Women in the Workplace 2020

At the beginning of 2020, before the Covid-19 pandemic began in the United States, the representation of women in corporate America was slowly trending in the right direction. This was most pronounced in senior management: Between 2015 and 2020, the share of women grew from 23 to 28 percent in SVP roles—and from 17 to 21 percent in the C-suite. Women remained dramatically underrepresented, particularly women of color, but the numbers were slowly improving.

Despite gains for women in leadership, a “broken rung” in promotions at the first step up to manager was still a major barrier in the past year. For every 100 men promoted to manager, only 85 women were promoted—and this gap was even larger for some women: Only 58 Black women and 71 Latinas were promoted. As a result, women remained significantly outnumbered at the manager level at the beginning of 2020—they held just 38 percent of manager positions, while men held 62 percent.

Due to challenges created by the Covid-19 crisis, as many as two million women are considering taking a leave of absence or leaving the workforce altogether. This is the first time we’ve seen signs of women leaving the workforce at higher rates than men; in the previous six years of this study, women and men left their companies at similar rates. If these women feel forced to leave the workforce, we’ll end up with far fewer women in leadership—and far fewer women on track to be future leaders. All the progress we’ve seen over the past six years would be erased.

The Covid-19 crisis has been extremely difficult for employees. Several challenges loom large, including childcare and homeschooling responsibilities, mental health, and burnout. Many employees feel like they need to be “always on”—available for work at all hours of the day. And a significant number of employees are worried about layoffs, furloughs, and financial insecurity.

Taken together, these challenges paint a picture of a workforce that is dealing with unsustainable pressure and anxiety. Almost half of employees say they have consistently felt stressed at work over the past few months, and about a third report feeling exhausted or burned out. For working parents—and working mothers in particular—those burdens are even heavier.

Many companies have taken important steps to support employees during the Covid-19 crisis. They are sharing valuable information with employees, including updates on the business’s financial situation and details about paid leave policies. They have expanded services related to mental health, such as counseling and enrichment programs, and offered trainings to help managers support employees’ mental health and well-being. And they are providing tools and resources to help employees work remotely.

However, fewer companies have taken steps to adjust the norms and expectations that are contributing to employee burnout. Less than a third of companies have adjusted their performance review criteria to account for the challenges created by the pandemic, and only about half have updated employees on their plans for performance reviews or their productivity expectations during Covid-19. That means many employees—especially those who are parents and caregivers—are facing the choice between falling short of pre-pandemic expectations that may now be unrealistic, or pushing themselves to keep up an unsustainable pace.

There is also the issue of financial anxiety. Companies are putting policies and programs in place to ease employees’ financial stress. More than half have increased paid leave⁷—which is an important option for employees who need time off but can’t afford to miss a paycheck—and about a third have added or expanded stipends to offset the costs of working from home. However, these supports don’t address the issue employees are most worried about: the possibility of being laid off or furloughed. Sadly, for companies struggling financially or rethinking their business, it may not be possible to reassure their employees on this front.

Decades of research shows that women do significantly more housework and childcare than men—so much so that women who are employed full-time are often said to be working a “double shift.”¹¹ During Covid-19, women—and mothers in particular—are taking on an even heavier load. Mothers are more than three times as likely as fathers to be responsible for most of the housework and caregiving.¹² In fact, they’re 1.5 times more likely than fathers to be spending an extra three or more hours a day on housework and childcare—equivalent to 20 hours a week, or half a full-time job.

Meanwhile, for the 1 in 5 mothers who don’t live with a spouse or partner, the challenges are even greater. Single mothers are much more likely than other parents to do all the housework and childcare in their household, and they are also more likely than mothers overall to say that financial insecurity is one of their top concerns during the pandemic.

Because of the heavier demands that mothers are shouldering at home, it’s especially difficult for them to balance work and life during Covid-19. Mothers are more likely than fathers to feel exhausted and to say that childcare and homeschooling are among their biggest challenges during the pandemic.

Mothers also face persistent bias in the workplace. There’s a false perception that mothers can’t be truly invested in both family and work, and are therefore less committed than fathers and women without children.¹⁴ And when mothers take advantage of flexible work options, that perception is strengthened, even if they are just as productive as other employees.¹⁵ Now that family demands are front and center—and sometimes literally visible to co-workers over videoconferencing—this bias may be intensified.

