The Opt-Out Conversation Grows More Complex

iStock_000017262943XSmallBy Melissa J. Anderson (New York City)

Proponents of the opt-out phenomenon suggest that the dearth of women at the top of corporations is due to women leaving the workforce in favor of personal or family responsibilities. But economic studies have been unable to show any statistically significant evidence of opting out. To this point, opting out has been more of a rumor or an anecdote.

But new Vanderbilt research has identified a subset of women that is more likely to leave the workforce. According to the new study, women who graduated from elite universities are more likely to opt out than college educated women whose universities were not in the top tier. Author Joni Hersch, Professor of Law and Economics at Vanderbilt Law School, explained that she was initially surprised at the findings.

“More than anything, the reason I could detect statistical significance is because the effect was so strong. It was surprising that it was so strong, and it cut across degree levels.” In fact, it was strongest in women with MBAs.

Hersch analyzed an enormous sample – the 2003 National Survey of College Graduates – which contained detailed information for more than 100,000 college grads. She found that 78 percent of women who graduated from the most selective colleges were employed, compared to the 84 percent of women who graduated from other colleges and were employed.

Similarly, 68 percent of mothers who graduated from elite colleges were employed, compared with 76 percent of mothers who graduated from less selective institutions and were employed.

You wouldn’t expect women from elite colleges to leave the workforce. Graduates from these types of institutions are more likely to marry later, earn graduate degrees, and make more money over their lifetimes. All of these factors are likely to increase the rate at which people stay in their jobs. But in the case of women from top colleges, that wasn’t so.

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Movers and Shakers: Siani Pearson, Senior Researcher, HP Labs Bristol

SianiPearsonBy Melissa J. Anderson (New York City)

Siani Pearson, now a principal research scientist at HP Labs Bristol, says she wishes she had had more confidence in herself when she was first starting her career. “I think I’d have been pleased to know I’d get as far as I have,” she explained. “Sometimes when you’re young, you question yourself. ‘Am I going to be successful? Am I going to make it?’”

Now 20 years into her career, over 100 papers and 60 patents later, she continued, “But if you continue pushing yourself, you will work at high levels. You never know if you’re going to like upper level work, and it is stressful. But it’s worth it.”

One of the reasons she has succeeded in her career, Pearson theorized, may be her dissatisfaction with the status quo – and she encouraged young professional women to continue setting the bar higher for themselves. “The more I did, the more I tried to reset my expectations for myself. I’ve never been satisfied.”

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The ‘Sticky Floor’ Revisited

Woman with portfolioBy Robin Madell (San Francisco)

Do women unintentionally hold themselves back in their careers? The question has been up for debate for years, with leadership experts identifying self-defeating or self-limiting actions as the “sticky floor.”

Author Rebecca Shambaugh said in her 2007 book It’s Not a Glass Ceiling—It’s a Sticky Floor:

“I see women holding themselves back more than society ever could. And they usually do it to themselves quite unknowingly. When I see women capable of executive suite leadership mired in middle management, I don’t look for the glass ceiling anymore. Instead, I look for a sticky floor.”

The sticky floor phenomenon has been variously described as women’s self-imposed career blocks, corporate barriers to women’s promotion, and other middle-management bottlenecks that keep women stuck near the bottom half of the ladder. Not surprisingly, research has shown that the promotion rates for all levels of white men throughout their careers were higher than white and minority women. A large-scale study of more than 22,000 employees revealed that white men were 4.5 percentage points more likely to be promoted at any level than white women, and 16.1 percentage points more likely than minority women.

Yet, many experts take issue with the suggestion that women should be held responsible for their own failure to advance. “Saying women are responsible for holding themselves back lets off the hook the boy’s club of corporate executives who make them crazy, only to point their fingers and say, ‘See? That’s why we can’t promote them,’” says Mitchell D. Weiss, an adjunct professor of finance at the University of Hartford’s Barney School of Business.

