In training sessions when I ask participants why they think women leave companies at higher rates than men, the most common answer is for family reasons. Actually, while that may be the main reason, it is not the only top reason. For example, the number one reason women in science and engineering fields (STEM) leave is due to hostile work environment. In all fields the top reason that women leave is lack of flexibility and a very close second is “my contributions not being recognized.”
The rate women leaving the corporate world has tripled over the past 30 years. Forty-three percent of women are leaving careers or off-ramping for a period of time. In 1990, the United States enjoyed one of the top employment rates in the world for women, but it has now fallen behind many European countries. The percentage of women in the American work force peaked in 1999, at 74 percent for women between 25 and 54. It now stands at 69 percent.
Major Reasons Women Leave Corporate Jobs
Lack of flexibility and family-friendly policies are key challenges, especially in US based organizations. Recently Netflix announced that it would give up to one year of leave for both men and women for family considerations, but most companies are not so generous. Some European countries seem to be far ahead of the US in this regard and statistics show that they are able to retain more of their female talent. Switzerland, Australia, Germany and France now outpace the United States in working age women’s labor force participation, as do Canada and Japan. Family-friendly policies have continued to expand and evolve in Europe, including subsidized child care, generous parental leaves and taxation of individuals instead of families, which encourages women’s employment.
It is not that women do not want to still be engaged in the workforce after they have children as is evidenced by the rate at which women start their own businesses. On average women start 4.9 businesses and men 4.3 businesses. Women are more apt to start their own businesses because of the flexibility and also because they feel that they can better achieve their goals outside of the large corporate structures.
The loss of female talent has significant ramifications for global competitiveness and economic progress.
So what is the inclusion solution?
- Companies, especially US based enterprises, need to benchmark family-friendly policies in other countries and develop structures that work for both men and women.
- Earnestly address pay inequities. Women continue to lag in pay compared to men in comparable jobs. We need to once and for all correct this issue.
- Get more creative on flexible policies and practices. I still hear too often that managers are reluctant to embrace work and home arrangements and flexible hours. Studies show that people who work from home are actually more productive.
Pay attention to the unconscious and conscious bias that women face in the workplace. Continue to train managers in the subtle ways in which women are excluded, dismissed and marginalized. Reward leaders who consistently demonstrate inclusive practices.
