Perception and reality can differ – especially when it comes to the progress women are making in the workforce. Many companies are advancing opportunities and initiatives to ensure women are represented, but studies are confirming that most are still far from reaching parity.

To dig deeper into these disparities, the IBM Institute for Business Value, which conducts a global survey every other year, assessed the opportunities and barriers for women’s advancement at work. For 2023, the third survey in the series, 2,500 organizations across 10 industries and 12 countries participated.

In 2019, the report confirmed that women remained significantly under-represented in leadership positions at work. As the following study launched in 2021, many communities were emerging from lockdowns brought on by the pandemic. During the months that followed, record numbers of women left the workplace, with the mental, physical and emotional loads taking a toll. Now with the results of the 2023 survey, greater emphasis has been placed on ensuring women have the support and programs they need to solidify their positions in the workforce.

Work/life balance initiatives

The percentage of organizations supporting key work/life balance initiatives for employees has grown since 2019. When it comes to promoting work/life balance, the percentage of companies offering flexible work hours grew from 48% in 2019 to 59% in 2023. Companies also incorporated more support for employees to re-enter the workforce after an extended leave: only 18% adopted these types of programs in 2019, but 63% made them available in 2023.

This attention on women in the workplace has extrapolated itself and reinforced positive initiatives when it comes to advancement. Today, 61% of organizations have established formal networking groups for women, compared to just 46% two years ago. More businesses are also offering career development planning geared toward women (78% today versus 56% in 2021). And 65% of organizations are requiring diversity training for managers that includes gender topics, compared to 52% in 2021 and just 28% in 2019.

Representation

When it comes to taking bolder steps towards representation, the amount of companies championing gender equality initiatives has been increasing. Nearly three-quarters of companies (74%) reported that all job succession plans must include women candidates (up from 55% in 2019), and 69% said that they’ve created meaningful internships or entry level positions in areas where women are underrepresented (up from 55% in 2019). Sixty-eight percent of companies said that senior management is held accountable for gender equity with clear performance metrics, and the same percentage said that workforce planning targets were set to include equal representation at all levels and roles.

Compared to 2019, the perception of women in leadership positions has changed too. According to men who were polled, 54% believed women have an equal shot at becoming CEO (compared to 31% in 2019).

In a rapid change of confidence, the gap in when respondents’ believe gender parity will be achieved has reduced drastically. Four years ago, respondents said it would take more than 50 years before their industry would see equal representation of women in leadership roles. In 2023, respondents are decidedly more upbeat, estimating that parity is possible in just a decade. This 44 year decline reveals that respondents believe gender parity is solvable not for future generations, but for this one.

Women in leadership

The numbers show women in leadership roles still has a way to go – although there is good news: Finally, in 2023, there are more women in the C-suite and sitting on executive boards. Representation has inched up to 12% for both. While these are incremental changes and parity is still far off, the signal for positive momentum is encouraging.

Executive roles are also slowly becoming more racially and ethnically diverse, even as representation lags. The percentage of women serving on boards and in the C-suite who identify as a minority increased by three percentage points, from 6% in 2021 to 9% today, and the role of senior vice president also bumped three percentage points, from 7% to 10%. The other bright spot for women in 2023 is at the start of the leadership pipeline, such as junior professionals and specialists. After a small decrease of women in 2021, this role has surpassed 2019’s numbers, and today, 40% are women, making it by far the role closest to gender parity.

Unfortunately, the report also reveals that not enough of these skilled, early-career professional women are making it to the next level. This year’s findings saw the largest drop in percentage of women from junior professional to senior professional (10 percentage points), creating a hollowing out of women in middle management.

Since 2019, the decline has been profound, affecting nearly all mid-level leadership tiers. This year’s report shows a slight uptick from 2021’s pandemic-driven fall of female senior vice presidents, vice presidents and directors – the roles that act as feeders for the C-suite and executive boards. This signals a disconnect between the advancement that organizations claim to make when it comes to women in leadership, versus what the facts reveal.

There is even more stagnation in senior professional and non-executive managerial positions, where the percentage of women hasn’t changed since the pandemic. For senior managers, that number has even declined somewhat.

Another factor that could be contributing to the middle-management dip is the perception of familial responsibilities. When asked if women with dependent children are as dedicated to their jobs as women without children, the majority of respondents said yes – except for male managers – only about 40% agreed. Considering that these employees may be overlooked for promotion if they’re simultaneously starting families early in their career, that doubt can be enough for management to select a different candidate. Equally concerning, when asked if women are as effective at supervising as men, a similar pattern emerged: Male managers are the outliers, with fewer than half (48%) saying their leadership believes this is true for their organization. These results show the need for more training when it comes to identifying unconscious bias.

First movers

The report also defines what it calls “First Movers,” which is comprised of companies that have made the advancement of women a top business priority. These companies view gender inclusivity as a driver of financial performance and believe that businesses need to continue making changes if they are to achieve gender parity. The report follows these First Movers to determine how they stack up against others that aren’t making such dedicated changes.

Not only do First Movers have more women in leadership roles, they also show better financial performance. Compared to other organizations in the study, First Movers reported 19% higher revenue growth over the past two years – even factoring in the economic downturn brought on by the pandemic. And, First Movers still outdistance others in many important performance measures related to the workplace, such as higher employee retention rates, a more diverse workforce overall and increased childcare and leave benefits. While First Movers have yet to see gender parity across all roles, in 2023, they reported 2% more women than others in the sample for the most senior positions.

Even though the data confirms that gender equity can be a performance enhancer, some organizations are dragging their feet to make change – a decision that can lead to eroding progress and larger gaps in parity. In just the next 12 months, as many as 30% of women said they planned to actively seek a new job, while 30% expect to leave their jobs temporarily to care for family. Nearly as many, 27%, anticipate having to resign for physical or mental health reasons. Almost a quarter, 24%, reported that they plan to leave the workforce permanently.

The report also showed what women value when selecting an employer. Almost half of women would take up to a 10% salary cut for a job that offered any one of these advantages: More supportive management, more flexible work locations, a stronger environmental, social and governance (ESG) profile, better daycare or care facilities for children, and more flexible work schedules.