Repairing the Broken Rung

The inability to promote women beyond the first managerial level remains one of the most critical issues for leaders to solve. We explore this phenomenon and possible solutions.

This far into the 21st century, one might have expected humanity to have gained a firmer grasp on practicing diversity, equity, and inclusion (DE&I) in the global workplace. While we’ve certainly made strides in understanding what has been termed ‘the glass ceiling’ and other socio-economic challenges, we still need to make further progress in leveling the playing field for women in the workplace.  

Old Problems, New Buzzwords – What is ‘The Broken Rung’?  

Decades of research now debunk the myth that the glass ceiling phenomenon is the primary barrier that women face in career advancement. Introducing a new notion and buzzword: “the broken rung” has gained prominence in recent years as the most significant barrier women face in advancing from entry-level positions to managerial roles.   

A recent McKinsey survey highlights that women – and especially women of color – are promoted less frequently than men, despite possessing equal performance potential. This early career setback creates a persistent lag, and the more a woman misses those first few promotions, the harder catching up becomes as this McKinsey report reveals.  

Exploring The Gender Gap with McKinsey’s Findings: 

The McKinsey study demonstrates that, as of 2023, women comprise 48% of the entry-level workplace, yet only 28% of C-Suite roles are filled by women – a meager 6% being women of color. This may be due to the fact that for every 100 men promoted to managerial roles, only 87 women receive similar promotions.  

A recent Harvard Business Review also reveals that women still earn 17% less than men on average – a young woman today will typically lose $407,760 over a 40-year career, compared to a man on the same career path.  

The women most impacted by these disparities are women of color – Black, Hispanic, Asian and of mixed race.   

For us to understand the complexities of the broken rung phenomenon, which is where most of the career pathway damage is done, we must examine the common barriers that prevent women from being promoted to managerial positions in the first place.  

1. Unconscious Bias 

Despite efforts to promote gender equality, deeply ingrained stereotypes and prejudices can influence decision-making processes. Studies show that women are often perceived as less competent for leadership positions compared to their male counterparts. The challenge with this sort of bias is that it’s subconscious, making it particularly difficult to address.  

2. Lack of Mentorship 

Women are often underrepresented in mentorship programs, which limits their opportunities for professional development and networking while denying access to mentors who can advocate for their advancement. 

3. Preconceived Notions about Leadership Styles 

Traditional stereotypes depict leaders as assertive, dominant, and competitive – traits often associated with masculinity. Consequently, women who exhibit different leadership styles or qualities often face challenges in being recognized and promoted. 

4. Work Flexibility Preconceptions 

The 2023 McKinsey survey highlights that 78% of women value the opportunity to work remotely, predominantly because they play the lead nurturing role within their homes. Working remotely also reduces exposure to microaggressions and increases psychological safety – an attractive alternative to facing such conflicts at the office.  

On-site roles, which typically attract men, offer advantages such as access to company resources, increased collaboration and communication with teams, and greater company culture connectivity. Collectively, these factors place the odds firmly in the favor of people who opt for in-office roles. 

5. High Occurrence of Microaggressions 

Microaggressions are subtle forms of discrimination that can have a detrimental impact on women in the workplace. Microaggressions are 1.5 to 2.5 times more likely to occur against women than men, and the McKinsey survey reveals that women of color, LGBTQ+ women, and disabled women experience significantly higher rates of microaggressions.  

Key Considerations for Leaders to Drive Change 

To address the disparities caused by the broken rung phenomenon and promote gender equality in leadership roles, companies must implement effective practices supporting women’s entry-level development.  

Shireen Ng, Director at Signium Singapore, notes how recent global changes have provided the means to re-design corporate workspaces and processes, often for the better. “The post-pandemic world has radically shifted the meaning of work and life. Working in a hybrid/remote mode allows employees to be more efficient in many ways. Organizations will also be seen as advocates of mental health in helping employees find that work-life harmony, that high-potential women may trade for their families.” 

“With the changing demographics and landscape of talents, organizations that truly embrace DE&I as their DNA will reap the benefits in medium to long-term goals to nurture resilient and highly nimble leaders for themselves,” says Ng.  

One company taking significant steps toward supporting DE&I in the workplace is Mastercard, which launched its Path to Parity initiative in 2020. Taking a multifaceted approach to developing equality, Mastercard offers women’s leadership development programs, formal mentorships, strict equal pay policies, and various initiatives aimed at empowering women.  

There are a variety of critical considerations that leaders could turn to when building policies and procedures geared toward promoting gender equality and women’s progression which include the following:  

• Mentorship and Sponsorship Programs: Establishing robust mentorship programs specifically designed for women can provide guidance, support, and valuable networking. Similarly, sponsors use their influence to connect women with leading projects and promotional opportunities. For example, Goldman Sachs’ diversity goals include proactive sponsorship programs that pair female candidates with senior leaders within the organization. Mentors and sponsors are well-positioned to advocate for women’s career progression.  
• Targeted Leadership Training: Targeted leadership training programs are tailored to address the unique challenges faced by women and equip them with the necessary essential leadership competencies and confidence to overcome barriers.  
• Unconscious Bias Training: Unconscious bias training helps to create an inclusive culture that values diverse leadership styles, and breaks down the stereotypes keeping women and women of color from progressing past the first level of promotion.  
• Flexible Work Arrangements: Goldman Sachs recognizes the importance of work-life balance and offers flexible work arrangements to support employees with families. These options include remote work, flexible hours, and part-time schedules, enabling women to balance their career and personal responsibilities, while not being overlooked for promotion opportunities.  
• Pay Equity Initiatives: Given persistent gender pay gaps, leaders should conduct pay equity analyses to ensure fair compensation practices across gender lines. For example, Mastercard ensures that women earn $1 for every $1 that men earn at the same level, doing the same role.  

Mend the Broken Rung and Transform the Talent Pool 

For executive leaders, it’s essential to approach the recruitment pool with an open mindset and the intent to forge positive career pathways for women. By demonstrating their commitment to DE&I, companies can enhance their reputation as an employer of choice, enticing top female talent from diverse backgrounds, and promoting organizational growth and success.  

When employees see opportunities for growth based on merit rather than gender, it fosters a sense of fairness and equality, leading to increased employee engagement and satisfaction. Organizations prioritizing women’s career progression are more likely to retain their top female talent, reducing turnover costs and maintaining institutional knowledge. 

“When we focus on performance instead of gender, skin color, and background, it breaks the barrier for many talented women who can step up and be recognized as leaders,” says Ng. “Women can be influential and impactful leaders simply because women are ‘wired’ differently in thinking, managing emotions and seeing the big picture.” 

By promoting more women to managerial positions, organizations reap numerous benefits as these powerful workers rise to senior and C-suite level positions. Research suggests that gender-diverse leadership teams are associated with better decision-making, improved financial performance, innovation, employee satisfaction, and more robust corporate governance. 

It’s time to go beyond words and take the actions necessary to transform our workplaces, disrupt archaic recruitment processes, and empower more women to succeed – for the benefit of us all.