In recent years, gender pay equity has become a topical discussion amongst the global workforce. Hollywood actresses and Olympic athletes have shared their stories of unequal pay for equal work; and there has been a slew of class-action suits and corporate scandals revealing discriminatory pay practices. As a result, investors, customers, employees and the law are all calling for progress on wage equality.
Is progress being made? It’s hard to say, but it is probably nowhere near enough as is needed. Some attribute this to the “pipeline” issue. That is, men and women freely choosing entirely divergent professional paths. The theory goes that men choose careers such as investment banking and software engineering and women choose professions such as nursing and teaching whose pay rates have been set (lower) by the natural market forces of supply and demand (or perhaps because of the long history of putting less value on women’s work). But if you look at computer programmers, women used to dominate the industry, then men flowed in. The pay automatically increased and the profession was viewed as more desirable. By contrast, as women flow into historically male professions, pay actually drops.
Some companies have made attempts to address the pay equity issue, but they’re often employing outdated approaches or third-party consultants. Reliable, scalable and accessible solutions have been limited. As a result, many companies have shied away from the issue of pay equity altogether, viewing it as simply too burdensome to tackle. Such lethargy produces pay practices which only perpetuate the gender pay gap. Unfortunately, women (and other underrepresented groups) can be faced with an uphill and solitary battle on the journey to equality.
Any effort to eradicate pay disparity in the workplace must be vigorously supported by the CEO, the leadership team and the board. If a board of directors or CEO is not genuinely dedicated to such an effort, then that effort will not happen, or will eventually fail. As a CEO, why should this be top-of-mind for you and your team?
Well, at a very fundamental level, it’s the right thing to do. When companies commit to equal pay for equal work, they send a powerful message to their current employees, future hires and their customers that they stand for something that is important to all, not just women. Additionally, having a fair and transparent pay process increases satisfaction and decreases turnover. A Gartner study revealed that there is a $16 billion cost for turnover in the tech industry alone.
If your organization does not yet have a robust and ongoing strategy for achieving pay equity, here is a step-by-step guide to help you check for pay disparities and commit to resolving them:
Step 1: You can’t stick your finger in the air as a gauge of pay equity. It takes asking the right questions and conducting detailed analyses. Make sure you have enough resources and technology in place to allow you to examine your data quickly and identify unfavorable trends.
Step 2: Shift the mindset from “protect and defend” compensation data to “find and fix” any gaps. This requires you to have the courage to share the results of your analysis in Step 1, but also the discipline to resolve any anomalies.
Step 3: Companies regularly ensure they are at market, so why not make pay equity a part of ongoing compensation benchmarking? Committing to regular and frequent pay analysis is the best way for companies to ensure they stay on top of this issue.
The CEO should be the catalyst for the organization’s journey to pay equity, but other key stakeholders such as the broader leadership team, the HR function, and middle managers are also key to success. There are many ways to fully involve these groups:
• Make it personal: Research has shown that the pay gap in groups of male managers who have daughters is smaller than amongst managers without daughters. This means that when an issue is personal, behavior changes no matter the gender.
• Make it a leadership issue: If you have a gender pay gap, it is a failure of leadership. Leaders have a role and responsibility to address this. As CEO, you must communicate with HR and managers, articulate the philosophy and strategy to achieve equal pay, and make sure to constantly share metrics and progress with managers and HR, so they can share with employees and external audiences. Commit to a quantitative approach to decide how pay is determined, setting salary ranges for each role, and then make these ranges available to your employees and recruits.
• Make it inclusive: It is not solely an issue to be discussed at a women’s leadership meeting. Make it a key agenda item for your next board meeting and your executive team meetings.
