Proven Ways to Drive Inclusion – Numbers Behind the Methods Celia Huber, Senior Partner McKinsey & Company
Drawing from our research
Diversity in the boardroom can happen Average female board representation among the top 60 companies has increased 24 p.p. since 2005, and is just shy of 40% McKinsey & Company 3
Indeed, the top 25 companies have made major progress over the last 10 years to steadily converge toward parity 2 Top 25 us companies by share of women board members 1 , % Average 60 50 40 30 20 10 0 2005 06 07 08 09 10 11 12 13 14 15 2016 ▪ Accenture ▪ General Motors ▪ Signet Jewelers ▪ Alaska Airlines ▪ Hewlett-Packard ▪ Tegna yxwvutsrponmlkihgfedcbaWVTSRPMHGFEDCA ▪ Alliant Energy ▪ Hologic ▪ Texas Instruments ▪ American Water Works ▪ IPG ▪ Ulta ▪ Ameriprise Financial ▪ Kellogg ▪ Viacom ▪ Best Buy ▪ Macy’s ▪ Wells Fargo ▪ Dollar General ▪ Michael Kors ▪ Williams Companies ▪ Dr Pepper Snapple ▪ Navient ▪ Estee Lauder Companies ▪ Patterson Companies 1 As of August 2016 SOURCE: BoardEx database of S&P 500 companies
To improve gender diversity on boards, we have identified 3 major best practices • Make a visible commitment to diversity with sustained action Change throughout the organization your • Set new principles for decision making mind-set • (e.g., include women on every candidate slate) • Look beyond current CEOs and other members of the C-suite Expand your • Consider candidates with the right expertise, not just those with criteria prior board experience • Expand your network to include more women and explicitly ask Maintain an search firms for female candidates active pipeline • Cultivate long-term relationships with prospective candidates
Corporate America is not on a path to gender equality Survey trends suggest it will take more than 100 years to reach gender equality in the C suite -
Women remain underrepresented, dropping considerably by the time they reach the C-suite Director / Entry level Manager Sr manager VP SVP C-suite Men 54% 63% 67% 71% 76% 81% 46% 19% 33% 29% 24% Women 37%
yxwvutsrponmlkihgfedcbaWVTSRPMHGFEDCA What do women and men’s experiences tell us?
Women perceive that their gender has created a disadvantage in the workplace Women Men % of women and men who report that their gender has played a role in their missing out on getting ahead ywvutsrponmlkihgfedcbaRPC 36% 30% 19% 5% 5% 6% Entry level Middle management Senior management yxwvutsrponmlkihgfedcbaWVTSRPMHGFEDCA SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study
zyxwvutsrponmlkjihgfedcbaWVUTSRPONMLKJIHGFEDCBA Women say they’re negotiating as often as men and disproportionately receive pushback Women Men % of women and men who negotiated % of women and men who … that received feedback they were … 23% 30% “Bossy” “Aggressive” “Intimidating” 39% 36% 29% 27% “Lobbied” for a Asked for an promotion or new increase in assignment compensation SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study
Women receive less constructive, developmental feedback Women Men 43% Perceived as mean or hurtful 35% 15% Cause an emotional breakdown 36% 46% 6% Receive difficult feedback Reasons men & women hesitate to regularly give difficult feedback SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study
Make a compelling case for 1 gender diversity Ensure that hiring, promotions, 2 & reviews are fair Focus on accountability 3 and results Recommendations Empower your employees to 4 for improving lead the charge diversity
2 Employees see a gap between performance evaluation policies and practices How to close that gap…. Companies • that report Blind resume screening Hiring 93% • clear, Analytics to reduce bias consistent criteria • Evaluation criteria screens • Personalized performance Reviews Employees reviews 57% who say managers do this in • Diverse slates practice Promotions • High-potential talent pools SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study
Employees feel unsure on how to support and promote 4 gender diversity % of employees who report they know Levers for education… what to do to improve gender diversity Teach employees what Train Entry level 28% 28% they need to know Middle Celebrate Give credit where Manage- 51% credit is due ment Senior Talk the talk and walk Model Manage- 61% yxwvutsrponmlkihgfedcbaWVTSRPMHGFEDCA the walk ment SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study
Getting diversity right matters for everyone To learn more, go to www.mckinsey.com/womenmatter
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