ADP Case Study - Bersin by Deloitte

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“Why Women Don't Make It Up The Ladder,” Forbes / Orit Gadliesh and Julie Coffman, February 16, 2010, www.forbes.com
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Women in Leadership Today Overperforming but Often Undervalued Women have made great headway in today’s world, but inequality still prevails. While recent research shows that the presence of female leaders is strongly linked to better financial outcomes1, 2, women are still underrepresented both in the boardroom and in senior leadership roles. The gender disparity is not insignificant. One study of more than 21,980 firms headquartered in 91 countries found that about 60 percent of these companies had no female board members, more than half had no female C-suite executive, and less than 5 percent had a female CEO.3 A 2016 ranking of the world’s 100 bestperforming CEOs listed only two women.4

Understanding the Root Cause Gender inequality is a complex mosaic, and it’s not easy to pinpoint what factors are truly involved. Societal issues and gender norms (such as women taking time off from their careers to raise children) are not the only elements at play. Equally challenging is that many organizations fail to provide an environment where female leaders feel supported in their efforts to attain and succeed in senior leadership roles. Two particular characteristics of workplace culture seem to support this analysis: • Lack of support leading to decreases in women’s confidence5 • Lack of attainable leadership career paths for women6 While a variety of causes likely fuels the lack of women in leadership positions, our own research points out that many organizations have room to improve their support of women in the workforce in general. Further, organizations should “step up their game” to support women who aspire to higher leadership positions by building cultures in which female leaders can succeed.

Breaking Gender Stereotypes: Creating a New Culture Our recent research on High-Impact Diversity and Inclusion7 and High-Impact Leadership8 both hint at a common theme: Successful companies (as measured by superior business and talent outcomes) typically look beyond programs and instead address gender disparities by creating a culture and context of inclusion that fosters diversity and drives and encourages leadership opportunities for women.9 Interestingly, companies with the strongest cultures of leadership growth also tend to demonstrate the highest degree of gender diversity—mature organizations report significantly higher levels of gender diversity than their less mature counterparts. This leads us to believe that their approach to creating a culture in which all employees can thrive also helps to foster an inclusive mind-set, which can in turn lead to increased gender parity.

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“Women in S&P 500 Companies,” Catalyst.org, February 16, 2017, www.catalyst.org/knowledge/women-sp-500-companies. Is Gender Diversity Profitable? Evidence from a Global Survey, Peterson Institute for International Economics / Marcus Noland, Tyler Moran, and Barbara Kotschwar,

February 2016, https://piie.com/system/files/documents/wp16-3.pdf. 3 “Women in S&P 500 Companies,” Catalyst.org, February 16, 2017, www.catalyst.org/knowledge/women-sp-500-companies. 4 Ibid. 5 “Everyday Moments of Truth: Frontline Managers Are Key to Women’s Career Aspirations,” Bain.com / Julie Coffman and Bill Neuenfeldt, June 17, 2014, www.bain.com/publications/articles/everyday-moments-of-truth.aspx. 6 “Why Women Don’t Make It Up The Ladder,” Forbes / Orit Gadliesh and Julie Coffman, February 16, 2010, www.forbes.com/2010/02/16/women-glass-ceilingleadership-managing-bain.html. 7 High-Impact Diversity and Inclusion research, Bersin by Deloitte, 2017. 8 High-Impact Leadership: The New Leadership Maturity Model, Bersin by Deloitte / Andrea Derler, PhD, 2016. 9 Ibid.

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Our research reveals that organizational culture10 is the most important driver of leadership development, impacting business and talent outcomes more strongly than any other measured factor.11 Specifically, we found that organizational culture is critical for designing a climate of learning and mutual support. This is because values that employees hold dear and act upon throughout the organization are more powerful than formal training programs. In short, leading companies not only financial, business, and leadership Overperforming butachieve Oftensuperior Undervalued outcomes12 but also tend to have the highest levels of overall workforce diversity, most notably of women.

Women have made great headway in today’s world, but inequality still prevails. While recent research shows that theWomen presencein of Leadership female leadersRoles is strongly linked to better financial outcomes1, 2, women Supporting are still underrepresented both in the boardroom and in senior leadership roles. The gender disparity Our new research in Addressing Female Leader Paradox: Practices forinBuilding a Supportive is not insignificant. One study the of more than 21,980 firms Four headquartered 91 countries found Culture that describes four key practices organizations can adopt to help foster a culture that supports female employees about 60 percent of these companies had no female board members, more than half had no female throughout their career journeys (see Figure 1).  C-suite executive, and less than 5 percent had a female CEO.3 A 2016 ranking of the world’s 100 bestperforming CEOs listed only two women.4

Figure 1: Four Practices That Help to Support Women in Leadership Roles 1. TEACH Provide resources that teach employees how to handle diversity, conflict, and bias.

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2. LISTEN & ABSORB Create a two-way dialogue with female employees to understand their career concerns and desires.

Supporting Female Leaders 3. TAKE ACTION Proactively take responsibility for the creation of an inclusive culture.

4. MEASURE Be transparent about and hold leaders accountable for D&I goals. Source: Bersin by Deloitte, 2017.

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We define “culture” as the collective set of organizational values, conventions, processes, and practices that influence and encourage both individuals and the

collective organization to continuously increase knowledge, competence, and performance. 11 High-Impact Leadership: The New Leadership Maturity Model, Bersin by Deloitte / Andrea Derler, PhD, 2016. 12 Ibid.

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About Bersin by Deloitte Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations deliver exceptional business performance. The Bersin by Deloitte membership gives Fortune 1000 and Global 2000 HR professionals the information, action-focused tools and performance support materials they need to prioritize, design and implement leading practice solutions, benchmark against others, develop their staff, and select and implement systems. A piece of Bersin by Deloitte research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent, and learning strategies. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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