Horizon Point Consulting

Author: Mary Ila Ward

  • 4 Reasons for the Gap in Women Leaders and 4 Things to do to Address It

    4 Reasons for the Gap in Women Leaders and 4 Things to do to Address It

    “You mean there has never been a girl President?” my almost ten-year-old son asks.   

    “No.”  I say. 

    “And there has never been a girl Vice President?” he inquires.  “Until now?” 

    “Yes.”  I say.

    “Well, Paigey could be either one day.”  

    And he turns his attention to something else.

    His matter-of-fact way of stating that his sister- or any girl for that matter- could be President or Vice President of the United States just makes sense to him.  In his frame of reference, there never having been one is what doesn’t.  

    But the realization that something just doesn’t make good sense, is different from understanding what causes it. And understanding causes and how they are all interrelated may begin to chart a different path forward. 

    I’ve been spending a lot of time lately, due to some work we are doing, delving into the research as to why there aren’t more women in leadership roles.  Some of it may make total sense and some of it may surprise you: 

    1. Cultural norms about gender roles:  From what a male and female’s role is inside and outside of the home, cultural norms play a role in explaining why women are not as prevalent in leadership roles.  This includes what research cites as a “masculine construction of management”, a trend of backlash in women working outside the home and parenting trends (see Celeste Headlee’s book Do Nothing for a fascinating summary on this), and norms on what fields of study are appropriate for women are all encompassed in this reason. Also related is the changing, yet still very real fact that in general, women spend more time than their husbands caregiving and on household chores. Part of these mindsets stem from very real biological differences and part of it is just learned norms, plain and simple. 

    In addition, there is a significant amount of research published relating to the norm or standards for how a woman, particularly a female leader, should behave.  Women have to walk a fine line of not being seen as too feminine or too masculine when it comes to leading, much more so than men.  

    2. Discrimination against women:  The fact that women leaders have to tread a finer line in standards or norms of behavior than men can extend into a hostile environment where women constantly have to prove themselves more than men do. Research in this arena also shows that in some cases, women are viewed as less competent than males simply because they are female, leading this to fall into the category of discrimination.  Issues with harassment lie in this category.  Sometimes this behavior is overt and sometimes it isn’t.  It is becoming less so. 

    3. Systematic issues:  Most noted in this category in the research literature is the fact that less developmental and fewer mentoring opportunities are given to women.  Many top leadership roles require, and rightly so, experience with what the research calls “line” roles, meaning operational roles where there is responsibility for P&L.  Women are less present in these types of roles.  Women are more prevalent in roles that are not line roles and in fields that do not track towards these types of roles or leading in them. 

    4. Women not having a desire to lead.  I have heard this one a lot.  I hear it more from men than I do women.  The research evidence points to the fact that the barriers or issues listed in the first three here are probably more of a cause in women not having a desire to lead and this is the effect.  Whether it is women experiencing more stressors in balancing the demands inside or outside the home, what they’ve been “taught” are roles that are acceptable or not acceptable, or constantly having to deal with the stress of proving themselves, women opt out of pursuing leadership roles. 

    Knowing some key issues may help us address them.  What can or should be done?:

    1. Modeling different norms.  My son seeming it bizarre that no woman has ever led the country he lives in may be because he sees girls leading all around him.  And seeing more men assume caregiving and household responsibilities impacts this as well.  Maybe his world view, and that of the peers of his generation- particularly of boys- finding it strange that there aren’t as many girls as boys in leadership roles, politics or otherwise, may be a leading factor in changing the trajectory of women in leadership.   You’ve got to see it to believe it is probably very true in this case. 

    2. Calling out double standard behavior and expectations.  Since most of the discrimination issues cited in research literature stem from women being treated differently than men based on behavioral expectations, the awareness of this will hopefully allow people to champion consistent expectations while recognizing the unique talents and skills, and personality that each person (regardless of gender) brings to the table.  When comments or decisions aren’t made in reflection of this awareness and recognition, then the behavior or decision should be called into question.  

