALL WOMEN 5 Women have earned at least 57 percent of all bachelor’s degrees every year since 1999, according to the National Center for Education Statistics, table 318.10, https://nces.ed.gov/programs/digest/d17/tables/dt17_318.10.asp?current=yes.

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8 | WOMEN IN THE WORKPLACE: THE CORPORATE PIPELINE Women are left behind from the get-go Performance bias helps explain early gaps in hiring and promotions. Research shows that we tend to overestimate men’s performance and underestimate women’s. As a result, men are often hired and promoted based on their potential, while women are often hired and promoted 6 This may be based on their track record. particularly acute for women at the start of their careers, when their track records are relatively short. WOMEN ARE FAR LESS LIKELY TO BE PROMOTED TO MANAGER RATIO OF PROMOTIONS TO MANAGER FOR MEN VS. WOMEN MEN WOMEN The disparity in the promotion rate to manager is even worse for women of color. Most notably, for every 100 men who are promoted to manager, just 60 Black women are promoted. ALL ALL WHITE ASIAN LATINAS BLACK MEN WOMEN WOMEN WOMEN WOMEN 6 Corinne A. Moss-Racusin et al., “Science Faculty’s Subtle Gender Biases Favor Male Students,” Proceedings of the National Academy of Sciences of the United States of America 109, no. 41 (2012): 16474–79; Rhea E. Steinpreis, Katie A. Anders, and Dawn Ritzke, “The Impact of Gender on the Review of Curricula Vitae of Job Applicants and Tenure Candidates: A National Empirical Study,” Sex Roles 41, nos. 7–8 (1999): 509–28; Madeline E. Heilman and Michelle C. Hayes, “No Credit Where Credit Is Due: Attributional Rationalization of Women’s Success in Male-Female Teams,” Journal of Applied Psychology 90, no. 5 (2005): 905–26; Joan C. Williams and Rachel Dempsey, What Works for Women at Work: Four Patterns Working Women Need to Know (New York: NYU Press, 2014).

9 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD The uneven playing field Based on this year’s survey of more than 64,000 employees, it is clear that women still experience an uneven playing field. They get less day-to-day support and less access to senior leaders. They are more likely to deal with harassment and everyday discrimination. They often feel the added scrutiny that comes from being the only woman in the room. And understandably, they think it’s harder for them to advance. Women of color and lesbian women face even more biases and barriers to advancement—as do all women who deal with compounding biases because of their identity, background, or beliefs. It’s great for organizations to say they want to hire diverse “ employees. But when you get there and you’re the only one who’s like you, and nobody’s really supporting what you bring to the table, it feels like exclusion.” —Director, 4 years at company, Latina woman This report contains stock photographs for illustrative purposes only. Images do not reflect the identities of the women quoted. Within the quotes, some identifying details may have been altered and/or withheld to protect the speaker’s anonymity.

10 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Less support from managers Women, especially women ALL WOMEN of color, receive less support from managers than men do. On a few critical fronts, managers provide less support to women than men, including providing the resources This is a problem because they need to succeed and helping them navigate manager support is tied organizational politics. These imbalances, though small on their own, add up. to positive outcomes like Women are also less likely than men to socialize with higher promotion rates and their manager outside of work. Yet employees who do that are more likely to be happy with their job—and a stronger desire to stay with more likely to expect to stay at their company. a company. WOMEN OF COLOR LESBIAN WOMEN Women of color generally receive less support from Lesbian women receive about the same level of managers than white women—and Black women receive manager support as women overall with one important the least support. exception: they get far less help balancing work and 7 Black women are far less likely to get help navigating personal demands. organizational politics and balancing work and personal Similar to women overall, slightly less than half of 8 lives, and managers are less likely to promote their lesbian women socialize with their manager. accomplishments. The same dynamic holds true for access to managers: only about a third of Black women socialize with their manager outside of work, compared to about half of white women. 7 “Lesbian women” includes all women who identified themselves as gay, lesbian, or homosexual in the survey. 8 This year’s survey asked bisexual and lesbian women about their experiences. The results for bisexual women and lesbian women of color are not included in the report due to small sample size and a desire for more information than we were able to obtain this year.

11 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Less support from managers Compared to entry-level men, women at the same level are less likely to have managers showcase their work and help them navigate organizational politics. WOMEN AND MEN GET DIFFERENT LEVELS OF SUPPORT FROM MANAGERS % OF EMPLOYEES WHO REPORT THAT THEIR MANAGER . . . MEN WOMEN MEN WOMEN WHITE ASIAN LATINAS BLACK LESBIAN OVERALL OVERALL WOMEN WOMEN WOMEN WOMEN Provides the resources 49% 45% 47% 44% 43% 42% 45% I need to succeed Helps me navigate 41% 37% 39% 32% 30% 25% 35% organizational politics Creates opportunities for 45% 42% 43% 44% 40% 35% 43% me to showcase my work Promotes my 46% 44% 46% 40% 39% 35% 44% contributions to others Socializes with me 55% 47% 48% 53% 45% 35% 46% outside of work Helps me balance work 44% 46% 48% 46% 44% 39% 39% and personal demands

12 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Less access to senior leaders Women get less access to ALL WOMEN senior leaders than men do. Yet employees who interact Women are more likely than men to report they never have substantive interactions with senior leaders about regularly with senior leaders their work. They are also more likely to say they never are more likely to ask for and have informal interactions with senior leaders, such as casual conversations or lunch meetings. Because senior receive promotions, stay at leaders are often the ones to create opportunities their companies, and aspire and open doors, this lack of access puts women at a disadvantage. to be leaders. WOMEN OF COLOR LESBIAN WOMEN Compared to white women, more women of color say Like women overall, lesbian women are more likely they never interact, formally or informally, with senior than men to say they never get formal or informal leaders. In particular, Black women get the least access access to senior leaders. to senior leaders.

13 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Less access to senior leaders Good sponsors open doors for their protégés, but 9 A majority of employees with sponsors they are rare. say they provide career advice, highlight their work to others, and advocate on their behalf for new opportunities. Employees with sponsors are 1.4 times more likely to say they’ve had a meaningful interaction with a senior leader and 1.5 times more likely to aspire to be a top executive themselves—and this is especially true for women. Yet fewer than one in four employees has a sponsor. WOMEN HAVE FEWER INTERACTIONS WITH SENIOR LEADERS % OF EMPLOYEES WHO NEVER INTERACT WITH SENIOR LEADERS MEN WOMEN OMEN OMEN OMEN OMEN OMEN OMEN OMEN S OMEN S OMEN CK W OMEN CK W SIAN W TINA SIAN W TINA ALL MEN ALL W WHITE W A LA BLA LESBIAN W ALL MEN ALL W WHITE W A LA BLA LESBIAN W I never have a substantive interaction with a senior leader about my work I never have an informal interaction with a senior leader 9 A sponsor is someone with power who is senior to you, knows your work, and takes active steps to help you advance. They might introduce you to influential connections, highlight your work to senior leaders, or recommend you for jobs and promotions.

14 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD IN THEIR OWN WORDS On manager support and access to senior leaders I would like a manager who respects and values “ my opinions, especially in my realm of expertise. I’d love to be asked, ‘What are your thoughts?’ Or, ‘We’re having this meeting. Can I pull you in on this?’ But that I actually think that when doesn’t happen.” you do well, it’s because “ of your manager. The —Analyst, 2 years at company, comfort of your relationship Black woman with them can determine whether you’re comfortable speaking up, whether you’re comfortable making At a meeting with the COO, certain decisions.” a young woman asked him, —Director, 4 years at company, Asian woman “ ‘How do you get to where you’re at?’ He replied, ‘It’s all who you know.’ Hearing that, I felt defeated. If that’s true, how am I going to get there? I want to be My manager doesn’t help there. I think I deserve to me with workplace politics. “ be there. But I don’t have She tells me I should those connections.” stay quiet.” —Entry level, 5 years at company, —Entry level, 5 years at company, Black woman Black woman This report contains stock photographs for illustrative purposes only. Images do not reflect the identities of the women quoted. Within the quotes, some identifying details may have been altered and/or withheld to protect the speaker’s anonymity.

15 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women face everyday discrimination Everyday sexism and racism—also known as microaggressions— Lesbian women experience further slights: 71 percent have dealt can take many forms. Some can be subtle, like when a person with microaggressions. The nature of these encounters is often mistakenly assumes a coworker is more junior than they really different for them: lesbian women are far more likely than other are. Some are more explicit, like when a person says something women to hear demeaning remarks in the workplace about demeaning to a coworker. Whether intentional or unintentional, themselves or others like them. They are also far more likely to microaggressions signal disrespect. They also reflect inequality— feel like they cannot talk about their personal lives at work. while anyone can be on the receiving end of disrespectful behavior, microaggressions are more often directed at those with These negative experiences add up. As their name suggests, less power, such as women, people of color, and LGBTQ people. microaggressions can seem small when dealt with one by one. But when repeated over time, they can have a major impact: For 64 percent of women, microaggressions are a workplace women who experience microaggressions view their workplaces reality. Most commonly, women have to provide more evidence as less fair and are three times more likely to regularly think about of their competence than men and they have their judgment leaving their job than women who don’t. questioned in their area of expertise. They are also twice as likely as men to have been mistaken for someone in a more junior position. Black women, in particular, deal with a greater variety of microaggressions and are more likely than other women to have A third of lesbian women feel like their judgment questioned in their area of expertise and be asked to provide additional evidence of their competence. they can’t talk about themselves or their life outside of work. Microaggressions aren’t only a problem for women. About half of men have experienced microaggressions, and the problem is worse for men of color and gay men. Black men, like Black women, are more likely to have their judgment questioned and be asked to provide more evidence of their qualifications. Gay men, like lesbian women, are far more likely to hear demeaning remarks about themselves or others like them and to feel discouraged from talking about their personal lives at work.