A good first step to kick-start this journey is to run a pay equity analysis leveraging a trusted solution with a vetted methodology. By utilizing a data-science powered software solution, you can determine where there are unexplained pay gaps and where you may need to employ remediation tactics to preserve your company’s culture and maintain legal compliance.
by Shannon G. Taylor Donald H. Kluemper W. Matthew Bowler Jonathon R. B. Halbesleben
Bad behavior at work can have very real consequences. People who experience workplace rudeness, for example, report lower engagement, suffer more mental and physical health problems, and are more likely to burn out and quit their jobs. And nearly all of us are affected by rudeness and other types of workplace misbehavior, like interrupting and exclusion: Estimates suggest 98% of employees are on the receiving end over the course of a year.
Given bad behavior’s prevalence and impact, surely leaders take reports of it seriously, get the facts, and punish offenders, right? Some scholars have noted that, when information about misbehavior surfaces, savvy leaders know better than to blame the messenger. Unfortunately, our research paints a picture that is much bleaker.
We set out to investigate how people in positions of power view victims and perpetrators of workplace misbehavior. We first studied an organization that operates a chain of casual dining restaurants. We gave each employee a list of the names of every other employee who worked in their restaurant, and asked them to report who they were rude to and who was rude to them. We then asked managers to evaluate the behavior of each employee. Across the five restaurants we studied, 149 of the 169 employees (88%) and 13 of the 14 managers (93%) participated. Notably, those employees who reported being victims of rudeness were largely perceived by their managers as perpetrators of rude behavior. And the employees who were reported as being rude to others weren’t seen that way by their managers under two conditions: they had a tight relationship with the boss or were high performers. Continue reading →
By Helen Pitcher OBE, Chair of Advanced Boardroom Solutions
With more women as board chairs, business can better serve society.
Companies should benefit all their stakeholders. This is increasingly on the minds of regulators, activists, politicians, pension investors and individuals of this world. As Larry Fink, Chairman and CEO of Blackrock, wrote in his 2019 Letter to CEOs, “society is increasingly looking to companies, both public and private, to address pressing social and economic issues”.
If we want boards to deliver benefits for a wider stakeholder group – and stop focusing on short-term profits – we need to shift the dial on women becoming chair of these boards. Failing that, the corporate landscape won’t change.
While there are excellent male chairs, too many are products of the old boys’ network. These men pay scant attention to their increasing accountability towards stakeholders beyond their shareholders. In the United Kingdom, the days of the Financial Reporting Council (the watchdog for auditors, accountants and actuaries) are now numbered after it was embroiled in one controversy too many.
Why more women chairs is a game changer
McKinsey & Company has a long history of published reports that have established the business case for diversity. Organisations with greater gender diversity outperform others, typically have a healthier risk profile and make better investment decisions. All of this generates greater client and customer satisfaction.
Based on peer-reviewed research, surveys and anecdotal evidence, we now know what makes an effective board chair. Beyond the obvious group of traits including integrity, personal strength, courage and intelligence, the critical skills are:
an ability to influence others without dominating
an engaged vision of the future
strong emotional intelligence
If we schematise the skills of an effective chairperson, it may look like this:
At the base of the pyramid lie the rules-based, measurable hard skills. While they are necessary, they can be taught and learnt.
At the top of the pyramid, we find the intuition-based soft skills that require a high emotional quotient (EQ). Those skills can only be developed through experience, practice and internal focus.
EQ & soft skills are more often associated with women than men. Though differences between ‘feminine’ and ‘masculine’ traits have little bearing on the attributes of individual men and women, research does not support the notion that men are somehow better suited to the chairperson role.
It should be clear that women are just as capable as men in directing and chairing our companies. Furthermore, they have as much right to succeed, and fail, as their male counterparts do. Our reservoir of chair talent is not so great that we can afford to ignore 50 percent of the potential candidates.
Time to accelerate the pace of change
As the leaders of our companies are called upon to strengthen their engagement with society and all stakeholders, we need to better understand and articulate what a chair role entails. The “job description” must move beyond the domineering CEO stereotype, with its descriptors of drive, ambition and ruthlessness.
The soft skills of facilitation, collaboration, listening, synthesising, defusing conflict and ensuring consensus are the hallmarks of a successful chair. At the other end of the spectrum, directive, overly assertive and antagonistic are the traits of an ineffective chair.