Kathy Noecker, a member of the executive committee and management board of law firm Faegre Baker Daniels LLP, describes the sticky floor as a “both-and” situation. “I have seen many women not seek the next big case, take on a key role with an important client, or assume a leadership opportunity because of the sticky floor phenomenon,” says Noecker. “They may be fearful of failure, presume they can’t handle the time commitments, or simply be unaware that they should be advocating for themselves and their careers.” However, she adds that these situations may be closely intertwined with the glass ceiling issue: “Often, organizations favor, and women only see, a ‘male’ model of success.”

Regardless of which side of the debate you fall on, the same questions remain: why does the sticky floor still exist, and what can we do about it? The Glass Hammer spoke with Shambaugh and other experts about what actions women should take if they find themselves glued to a sticky floor, and what companies can do to facilitate women’s corporate ascent.

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Why Tomorrow’s CEO Will Be a Feminist

iStock_000017439589XSmallBy Melissa J. Anderson (New York City)

Today women and men are more likely than ever before to identify themselves as feminists – and that’s despite relentless attacks on the movement by media personalities, politicians, and pundits. In fact, according to a recent survey of people who voted in the 2012 election, 55 percent of women voters said they were feminists. That’s the highest percentage ever, having increased nine points in just four years.

The survey, conducted by Lake Research Partners for Ms. Magazine, the Feminist Majority Foundation, and the Communications Consortium Media Center, turned up even higher numbers when respondents were supplied a definition of a feminist: “someone who supports political, economic, and social equality for women.” After reading the definition, 68 percent of women described themselves as feminists.

Women under thirty were the most likely to call themselves feminists – after reading the definition, almost three quarters (73 percent) said so. Kathy Spillar, executive vice president of the Feminist Majority Foundation, said this means that not only is the electorate changing, but so is the workforce. Employers will have to keep up.

“It shows the popularity of the movement. And it’s a growing movement. Many young women self-identify as feminists despite the constant beating up of the term. Despite that, we have a solid majority – a supermajority. These women are very strong believers about equality, and they’re going to be gaining more momentum as time goes on.”

“For corporate leadership, they have got to be thinking about this,” Spillar added.

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Why Less Can Be More for Women Execs

BusinesswomanBy Robin Madell (San Francisco)

With Sheryl Sandberg’s Lean In: Women, Work, and the Will to Lead topping the bestseller chart, the “double-down” debate has been reignited once again. Whether you find yourself for or against the ideas that Sandberg proposes, one thing that’s clear is that her controversial book has gotten people talking about why women’s progress in leadership roles has stalled, and the choices that we each must confront as we try to make our lives and work make sense within our own unique circumstances.

If you haven’t read the book, you may expect from the title that Sandberg falls squarely in the corner of doing more in all arenas at all costs. That’s not the case, as she explains in her chapter “The Myth of Doing It All,” where she states:

“’Having it all.’ Perhaps the greatest trap ever set for women was the coining of this phrase. Bandied about in speeches, headlines, and articles, these three little words are intended to be aspirational but instead make all of us feel like we have fallen short.”

Can less be more for women execs, and if so, when and how? The Glass Hammer spoke with a panel of experts in diverse industries about how to back off as needed.

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Michelle Meyer, Senior U.S. Economist, Bank of America Merrill Lynch

Michelle Meyer Michelle Meyer, Senior U.S. Economist at BofA Merrill Lynch Global Research, urged women to be more open to risks. “I’ve had the best career advancement from taking opportunities that are out of my comfort zone,” she said.

Meyer, who was voted one of Forbes’ “30 Under 30 in Finance” and also appears as an expert commentator on CNBC and Bloomberg, said putting herself in the spotlight was initially terrifying. “When I first started doing media, I was petrified,” she said. “It scared me immensely, not only representing myself, but also the firm. But I pushed myself and it has been one of the best things for my career.”

“When an opportunity presents itself that is challenging, uncomfortable, intimidating, or it makes you want to hide under the table, that’s just the opportunity you should take,” she added with a laugh.

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When to Use Your Head and When to Use Your Heart in Negotiation

Three serious business people talking in boardroomBy Melissa J. Anderson (New Your City)

There are many different styles of negotiation, and to get the best outcome it’s important to examine the stakes and the situation. A new study purports to show when you should put yourself in someone else’s shoes, and when it’s best to focus on feelings in negotiation settings.