    3. Providing focused and specific developmental and mentorship opportunities.  Specifically, women need to be put in roles where there is P&L responsibility and mentored by people who have these responsibilities. Companies that have clear plans and avenues for women to track into these opportunities will help breakdown systematic barriers by giving women the exposure and the experience needed for senior leadership. 

    4. Taking the focus off gender (or any other characteristics that separates for that matter).  This may seem surprising to see in a post that thus far has been all about gender differences in perceptions, reality, and outcomes, but at the end of the day, people need to be leaders because they are leaders.  Focusing on promoting individuals that have both the skill and will to lead, regardless of gender, by providing equal opportunities to gain the skills needed, and the removal of barriers limiting the desire to lead is imperative for all of us.  I owe this to my daughter, but I also equally owe it to my sons.  What should build up one needn’t need to tear down or penalize the other. Doing so penalizes us all in the long run.  

    For more information and further reading on this topic, including citations for various research summarized here, you might want to check out: 

    Women, Employment and Organizations

    Do Nothing

    Women and Men in Organizations: Sex and Gender Issues at Work 

    The Women’s Leadership Gap

    Like this post?  You may also like: 

    7 Things to Consider in Wage Fairness
    All the Hype on Equal Pay. My Short Opinion.
    Women, Stay in the Room!
    Are There Differences in What Women and Men State as Career Needs and Goals?

     

  • 3 Things Business Leaders Can (and Should) Do to Help Marginalized People

    3 Things Business Leaders Can (and Should) Do to Help Marginalized People

    This year, I have the opportunity to take part in Leadership Greater Hunstville. This program focuses on educating and equipping business leaders to also be community leaders through intense exposure to all facets of the community.

     “Human Services Day” took place this week.  It focuses on understanding the needs of the community and the not-for-profits that help meet these needs, many of which focus on helping marginalized people. The day began with a poverty simulation (CAPS), and we spent most of the afternoon hearing from a variety of not-for-profit entities in the community.  One of the not-for-profit leaders participating said that there are estimated to be between 1600-2000 not-for-profit organizations serving the community in just Madison County which currently has a population of around 375,000 people. 

    I was shocked by this number. I was also shocked at how little was said about business leaders/employers doing what employers should do best- employing people- to combat the systematic issues in the community that many of the not-for-profits we heard from sought to address.  It seemed like that focus was on the business community giving the nonprofits money and possibly volunteer hours.  What about providing meaningful employment and living wages? 

    I think business leaders can make one of the biggest impacts on marginalized individuals by focusing on employment and employability.  This should create a sustainable and far-reaching impact.  

    Here are three things to consider in doing so as seen through quotes of leaders that have spoken to us throughout the Leadership Huntsville experience: 

    1. “Get in the arena.” First, hire people on the margins. Whether it be someone with a physical or mental disability, someone with a criminal record, the single mom that has been living in generational poverty, or the veteran, etc. make an active effort to connect with these individuals and meet them where they are to offer employment. 
    2. “Breaking down barriers is the role of a leader”.  There are multiple barriers that prohibit marginalized people from getting employment and sustaining it.  The poverty simulation we participated in placed a large emphasis on the barriers of transportation and childcare.  My role in the poverty simulation was that of a 20-year-old mother of a one-year-old trying to go to college and work part-time.  Due to the fact that childcare for a week cost more than I could make part-time in a week, I was “forced” to leave my one-year-old with my nine-year-old brother in order to go to work and not have to pay for childcare.  In a world where I actually have a one-year-old son and nine-year-old son, I would never leave my nine-year-old to have to keep my one-year-old while I worked, but I don’t have to worry about earning enough money to feed them both.  What would you do? As business leaders, we need to think long and hard about how we can address these barriers and examine what role providing living wages plays in this. 
    3. “Think to ask. You need to know the story to lead.” Breaking down these barriers requires a knowledge of the barriers and understanding that, yes, sometimes poor choices have created those barriers, but also many barriers go well beyond issues of choice and behavior.  Provide compassion and empathy to those you employ and seek to employ by asking what challenges they face and why. Then help connect and provide resources to address the issues.   Sometimes the help to address the issues is simply an understanding of the issue.  I’d encourage all business leaders to find a way to connect with someone who is a part of the marginalized population and spend regular (weekly) time with them one-on-one.  You’ll learn a lot and grow a lot as a leader. 