By acting as role models, women chairs can provide additional societal benefits. For instance, they can act as a driving force for empowerment and to promote the inclusion of a broader talent pool. In the UK, advocates of increased acceleration of women in chair roles are multiplying. They include existing female directors, the Women on Boards network, the International Women’s Forum (IWF), Men as Change Agents (MACA), the Confederation of British Industry (CBI), the Institute of Directors (IoD) and the 30% Club.
While the positive pressure for more diverse boards does show results, the action on women chairs is far behind. Too many active resistors – including old-style chairmen and nomination committees – continue to reinforce the false idea that chairs must have at least a decade of board work under their belt. Head hunters tend to say that female chairs are difficult to find, repeating a narrative they used before national targets were established for women on boards. The statistics show this is not true.
Stopping the erosion of trust in business
We need a strong push to free boards held hostage by reductionist thinking. According to research by INSEAD Professor Stanislav Shekshnia, only 20 percent of boards in the UK will be women-led by 2027. This is not enough. It is time to take action to accelerate the acquisition of more female chairs, right across the public and private corporate environment.
In the UK, the new Combined Code with its cap of nine years of service on a single board will create more churn. Investment companies must start asking mediocre chairmen to step down. Women need a greater number of enthusiastic sponsors and more board-level development. I challenge more female directors to aim for the top role.
Having more women chairs will help rebuild the trust in our corporate environment and foster businesses that deliver performance mixed with social and environmental benefits. It may just be the key to a new era of sustainable long-term profit.
By Benjamin Kessler, Managing Editor; Clarissa Cortland, INSEAD Post-Doctoral Research Fellow; and Zoe Kinias, INSEAD Associate Professor of Organisational Behaviour
To enable women’s advancement where it’s needed most, individual, interpersonal and institutional changes are required.
When it comes to developing gender balance, organisations in male-dominated fields such as venture capital, STEM and the “greedy professions” (as well as in leadership roles within most companies) have a two-fold problem. First, they may face challenges in recruiting women: Deeply entrenched gender stereotypes about which jobs are appropriate for women can affect both women’s career aspirations and hiring managers’ decisions. Second, many women bravely venture into these organisations only to confront a steeper path to advancement than their male peers. In the finance industry, for example, the representation of women across all levels declines from nearly 50 percent to a mere 15 percent as one ascends from the professional to the executive level.
The INSEAD Gender Initiative’s 2019 Women at Work conference, recently held in Singapore, concluded with a research session on how organisations can dislodge the built-up biases that impede women’s career progress, creating new pathways to leadership for deserving women.
The glass cliff
What can be worse than organisations without meaningful career opportunities for women? Arguably, those offering opportunities that can actually be traps. First recognised in a 2005 paper by Professors Michelle Ryan and Alex Haslam at the University of Exeter, the “glass cliff” is a widely noted phenomenon whereby women are installed as leaders at times of potential crisis, thus essentially being set up to fail.
At the INSEAD conference, Ryan said she became aware of this “think crisis – think female” association after reading an article in TheTimes newspaper, which argued gender balance was bad for business, citing supposed linkages between the presence of women directors and corporate underperformance. Using detailed archival examination, Ryan’s subsequent research found that the newspaper got the causation backwards. It wasn’t that having women on the board was a liability, but rather that women tended to be appointed at moments of poor company performance (as measured by a decline in share price).
Why are women singled out for these unenviable posts? “Stereotypes of women mediate that effect,” Ryan says. “We think women are good at crisis, but we also think women make good scapegoats.”
In later research, Ryan and her co-authors tested the behavioural basis for the glass cliff, launching several studies in which participants were asked to nominate a leader for a fictitious company that was either flourishing or in decline. Men were chosen slightly more often than women to helm successful companies. When the company was in trouble, both male and female participants showed a clear preference for women.
