By Amy Schabacker Dufrane
Every year in March, we honor women’s contributions in history, nationally and globally. In the U.S., President Jimmy Carter supported this initiative by issuing a presidential proclamation in February 1980. In 1987, Congress passed Public Law 100-9, designating March as “Women’s History Month,” and, over the course of a century, March 8 was designed as International Women’s Day to celebrate the social, economic, cultural, and political achievements of women. Underlying the designation, these recognitions also seek to bring attention to matters of gender equity, reproductive rights, and violence against women.,
Having garnered this degree of attention from powerful advocates, one would think we’d be much further along in terms of parity. Women are the majority population in the U.S., making up 56.8 percent of the labor force . Yet, because of long-standing systemic issues, many of these women are underemployed, despite having skills that would enable them to move into higher-paying roles. The economics of women in the workforce are startling and indisputable: A McKinsey Global Institute report found that allowing women to reach their full potential could add as much as $28 trillion (roughly the equivalent of the Chinese and U.S. economies combined) to the global annual GDP by 2025.
Discrimination against women in the workplace has been well documented. Pregnancy discrimination has its roots in societal stereotypes and was a very real obstacle until recently. Wage discrimination – the glaring disparity between white women averaging 78 cents for every dollar earned by their male colleagues – remains a reality despite the Equal Pay Act of 1963. Women of color experience even more discrimination from having equal opportunities. The reality is that despite modest progress, women are still underrepresented in the workplace, especially in the leadership ranks. We may have taken a few steps forward, but for each win, there are more losses.
HR has a pivotal role in this workplace challenge that impacts not just business but families, communities and society at large. The “broken rung” that holds women back from stepping into their first manager role remains unresolved. This results in a painful reality that’s very visible in the top ranks: there are too few women to promote into senior leadership roles. Simply put, women were never in the pipeline, to begin with – an obvious area of opportunity.
According to the U.S. Bureau of Labor Statistics, women’s rise in the labor force was a major development during the second half of the 20th century. During this same timeframe, women started to pursue higher education and full-time employment. One might make the logical assumption that the share of women in positions of power increased exponentially; however, by industry, 88.9 percent of registered nurses, 80.5 percent of elementary and middle school teachers and 61.7 percent of accountants and auditors were women. The higher-paying roles such as software developers, executives and lawyers, went to men.
This disparity accounts for the variance in wages as well. It’s also one of the most visible areas where HR has played a prominent role in addressing pay equity issues. Consistent with building and maintaining engaged workforces and cultures of trust, removing the bias of underrepresented classes often starts with pay equity. Local laws in New York, Colorado and California are requiring employers to include pay ranges in all job postings, a solid step towards equitable recruiting practices.
Fair pay is one way to keep women in the workforce. Providing career growth opportunities is equally important. In a July 2022 survey by Great Place to Work, research showed a correlation between retaining women in the workplace and fair promotions. One organization cited in the study conducted reviews twice annually to determine whether employees with similar roles, experiences and performance are earning equal pay using independent third-party experts. The firm took this initiative a step further by sharing pay equity updates with all employees.
It’s hard to ignore one of the most profound reasons that women experience “broken rung” syndrome. The balance between work-life, whether to raise children, provide elder care or address other life issues, has been close to nonexistent in the U.S. workplace. If there’s one thing that came out of the global pandemic, it’s the acceptance of hybrid and remote approaches help that provides the flexibility desired throughout the employee lifecycle. It’s a step forward; however, truth is that family care obligations were a convenient excuse. Sadly, whether these women are working remotely or onsite, the leadership pipeline issues have the potential to remain the same.
What can HR do? Put the tools, processes and technologies in place to identify more women to promote or develop to promote. Create opportunities for coaching and mentorship. Accelerate the development of women for the leadership pipeline intentionally. Drive the bias out of recruiting practices. Implement benefits that help caretakers find the balance they need. Use data to ensure your leadership ranks are balanced and fix inequities quickly before valuable talent walks out the door.
A tall order, for sure, but consider the alternative. Recent research by McKinsey titled Women in the Workplace 2022 examines the microaggressions that make it harder for women to advance. As one female senior manager commented, “I’ve asked many times what I can do to get promoted, and I don’t get a good answer. I’m thinking of leaving. And it will be my company’s loss since they didn’t offer me the opportunity to advance. I hit a ceiling that didn’t need to be there.” We can fix this, HR. Take steps to move forward today – the majority of the workforce depends on this support.