    As the founder of Manna House told us to kick off the day, “God didn’t ask me to quit this to do that,” speaking of her experience to continue to work full-time as a government contractor and open Manna House to help address food vulnerability in the community.   Her story was impactful.  My hope is business leaders realize they don’t have to quit their day job to impact the most pressing issues in our community.  In fact, their day job is probably the best way to address them through an effort to hire and retain people on the margins, providing meaningful work and living wages.   I would dare to say we’d need a lot fewer non-profits and a lot less government programs if we all did this. 

     

    How are you making an impact through your business leadership? 

  • Are There Differences in What Women and Men State as Career Needs and Goals?

    Are There Differences in What Women and Men State as Career Needs and Goals?

    “Grow in my current role.”& “Personal growth.” 

    “Financial security.” & “Growth in earnings.”

    These are two sets of responses gathered working with our clients and with Horizon Point and MatchFIT team members when posing the question, “What do you want out of your career?” as a part of our Leaders as Career Agents Process. 

    Which pair do you think came from men and which one do you think came from women?   

    Although not a scientific study, I have seen over and over again how the majority of men focus on the financial aspects of career growth and plans whereas women focus on getting intrinsic satisfaction from that growth.   Both men and women cite impact and influence on others in career growth fairly equally as I’ve seen it.

    There are a million reasons that play into these differences and similarities I would venture to guess, but I think the reality of this is important. 

    If you are a leader facilitating some type of solicitation of this type of information, I would encourage you to help balance these discussions if they are weighted more heavily towards financial or personal growth needs by asking open-ended questions like:

    • Tell me what your thoughts are on your current compensation and where you’d like to see yourself move throughout your career in terms of pay and rewards?
    • Tell me about your personal growth and learning goals?  What would you like to be exposed to? Who would you like to learn from and what would you like to learn?
    • How do you see yourself giving back to the organization and others throughout your career? 

    Finally, as a leader, take ownership in helping people understand what they are worth and driving them towards the learning and development that helps them reach their financial needs and desires.  Engage in helping people feel comfortable talking about both. 

    What differences have you seen, if any, between what women and men state as career needs? 



  • 7 Things to Consider in Wage Fairness

    7 Things to Consider in Wage Fairness

    Pay disparity has long been a topic, most notably with discrepancies in pay between women and minority groups.   The #metoo movement and #blacklivesmatter movements have brought this issue even further to the forefront.   And rightly so. 

    Payscale published its annual Gender Pay Gap Report in March, stating that, “Since we have started tracking the gender pay gap, the difference between the earnings of women and men has shrunk, but only by an incremental amount each year. There remains a disparity in how men and women are paid, even when all compensable factors are controlled, meaning that women are still being paid less than men due to no attributable reason other than gender. As our data will show, the gender pay gap is wider for women of color, women in executive-level roles, women in certain occupations and industries, and in some US states.” 

    The report is definitely worth a deep dive to read if you have a chance.  

    If your organization is concerned about pay disparity, what should you do? It starts with considering all the factors that go into determining pay:

    1. Consider what your organization values.  What creates value for your organization by creating a competitive advantage?  These are compensable factors.   As another Payscale report states, “It’s also perfectly reasonable to pay people in the same position differently as long as the compensable factors are justified and aligned with legal requirements.” 

    2. Consider time.  Years of experience overall and tenure with the organization are important factors that affect pay. 

    3. Consider performance.   Performance can and should affect pay.  Make sure you have a documented and systematic way of measuring performance that can justify and backup pay differences. 

    Examine your wage data.

    4. Conduct a pay equity analysis.   A professional in the field can help you conduct regression analysis to see what factors are contributing to pay disparities if any, and if these factors are based on protected classes and/or on factors mentioned above like years of experience, compensable factors, etc. 