As the concept of the glass cliff gained recognition, some studies and articles appeared purporting to debunk it, while others presented confirming evidence. Apparently contradictory findings may create confusion as to whether the glass cliff is real or not. Ryan has recently tried to make sense of it all with a meta-analysis of all available data relevant to the concept. She found a “small but significant” overall effect, affecting women as well as racial/ethnic minorities who end up balancing precariously on the edge in newly appointed positions of leadership. In related work, Ryan finds that this glass cliff effect varies in size depending on a number of factors. For example, when the new leader is well supported and has more financial resources, the crisis leadership situation is no more likely to bring in a woman leader. It is really the most precarious leadership positions that compel decision makers to see women as a better fit than men.
That the glass cliff is a contingent phenomenon does not make it any less real. Ryan explained: “It didn’t start from theory; it was an explanatory mechanism for data that were out there,” she says. The glass cliff is not universal, but it offers an explanation that sheds light on a set of circumstances that unites women leaders as disparate as Yahoo!’s Marissa Mayer and UK Prime Minister Theresa May, who were handed the rudder of unwieldy ships at moments made especially perilous by their immediate male predecessors.
Ryan’s research underscores a clear need: Companies (and governments) must provide women and minority leaders with a broader range of opportunities to enable them to also show what they can achieve when all is working smoothly.
The emotional basis of backlash
Despite leaders’ good intentions, many men within predominantly male organisations actively resist working with and for women. Backlash has serious implications for women’s advancement, both in its subtler forms and when it manifests as outright sabotage.
Managers should strive to create processes to prevent bias and address discriminatory behaviour swiftly and decisively. In addition, Chiara Trombini, Research Fellow at Harvard Kennedy School, suggests that a psychological intervention that addresses negative emotional reactions could be key to reducing backlash.
Trombini theorises that some men may be unsettled by the stereotype-shattering prospect of a more gender-balanced workplace. This is especially true when women display more assertive behaviour that goes against cultural and societal norms. Men’s feelings of anxiety and threat thus give rise to backlash.
Fortunately, there is a simple intervention proven to calm those exact emotions: self-affirmation. It involves asking people to reflect upon the values that matter most to them or to think about the best version of themselves. The exercise is designed to boost psychological resilience and offer protection from self-doubt in ways that subsequently reduce defensive reactions to threatening information.
Trombini and her co-authors carried out a series of studies with men and women participants to test the emotional threat hypothesis. First, participants were shown videos of women negotiating assertively during a job interview. Then, they were asked to put themselves in the place of a hiring manager. One group of participants did a self-affirmation exercise prior to viewing the videos; a control group did not. No differences were found between the women in the two groups. Among the men, however, the values-affirmed group displayed much more openness to the women interviewees in the video who negotiated assertively, indicating that self-affirmation can lead men to be more accepting of assertive women.
A later study bore out Trombini’s hypothesis about the emotions that precipitate backlash. After viewing videos, participants rated their own feelings of anxiety and apprehension, as well as how hostile and arrogant they felt the job-seeker in the video was. Replicating the first study, the self-affirmation exercise didn’t influence how women participants rated the job-seeker. For men, however, there was a difference. The control group participants perceived both their own anxiety and the job-seeker hostility as higher than did the self-affirmed men similarly evaluating an assertive woman.
In the final study, the researchers manipulated men’s anxiety levels by exposing them either to hyper-competitive, stereotypically masculine work norms (such as overt displays of confidence and physical stamina) in the high anxiety condition, or to psychologically safe work norms (such as collaboration, sharing and valuing others’ perspectives) in the low anxiety condition. Participants then chose between assisting a woman in a demanding task or withholding help (i.e. sabotage). As expected, anxious men were more likely to sabotage, unless they were self-affirmed.
Trombini’s research has implications for corporate cultures and the norms and values they espouse in a larger sense. “Anxiety is important in context,” she says. “Organisations where stress plays a role have heightened potential for stereotyping.” Overall, and especially in high anxiety contexts, self-affirmation can protect against bias by helping men to feel more secure.
