11 July 2008
Only 20% of executive committee members are female
"Women in management ranks don’t have a role model," says industry figure.
The number of women and minorities who hold C-suite positions worldwide is significantly low, according to a recent survey by IMD International Search and Consulting, an international executive search firm.
13% said they believe the number of minorities in executive positions will increase during the next 3 years.
Talent acquisition concerns
The survey – The Changing Face at the Top – reveals that while 78% of respondents said diversity is an important strategy, only 13% said they believe the number of minorities in executive positions will increase during the next 3 years.
Nearly half of the 400 respondents, made up of senior HR executives from 24 countries around the world, reported no females at all in C-suite positions (chairpersons, CEOs and members of the executive team).
Ethnic minority representations
Approximately 20% of C-Suite executives are a different nationality than the country in which
their headquarters are based. However, less than 10% (9.2% of CEOs, 9.9% of
CFOs and 8.1% of COOs) are of an ethnic minority.
However, 26.4% believe the C-Suite will increase the number of foreign nationalities represented on their management team, indicating continuing globalization of business across all regions.
Warning signs for women
"Despite reports that women are breaking through the ‘glass
ceiling,’ it appears that the ceiling is just ‘slightly cracked’ rather than broken," said Sherilyn Shackell, CEO of Highfield Human Solutions and an IMD International board director.
"With C-Suite turnover still alarmingly high and shareholder scrutiny driving some of the most significant and impactful changes in the past several decades, the survey numbers show that only 6.8% of CEOs are women, while 9.9% and 10.9% have risen to CFO and COO respectively. Unfortunately, these numbers do not bode well for the advancement of women into the C-Suite,” Shackell said.
Drive an open decision-making process
“A broader pool of both women and
diverse executives in the C-Suite will enhance diversity in perspective and drive a more open decision-making process, therefore giving companies a competitive advantage," said Thomas Fuller (pictured), general managing partner of Epsen Fuller/IMD International Search Group.
"Those organizations that nurture diversity of thought and ideas being exchanged in a workplace will be more connected to the rapidly changing global marketplace, better able to adapt to the speed of those changes, and more able to compete and win in an increasingly competitive and diverse global market," Fuller continued.
Where will tomorrow's leaders come from?
“The oldest of the massive baby boomer
generation are set to reach their traditional retirement age in the year 2011. Generations X and Y are not
as plentiful, with most governmental and labor board statistics showing an upcoming 40% shortfall
in workforce numbers across all developed nations," said Albert Hiribarrondo, managing partner
of Sirca/IMD in France and chairman of the IMD International board.
So, where, asks Hiribarrondo, will tomorrow’s leaders come from? "Today’s management boards must change and adapt to position their organizations to meet this talent shortfall and maintain a competitive advantage,” he says.
Establish a strong employer brand
"Companies must develop a strong employment brand by maintaining a reputation as an employer that nurtures and encourages women and minorities to progress into C-suite positions," Fuller told the Diversity Executive June e-newsletter.
Women in management ranks don’t have a role model, someone they can go to when they have a situation.
Fuller summarizes the factors that contribute to the lack of representation of women, in particular, in top roles.
- Work-life and parenting choices of women during the past few decades. "In the US, it was popular for women of the baby-boomer generation to wrestle with child-bearing and child-rearing issues, typically taking a 3- to 10-year sabbatical from their careers," said Fuller.
While these women were successful at being reintroduced into the workforce, their male counterparts had been advancing through the organization, making it difficult for women to catch up and gain C-suite positions, according to Fuller. - A far greater number of male baby boomers sought advanced degrees compared to females, though this trend is changing with generations X and Y, Fuller said.
- A lack of female mentors in executive positions could also be contributing to the trend. “Women in management ranks don’t have a role model, someone they can go to when they have a situation to ask how they can handle it,” Fuller said.
Overlooking obvious candidates?
Fuller went on to pose a valid question: “If talent acquisition is so hard, why aren’t [companies] developing a previously untapped talent pool — the pool of women and minorities?”
Indeed, this trend could pose problems for communicators. Companies could face the problem of sending mixed messages to employees.
For example, if a company in all other ways portrays and promotes a progressive, forward-thinking company, but only has men in the top positions, will this be deemed purely coincidence? Perhaps high-profile recruitment campaigns targeting women and minorities might help the situation.
Have your say
Do you agree with Fuller that women lack senior female role models within their organizations? And can you answer Fuller's question about why companies aren't taking advantage of the currently untapped talent pool?
Tell us of your experiences and discuss these issues with other comms practitioners by joining the Internal Comms Hub members' group on the Communicators' Network.
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Communicating a diversity initiative at Lehman Brothers
Communicating during economic downturn: Melcrum report
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