Why should you care about the high female workforce attrition rates?
According to a 2022 study by McKinsey and LeanIn.org that surveyed more than 40,000 employees, women make up 40% of entry level positions, and only 26% of C-Suite positions. The higher up the corporate ladder you go, the fewer women you see. For every woman at the director level that gets promoted, two women directors choose to leave the company. The case for having more women in leadership positions is evident in the value that they bring. Companies with more women on their boards were found to invest more in innovation, have higher company performance, and de-risk by contributing more to CSR (Corporate Social Responsibility) and ESG (Environmental Social and Governance). Overall, when there is workforce parity in terms of participation, recognition, and pay, the world economy would be $28.4 trillion richer.
Why are women leaving the workplace?
There are three main reasons why women have been leaving the workplace by the droves: lack of pay and recognition, toxic work cultures, and the lack of choices.
· Unrecognized Work
Despite the fact that women in leadership do more than their male counterparts to promote Diversity, Equity, and Inclusion (DEI) in the workplace and support employee well-being, they are not recognized for this. Employee satisfaction and DEI efforts have been found to both, retain employees, and attract new talent. It is estimated that by 2025, 75% of the workforce will be millennials, and an estimated 47% of millennials actively seek diversity in a potential workplace. With the next generation of leadership actively seeking diversity in the, these policies and initiatives being furthered by women make a huge difference in attracting and retaining top talent. However, the time and energy women spend on these efforts aren’t factored into their performance reviews and do not help them advance their careers. Further, women still make only 86 cents for every dollar that a man makes, while black women make even less, at 68 cents for every dollar that a man makes.
· Toxic Work Culture
A study by the MIT Sloan Management Review found that toxic work culture was a big factor for high attrition rates. The study analyzed the kind of language used by over 3 million U.S. employees in Glassdoor reviews to describe their employer between 2016 and 2021, and defined a toxic culture as one that is disrespectful, non-inclusive, unethical, cutthroat or abusive. Non-inclusive environments and disrespectful leadership were factors that had the largest gender gaps. The disrespect that women face spans microaggressions, gaslighting, unfair hiring and promotion decisions, outright misogyny, sexual harassment, and sexism. The non-inclusivity may be in terms of hiring practices, schedules, or allyship efforts. The study found that women are more averse to companies that they perceive as non-inclusive, and would rather find an organization that reflects their values.
· Lack of Choice
Women want agency and choices. The option of a more flexible schedule goes a long way in providing a safe work environment. Only about one in ten women would prefer to work mostly on-site and cite work-from-home or hybrid work options as one of their top criteria while choosing an organization. Work from home allows for fewer microaggressions, and the decrease in microaggression is especially obvious for women of colour, LGBTQ+ women and women with disabilities. These are the sections of women who are more likely to face demeaning or disrespectful treatment. Over 70% of HR leaders have said that offering remote work options has allowed their companies to hire and retain employees from diverse backgrounds. This also means that women aren’t forced to make a choice between their personal and professional identities. They can be parents and employees and not have to sacrifice one for the other.
What can you do as an employer to retain female talent?
Now that you understand what women bring to the table and why they are leaving, here is what you can do to prevent it.
· Conduct sensitivity and sexual harassment training for all employees and have an action plan in place for what to do if there is a sexual harassment complaint. Not being scattered when something like this comes up helps your employees feel safer, and like they can trust you to deal with the issue fairly.
· Be more diverse in your hiring policies. It behooves you and your clients because they see themselves represented in your workplace. In turn, when you have a diverse workforce, your employees have a breadth of experience to learn from.
· Have more holistic performance metrics. Truly evaluate the place that women occupy in your company, the work that they do, and the value that it results in. Get rid of outdated performance metrics and adapt to the changing needs of your employees.
· Try to have flexible work schedules and offer childcare services for your employees who have young children. If that is not possible, provide dependent care assistance. No employee should feel like they are being punished for deciding to have children. Remember that even if these employees take some time off, when they return, they come back with the knowledge that they have a supportive employer and will be happier, more productive employees. Not supporting them during this time will result in high employee turnover rates and endless hours training new employees.
· Offer more leadership training opportunities and pathways for women. Informal pathways for mentorship are fewer for women, so making initiatives like this a part of your institutional structure will make a significant positive impact.
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