Combating backlash is an important strategic objective in addressing bias that prevents women from advancing in masculine spaces. An equally crucial objective is cultivating active support for gender balance amongst the male majority – enabling men to be allies.
In research presented at last year’s Women at Work conference, Toni Schmader, the Canada Research Chair in Social Psychology at the University of British Columbia, and her co-authors discovered that conversations with male – and only male – colleagues that were not experienced positively were linked to increased burnout and social identity threat among female STEM professionals. In other words, the absence of clear male allies may hold women back in ways that parallel clear-cut incidents of bias.
At this year’s conference, Schmader talked about her role as co-leader of a research team called Project RISE (Realising Identity-Safe Environments), where she is about to launch a workshop designed to foster gender inclusion in STEM. Her team will recruit more than 400 scientists and engineers working in team environments as workshop participants. “Both men and women say they are highly motivated to be allies in their organisation, but they’re not quite sure how to go about doing it,” Schmader says. The Project RISE workshop will focus on laying the emotional groundwork for allyship as well as developing the necessary skills.
Two features of the workshop show particular promise, as reflected in pilot data. One key component is the affirmation of shared values, which lowers social identity threat for both women and men. Another is a dialogue task where two-person teams respond to questions about diversity and implicit bias, such as “What is one of your biggest concerns or worries when talking about gender bias issues?” In a trial run involving engineering students, both men and women – but especially men – found these dialogues beneficial when their conversation partner was of the other gender.
An honest conversation between two people can be surprisingly impactful, Schmader says. “The more men converse with women about bias, the more they show an increase in the ability to take women’s perspective and believe women can succeed, and there is an indirect effect on support for gender-inclusive policies as well.”
A multileveled approach
Qualified women must perceive that avenues to success are available to them within an organisation. For that to happen, organisations should increase the visibility of female role models and make a concerted effort to signal a wider cultural shift.
In her own talk, INSEAD’s Clarissa Cortland described how the year-long iW50 campaign – spanning the 2017-18 academic year and celebrating the past and present of women at INSEAD, as well as the vision for the future – delivered on three conceptual pillars:
Highlighting gender-balanced models of leadership through communications campaigns both on- and offline, prominent women speaking on campus, etc.
Raising awareness through research, alumni- and student-led events
Engaging men in all INSEAD communities, including faculty, staff, alumni, and notably via the introduction of an official group of male MBA allies called Manbassadors
The iW50 campaign may be over, but the work of the INSEAD Gender Initiative continues. In any large organisation, there is always the danger that progress will pause when gender balance is no longer top of mind. Empowering women to achieve their full potential in spaces where they are underrepresented is not a one-off project, but a long-haul effort requiring maintenance and frequent reassessment.
As INSEAD Gender Initiative’s leader Zoe Kinias said at the conclusion of the conference, “Diversity initiatives need to be perceived and enacted more like change management.”
Enterprise leaders are under increased pressure to pivot their businesses to meet the needs of consumers and ensure operations are agile enough to support these needs. Yet, the engine room of most organizations’ services — global business services (GBS) — often struggles to do little more than apply cosmetic changes that fail to address the complex changes really needed, placing the future of many GBS leaders in jeopardy.
GBS must increasingly provide innovation and agility
Over the past couple of decades, GBS has been a key operational lever enterprises could use to balance efficiency, cost savings, and quality of internal services. However, organizations are increasingly expanding this remit to include a new dimension — a source of innovation and agility across the organization. We used this to change the old IT adage, “We offer three kinds of IT services: good, cheap, and fast. You can only have two.” We replaced “fast” with “innovative.” You can have innovative and good, but it won’t be cheap.
You can have good and cheap, but it won’t be innovative.
You can have cheap and innovative, but it won’t be good.
Crucially, the common GBS criticisms we hear are linked to innovation and agility—the very areas enterprises are looking to expand. Typically, these complaints stem from GBS’ inability to: Continue reading →