Mothers are clearly concerned about how this bias could impact their careers during Covid-19. They are more than twice as likely as fathers to worry that their performance is being judged negatively because of caregiving responsibilities. They are also far more likely to feel uncomfortable sharing work-life challenges—or that they’re a parent at all—with colleagues.

Given the enormous challenges mothers are facing at work and at home, two things should come as no surprise: Many mothers are considering downshifting their career or leaving the workforce, and mothers are significantly more likely to be thinking about taking these steps than fathers.

Among mothers who are thinking about downshifting or leaving, a majority cite childcare responsibilities as a primary reason.

Senior-level women are under the same pressure to perform as senior-level men—and then some. Women are often held to higher performance standards than men, and they may be more likely to take the blame for failure—so when the stakes are high, as they are now, senior-level women could face higher criticism and harsher judgement.²⁰ Senior-level women are also nearly twice as likely as women overall to be “Onlys”—the only or one of the only women in the room at work. That comes with its own challenges: Women who are Onlys are more likely than women who work with other women to feel pressure to work more and to experience microaggressions, including needing to provide additional evidence of their competence.

Not surprisingly, senior-level women are significantly more likely than men at the same level to feel under pressure to work more and as though they have to be “always on.” And they are 1.5 times more likely than senior-level men to think about downshifting their careers or leaving the workforce because of Covid-19. Almost 3 in 4 cite burnout as a main reason.

The possibility of losing so many senior-level women is alarming.

The financial consequences could be significant. Research shows that when women are well-represented at the top, companies are 50% more likely to outperform their peers.²¹

Beyond that, senior-level women have a vast and meaningful impact on a company’s culture. They are more likely than senior-level men to embrace employee-friendly policies and programs²² and to champion racial and gender diversity: Over 50 percent of senior-level women say they consistently take a public stand for gender and racial equity at work, compared to roughly 40 percent of senior-level men. And they’re more likely to mentor and sponsor other women: 38 percent of senior-level women currently mentor or sponsor one or more women of color, compared to only 23 percent of senior-level men.

If women leaders leave the workforce, women at all levels could lose their most powerful allies and champions.

Compared with their colleagues of other races and ethnicities, Black women have always had distinct, and by and large worse, experiences at work. They are promoted more slowly than other groups of employees and are significantly underrepresented in senior leadership. They are less likely than women of other races and ethnicities to say their manager advocates for new opportunities for them. And they have fewer interactions with senior leaders, which means they often don’t get the sponsorship and advocacy they need to advance. Given these challenges, it’s not surprising that Black women are less likely than employees of other races to report they have equal opportunity to advance at work.

Black women also deal with more day-to-day bias in their workplaces. They face a wider range of microaggressions, from having their judgment questioned to hearing demeaning remarks about themselves or people like them. Additionally, half of Black women are often Onlys for their race. Black women who are Onlys are especially likely to feel scrutinized, under increased pressure to perform, and as if their actions reflect positively or negatively on people like them.

Black women are being disproportionately impacted by the difficult events of 2020. They are more than twice as likely as women overall to say that the death of a loved one has been one of their biggest challenges during the Covid-19 pandemic. And incidents of racial violence across the U.S. are exacting a heavy emotional toll.

Work should be a supportive place for Black women amid these national and global crises. Unfortunately, for many, that’s not the case. Black women are less likely than women overall to report that their manager has inquired about their workload or taken steps to ensure that their work-life needs are being met, and only about a third say their manager has fostered an inclusive culture on their team.²⁴ Additionally, fewer than 1 in 3 Black women report that their manager has checked in on them in light of recent racial violence. And Black women are far less likely than white colleagues to say they have strong allies at work.

All of this is having an impact on Black women. They are more likely than employees of other races and ethnicities to feel uncomfortable talking with colleagues about the impact current events have had on their community and their own grief and loss. They also feel more reluctant to share their thoughts on racial inequity. And compared with other employees, Black women feel more excluded at work and are less likely to say they can bring their whole selves to work.

The challenges facing companies right now are serious. Millions of women are considering downshifting their careers or leaving the workforce. The broken rung, which has held millions of women back from being promoted to manager, is still broken. Black women are dealing with additional challenges—including long-standing issues of racial bias—and getting less support from managers and co-workers.