16 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women face everyday discrimination MANY WOMEN FACE MICROAGGRESSIONS, AND THESE ENCOUNTERS ADD UP % OF EMPLOYEES WHO’VE EXPERIENCED THE FOLLOWING DURING THE NORMAL COURSE OF BUSINESS MEN WOMEN OMEN OMEN OMEN OMEN S OMEN CK W SIAN W TINA ALL MEN ALL W WHITE W A LA BLA LESBIAN W Having your judgment questioned in your area of expertise Needing to provide more evidence of your competence than others do Being addressed in a less-than-professional way Being mistaken for someone at a much lower level Often having your work contributions ignored Hearing demeaning remarks about you or people like you

17 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD IN THEIR OWN WORDS On everyday discrimination One thing I’ve become used to is having to prove myself constantly, over and “ over. It’s tiring, and unfortunately it hasn’t changed a whole lot as I’ve become more senior.” —Senior executive, 4 years at company, Latina woman I’ve had a couple of bosses who have made me feel that I shouldn’t talk about “ my wife. I’ve responded, ‘I’m just being me. You get to talk about your wife all the time, I’m going to talk about mine too. I shouldn’t be held to a different standard.’” —SVP, 10 years at company, white lesbian woman I was in the elevator and pressed the I walked into a meeting where I was the only button for the executive office. Someone woman in a very large room of men. And when “ “ said to me, ‘Um, no honey. That’s for the I sat down, an older white man from another executive offices. The interns are going company turned to me out of nowhere and said, to this floor.’” ‘Could you take notes for the meeting?’ Which was a little bit odd because I was the lawyer in —Director, 4 years at company, Asian woman the room, the one doing the negotiating.” —VP, 6 years at company, Middle Eastern woman This report contains stock photographs for illustrative purposes only. Images do not reflect the identities of the women quoted. Within the quotes, some identifying details may have been altered and/or withheld to protect the speaker’s anonymity.

18 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Sexual harassment remains prevalent Sexual harassment continues to pervade the workplace. Thirty- There are also stark differences in how women and men view five percent of women in corporate America experience sexual their company’s efforts to create a safe and respectful work 10 at some point in their careers, from hearing sexist harassment environment. Only 32 percent of women think that disrespectful jokes to being touched in an inappropriately sexual way. behavior toward women is often quickly addressed by their companies, compared to 50 percent of men. Women are far For some women the experience is far more common. Fifty- less confident that reporting sexual harassment will lead to a fair five percent of women in senior leadership, 48 percent of investigation. And they are twice as likely as men to say that it lesbian women, and 45 percent of women in technical fields would be risky or pointless to report an incident. report they’ve been sexually harassed. A common thread connects these groups: research has found that women who These numbers indicate the urgent need for companies to do not conform to traditional feminine expectations—in this underscore that bad behavior is unacceptable and will not case, by holding authority, not being heterosexual, and working go overlooked. Leaders at all levels need to set the tone by in fields dominated by men—are more often the targets of publicly stating that sexual harassment won’t be tolerated 11 sexual harassment. and by modeling inclusive behavior. HR teams should receive detailed training so they know how to fully and compassionately Ninety-eight percent of companies have policies that make investigate claims of harassment, even if they involve senior it clear that sexual harassment is not tolerated, but many leaders. And companies would benefit from putting an audit employees think their company is falling short putting policies process in place to ensure that investigations are thorough and into practice. Just 62 percent of employees say that in the past sanctions are appropriate. year their company has reaffirmed that sexual harassment won’t be tolerated, and a similar number say that they’ve received training or guidance on the topic. Moreover, only 60 percent It is important to note that the prevalence of sexual of employees think a sexual harassment claim would be fairly harassment reported in this research may be lower than what some working women experience. This survey investigated and addressed by their company—and just 32 focuses on full-time employees in the corporate sector percent believe it would be addressed quickly. versus the full economy, and given the nature of sexual harassment, it is often underreported. GROUPS WHO MOST COMMONLY EXPERIENCE SEXUAL HARASSMENT % OF WOMEN WHO REPORT HAVING EXPERIENCED SEXUAL HARASSMENT OVER THE COURSE OF THEIR CAREER ALL 35% SENIOR- LESBIAN WOMEN IN WOMEN WOMEN LEVEL WOMEN TECHNICAL OF COLOR WOMEN ROLES 10 It’s worth noting that the definition of unlawful harassment varies by jurisdiction. 11 See Jennifer L. Berdahl, “The Sexual Harassment of Uppity Women,” Journal of Applied Psychology 92, no. 2 (2007): 425–37; Heather McLaughlin, Christopher Uggen, and Amy Blackstone, “Sexual Harassment, Workplace Authority, and the Paradox of Power,” American Sociological Review 77, no. 4 (2012): 625–47, http://journals.sagepub.com/doi/10.1177/0003122412451728.

19 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Sexual harassment remains prevalent COMPANIES ARE FALLING SHORT PUTTING POLICIES INTO PRACTICE % OF EMPLOYEES WHO REPORT THEIR COMPANY HAS DONE THE FOLLOWING IN THE PAST YEAR MEN WOMEN Updated or clarified its Provided training or Stated clearly that sexual sexual harassment policies guidance on sexual harassment will not be and procedures harassment tolerated at the company WOMEN ARE FAR LESS CONFIDENT THAT REPORTING SEXUAL HARASSMENT WOULD BE EFFECTIVE OR HELPFUL % OF EMPLOYEES WHO THINK REPORTING SEXUAL HARASSMENT WOULD BE . . . POINTLESS It wouldn’t be taken seriously RISKY I might be penalized in some way UNCERTAIN SKEPTICAL OF I don’t know how it would play out OUTCOMES HELPFUL It’s a good first step When it comes to sexual harassment, there is an information gap. One in five employees wants more information on their company’s harassment policies, THINK IT WOULD including what to do if they’re harassed EFFECTIVE BE EFFECTIVE OR and how their company handles It would be fairly investigated HELPFUL claims—and women are 50 percent and addressed more likely to want this information. It’s also worth noting that, regardless of gender, employees who have been sexually harassed are twice as likely to want additional information as those who MEN WOMEN haven’t been harassed.

20 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD The “Only” experience Being “the only one” is still a common experience for women. Women Onlys have a more difficult time. Because there are One in five women says they are often the only woman or one so few, they stand out in a crowd of men. This heightened of the only women in the room at work—in other words, they are visibility can make the biases faced by women Onlys especially 12 “Onlys.” This is twice as common for senior-level women and pronounced. While they are just one person, they often become women in technical roles: around 40 percent of them are Onlys. a stand-in for all women—their individual successes or failures become a litmus test for what all women are capable of doing. Women who are Onlys are having a significantly worse With everyone’s eyes on them, women Onlys can be heavily experience than women who work with other women. Over 80 scrutinized and held to higher standards. As a result, they most percent are on the receiving end of microaggressions, compared often feel pressure to perform, on guard, and left out. In contrast, to 64 percent of women as a whole. They are more likely to have when asked how it feels to be the sole man in the room, men their abilities challenged, to be subjected to unprofessional and Onlys most frequently say they feel included. demeaning remarks, and to feel like they cannot talk about their personal lives at work. Most notably, women Onlys are almost Being an Only also impacts the way women view their workplace. twice as likely to have been sexually harassed at some point in Compared to other women, women Onlys are less likely to think their careers. that the best opportunities go to the most deserving employees, promotions are fair and objective, and ideas are judged by their Far fewer men are Onlys—just 7 percent say that they are often quality rather than who raised them. Not surprisingly, given the the only or one of the only men in the room—and regardless of negative experiences and feelings associated with being the odd their race and ethnicity, they face less scrutiny than women Onlys. woman out, women Onlys are also 1.5 times more likely to think By and large, white men who are Onlys have a better experience about leaving their job. than any other group of Onlys, likely because they are broadly well represented in their company and are a high-status group in society. Being an Only is a far too common significantly more likely than other Onlys to experience for people of color and feel closely watched and to think that their gay people. They face more extreme biases actions reflect positively or negatively on and have a more negative experience than other people like them. people like them who are not Onlys. Seventy-six percent of lesbian women Forty-five percent of women of color and 37 and 70 percent of gay men are often the percent of men of color are often the only only or one of the only people of their or one of the only people of their race or sexual orientation in the room. When gay ethnicity in the room. When this is the case, people are Onlys, they are twice as likely women and men of color are more likely to as other groups of Onlys to say they can’t feel excluded and scrutinized—and this is talk about themselves or their life outside especially pronounced for women of color of work. And like other Onlys, they also who are Onlys. In particular, Black women feel on guard, closely watched, and under are having a difficult experience. They are pressure to perform. 12 Historically, social scientists have used terms such as “numerical minorities” and “tokens” to describe similar dynamics. For the first study on this dynamic, see Rosabeth Moss Kanter, Men and Women of the Corporation (New York: Basic Books, 1977).