The paper, entitled “When to use your head and when to use your heart: The differential value of perspective-taking versus empathy in competitive interactions” and published in the Personality and Social Psychology Bulletin earlier this year, suggests how two different ways of “imagining others’ experience” – one cognitive and one emotional – can enable best outcomes in specific types of negotiation scenarios. The authors write:

“Philosophers and psychologists have described at least two fundamentally different modes of imagining others’ experience: Perspective-taking, which is the cognitive capacity to spontaneously consider the world from another’s viewpoint; and empathy, which is the affective capacity to emotionally connect with others and experience sympathy and concern for others.”

At first, these strategies – and yes, empathy is a strategy here – don’t seem all that different. But the authors, Debra Gilin, Department of Psychology, Saint Mary’s University, William W. Maddux, INSEAD, Jordan Carpenter, University of North Carolina-Chapel Hill, and Adam D. Galinsky, Northwestern University, explain that one is about the head and the other is about the heart.

Perspective-taking (or putting yourself in someone’s shoes) means thinking about a situation from another’s viewpoint. It is a process of acknowledging your difference from someone else and trying to see how they would see. Conversely, empathy is about connection. It means seeking “one-ness” with how others and feeling how they feel. Rather than examining difference, you are focusing on similarities.

Both of these approaches have a place in negotiation, according to the research, and choosing the right one can get you the best outcome. You just have to know when to go with your heart or your head. Here’s how.

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Movers and Shakers: Cheri Warren, Vice President, Asset Management, National Grid

cheriwarrenBy Melissa J. Anderson (New York City)

Cheri Warren, Vice President of Asset Management at National Grid, is fascinated by the potential of the power grid to change the way people live their lives. As head of the company’s smart grid initiative – called Utility of the Future – she said, “We are on the precipice of transformation and I’m really proud to be a part of that.”

Her passion for the energy space grew out of her early interest in engineering in high school and college. She explained that her Girl Scout troop leader was an Air Force recruiter and encouraged her to apply for an Air Force ROTC scholarship so she afford college. Even though the scholarship was delayed, because this was the ’80’s and a computer glitch declared her “legally dead” for a few months, she never wavered. she recalled. “Going to school would make all the difference in the world.”

Warren dreamed of joining NASA’s space shuttle program, so she studied electrical engineering for her bachelor’s degree and then followed that with a master’s degree in engineering. But, after injuring her knee while training for a marathon, she realized she would have to seek a new path. Nevertheless, her engineering background gave her a boost, she said. “Having that advantage helped a lot as I continued throughout my career.”

After landing an internship at GE, Warren found herself fascinated with the utilities industry, particularly the power industry. “I got really lucky,” she said. “I got a job at PTI [Power Technologies International], which is now owned by Siemens, and by my second summer I was redesigning how to protect the power system from lightning strikes.”

She worked in electric distribution consulting in the early ’90s and then moved into information systems for a few years then back to T&D studies before joining a management consulting firm. After 9/11, Warren’s interest in the power grid was further invigorated. “I decided to work for National Grid and I’ve never looked back,” she said.

Today, as National Grid’s Vice President of Asset Management, Warren is responsible for all of the company’s electric transmission and distribution assets where she and her team invest about $1 billion each year on behalf of customers, as well as the company’s smart grid activities. “The smart grid is transforming the industry. It will mean a better grid that allows people to live their lives in different ways,” Warren explained. “The grid we have today is 125 years old. I have a line that Edison himself built and it’s still alive today. Clearly it’s time for innovation.”

She is also enjoying the people-management part of her job. “The people development aspect is incredible to me right now. There’s a point in your career where you go from mentee to mentor, and then you’re a mentor with a capital M,” Warren explained. “One of my top lieutenants was trying to make the next step and become VP for a few years, and I’m proud to say he was promoted in January.”

Warren is also a member of the industry group IEEE and is on it’s board of directors. She got involved with IEEE as a student, but really ramped up her involvement back when she worked for PTI on the advice of her boss at the time. It has enabled her to publish papers and, in 2007, she was awarded the group’s Excellence in Power Distribution Award. “It’s a group that is changing the way we do what we do. It’s phenomenal,” she said.

