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WOMEN IN THE
WORKPLACE
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
3McKinsey & CompanyMcKinsey & Company
THE CASE FOR
GENDER
DIVERSITY
Talent
Performance
Values
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

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Productivity in the engineering and construction industry has been stagnant for decades. The proliferation of digital solutions has made it difficult for users to develop a coherent strategy. Companies who are able to successfully navigate the new digital landscape are on the brink of a transformation that will see top performers reduce overall project costs by 20-45%. However, digital transformations require developing digital capability across all aspects of the organization. Therefore, each entity involved in the industry must understand its critical challenges in order to guide its path to increased digital capability.

citysmart citiessmart city works
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
5McKinsey & Company
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
6McKinsey & Company
… 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
7McKinsey & Company
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
8McKinsey & Company
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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federal governmenttechnology trendsfederal technology trends
9McKinsey & Company
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
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%
11McKinsey & Company11McKinsey & Company
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
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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13McKinsey & Company
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
14McKinsey & Company
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
15McKinsey & Company
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
15McKinsey & Company
Promotions
▪ Require an unbiased third party to
sit in on discussions
▪ Require diverse slates of candidates
16McKinsey & Company
Make senior leaders and
managers champions of diversity
Institute formal
practices
▪ Develop formal mentorship programs
▪ Hold leaders accountable for diversity
16McKinsey & Company
▪ 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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17McKinsey & Company
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
17McKinsey & Company
18McKinsey & Company
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
18McKinsey & Company
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
19McKinsey & Company
20McKinsey & Company
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

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21McKinsey & Company
THANK
YOU
To read our 2018
study go to
www.womenintheworkplace.com
21McKinsey & Company
22McKinsey & Company
megan_greenfield@mckinsey.com
Megan Greenfield
STAY CONNECTED & GET INVOLVED
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Changing the Trajectory: How Companies Can Lean In Too

  • 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 5McKinsey & Company 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
  • 6. 6McKinsey & Company … 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
  • 7. 7McKinsey & Company 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
  • 8. 8McKinsey & Company 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%
  • 9. 9McKinsey & Company 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%
  • 11. 11McKinsey & Company11McKinsey & Company 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
  • 13. 13McKinsey & Company 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
  • 14. 14McKinsey & Company 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
  • 15. 15McKinsey & Company 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 15McKinsey & Company Promotions ▪ Require an unbiased third party to sit in on discussions ▪ Require diverse slates of candidates
  • 16. 16McKinsey & Company Make senior leaders and managers champions of diversity Institute formal practices ▪ Develop formal mentorship programs ▪ Hold leaders accountable for diversity 16McKinsey & Company ▪ 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
  • 17. 17McKinsey & Company 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 17McKinsey & Company
  • 18. 18McKinsey & Company 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 18McKinsey & Company
  • 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 19McKinsey & Company
  • 20. 20McKinsey & Company 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 STAY CONNECTED & GET INVOLVED We are looking for more companies to participate!