21 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD The “Only” experience WOMEN ONLYS EXPERIENCE MORE MICROAGGRESSIONS % OF ONLYS VS. NON-ONLYS WHO HAVE THESE EXPERIENCES DURING THE NORMAL COURSE OF BUSINESS . . . MEN WOMEN Needing to provide more WOMEN ONLYS evidence of your competence WOMEN NON-ONLYS than others do MEN ONLYS MEN NON-ONLYS Having your judgment questioned in your area of expertise Being addressed in a less-than-professional way Being mistaken for someone at a much lower level Hearing demeaning remarks about you or people like you BEING AN ONLY WOMAN FEELS FAR WORSE THAN BEING AN ONLY MAN % OF EMPLOYEES WHO REPORT THESE FEELINGS WHEN THEY’RE AN ONLY WHAT IT MOST FEELS LIKE TO WHAT IT MOST FEELS LIKE TO BE AN ONLY WOMAN BE AN ONLY MAN 1. Under pressure to perform (38%) 1. Included (26%) 2. On guard (31%) 2. Fortunate to be there (11%) 3. Left out (25%) 3. On guard (11%) 4. Included (25%) 4. Under pressure to perform (10%) 5. Fortunate to be there (23%) 5. Left out (10%) 6. That your actions reflect on people like you (22%) 6. Closely watched (8%) 7. Closely watched (22%) 7. That your actions reflect on people like you (7%)

One is the loneliest number

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22 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD IN THEIR OWN WORDS On the “Only” experience I feel like I have to represent the entire race. I need to come across as more than proficient, more than “ competent, more than capable. I have to be ‘on’ all the time. Because in the back of someone’s mind, they could be judging the entire race based on me. And I don’t want anybody else’s opportunity to be ruined because I messed it up. I know that seems really heavy, but that is often how I feel. I am pretty sure that when most white people make a mistake, they don’t feel like they’re representing all Italians or all Irish. But a lot of Black Americans do feel like that . . . When you’re the only one, you look around and you realize, ‘Oh, I’m different.’ It is hurtful that despite the civil rights movement, I’m still the only Black person in the room. I think often about Martin Luther King Jr. and the history of Black Americans. People died so that I could go to school and have an education. People literally lost their lives so that I could work where I’m working. And I will not let their deaths be in vain. That’s really, really important to me.” —Mid-level administrator, 4 years at company, Black woman I feel excluded. I feel that I feel the weight of having When you’re the only one, there’s a bit of a boy’s club. to decide whether to come you often feel like you have “ “ “ I don’t even know if people out or not. Do I participate in to prove yourself.” realize it. It can be as simple the conversation about the —Senior manager, 1 year at company, as men going for coffee and weekend or not? And that Black woman not realizing that the only is exhausting.” people they ask happen to be men.” —SVP, 10 years at company, white lesbian woman —Associate, 2 years at company, Middle Eastern woman This report contains stock photographs for illustrative purposes only. Images do not reflect the identities of the women quoted. Within the quotes, some identifying details may have been altered and/or withheld to protect the speaker’s anonymity.

23 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD It feels harder to advance for women Women think their gender ALL WOMEN makes it harder to advance. Given that women remain Women are three times more likely than men to think that their gender has played a role in their missing out underrepresented at almost on a raise, promotion, or other chance to get ahead. every level in the pipeline and They are also more likely to think their gender will make it harder for them going forward. are less likely to be promoted than men, they appear to be right. WOMEN OF COLOR LESBIAN WOMEN Compared to white women, women of color are slightly Lesbian women are more likely than women overall more likely to think their gender will make it harder for to think that their gender makes it harder for them them to advance. Asian women, in particular, are much to advance. more likely to feel disadvantaged.

24 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD It feels harder to advance for women Race and sexuality also affect how women see their opportunities to advance. Nearly a third of women of color—and almost half of Black women—think their race has played a role in missed opportunities and will make it harder for them to advance. Over a quarter of lesbian women feel the same way about their sexuality. WOMEN THINK THEIR GENDER LIMITS THEIR OPPORTUNITIES % OF EMPLOYEES WHO REPORT THAT . . . MEN WOMEN Their gender has played a role in missing out on a Their gender will make it harder to get a raise, raise, promotion, or chance to get ahead promotion, or chance to get ahead in the future ALL MEN ALL WOMEN WHITE WOMEN ASIAN WOMEN LATINAS BLACK WOMEN LESBIAN WOMEN

25 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women see a workplace that is less fair Women see their company ALL WOMEN as less meritocratic than men do, and this matters. Women are less likely than men to think that promotions are based on fair and objective criteria, that the best Employees who think their opportunities go to the most deserving employees, and companies are fair are that ideas are judged by their quality, as opposed to who raised them. happier in their job and more Women are also significantly less likely than men to likely to intend to stay at think women are well represented in senior leadership. their company. WOMEN OF COLOR LESBIAN WOMEN In general, women of color are less likely than white Like women overall, lesbian women are less likely than women to say their company is meritocratic, and Black men to say their company is meritocratic. women are the most skeptical. Lesbian women are the least likely to believe that Compared to other women of color, Asian women women are well represented in senior leadership. are less likely to think women are well represented in senior leadership.

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26 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women see a workplace that is less fair Similar to last year, 45% of men think women are well represented in leadership when 1 in 10 senior leaders in their company is a woman. By comparison, 28% of women think this. WOMEN ARE LESS LIKELY TO THINK THEIR WORKPLACE IS FAIR % OF EMPLOYEES WHO FEEL . . . MEN WOMEN Ideas are judged by their The best opportunities go to the Promotions at this company are quality, not by who raised them most deserving employees based on fair and objective criteria S S S OMEN OMEN OMEN TINA OMEN OMEN OMEN OMEN OMEN TINA OMEN OMEN OMEN OMEN OMEN TINA OMEN OMEN ALL MEN LA ALL MEN LA ALL MEN LA ALL W SIAN W CK W ALL W SIAN W CK W ALL W SIAN W CK W WHITE W A BLA WHITE W A BLA WHITE W A BLA LESBIAN W LESBIAN W LESBIAN W

27 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD IN THEIR OWN WORDS On the steeper path to advancement As a woman, you’ve got to give 150%. You have to be more prepared, you “ have to be more articulate, you’ve got to be strong in your compassion, but also not too emotional, not too aggressive.” —SVP, 10 years at company, white lesbian woman When you’re the only Black woman, you have to excel. You have to “ always give 100%. It’s sink or swim. In my opinion, I would not be here today if I did not excel beyond the measure.” —Analyst, 2 years at company, Black woman I would say I’ve received a fraction of the opportunities I would have as a white man. The “ My job title was junior for a long time. ones that I did receive, I had to fight really hard for. I’ve seen many white men groomed for People started telling me, ‘You need “ leadership. They were hand-held through the to change that, because you can’t process by senior leaders. That didn’t mean use that on your résumé. You won’t that they didn’t have to perform, but it did mean be respected.’ I had to really lobby that the door was open wide for them and they to change it. It made me realize that were given all the resources they needed to be my manager didn’t advocate for me successful. That didn’t happen for me. I had to unless I asked for it.” literally kick the doors open.” —Manager, 7 years at company, Asian lesbian woman —Senior executive, 4 years at company, Latina woman This report contains stock photographs for illustrative purposes only. Images do not reflect the identities of the women quoted. Within the quotes, some identifying details may have been altered and/or withheld to protect the speaker’s anonymity.

28 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women are asking for more Women are negotiating ALL WOMEN for raises and promotions as often as men, but they Women are asking for promotions and raises at about the same rates as men. However, women early in their do not always get the same careers are less likely to get promoted, and on average 13 outcomes. women are paid less than men in similar roles. Although white women are asking for promotions as often as men do, they are slightly less interested in being promoted to the next level. WOMEN OF COLOR LESBIAN WOMEN Women of color are far more likely than white women to Compared to women overall, lesbian women are say they want to advance to the next level—and Black similarly interested in advancing and ask for promotions and Asian women are even more interested in advancing and raises at about the same rates. However, studies than men. of lesbian women’s pay point to varying outcomes. In Despite their higher aspirations, Latinas and Black some studies, lesbians earn significantly more than women ask for promotions and raises at about the same heterosexual women; in others, they earn significantly 16 rates as white women, but they get worse results. On less. average, they receive fewer promotions and are paid 14 less for comparable work. Compared to white women, Asian women are more likely to ask for promotions and raises, and they get mixed results. On average, they are less likely to be promoted 15 but are paid more for comparable work. 13 For data on the pay gap between women and men with similar occupations, see Ariane Hegewisch and Emma Williams-Baron, “The Gender Wage Gap by Occupation 2017 and by Race and Ethnicity,” Institute for Women’s Policy Research (April 9, 2018), https://iwpr.org/publications/gender-wage-gap-occupation-2017-race-ethnicity/. 14 Ibid. 15 Ibid. 16 Data on lesbian women’s pay is inconsistent. Studies show that they are paid less than men, but estimates of the gap between lesbian and heterosexual women vary between 25 percent less and 43 percent more. See Marieka Klawitter, “Meta-Analysis of the Effects of Sexual Orientation on Earnings,” Industrial Relations 54, no. 1 (2015): 4–32, https://onlinelibrary.wiley.com/doi/abs/10.1111/irel.12075.