    5. Get your legal team involved.  I know, I know, I hate to call the attorney too unless it is absolutely necessary, but it is necessary here.  This can help you do a pay equity analysis under attorney-client privilege, and based on what you discover, help you chart the right path forward. 

    Finally, consider ways you can help to combat systemic issues with pay disparity: 

    6. Consider policies and “norms” that impact gender or other demographic factors like race differently.  A documented reason for macro gender pay disparity issues is tied to women leaving the workforce altogether or seeking more flexible work opportunities to raise children.   Considering how your organization can retain female talent during child-rearing years is an important consideration for individual organizations and for the entire economy on a macro level. 

    7. Teach advocating and negotiation skills to women and minority groups.  I personally believe one of the reasons women and some members are of minority groups are paid less is because they don’t ask for what they are worth.  There is evidence to support this (and there is evidence that contradicts it).  Helping people understand the market for their skills and experience and giving them the confidence to stand for what they are worth and ask for it is empowerment at its finest.  I’ve found that many people just don’t know what they don’t know when it comes to the knowledge and skills needed to advocate and negotiate, so they just don’t.  Over a lifetime, this could mean a substantial difference in lifetime earnings. 

    Are you concerned about pay fairness and pay disparity at your organization?

  • 8 Steps to Take if Your Compensation is Out of Line with the Market

    8 Steps to Take if Your Compensation is Out of Line with the Market

    2020 has been a year of polar opposite reports about compensation from our clients.  Some have implemented hiring and pay freezes, even laid people off, while others have more business than they know what to do with and are concerned they are losing people because their wages are not competitive with the market.  

    So, what do you do if you are concerned about the market competitiveness of your wages?

      1. First, decide if you haven’t already, what your wage strategy is. Do you want/need to lead, lag, or meet the market?  Knowing your destination before you take the journey is important.  Several things weigh into this such are your budget, margins, industry, location, culture, and overall philosophy on compensation.  There is no right or wrong answer, but the key thought in all this should be what creates a competitive advantage for your organization. 
      2. Pull market data.  Here is some information on sources for data.   Not listed in this post as a source that we like to use now is Economic Research Institute (ERI)’s Salary Assessor.  One of the things we like about ERI data is you can pull it by level (1,2,3)  and by job title, which can help you hone in on comparing apples to apples with your organization’s wages.  We suggest utilizing multiple sources. 
      3. Based on your strategy, determine what is most important for you to focus on looking at the market data. If your strategy is to lag the market, look at the 25th percentile of market data as a benchmark. If your strategy is to meet the market, look at the midpoint (50th percentile) and an average of the data, and if your strategy is to lead the market, look at the 75th percentile of the market data for benchmarking. 
      4. Ask yourself: Are you out of line with the market and your strategy? 
      5. If you are below the market and your overall goal, consider how you can best bring your wages up and within the range of your market data.  This could be a one-time salary increase for certain or all positions, a percentage increase across the board in your pay ranges/salary structure, or consideration of a variable pay system that includes other forms of compensation than base pay to bring your overall compensation in line with the market.  Variable pay structures can help you bring in other considerations for payout like your overall profitability. 
      6. Consider non-monetary rewards that align with your company’s culture and philosophy.  Based on research, flexibility may be more valuable to people than monetary rewards.  Can you implement more flexible work policies that combat recruiting and retention issues because of less than average wages? 
      7. If wages are out of line with the market and your organization can’t meet the market in a way that aligns with your strategy in one overall step or change,  consider a phased-in increase to your overall salary ranges across a set period of time like every six months or every year. This can be a way to move your overall comp strategy (not just a position here or there) to get to where you need to be. 
      8. Evaluate your wages against the market more often.  The organizations we see with the most trouble with their wages not meeting the market are ones that have gone five years or more without comparing their salary and structure to the market.  The more you lag behind, the harder and harder it becomes to catch up.  We suggest looking at overall compensation structure adjustments every two to three years unless there are large fluctuations in the market in a short period of time.  You should look at individual wages for specific jobs more often, every year or so, especially if you are experiencing retention and or recruitment issues. 

     

     

    Do you need to take a look at your wage competitiveness?