There are two paths ahead. If companies recognize the scale of these problems and do all they can to address them, they can help their employees get through this difficult time and even reinvent the way they work so it’s more flexible and sustainable for everyone. If not, the consequences could badly hurt women, business, and the economy as a whole. This moment requires long-term thinking, creativity, strong leadership, and a laser focus on the value of women to their organizations.

To retain the women most impacted by the challenges of Covid-19, companies need to take steps to reduce the additional pressures they’re experiencing.

Here are six key areas where companies should focus or expand their efforts.

A sustainable pace at work is essential to helping mothers, senior-level women, and all employees facing burnout get through this crisis. To make this happen, leaders and managers need to look at productivity and performance expectations set before Covid-19 and ask if they’re still realistic. They may also need to reset goals, narrow project scopes, or keep the same goals and extend deadlines. Currently, only a small number of managers are doing this.

Additionally, finding creative ways to give employees extra time off make a difference. For example, we’ve heard from companies that have offered “Covid-19 days” to give parents a chance to prepare for the new school year and from companies that close for a few Fridays each quarter to give everyone an opportunity to recharge.

Covid-19 has made it much harder for employees to draw clear lines between work and home, and many employees feel like they are “always on.” Companies should look for ways to re-establish work-life boundaries. For many, this may require setting new work norms—for example, establishing set hours for meetings, putting policies in place for responding to emails outside typical business hours, and improving communication about work hours and availability within teams.

Companies can also encourage employees to set their own boundaries and take full advantage of flexible work options. Even when these options are available, some employees worry there may be a stigma attached to using them. To mitigate this, leaders can assure employees that their performance will not be measured based on when, where, or how many hours they work. Leaders can also communicate their support for workplace flexibility—57 percent of employees say senior leaders at their company have done this during Covid-19. In addition, leaders can model flexibility in their own lives, which sends a message to employees that it’s okay to take advantage of flexible work options. When employees believe senior leaders are supportive of their flexibility needs, they are less likely to consider downshifting their careers or leaving the workforce.

Performance reviews are an important part of running an effective organization and rewarding employees for their contributions. But given the shift to remote work and the heightened challenges employees are coping with in their personal lives, performance criteria set before Covid-19 may no longer be appropriate. Managers can relieve employees’ stress—and refocus on key priorities—by reassessing performance criteria set before the pandemic to make sure those criteria are still attainable. Bringing criteria into line with what employees can reasonably achieve may help to prevent burnout and anxiety—and this may ultimately lead to better performance and higher productivity.²⁹

The pandemic may be amplifying biases women have faced for years: higher performance standards, harsher judgment for mistakes, and penalties for being mothers and for taking advantage of flexible work options.³¹ These biases could show up in new ways during Covid-19: For example, when judgmental comments are made about young children playing in the background on video calls; when co-workers assume, consciously or unconsciously, that women are less committed to their jobs; or when managers are evaluating women in performance reviews. Given managers and team members have less visibility into their colleagues’ day-to-day work, they may be more likely to make assumptions about their performance, and this increases the chance of bias creeping in.

To mitigate the biases that women are up against, companies need to make sure that employees are aware of them. Leaders and employees should publicly speak to the potentially outsized impact of bias during Covid-19. Bias training can also help. In the past year, just 1 in 4 employees have participated in unconscious bias training, and even employees who have participated in the past would benefit from a refresher. And finally, it’s important to track outcomes for promotions and raises by gender—as well as the breakdown of layoffs and furloughs by gender—to make sure women and men are being treated fairly.

Many companies have extended policies and programs to support employees during Covid-19, from offering more paid time off to providing resources for homeschooling. Companies should make sure employees are aware of the full range of benefits available to them. Right now, there’s a significant gap between what companies offer and what employees are aware of. For example, almost all companies offer mental health counseling, but only about half of employees know this benefit is available. The same trend holds for other valuable programs such as parenting resources, health checks, and bereavement counseling.

As organizations settle into this new normal, they should determine how effectively they are addressing employees’ biggest challenges and reallocate resources to the programs that are most valuable. Given how unprecedented this crisis is, they should also consider whether their benefits go far enough to support employees.