29 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women are asking for more WOMEN WANT TO ADVANCE ALMOST AS MUCH AS MEN DO % OF EMPLOYEES WHO WANT TO BE PROMOTED MEN WOMEN ALL MEN ALL WOMEN WHITE WOMEN ASIAN WOMEN LATINAS BLACK WOMEN LESBIAN WOMEN WOMEN ASK FOR PROMOTIONS AND RAISES AS OFTEN AS MEN % OF EMPLOYEES WHO’VE NEGOTIATED FOR THE FOLLOWING OVER THE LAST TWO YEARS MEN WOMEN Negotiated for a promotion 44% 40% 37% 37% 38% Negotiated for a raise 36% 36% 34% 31% 30% 31% 30% 29% 28% S S OMEN OMEN OMEN TINA OMEN OMEN OMEN OMEN OMEN TINA OMEN OMEN ALL MEN LA ALL MEN LA ALL W SIAN W CK W ALL W SIAN W CK W WHITE W A BLA WHITE W A BLA LESBIAN W LESBIAN W

30 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women think differently about top jobs Women are less interested ALL WOMEN in being a top executive than men, and women and men Compared to men of the same race and ethnicity, women are less likely to aspire to be a top executive. see the benefits differently. Women and men who want to be senior leaders see the benefits differently. Women are more interested in being role models than men are, while men are more motivated by the opportunity to impact the success of their company. WOMEN OF COLOR LESBIAN WOMEN Women of color are much more interested in becoming a Lesbian women are about as interested in being a top top executive than white women are. executive as women overall. Black women with leadership ambitions are particularly Like Black women, lesbian women with leadership interested in paving the way for others and having a ambitions are very interested in being role models and positive impact on company culture. shaping company culture.

31 | WOMEN IN THE WORKPLACE: THE UNEVEN PLAYING FIELD THE UNEVEN PLAYING FIELD Women think differently about top jobs WOMEN ARE LESS INTERESTED IN GETTING TO THE TOP % OF EMPLOYEES WHO WANT TO BE A TOP EXECUTIVE MEN WOMEN ALL MEN ALL WOMEN This year men and women are There are important racial and ethnic less likely to aspire to be top differences in leadership ambitions. WHITE WOMEN executives than in previous Men and women of color are far more ASIAN WOMEN years—and the decline is greater among men. In 2017, interested in becoming a top executive 52% of men and 39% of than their white counterparts. And LATINAS women wanted to make it to compared to all other groups of women, the top of their company. BLACK WOMEN Asian women are more likely to want to be promoted and to aspire to be a top leader. LESBIAN WOMEN WOMEN AND MEN HAVE DIFFERENT MOTIVATIONS FOR WANTING TOP JOBS MOTIVATIONS FOR WANTING TO BE A TOP EXECUTIVE MEN WOMEN ALL WHITE ASIAN BLACK LESBIAN ALL MEN WOMEN WOMEN WOMEN LATINAS WOMEN WOMEN Financial rewards/security Opportunity to be a role model for others like me Opportunity to impact the success of my company Opportunity to influence the culture of my workplace Opportunity to use my position to have a positive impact on the world Recognition of my achievements and success

32 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY A road map to gender equality The vast majority of companies say that they’re highly committed to gender and racial diversity, yet the evidence indicates that many are not treating diversity as the business imperative it is. Take gender diversity as an example. In contrast to what companies say about their commitment, only around half of all employees think that their organization sees gender diversity as a priority and is doing what it takes to make progress. Around 20 percent of employees say that their company’s commitment to gender diversity feels like lip service. And few organizations are making a strong business case for gender diversity: while 76 percent of companies have articulated a business case, only 13 percent have taken the critical next step of 17 calculating the positive impact on the business. Based on four years of data and insights from a range of experts, there are six actions we recommend that companies take to make progress on gender diversity. 1. Get the basics right—targets, reporting, and accountability 2. Ensure that hiring and promotions are fair 3. Make senior leaders and managers champions of diversity 4. Foster an inclusive and respectful culture 5. Make the “Only” experience rare Commitment to gender diversity is declining. In 2017, 90 6. Offer employees the flexibility to fit work into their lives percent of companies said they prioritized gender diversity, while just 84 percent say that this year. Employees are also less convinced of their company’s commitment. Last year, 56 percent said their organization was doing what it takes to improve gender diversity. This year that number has dropped to 45 percent. 17 For recent research making the business case for diversity, see “Why Diversity Matters,” McKinsey & Company, January 2015, https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters.

How to Accelerate Gender Diversity on Boards

33 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY 1. Get the basics right—targets, reporting, and accountability Experts agree that setting goals, tracking and reporting on Companies are falling shorter when it comes to women of progress, and rewarding success are key to driving organizational color. Fewer than half track representation by gender and race change. When it comes to gender diversity, more companies combined—and just 10 percent set representation targets for need to put these practices in place. women of color. Only 38 percent of companies set targets for gender Setting goals, tracking progress, sharing results, and holding representation, even though setting goals is the first step toward employees to account are basic business practices. While some achieving any business priority. Only 12 percent share a majority diversity strategies are more complicated to implement than of gender diversity metrics with their employees, even though others, these are relatively clear-cut steps that companies can— transparency is a helpful way to signal a company’s commitment and should—tak e. to change. Only 42 percent hold senior leaders accountable for making progress toward gender parity, and even fewer hold managers and directors accountable. It’s hard to imagine a groundswell of change when leaders aren’t formally expected to drive it. CHECKLIST % OF COMPANIES Basic practices for improving gender diversity THAT DO THIS Track representation by: Gender 96% Race 89% Gender & race combined 48% Set representation targets by: Gender 38% Race 32% Gender & race combined 10% Share a majority of gender diversity metrics with employees 12% Hold senior leaders accountable for progress on gender diversity metrics 42% Hold managers and directors accountable for progress on gender diversity metrics 16%

Check the future of work for women

34 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY More than 90% of companies say they prioritize gender and racial diversity because it leads to better business results, but the message is not reaching employees. Only 42% of employees think this is the case for gender diversity, and only 22% think it’s the case for racial diversity. CASE STUDY VMware: Tracking and rewarding progress What they did VMware wanted to make diversity metrics easy for senior Each senior leader’s progress is recorded on a scorecard leaders to access and to hold them accountable for and reviewed at regular intervals with the CEO’s executive improving the metrics. staff. To meet their business goals, senior leaders now VMware’s CEO gave each vice president a yearly goal of have to meet representation targets and demonstrate improving the global representation of women. To develop inclusive behavior. strategic action plans, VPs were given access to a diversity dashboard with real-time HR metrics. The dashboard Outcomes tracks representation, hiring, promotions, and retention, Since announcing these goals and unveiling the dashboard showing areas of progress in green and areas of decline in August 2017, VMware has made significant progress. Their in red. This tool helped leaders to easily see improvement global hiring rate for women is 5.6 percentage points higher areas, strategize, and track progress toward meeting their than their baseline representation, and for the past twelve representation targets. months, the company has met gender representation targets across all geographic regions.

35 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY 2. Ensure that hiring and promotions are fair Hiring and promotions are the two biggest levers for changing the representation of women across the pipeline. Yet companies are not hiring and promoting women and Only a third of men at equal rates, especially at the entry and manager levels. companies make sure Part of the problem is that very few companies have end-to-end processes in place job candidates are to ensure fair practices. Fewer than one in three companies sets diversity targets for interviewed by a diverse hiring and promotions, even though setting goals is critical to achieving them. Fewer group of employees, than one in four companies uses tools to reduce bias when reviewing résumés, even yet companies should though reviewers often fail to give equal consideration to women, people of color, and other underrepresented groups. Fewer than half of companies require diverse slates of use strategies like this candidates for external hiring and only a quarter require them for internal promotions, to underscore that even though they lead to more diverse hires and promotions. they prioritize diversity Very few companies train employees to recognize and push back against bias in hiring and inclusion. and promotions. Just 19 percent of companies require unconscious bias training for employees involved in hiring. A mere 4 percent require training for employees involved in performance reviews. And only about a third remind employees to take steps to avoid bias at the outset of both processes. Unconscious bias can have a big impact on who’s hired and promoted—and who’s not—and it’s critical that companies take concrete steps to counter it. Finally, it’s important to track outcomes. Otherwise, it’s impossible for a company to know if it’s treating candidates fairly. Many companies track outcomes in hiring to check for gender bias, which is a good start. But far fewer track the compounding effect of gender and racial bias, which disadvantages women of color. And companies are far less likely to track bias in performance reviews—for example, to see if women’s communication styles are criticized more often than men’s—yet performance reviews play a major role in who gets promoted and who doesn’t. Until companies hire and promote women at the same rates as men, we won’t see progress in the representation of women in corporate America. Ensuring that these processes are fair is vital to that goal.

