At Extreme Investor Network, we understand the importance of addressing the gender promotion gap in order to narrow the gender pay gap and promote income equality. Research shows that women are about 13% less likely to be promoted than men, even when they hold similar positions within the same firm. This disparity plays a significant role in perpetuating income inequality between men and women.
According to Kelly Shue, a professor of finance at Yale School of Management, about 70% of the gender wage gap can be attributed to women occupying different positions compared to men. However, even when men and women hold the same position, women are still paid less. This is evident in the fact that women earn just 84 cents for every dollar earned by men, as reported by the National Women’s Law Center.
One of the main factors contributing to the gender promotion gap is systemic bias, which results in women being underrepresented from the start of their careers. The annual Women in the Workplace study from Lean In and McKinsey found that women are less likely than men to be hired into entry-level roles, leading to slower advancements at the manager and director levels. In fact, only 81 women are promoted for every 100 men, highlighting the “broken rung” in the corporate ladder that hinders women’s progress to senior levels.
To address unconscious bias in promotions, it is essential for companies to reassess their criteria for success and recognize the potential of female workers who may not exhibit stereotypically male qualities. While advice often focuses on how female workers can advocate for themselves and engage in self-promotion, it is also crucial for firms and managers to critically evaluate their biases and reward merit based on individual potential rather than gender stereotypes.
At Extreme Investor Network, we believe that by acknowledging and addressing the gender promotion gap, companies can create a more inclusive and equitable workplace that empowers all employees to reach their full potential. Stay tuned for more insights and strategies on how to close the gender pay gap and promote financial equality for all.