Analyzing Women’s Representation in the Workplace: A Strategic Perspective

Since 2015, McKinsey, in partnership with LeanIn.Org, has conducted annual original research on women’s participation in the formal workforce in the United States and Canada through the Women in the Workplace report series. This report extends that pioneering research to new countries—India, Nigeria, and Kenya—for the first time, addressing a major data gap and deepening our understanding of women’s representation in the formal sector in these critical markets.

Our analysis in this report is based on data from 324 organizations, which together employ about 1.4 million people across India, Nigeria, and Kenya. This research revealed that across these countries, women are far from achieving parity in representation and face systemic challenges that prevent them from reaching leadership roles at scale. However, the challenges they face differ across countries, indicating an opportunity for these countries to learn from each other—such as how to attract more women into entry-level positions or how to remove women’s barriers to promotion into management and senior leadership roles.

Below, we explore women’s representation across formal sector pipelines in each country and in specific sectors, the policies and practices that are affecting gender diversity, how the organizations are tracking progress and holding leaders to account, and some steps that could accelerate progress.

Women’s Representation in India

Women’s representation in India is low at the entry level and drops sharply at the move up to manager before somewhat leveling out

Obstacles for women’s workforce representation in India emerge early, at the entry level, with low recruitment, high attrition, and limited promotions. While women represent 48 percent of enrolled university students in India, they make up just 33 percent of entry-level workers and 24 percent of managers. Beyond the manager level, the decline in representation slows substantially, decreasing by an average of two percentage points per level. Although challenges persist as women move up, the effects are not as stark as those faced at the very start of women’s careers.

Women’s Representation in Nigeria

Low entry-level representation for women in Nigeria limits their representation at subsequent levels of seniority, though they maintain steady representation as they become more senior

Barriers to entering formal employment in Nigeria create a shallow pool of women candidates early on. Once women enter the workforce, their representation holds relatively steady, with little to no drop after the manager level. Yet C-suite representation remains low. Until entry-level barriers can be addressed, the narrow pipeline at the start means senior roles are likely to remain weighted toward men. Senior-level women in Nigeria also see greater fluidity in their careers than men; our data indicated that women are more likely to be promoted, but our analysis shows they are also more likely to leave their current roles and be hired laterally at other organizations, whether deterred by frustrations with their current role or lured away by attractive opportunities elsewhere.

Women’s Representation in Kenya

Women’s representation in Kenya follows a classic narrowing funnel in both the public and private sectors despite relatively high representation at the entry level

In Kenya, women start off relatively well-represented. However, as they move up to leadership roles, their representation declines. In the private sector, women encounter a “double dip” challenge: first, a broken rung hindering their progression into management, and then a second barrier to advancement into senior leadership roles. These dips diminish women’s representation in the talent pipeline, leaving the proportion of women in C-suite positions at only 28 percent. Meanwhile, in the public sector, women maintain stable representation at both entry and managerial levels, but their numbers decline as they climb the ladder.

Examining Systemic Barriers

Women’s representation trends across key sectors reveal divergence across the sectors and countries

Looking at three sectors reveals substantial differences in women’s representation patterns, indicating potential learnings that could be harnessed across sectors.

Financial services. The financial services sector across all three countries reveals a common trend of relatively high representation of women at entry levels but significant drop-offs at senior leadership. In India, women make up 31 percent at the entry level, but this decreases to just 13 percent in the C-suite. Nigeria and Kenya see even steeper drops, with 47 and 50 percent representation at the entry level in financial services and only 28 and 26 percent at senior levels, respectively. These findings suggest that systemic barriers prevent women from advancing, even in the financial services sector when there is strong representation early in the pipeline.

Policies and Practices

Policies and practices are correlated with better outcomes in women’s representation, but successfully implementing them is critical

Many organizations have taken initial steps to address the underrepresentation of women in the workplace by implementing multiple policies and practices focused on gender diversity. Notably, organizations with the lowest representation of women are most likely to lack comprehensive gender diversity policies, underscoring a correlational link between adoption of certain policies—categorized as “differentiator policies”—and better gender outcomes. The varied gender-diversity outcomes across organizations suggest that the mere presence of gender diversity policies is not enough; how effectively these policies are implemented may explain the variability in outcomes, underscoring the importance of execution.

Conclusion

In conclusion, the data from the Women in the Workplace report series highlights the significant challenges women face in achieving parity in leadership roles across India, Nigeria, and Kenya. By understanding the unique barriers in each country and sector, organizations can tailor their strategies to attract, retain, and promote women in the workforce. Implementing differentiator policies and holding leaders accountable for gender diversity outcomes are crucial steps towards creating a more equitable workplace for women. By addressing these challenges head-on and fostering a more inclusive environment, organizations can accelerate progress towards gender equity and drive meaningful change in the representation of women in leadership positions.

FAQ

Q: What are differentiator policies?

A: Differentiator policies are those that positively correlate with higher levels of representation and advancement of women in the workforce. Examples include mentorship and sponsorship programs, flexible work arrangements, and family and personal care policies.