36 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CHECKLIST Steps for minimizing bias in hiring and promotions HIRING REVIEWS & PROMOTIONS % OF COMPANIES THAT DO THIS Set diversity targets 29% for gender 21% for gender 9% for gender & race combined 8% for gender & race combined Use automated résumé screening tools to 23% N/A reduce bias Require diverse slates of candidates be 48% 26% considered Set clear, consistent evaluation criteria before 72% 71% the process begins Require unconscious bias training for 19% 4% employees involved Provide reminders about how to avoid 36% 32% unconscious bias before the process begins Track outcomes to check for bias 78% for gender 42% for gender 35% for gender & race combined 18% for gender & race combined Research shows how biased the résumé review process can be. In one study, replacing a woman’s name with a man’s on a résumé improved the candidate’s odds 18 In another, of being hired by 71 percent. replacing a stereotypically Black-sounding name with a stereotypically white-sounding name resulted in 50 percent more callbacks— the equivalent of adding eight years of 19 work experience. 18 Rhea E. Steinpreis, Katie A. Anders, and Dawn Ritzke, “The Impact of Gender on the Review of Curricula Vitae of Job Applicants and Tenure Candidates: A National Empirical Study,” Sex Roles 41, nos. 7–8 (1999): 509–28. 19 Marianne Bertrand and Sendhil Mullainathan, “Are Emily and Greg more employable than Lakisha and Jamal? A field experiment on labor market discrimination,” American Economic Review 94, no. 4 (2004): 991–1013.

37 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY Sodexo: Building a business case for change What they did Sodexo was struggling to get managers worldwide to buy into diversity initiatives. The company realized that they needed to build a business case for more women in leadership. Sodexo looked at how business units with different proportions of women and men in management performed on a range of key financial and nonfinancial metrics, including client retention, employee engagement, and workplace safety. After studying the performance of more than 50,000 managers, they discovered that business units with a higher concentration of women in management (i.e., 40 to 60 percent women) perform better. Their operating margins, client retention, and employee retention are all nearly 10 percent higher, and their employee engagement rate is 14 percent higher. Outcomes Sodexo used these proof points to build a business case for getting more women in management and set a goal that 40 percent of senior leaders will be women by 2025. To help meet this goal, 10 percent of annual bonuses for senior leaders is now contingent on making progress against it.

38 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY Airbnb: Designing a fairer review process What they did Airbnb wanted to make sure women and men were progressing through their employee pipeline at similar rates, so they made changes to their performance evaluation process to block bias. Working with Stanford University’s VMware Women’s Leadership Innovation Lab, Airbnb updated and standardized the criteria used in evaluations and added a five-point rating scale to the questions on their review form. The new criteria and rating scale require managers, direct reports, and peers to slow down and think critically about their assessments, which can lead to fairer outcomes. The review form also has limited open-ended questions, which reduces the chance for gender-biased language to be used in the review process. Lastly, because studies show that women tend to underrate their own performance and men tend to overrate theirs, Airbnb stopped asking employees to rate themselves. To ensure that the new assessment form is used effectively, Airbnb introduced an animated video and tip cards that educate managers on unconscious bias, and they equipped leaders with talking points to underscore the importance of fairness in performance evaluations. These tools have been used in calibration sessions with nearly 700 managers, and the company offers all employees training on reducing bias in reviews. Outcomes Two years after updating their review process, interviews with managers point to an increase in awareness about the ways bias impacts performance assessments. Airbnb continues to track and analyze the ratings and promotion rates of employees to make sure there are no unexplained gender differences. They’re also tracking changes in employee perceptions about fairness in the performance review process. Based on these initial indications, the new performance review evaluation system appears to be having a positive impact.

39 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY 3. Make senior leaders and managers champions of diversity Senior leaders and managers are critical to driving organizational change. But companies are not giving managers and leaders clear marching orders when it comes to improving gender diversity. Senior leaders set the agenda in organizations; Managers make many of the day-to-day decisions that shape they signal what’s important. employees’ experiences and career progression. The problem is . . . The problem is . . . • Only about one in three employees reports that senior leaders . . . • Less than a third of employees say that managers often challenge Encourage an open dialogue on gender diversity biased language and behavior when they see or hear it. Provide guidance on how to improve gender diversity • Just one in four employees says their manager provides guidance • Just one in five employees believes leaders are held on how to improve gender diversity. accountable for results. And companies need to do more . . . And companies need to do more . . . • Less than a third of companies share a majority of gender- • Less than half of managers receive unconscious bias training. diversity metrics with managers and leaders and offer financial Yet when employees understand how bias impacts their decision- rewards for making progress. Yet what gets measured and making, they are able to make fairer, more objective decisions. rewarded is typically what gets prioritized. For managers—who often determine who gets stretch Given the role senior leaders play in setting the agenda in assignments, promotions, and the resources to be successful— companies, progress is unlikely if they are not incentivized to act. this kind of training is particularly helpful. Until leaders at all levels understand the problem, are trained to help solve it, and are held accountable for making progress—in other words, until companies require that leaders treat gender diversity like any other business imperative—it will be hard to achieve lasting change. Getting managers on board matters. When employees have a manager who regularly challenges bias, as opposed to one who rarely does, they are more likely to think that everyone has an equal chance to advance at work—and they are less likely to think their gender has played a role in their missing out on a raise or promotion. Women in particular feel this way: they are almost four times less likely to think their gender has held them back and almost twice as likely to think they enjoy the same opportunities as their peers.

40 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY Only 39% of women and 47% of men think that gender diversity is a high priority for their manager. Just 22% of women and 30% of men say their manager provides guidance on how to improve gender diversity. Men think leaders are doing a better job promoting gender diversity than women do. Men are almost twice as likely as women to think managers challenge gender- biased language and behavior and almost 1.5 times more likely to say that senior leaders offer guidance on how to advance women and improve gender diversity. FEWER WOMEN THINK LEADERS ARE CHAMPIONING GENDER DIVERSITY % OF EMPLOYEES WHO SAY MEN WOMEN Senior leaders at my company often . . . Managers at my company often . . . Encourage a candid, Provide guidance Are held accountable Ensure that diverse Challenge gender-biased open dialogue on on how to improve for performance on voices are represented language and behavior gender diversity issues gender diversity gender diversity in decision-making when it happens

41 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY A CLOSER LOOK Engaging white men is critical but challenging There is a strong correlation between the degree to which people experience bias and how personally committed they are to diversity. 15% of men think their Lesbian women and women of color are the most personally committed to gender will make it both gender and racial diversity, followed by gay men, men of color, and white women. White men are the least committed—and are also the least harder for them to likely to say they experience bias. This commitment gap can be significant. advance. Seventy-three percent of women of color are personally committed to racial diversity, but just 51 percent of white men are. The same trend holds true for gender diversity: women of color are highly committed to gender diversity, while white men are far less so. This lack of commitment can lead to a lack of engagement: only one in five women and one in three men say that the men in their company regularly participate in initiatives to improve gender diversity. There are also signs of a backlash among men: 15 percent think their gender will make it harder for them to get ahead, even though their representation in the workplace far surpasses women’s. And white men—who are better represented than any other group—are more likely to think this than men of color. Companies can bring more men along by linking diversity to better business outcomes. When men think their company prioritizes gender diversity because it’s critical to the success of the business, they are more likely to prioritize it themselves.

42 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY P&G: Getting men involved What they did P&G knew they needed the support of men—who hold many senior leadership positions—to reach their diversity and inclusion goals. The company enlisted men as diversity champions through the MARC (Men Advocating Real Change) program. Developed by Catalyst, MARC helps men understand and mitigate common biases that can disadvantage women, such as the cultural belief that men are a better match for leadership, and builds effective partnership across genders. P&G began hosting regular MARC Leaders workshops and kept participants engaged with follow-up surveys and newsletters. The company also arranged for senior leaders who participated to host their own events for employees who couldn’t attend the workshops. Outcomes More than 950 senior P&G leaders have completed a MARC Leaders workshop. P&G surveyed participants and found that after the average workshop, 96 percent of men acknowledge having more privileges than women, compared to just 70 percent before the workshops. Fully 100 percent of men who participated said that they now feel they have a personal stake in diversity and inclusion and will work on recognizing their bias and taking steps to counteract it. For more details on the MARC program, visit catalyst.org/marc

43 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY 4. Foster an inclusive and respectful culture Fostering an environment where all employees feel included For change to happen, managers need to step in early when and respected starts with making sure everyone feels safe. That they see problematic behavior and model the right behavior means communicating that sexual harassment is not acceptable themselves. When managers regularly challenge gender-biased and reviewing and handling reports of harassment promptly and language and behavior, women are significantly happier and decisively. Too few employees believe that their company does more likely to stay. Yet just over a quarter of employees say their both, despite the importance of getting these basics right. managers typically do this, and less than half of managers say they’ve received the unconscious bias training needed to get this Beyond that, there is a great deal companies can do to promote right. The quality of the training also matters: it’s good to educate an inclusive, supportive, and civil culture. This would benefit managers broadly on bias, but it’s even better to dig into specifics everyone. Although women deal with more everyday slights and and cover more subtle or complex instances of bias. Training disrespectful behavior than men, 58 percent of all employees should address how microaggressions work, so managers know experience some type of microaggression, suggesting that what to watch for on their team, and it should cover the concept incivility is too common at work. of intersectionality, so they understand the overlapping and Companies should develop clear guidelines for what collegial compounding biases that women and others from marginalized and respectful behavior looks like—as well as unacceptable and groups face. And although managers are critically important, all uncivil behavior. To be treated seriously, these guidelines must be employees would benefit from this type of training. supported by a clear reporting process and swift consequences It’s also helpful to take a step back and think about how company for disrespectful behavior. Companies should also hold periodic and team norms might disadvantage certain employees. Work refreshers to drive the guidelines home and make sure all events centered on outdoor activities can leave out employees employees understand them. Steps like these have an impact on with different abilities; an expectation that employees are on call employee satisfaction and retention. Both women and men who nights and weekends can make life harder for working parents; believe that disrespectful behavior toward women is often quickly and outings to sporting events can exclude some women. addressed at their company are happier in their roles and less likely to think about leaving. Not surprisingly, this has a bigger Finally, companies need to actively encourage and value diversity. positive impact on women: they are 44 percent less likely to think That means signaling that diversity is a top priority with action and about leaving their company, compared to 17 percent of men. accountability, seeking out different voices and perspectives, and fostering an inclusive culture where employees can respectfully talk about tricky topics, and where they are expected to actively help in building a better workplace for everyone. And of course, talking the talk on diversity only goes so far unless companies also walk the walk by building diverse teams.