Open and frequent communication with employees is critical, especially in a crisis; when employees are surprised by decisions that impact their work, they are three times more likely to be unhappy in their job. Yet, 1 in 5 employees have consistently felt uninformed or in the dark during Covid-19. This suggests that companies should share more regular updates on the state of the business and key decisions that affect employees’ work and lives—and they should directly address what difficult news means for employees. It’s also critical that leaders and HR teams communicate with empathy, so employees feel valued and understood. Research shows that this kind of openness and understanding reduces anxiety and builds trust among employees.³²

Black women were already having a worse experience in the workplace than most other employees. Now they’re facing all the same challenges other women are—plus heightened challenges rooted in racism.

To better support Black women, companies need to take action in two critical areas.

Black women are significantly underrepresented at all levels of management. That’s an injustice—and it’s also a business problem. Diverse companies are more innovative and productive, so when Black women are held back by bias, it hurts everyone.³³

The first step to solving this is making an explicit commitment to advancing and supporting Black women and communicating it to employees, along with a clear explanation of why it’s important. Many employees don’t realize that Black women are having a markedly worse experience at work. But for six years, this study has shown this to be true: Compared with women of other races and ethnicities, Black women face more systemic barriers, receive less support from managers, and experience more acute discrimination. If employees understand this, they will be more likely to champion the Black women in their organization.

Then, to address the distinct experiences of Black women, companies should adopt an intersectional approach to their diversity efforts. Many corporate diversity efforts focus on either race or gender, which means women of color may end up being overlooked. In contrast, when companies set goals and track outcomes by gender and race combined, they can gain data-driven insights into the barriers Black women are facing and target specific interventions with recruiting, mentorship, and sponsorship.

Companies need to foster a culture in which Black women are fully valued and included. There are two equally important parts of this: making it clear that discriminatory behavior and microaggressions won’t be tolerated, and taking real steps to make sure Black women get the formal and informal support that other employees do.

Many companies have specific guidelines for conduct that is not acceptable, which is a good first step. But it’s also important to explain what positive, inclusive behavior looks like and celebrate examples of it in practice. Employees will be better equipped to do their part if they receive diversity and allyship training; this will give them a more complete understanding of how to combat racial discrimination and how to show up for Black women as allies.

Finally, it’s important to reflect on organizational customs, rituals, and norms to make sure they’re inclusive. For example, are Black women being included in informal gatherings? Are team events held in spaces where everyone is welcome and safe? Gathering input from Black women on what is and isn’t working for them is critical to this process—as is giving Black women a voice in shaping new company norms. The more that companies take into account the unique perspectives and experiences of different groups of employees, the more effectively they can create an inclusive culture.

The Covid-19 crisis has prompted companies to rethink fundamental beliefs about remote work. Ninety-three percent of companies now say more jobs can be performed remotely, and 67 percent predict a significant share of their employees will regularly work remotely in the future.³⁵ Employees see the benefits of remote work, too—almost 8 in 10 say they want to continue to work from home more often than they did before Covid-19.

This could be the beginning of a seismic shift in the way we work, with enormous implications. Companies will be able to hire anyone, from anywhere, as opposed to limiting their recruiting to specific regions. And they already anticipate these benefits: 70 percent think remote work will allow them to increase diversity in their hiring. Moreover, remote work will open up opportunities for existing employees—particularly mothers, caregivers, and people with disabilities. These employees will be able to take on jobs that previously would have required them to relocate, travel extensively, or manage a long commute.

Many companies have made employee mental health and well-being a much higher priority in the face of this crisis. Employees have more visibility than ever before into what’s going on in one another’s personal lives. And companies say that the crisis has created a feeling of solidarity and fostered empathy and understanding among employees.

Taken together, these dynamics point to an increased focus on supporting employees as “whole people.” And when employees feel like they can bring their whole selves to work, good things happen: They are happier with their job, more optimistic about their company’s commitment to gender and racial equality, and less likely to consider downshifting their career or leaving the workforce. They’re also more comfortable sharing challenges with managers and co-workers, which gives companies visibility to make changes that improve employees’ experiences. It’s a positive cycle: The more employees can bring their whole selves to work, the more the workplace will work for them and everyone.

Although women are broadly underrepresented in corporate America, the talent pipeline varies by industry. Some industries struggle to attract entry-level women (hardware, IT and telecom), while others fail to advance women into middle management (food manufacturing) or senior leadership (healthcare).