Report overview presented by Megan Greenfield of McKinsey.

1. WOMEN IN THE
WORKPLACE

2. 2McKinsey & Company
Women in the Workplace 2018
279
13M
64,000
Participating companies
Employees in participating
companies
Employees surveyed on their
workplace experiences
Key figures What’s new this year
Larger dataset
New questions on trainings, the
“only person in the room”
experience, microaggressions,
sexual harassment and
sponsorship
Longitudinal analysis for past
participants

3. 3McKinsey & CompanyMcKinsey & Company
THE CASE FOR
GENDER
DIVERSITY
Talent
Performance
Values

4. 4McKinsey & Company
SOURCE: Institute for Women’s Research “The Gender Wage Gap: 2015”; Federal Reserve Bank of New York “Gender and Dynamic Agency: Theory and Evidence on the Compensation of Top Executives”
$
Impact on executive compensation
of 1% INCREASE in firm value
Impact on executive compensation
of 1% DECREASE in firm value
+13%
+44%
-63%
-33%
Women make
20% less than men … … and are differentially impacted by changes in firm value
Values
MenWomen
Meritocracy is important but not yet achieved

5. 5McKinsey & Company
SOURCE: National Center for Education Statistics, Table 318.10
2018 McKinsey and LeanIn.Org Women in the Workplace study
Talent
Winning the war for talent requires
winning the war for women
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College graduates
43%57%
Entry-level jobs
52%48%
If you and I are picking
teams, and you choose
among white men and I get
to select from everyone,
I guarantee you I will have
the better team.
Jamie Dimon
CEO, JP Morgan Chase

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… more likely to outperform1
Gender diverse companies are …
15%
Ethnically diverse companies are …
35%
… more likely to outperform1
Performance
Diverse companies
outperform
SOURCE: McKinsey “Diversity Matters” (2015)
1 Outperform is defined as performance above the national industry
medium based on composite data for all countries in the data set
6McKinsey & Company

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The corporate pipeline is leaky…and women
of color face the steepest drop off1
SOURCE: 2018 McKinsey and LeanIn.Org Women in the Workplace study
1 Women in workplace 2018 study includes 279 companies and is North America focused
% of employees by level in 2018
68%
9%
19%
4%
67%
9%
19%
4%
59%
12%
24%
6%
52%
13%
26%
8%
46%
16%
27%
12%
17%
16%
31%
16%
31%
36%
38% 34% 29% 23% 22%48%
C-suiteSVPVP
Sr. Manager/
Director
ManagerEntry level
White men
Men of color
White women
Women of color
2018 Pipeline
% women

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Why employees plan to leave
SOURCE: 2018 McKinsey and LeanIn.Org Women in the Workplace study
Attrition is not the problem
Most employees plan to stay at their company
or remain in the workforce
% of employees who plan to stay at or leave their
company
81% of
women who
plan to leave
their
company in
the next two
years intend
to stay in the
workforce.
MenWomen
Taking a role at
another
company
Leaving the
workforce to
focus on family
82%
81%
0%
2%
Planning
to stay
Planning
to leave
45%
47%
53%
55%

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A key driver is women falling behind early –
the first promotions are the most inequitable
SOURCE: 2018 McKinsey and LeanIn.Org Women in the Workplace study
Women are
21%
less likely
than men to
be promoted
to manager
Black women are
particularly
disadvantaged
40%
less likely
than men to be
promoted to manager
Men
White women
Black women

10. 10McKinsey & Company
In 10 years, women’s
representation among
managers could change by…
+10%
At current rates
of hiring and
promotion
At equal rates
of hiring and
promotion
+1%

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Women are as ambitious as men …
Over 70% of men and women want to be promoted
Women ask for promotions and raises at the same rates as me
But they face a more challenging work environment …
64% of women experience microaggressions on a daily basis
35% of women experience sexual harassment, 55% for senior women
And receive less support in the workplace …
Women are less likely to have managers showcase
their work and help them navigate organizational politics
Consequently, they see the workplace
as less fair…
29% of women think their gender will make it
harder for them to get ahead

12. 12McKinsey & Company
SOURCE: 2018 McKinsey and LeanIn.Org Women in the Workplace study
But nearly 45%of men think women are
well represented in leadership
Remarkably 28% of women agree
Even more problematic, many men don’t think
there’s an issue
Only one in ten senior leaders is
a woman

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Offer
employees the
flexibility to fit
work into their
lives
Make senior
leaders and
managers
champions of
diversity
Make the
“Only”
experience
rare
Foster an
inclusive and
respectful
culture
Ensure that
hiring and
promotions
are fair
Get the basics
right—targets,
reporting, and
accountability
Guidelines to
implement
change

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Develop a
case
▪ Articulate a business case for diversity to employees
▪ Quantify the impact of diversity
Get leaders
on board
▪ Ensure gender diversity is a priority for senior leaders
▪ Hold senior leaders accountable for progress on diversity metrics
How to get the basics
right—targets, reporting,
and accountability
Track
metrics
▪ Track representation at each level by gender and race
▪ Track diversity metrics of external hire candidates

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Ensure that hiring and
promotions are fair
Hiring
▪ Use automated, unbiased resume screening
▪ Have diverse interview panels
Reviews
▪ Set consistent evaluation criteria
▪ Require unconscious bias training for
employees involved
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Promotions
▪ Require an unbiased third party to
sit in on discussions
▪ Require diverse slates of candidates

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Make senior leaders and
managers champions of diversity
Institute formal
practices
▪ Develop formal mentorship programs
▪ Hold leaders accountable for diversity
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▪ Offer trainings on how to lead diverse teams
▪ Require leaders to undergo unconscious
bias trainings
Train leaders
Choose diversity
champions
▪ Encourage managers to challenge bias
▪ Involve leaders in shaping diversity and
inclusion strategy

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Foster an inclusive and
respectful culture
Implement
policies
▪ Develop guidelines and policies for what
collegial and respectful behavior looks like
▪ Make employees aware of existing policies
Create a
respectful work
culture
▪ Empower managers to address
disrespectful behavior immediately
▪ Encourage a candid, open
dialogue on diversity issues
Develop
inclusive
structures
▪ Ensure a diversity of voices are
represented in decision-making
▪ Take a critical look at company
and team norms for inclusivity
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Make the “Only” experience rare”
Hiring &
promotions
Work
organization
Networks
▪ Hire and promote women in cohorts
▪ Cluster women on teams – but think
deeply about which functions
▪ Create opportunities for women to
work with other women
▪ Create opportunities for women
Onlys to connect with other women
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19. 19McKinsey & Company
Offer employees the flexibility
to fit work into their lives
Offer flexible
work policies
▪ De-risk participation in flex programs
▪ Give employees the ability to work part time
Focus on
parents
▪ Offer on-site childcare to help working parents
▪ Offer subsidies for child care services
Make it easy
for women to
come back
▪ Offer extended parental leave
▪ Institute programs to smooth the
transition to and from leave
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More men committed
to gender diversity
Faster promotion rate of
women across the pipeline
More women in C-suite,
SVP and VP levels
More women
as managers
5x 2x 80% 15%
1 Results based on top performing vs. bottom-performing companies
SOURCE: 2017 McKinsey and LeanIn.Org Women in the Workplace study
Top performers are seeing results1

21. 21McKinsey & Company
THANK
YOU
To read our 2018
study go to
www.womenintheworkplace.com
21McKinsey & Company

22. 22McKinsey & Company
megan_greenfield@mckinsey.com
Megan Greenfield
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