44 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY WHAT COMPANIES CAN DO TO IMPROVE EMPLOYEE SATISFACTION % OF EMPLOYEES WHO THINK ABOUT LEAVING % OF EMPOYEES WHO ARE HAPPY WITH THEIR JOB MEN OVERALL WOMEN WOMEN ONLYS MEN OVERALL WOMEN WOMEN ONLYS OVERALL OVERALL 19% 20% 26% 76% 76% 71% THIS % DROPS WHEN THEIR COMPANY . . . THIS % IMPROVES WHEN THEIR COMPANY. . . . . . PRIORITIZES DIVERSITY Senior leaders encourage -7%20 -10% -12% a candid, open dialogue on +14% +14% +17% gender diversity issues -7% -10% -13% Senior leaders are held accountable +13% +14% +17% for performance on gender diversity . . . DOES NOT TOLERATE BIASED AND DISRESPECTFUL BEHAVIOR Managers challenge gender- -6% -11% -15% biased language or behavior +13% +15% +19% when it happens -3% -9% -11% Disrespectful behavior toward +10% +13% +18% women is quickly addressed -3% -7% -8% Incidents of sexual harassment +10% +12% +14% are quickly addressed . . . ENCOURAGES DIVERSITY AND INCLUSION This company values the -7% -8% -10% differences that people bring to +13% +13% +17% the workplace -8% -9% -12% Ideas are judged by their quality, +14% +14% +18% not by who raised them Managers ensure that diverse -9% -12% -14% voices are represented +15% +16% +18% in decision-making 20 The reported increases and drops are percentage point changes.

45 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY Mozilla: Creating an inclusive culture What they did In 2016, Mozilla learned through focus groups and an employee experience survey that women were having challenging workplace experiences. The survey results suggested that Mozilla could help improve women’s experiences by rewriting their Community Participation Guidelines, the company’s code of conduct. Mozilla wanted to understand what was missing from this document, so they convened additional focus groups of women. The groups recommended that the guidelines clearly describe who is protected under the code of conduct, including people of different races, ages, and genders. They also recommended providing examples of good and bad behaviors and explaining when and how to use the guidelines, how to report incidents of harassment or bullying, and what to expect after reporting. Mozilla edited their code of conduct accordingly and ran an internal education campaign to make sure that employees knew about the changes and took them seriously. Outcomes After publicizing the changed code of conduct, Mozilla’s next engagement survey showed that women felt better about the company’s inclusiveness and stance on harassment. Fourteen percent more women believed that harassment and bullying are not tolerated by Mozilla, 15 percent more women felt safe reporting harassment and bullying, and 10 percent more women believed that people treat one another with respect at Mozilla.

46 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY Mozilla: Creating an inclusive culture MOZILLA’S CODE OF CONDUCT Below are slightly edited excerpts from Mozilla’s Community Participation Guidelines. In addition, Mozilla clearly outlines the consequences of inappropriate behavior, which is critically important. BEHAVIOR THAT IS EXPECTED BEHAVIOR THAT WILL NOT BE TOLERATED Be respectful: Value each other’s ideas, styles, and Personal attacks: Conflicts will inevitably arise, but viewpoints. We may not always agree, but disagreement frustration should never turn into a personal attack. It is is no excuse for poor manners. Be open to different not okay to insult, demean, or belittle others. Attacking possibilities and to being wrong. Be kind in all interactions someone for their opinions, beliefs, and ideas is not and communications, especially when debating the acceptable. It is important to speak directly when we merits of different options. Be aware of your impact and disagree and when we think we need to improve, but how intense interactions may be affecting people. Be such discussions must be conducted respectfully and direct, constructive, and positive. Take responsibility for professionally, remaining focused on the issue at hand. your impact and your mistakes—if someone says they Unwelcome sexual attention or physical contact: have been harmed through your words or actions, listen carefully, apologize sincerely, and correct the behavior Unwelcome sexual attention or unwelcome physical going forward. contact is not acceptable, including: Be inclusive: Seek diverse perspectives. Diversity of • Sexualized comments, jokes, or imagery in views and of people on teams powers innovation, even interactions, communications, or presentation if it is not always comfortable. Encourage all voices. materials Help new perspectives be heard and listen actively. If • Inappropriate touching, groping, or sexual advances; you find yourself dominating a discussion, it is especially this includes touching a person’s hair, pregnant Read Mozilla’s complete guidelines at mzl.la/cpg important to step back and encourage other voices to join stomach, mobility device, or tattoos without in. Be aware of how much time is taken up by dominant permission members of the group. Provide alternative ways to • Physically blocking or intimidating another person contribute or participate when possible. • Simulating physical contact (such as emojis like Appreciate our similarities and differences: Be respectful “kiss”) without affirmative consent of people with different cultural practices, attitudes, and • Sharing or distributing sexualized images or text beliefs. Work to eliminate your own biases, prejudices, and discriminatory practices. Think of others’ needs from their point of view. Use preferred titles (including pronouns) and the appropriate tone of voice. Be open to learning from and educating others as well as educating yourself.

47 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY 5. Make the “Only” experience rare Companies should take steps to reduce the number of women who are the only one in the room—and who feel isolated and under pressure as a result. It’s worth noting that 25% Many businesses need to change the way they think about adding women of all employees are an to their organization—which means moving beyond the mindset of “one Only on some dimension. and done” and pushing to add women until they reach true parity. A recent So beyond addressing the analysis found that S&P 1,500 companies are significantly more likely to have just two women on their board of directors than would be expected experience of women Onlys, by chance, which suggests that companies may stop focusing on gender it behooves companies to 21 diversity once they reach a threshold of two women. This “check the box” be thoughtful about how mentality is the wrong approach. they put together teams and In addition to increasing the representation of women, companies should look for opportunities to be thoughtful about how they move them through their organization. One support employees who may approach is to hire and promote women in cohorts; another is to cluster women on teams. As opposed to staffing one woman on a number of teams, feel left out. companies should consider putting groups of two to three women on teams together. And of course, it’s important to think twice before clustering women in functions traditionally dominated by women, like human resources and communications. This can reinforce gender stereotypes. Instead, it’s better to look for opportunities to staff groups of women in a variety of functions across the organization. It’s also important that companies create opportunities for women Onlys to connect with other women. HR teams should make sure that their organization offers networking groups so women can find support and community. Likewise, managers should think through the day-to- day interactions of their teams and create opportunities for women to work together. Building an inclusive and respectful workplace pays dividends when it comes to women Onlys. Across races and ethnicities, women Onlys have higher ambitions to be a top executive than other women. But they are also more likely to think about leaving their company. By making these driven employees’ experiences more fulfilling and less isolating, companies are more likely to retain them. That would be a win for everyone. 21 Edward H. Chang, Katherine L. Milkman, Dolly Chugh, and Modupe Akinola, “Diversity Thresholds: How Social Norms, Visibility, and Scrutiny Relate to Group Composition,” Academy of Management Journal, in press, published online February 26, 2018, https://journals.aom.org/doi/10.5465/amj.2017.0440.

48 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY WOMEN ONLYS ARE MORE AMBITIOUS, BUT THEY ARE ALSO MORE LIKELY TO THINK OF LEAVING % OF WOMEN ONLYS VS. NON-ONLYS WHO . . . WOMEN ONLYS WOMEN NON-ONLYS Want to be promoted to Want to be a Often think about Are thinking of leaving in the next level top executive leaving their job the next two years EAGER TO ADVANCE THINKING OF LEAVING Support groups can improve the Only experience. Women Onlys who belong to Lean In Circles—small groups of peers who meet once a month to support one another and learn new skills together—are more likely to be happy in their job, more likely to believe that they have an equal chance to grow and develop, and more likely to think their company is doing what it takes to improve gender diversity. Learn more at leanin.org/partner

49 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY Hilton: Offering opportunities for women to connect with other women What they did Hilton established employee affinity groups called Team Member Resource Groups (TMRGs) to create communities for underrepresented groups, including women, people of color, LGBTQ people, veterans, and people of different abilities. There are now more than fifty TMRG chapters with 7,400 members around the world. TMRGs provide a support system for members and a safe space for dialogue on issues they’re experiencing at work. They also promote the professional growth of their members through mentorship and networking opportunities, career development sessions, and leadership panels. TMRGs are sponsored by senior leaders, who use feedback from the groups to help make Hilton’s culture and work environment more inclusive. Outcomes Insights from TMRGs have led to expanded benefits like parental leave and flexible work arrangements and contributed to a 5 percent reduction in employee turnover in the United States since 2016. Hilton has also used TMRG recommendations to update its employee travel program and to shape the design and layout of the company’s new hotel brands.

