Gender Gap in Leadership Widening, Corporate Executives Called to Action
Ouagadougou – A recent report by the World Economic Forum highlights a concerning trend: the decline in the number of women being hired into leadership roles, reversing an eight-year trend of slow but steady improvement. This issue, part of a larger complex problem in evaluating the potential of men and women in the workplace, calls for a reevaluation of long-held cultural and social patterns.
According to the World Economic Forum, Global Gender Gap report published in July 2023, there has been a noticeable decline in the hiring of women into leadership positions. The report underscores the disparity in how the potential of men and women is assessed, a factor that significantly influences career progression and promotion.
A key aspect highlighted is the difference in how men and women approach opportunities in the corporate environment. Research indicates that women often underestimate their abilities and achievements, waiting to be recognized rather than proactively seeking advancement. This behavior, coupled with the tendency to meet 100% of job requirements before applying, contrasts sharply with men, who typically apply with about 60% of the requirements met.
A study by MIT associate professor Danielle Li analyzed 30,000 management-track employees and found that women, despite receiving higher performance ratings, were rated 8.3% lower in terms of potential compared to men. This discrepancy in potential ratings has a direct impact on promotion rates, with female employees being 14% less likely to be promoted than their male counterparts.
Another study by Christine Exley and Judd Kessler highlighted that women are less likely to promote themselves, even when their performance is equal to men’s. This gap in self-promotion mirrors broader societal gender norms, particularly in how men and women subjectively evaluate their performance in traditionally male-typed tasks such as science or maths.
The gap in self-perception and evaluation of potential is evident from as early as sixth grade, suggesting deep-rooted cultural influences. This disparity has long-term effects on career progression, as seen in the example of a CEO memoir where the male author was repeatedly given new roles without prior experience, benefiting from a belief in his potential.
To address these issues, organizations are urged to rethink their evaluation practices. This includes scrutinizing data on performance and potential, reevaluating how leadership potential is assessed, and considering biases in self-evaluations. The concept of ‘Moneyball in the C-suite’ suggests a shift in focus from traditional perceptions to a more data-driven approach in identifying and supporting leadership potential, particularly in women.
By adopting these new approaches, organizations can uncover undervalued talent and scale the number of women in top leadership roles, ultimately benefiting from a more diverse and inclusive leadership structure.