Across the world of business, women are making strides: Anna Anthony has claimed the top role at EY, making her the first woman to lead a Big Four firm on a permanent basis, the latest election meant that female representation within parliament is the highest on record. Sadly however, this is not representative of the full picture for many women in business. The latest 'Women Count' report from the company I work for – the gender diversity and leadership consultancy The Pipeline – found that in 2023, women made up just 9% of CEOs in the FTSE 350.
Why are women failing to reach the top roles?
Academic research entitled ‘”Potential” and the Gender Promotion Gap’, published in 2022, offers one explanation. The findings show that on average, women are given lower potential ratings and higher performance ratings than their male colleagues. This becomes a problem during talent reviews – which every business will use to evaluate their employee’s performance and potential – as women can be overlooked.
It can have detrimental consequences on women and the business overall. Without visible female role models on executive boards, reaching senior positions appears unachievable. This can reinforce biases in talent reviews and impact retention within the business, as, without a clear career progression path, female employees will look for the exit door.
Read more: Why the workplace just isn't working for all women
As senior HR leaders well know, gender parity on boards is not just about creating an inclusive environment, it is critical to business performance. The London Business School’s 2021 research suggests that, after three to five years, higher levels of gender diversity on FTSE 350 boards corresponds with improved margins for earnings before interest, taxes, depreciation and amortisation.
Luckily, there are some steps HR leaders can take to put a stop to bias in talent reviews and the wider workplace, with a view to improving gender parity at the top of business.
Reassess talent reviews
The first steps towards making talent reviews more gender-inclusive are recognising bias and reviewing existing processes.
It is vital that organisations understand whether their criteria for an employee’s ‘potential’ allows bias to sneak in by valuing male models of leadership more highly.
This can be done in tandem with other initiatives such as unconscious bias training, (managers will be able to be more objective in the review process if they are cognisant of their own biases) and sponsorship, to ensure that women have a support system available to them.
Listen to your workforce
Re-evaluations should not be done on behalf of female talent but in conjunction with them. HR leaders should make sure that women are involved in conversations about amending the criteria, and that their experiences are listened to when reviewing company processes.
Read more: Young women feel less supported at work than men
Think about the bigger picture
Ensuring that women progress in the workplace should extend beyond just talent reviews. To make executive positions feel more reachable, HR leaders support and encourage women, in every part of the workplace.
Around half (47%) of the women we surveyed for our 'Women Count' report pinpointed ‘work environment and culture’ as one of the biggest obstacles to their development in senior positions. Employers should show that they are supportive of flexible working policies that allow for work-life balance, and ensure that women are provided equal opportunity to progress.
The net effect of altering talent review processes and implementing support initiatives will be to better identify the potential of rising female talent, for the good of both society and business.
Geeta Nargund is chair of gender diversity and leadership consultancy The Pipeline