50 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY L’Oréal: Creating networks for underrepresented groups What they did L’Oréal USA launched Think Tanks, employee resource groups that promote a more inclusive workplace for underrepresented groups, including women, people of color, people with disabilities, veterans, and the LGBTQ community. Think Tanks have helped L’Oréal identify policies and programs to better support their diverse workforce, including new disability benefits and health-care coverage for infertility treatment and gender reassignment surgery. Input from Think Tank members has also helped L’Oréal USA marketing campaigns resonate with a more diverse audience. Different Think Tanks have different missions. For instance, the “L’Oréal for Women” Think Tank developed a road map to support the advancement of women into senior positions. Two key initiatives were a leadership certification program at Harvard University and an annual offsite for senior leaders that focused on promoting equality and fighting bias. Outcomes Since the program started in 2012, L’Oréal USA believes Think Tanks have contributed to a 40 percent increase in women in leadership and an 18 percent increase in people of color across the company. During the same time period, the number of employees who have disclosed a disability has quadrupled.

51 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY 6. Offer employees the flexibility to fit work into their lives To increase the representation of women at all levels, companies need to find more ways to help employees balance work and family. Managing the complexities of raising children and running a household while building a career is a juggling act for many workers. Forty-one percent of employees have children at home, and 17 percent of them do not benefit from the support of a partner in the house. Although balancing work and family is an issue both for women and men, it continues to weigh more heavily on women: across all races and ethnicities, women are far more likely than men to do most or all of the household work, in addition to their day jobs. Lesbian women are the exception: they split household work more evenly with their partners. A majority of companies offer employees some flexibility to ease work-life friction, such as the ability to work part-time or telecommute. But fewer companies address the unique challenges faced by parents. Less than two-thirds of companies offer maternity leave beyond what’s required by law, and just over half offer fathers the same benefit. Far fewer companies have programs designed to ease employee transitions to and from extended leave, even though those periods can be particularly challenging for employees and their families. And ongoing support for parents—like subsidized or on-site child care—is still uncommon. Programs like these make a difference: it’s easier to focus on your job when you know that your children are well cared for. Just 45% of employees say that their manager regularly helps them balance work and personal demands— and women and men feel equally unsupported.

52 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY WOMEN STILL DO MOST OR ALL OF HOUSEHOLD WORK % OF WOMEN AND MEN WHO HAVE PARTNERS AND ARE RESPONSIBLE FOR MEN WOMEN ALL OR MOST HOUSEHOLD WORK ALL WOMEN & WHITE WOMEN & ASIAN WOMEN & LATINAS & ALL MEN WHITE MEN ASIAN MEN LATINOS Lesbian women split household work more evenly with their partners. BLACK WOMEN & LESBIAN WOMEN SENIOR-LEVEL WOMEN BLACK MEN & GAY MEN & SENIOR-LEVEL MEN COMPANY POLICIES AND PROGRAMS THAT SUPPORT WORK/LIFE BALANCE % OF COMPANIES THAT REPORT THEY OFFER . . . Telecommuting at least one day per week Ability to work part-time or on a reduced schedule Maternity leave beyond legal requirements Paternity leave beyond legal requirements Emergency backup child-care services Programs to smooth transition to and from extended leave Subsidies for regular child care On-site child care

53 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY A CLOSER LOOK Making work work for women in leadership Senior-level women often have more household responsibilities than senior- level men. They are twice as likely as men at their level to have a partner who works full-time, which means they are far less likely to have someone at home focused primarily on the household and the kids. And when women in leadership have partners, they are five times more likely than men in the same situation to do all or most of the household work. So perhaps not surprisingly, among senior-level employees who don’t want to be top executives, 42 percent of women say it’s because it would require too much of their families, compared to 35 percent of men.

54 | WOMEN IN THE WORKPLACE: A ROAD MAP TO GENDER EQUALITY CASE STUDY Allstate: Helping employees balance work and life What they did Outcomes Allstate has a long history of supporting working families. For Employees who take advantage of Allstate’s family-friendly more than twenty years, they have provided on-site child care policies feel overwhelmingly positive about the experience. at the company’s headquarters, including care for infants and In a 2018 survey, 96 percent of employees who used the preschoolers, full-day kindergarten, and vacation programs company’s onsite child-care program reported that it helped for children. For at least fifteen years, they have offered them balance personal and professional demands. Another compressed and part-time schedules, job sharing, and flexible 95 percent said it made it easier for them to concentrate and start times. be more productive on the job. In 2006, they launched their first parent-focused employee In 2017, 42 percent of Allstate employees made use of flexible resource group to provide peer support, help parents work arrangements. Those who did were more likely to say navigate the company’s work-life balance resources, and they felt valued on the job, were satisfied with their work-life surface challenges faced by parents and caregivers to balance, and would recommend the company as a great place leadership. In addition, for the last several years, Allstate has to work. Employees often cite the company’s flexible policies offered employee discounts at child-care facilities across as one of the ways Allstate has exceeded their expectations. the country. And in 2018, they decided to take this support even further with the addition of telecommuting and remote work options.

55 | WOMEN IN THE WORKPLACE: CONCLUSION CONCLUSION Looking ahead We have more solutions than ever for companies that want to get to gender equality. But companies need to start by putting the basics in place and sticking to them. They need to treat diversity as the business priority it is. Until they do, meaningful progress remains out of reach. It’s critical that companies focus on closing gender disparities early in the pipeline. This will improve the representation of women all the way to the top. It will also help reduce the number of women who are Onlys. Once, companies might have thought that adding one or two women here and there was sufficient. Now we know how difficult the Only experience can be—and that diversity requires going far beyond “one and done.” Real diversity starts with real numbers. It’s equally critical that employers take steps to reduce sexual harassment and microaggressions and promote a culture of civility and respect. Companies that sincerely want to do right by their employees will treat this as vital to their mission. Especially in this day and age, lip service is not enough. Closing the corporate gender gap isn’t a side issue. It’s an economic necessity. Programs and policies designed to reduce bias and ensure fairness don’t just benefit women. They benefit everyone. In the best workplaces, the most talented people can rise, no matter who they are. That should be the expectation for every workplace, everywhere.

56 | WOMEN IN THE WORKPLACE: ACKNOWLEDGMENTS Acknowledgments LeanIn.Org and McKinsey & Company would like to thank the 279 companies and more than 64,000 employees who participated in this year’s study. By sharing their information and insights, they’ve given us new visibility into the state of women in the workplace and the steps companies can take to achieve gender equality. In particular, we appreciate the help of Women’s Foodservice Forum, the Healthcare Businesswomen’s Association, and Health Evolution in convening the food and healthcare industries. We would also like to thank Getty Images for providing the photography from the Lean In Collection used in this report.

57 | WOMEN IN THE WORKPLACE: CORPORATE PIPELINE BY INDUSTRY CORPORATE PIPELINE BY INDUSTRY Different industries have different talent pipelines Although women are broadly underrepresented in corporate America, the talent pipeline varies by industry. Some industries struggle to attract entry-level women (technology: hardware), while others fail to advance women into middle management (engineering and industrial manufacturing) or senior leadership (food and beverage distribution). REPRESENTATION OF WOMEN ACROSS INDUSTRIES % OF WOMEN BY LEVEL ENTRY LEVEL MANAGER SR. MANAGER/ VP SVP DIRECTOR ASSET MANAGEMENT 46% 39% 33% & INSTITUTIONAL 28% INVESTORS BANKING AND 56% 42% 39% CONSUMER FINANCE 31% 25% 24% 61% 48% CONSUMER 45% 36% 19% 26% PACKAGED GOODS CONSUMER TECH 43% 33% 32% 35% 23% 22% ENERGY, UTILITIES, 37% 22% 24% AND BASIC MATERIALS 22% 18% 18% ENGINEERING 34% AND INDUSTRIAL 22% 19% 17% 17% 18% MANUFACTURING FOOD AND BEVERAGE 42% 27% 24% DISTRIBUTION 14% 14% 9% 54% 42% 35% FOOD AND RESTAURANTS 27% 24% 24%

58 | WOMEN IN THE WORKPLACE: CORPORATE PIPELINE BY INDUSTRY REPRESENTATION OF WOMEN ACROSS INDUSTRIES (CONT.) % OF WOMEN BY LEVEL ENTRY LEVEL MANAGER SR. MANAGER/ VP SVP DIRECTOR HEALTH-CARE SYSTEMS 74% 69% 59% AND SERVICES 45% 31% 34% 57% 47% 35% INSURANCE 28% 18% 21% MEDIA & 49% 46% 43% 38% 29% 29% ENTERTAINMENT PHARMACEUTICALS & 56% 50% 45% 41% MEDICAL PRODUCTS 30% 28% PROFESSIONAL & 51% 48% 41% INFORMATION SERVICES 38% 28% 28% (INCLUDING LEGAL) 60% 51% 43% 40% RETAIL 32% 29% TECHNOLOGY: 37% 33% 29% 24% SOFTWARE 21% 17% TECHNOLOGY: 34% 28% 22% 19% HARDWARE 14% 16% IT SERVICES AND 41% 31% TELECOM 24% 20% 14% 11% TRANSPORTATION, 57% 40% LOGISTICS, AND 34% 30% 18% 14% INFASTRUCTURE

59 | WOMEN IN THE WORKPLACE: REPORT AUTHORS Report authors RACHEL THOMAS is president of LeanIn.Org, the nonprofit she LAREINA YEE is the chief diversity and inclusion officer and co-founded with Facebook COO Sheryl Sandberg to empower senior partner at McKinsey & Company. She is also the global women to achieve their ambitions. Under her leadership, the leader of the firm’s tech hardware and services practice. Lareina Lean In community has grown to over 2 million women and has led McKinsey’s research on women since its inception, men—and more than forty thousand peer support groups called championing change across the firm through McKinsey’s North Lean In Circles—in more than 169 countries. Rachel speaks American women’s program and McKinsey Academy for Women. regularly on issues that affect women and is the host of Tilted, a She has written numerous articles on technology and advancing podcast exploring the uneven playing field and gender bias that women in business and frequently speaks on the topic across women face. the globe. MARIANNE COOPER, Ph.D., is a contributor to ALEXIS KRIVKOVICH is the managing partner for McKinsey’s LeanIn.Org, a LinkedIn Influencer, and a contributing writer to Silicon Valley office and a leader in the Financial Services The Atlantic. She served as lead researcher for the book Lean Practice, overseeing FinTech efforts in North America. She In: Women, Work, and the Will to Lead. An expert on gender, serves financial services and technology companies as they women’s leadership, and diversity and inclusion, Marianne is a seek to align their organizations for growth and productivity. sociologist at the VMware Women’s Leadership Innovation Lab Alexis is a thought leader on financial innovation and diversity at Stanford University and an affiliate at the Stanford Center on and is passionate about advancing women in leadership. Poverty and Inequality. IRINA STARIKOVA is a partner in Digital McKinsey’s Silicon ELLEN KONAR, Ph.D., is an advisor to LeanIn.Org and chairman Valley office. She helps clients across technology, health care, of the board of Mindset Works. Ellen is an experienced and retail sectors address their toughest technology challenges executive who developed the global data science and marketing and use technology to enhance innovation and productivity. Irina programs at Google, IBM, and Intel, where she was the first is an active contributor to McKinsey’s research and publishes woman and non-engineer to be honored as an Intel Fellow. She frequently on topics including cloud infrastructure and digital has conducted research and taught at the Stanford Graduate operating practices. School of Business, Haas School of Business, and the University of Western Ontario. KELSEY ROBINSON is a partner in McKinsey’s San Francisco office. She works with leaders across the consumer and retail MEGAN ROONEY is a writer and strategist for LeanIn.Org. space, advising executives on digital marketing, CRM, and Prior to serving as a speechwriter for President Barack Obama, analytics. Kelsey is a frequent author on digital marketing topics, Secretary of State Hillary Rodham Clinton, and First Lady as well as on McKinsey’s research on women, diversity, and talent. Michelle Obama, she was a senior writer at West Wing Writers, a Kelsey also co-leads McKinsey’s West Coast Gender Initiative. communications firm in Washington, D.C. Megan gives voice to the organization’s messages of equality and empowerment. MARIE-CLAUDE NADEAU is a partner in McKinsey’s San Francisco office. She co-leads the firm’s Payments Practice in MARY NOBLE-TOLLA, Ph.D., leads Education at LeanIn.Org, North America, and as such advises payments leaders across where she turns gender research into concrete, actionable steps banking, technology, and retail sectors on both strategic and companies and individuals can take to level the playing field for operational questions. Marie-Claude has published previous women. Before LeanIn.Org, Mary ran editorial at a news media work on digital payments topics, as well as on advancing women startup and taught English and politics at Oxford and Princeton. in financial services. She has also published articles on politics and social justice. NICOLE ROBINSON, Ph.D., is an engagement manager in ALI BOHRER is chief of staff at LeanIn.Org. In this capacity, McKinsey’s San Francisco office. She is a member of the North she makes sure the organization stays focused on its strategic America Organization Practice and a member of McKinsey’s priorities and successfully executes its large-scale initiatives. West Coast Women’s Initiative. For more than ten years, Nicole Ali is passionate about changing the landscape for women in has researched and published articles on the impact of gender corporate America. Prior to joining Lean In, she was an analyst issues on cultures, language, and careers. at McKinsey & Company.

60 | WOMEN IN THE WORKPLACE: METHODOLOGY Methodology COMPANY PIPELINE DATA AND PROGRAMS SURVEY EMPLOYEE EXPERIENCE SURVEY This study is based on research from 279 companies across North America and builds on Participation in the Employee Experience Survey was encouraged but optional. Employee similar research conducted annually by LeanIn.Org and McKinsey & Company since 2015, experience findings are based on the survey results from more than 64,000 employees as well as research by McKinsey & Company in 2012. Each participating company submitted from eighty-one companies. No single company accounted for more than 5 percent of gender diversity talent pipeline, policies, and programs data to McKinsey. Pipeline data the responses. included the current representation of men and women (overall and, optionally, by race/ Group differences: To ensure that differences highlighted between genders or groups are ethnicity), and number of hires, promotions, and employees who left the company by gender both reliable and substantial, we used a dual cutoff for consideration. All differences noted and, optionally, race/ethnicity. Submitted data reflect diversity metrics and program and policy in this report are statistically significant at a 95 percent confidence level using a two-tailed prevalence as of December 31, 2017. test and reflect a difference of at least four percentage points between two groups. Promotion, hiring, and attrition rates were estimated independently for women and men at each level. Promotion rates were calculated by dividing the number of promotions into a level GROUPING OF RESPONSES by the start-of-year number of employees of that gender in the level below. Attrition rates When appropriate, analyses of employee experiences and company practices aggregated were calculated by dividing the number of each gender who left the company at a given level the top-two and bottom-two boxes of the response scale. For example, the percentage of by the number of employees of that gender in that level at the start of the year. Hiring rates respondents who “agree” ties back to those who “somewhat agree” or “strongly agree.” were calculated by dividing the number of each gender who were hired into a level by the QUALITATIVE INTERVIEWS number at that level at the start of the year. The ratio of men and women’s promotion and external hire rates was calculated by dividing women’s rates by men’s rates. We conducted qualitative interviews with thirty-seven women from thirteen companies in our sample, which include a range of industries including health-care systems and services, Scenarios to examine the potential of equitable hiring and promotion rates assumed that professional and information services, retail, tech, banking and consumer finance, and share of promotions or hires reflects the group’s representation in the appropriate candidate food and beverage distribution. Interviewees were chosen from volunteers and were pool. In the case of promotions, we reflected the representation from the level below at the selected to reflect a range of levels, functions, and demographic groups. Our interviews start of the year. In the case of hiring, the pool of candidates was calculated as the average focused on women’s workplace experiences in order to gain a deeper understanding of of the representation at the current level and the level below, consistent with an equal mix of the quantitative findings from the employee survey. Individual names, company names, and lateral and promotion types of hiring. any other identifying information were kept strictly confidential and have been redacted/ For the corporate pipeline: Companies were weighted based on the Fortune 500. All anonymized for reporting purposes. metrics (e.g., representation, promotion rates, hiring rates, etc.) were computed for each COMPANIES INCLUDED company. Industry weights were then applied to approximate the company composition Participating companies opted in to the study in response to invitations from LeanIn.Org of the North America Fortune 500 in 2017. This enabled us to avoid overemphasizing or and McKinsey & Company or by indicating interest through our public website. We have underemphasizing particular industries and better estimate trends over time based on grouped these companies into industry benchmarks that provide peer comparisons. The each year’s sample of companies. The industry breakdown of the Fortune 500 used for our reported industry breakdown of participating companies is as follows: weighting was: • Retail—17% • Asset management and institutional investors—21 • Energy and basic materials—16% • Banking and consumer finance—15 • Finance—17% • Consumer packaged goods—7 • Tech—12% • Consumer tech—8 • Health care—9% • Energy, utilities, and basic materials—21 • Automotive and industrial manufacturing—8% • Engineering and industrial manufacturing—18 • Food and restaurants—7% • Food and beverage distribution—19 • Media and entertainment—4% • Food and restaurants—48 • Transportation, logistics, and infrastructure—4% • Health-care systems and services—14 • Professional and information services—2% • Insurance—10 • Engineering—2% • IT services and telecom—5 • Media and entertainment—7 DEFINITION OF LEVELS • Pharmaceutical and medical products—20 Companies categorized their employees into six levels and the board of directors based on • Professional and information services—17 standard definitions. In assigning jobs/employees to one of the six levels, companies were • Retail—12 asked to consider reporting structure, salary, and advancement. The reported levels and • Tech: Hardware—10 definitions are as follows: • Tech: Software—20 • L1—C-suite-level executives and presidents: CEOs and their direct reports, or those • Transportation, logistics, and infrastructure—7 responsible for company operations and profitability For the industry pipelines, averages across companies: All metrics (e.g. representation, • L2—Senior vice presidents: senior leaders of the organization with significant business promotion rates, hiring rates) were computed for each company. Company results were unit or functional oversight then averaged, so as to best represent the practices across the range of companies, rather • L3—Vice presidents: leaders of the organization who report directly to senior vice than allowing the larger companies to overly influence overall results. presidents GEOGRAPHIC COVERAGE • L4—Senior managers/directors: seasoned managers with responsibility for multiple This report covers only findings from North America (United States and Canada). We teams and discrete functions or operating units received additional data for four other geographic regions—Europe, Asia Pacific, Latin • L5—Managers: employees who manage people, programs, or projects America, and Middle East/Africa—to be used for company-specific comparisons. • L6—Entry level: employees who carry out discrete tasks and participate on teams, typically in an office or corporate setting (field employees like cashiers or customer service representatives are not included in our primary analyses)