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Why Aren’t We Ready for Female Breadwinners?

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iStock_000014539701XSmallBy Melissa J. Anderson (New York City)

Today women are more likely than ever to be the primary financially contributor (breadwinner) in their households – but that doesn’t mean we’re comfortable with it yet. At least, that’s what a new study out of the Simmons School of Management says.

Mary Shapiro, Professor of Practice at Simmons and leader of the study, explained, “A lot of girls and women have gotten that message – to be financially independent and find joy and personal satisfaction in their job. But society has lagged.”

The research is based on a survey of over 460 businesswomen who attended last year’s Simmons Leadership Conference in Boston. The majority of breadwinner respondents said they don’t share their financial situation with their family, friends, or colleagues, because, they say, it’s just not anyone’s business. The top reason? According to the survey, they were most likely to say they don’t want to “embarrass” their partners.

The women breadwinners in the study reported feeling high levels of pride in themselves and satisfaction in their jobs, yet they were conflicted. They worried what others might think of them and their partner’s unconventional roles. Shapiro said, “The message is, ‘I’m ready to be a breadwinner, but I’m not sure everybody else is ready for me to be a breadwinner.’”

Why not?

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Three Ways to Set Yourself Up for a Sweet Bonus Next Year

iStock_000015442897XSmallBy Stacey Hawley (Chicago)

December 25th marks a holiday brimming with worldwide wonder and delight, underscored by the giving spirit. Bonus season, on the other hand, celebrates the act of receiving. When parents recite “it is better to give than receive,” they clearly are not discussing bonuses.

Companies with calendar year-ends communicate bonuses between January and March of the following year. Because most companies follow a calendar-year cycle, and award bonuses in March, bonus season is in full swing. Many employees’ bank accounts swelled in the last 30 days.

Small signs of economic recovery loom. According to Buck Consultants 2012 Compensation Planning Survey, both the size (amount of money delivered) and prevalence (use or eligibility) has increased substantially. Most importantly, the survey’s 350 respondents indicated the expected size of 2013 annual cash awards exceeds the 2012 target payouts and 2011 actual payouts for all employees. In other words, employees are beating plan, and earning above target payouts. While it is unclear whether the probability of achieving the target was increased to improve retention, motivation, and morale, at least payouts are improving.

Receiving an unexpected bonus boosts morale, encourages engagement, and motivates employees to repeat (or exceed) their previous years’ performance. At the executive level, compensation hovers at all-time highs. With the S&P 500 gaining 13%, the stock market closing at record highs, and companies practically hoarding cash, CEOs and senior executives are reaping the rewards. Although most companies dole out awards in base and equity, some CEOs still recognized record bonuses. Disney’s CEO Robert Iger earned $16 million because of outstanding financial results. And he is not alone.

But what about the rest of us? How do typical employees ensure above-average bonuses?

Admittedly, it’s probably too late to bump this year’s bonus but fortunately it is only April. 25% of the way into the 2013 performance cycle leaves employees with ample time to secure a good bonus next year.

Suggestion 1: Take charge
Employees should familiarize themselves with their company’s annual incentive process. Know when goals are established and approved, and how and when incentive awards are decided and communicated. If your manager doesn’t communicate, find out. Talk with other employees or meet with your manager to ask him/her to define the expectations.

Suggestion 2: Be as specific as possible
To achieve an above-average bonus, employees need to know what to do – exactly. If managers instruct employees to develop a new branding concept, employees need to know what makes this successful. Does the branding concept just need to be developed, or approved and communicated? Does the concept need to be approved by the end of the second quarter? Should the branding concept promote a product launch, product development or increased sales? If so, how much?

Jeffrey Pearlberg, SVP Global Client Banking and Wealth Management at Citi believes, “The most critical element is absolutely clear and specific expectations. The content of the goals and criteria can vary, but specificity is necessary for employees to direct the behavior.”

Suggestion 3: Stay in the Loop
Communication plays an integral role in ensuring a positive bonus payout. Ostensibly, not all employers actively engage in goal-setting or continuous performance feedback. If you are left on the sidelines, stay in the loop. Pat Peri, member of Resource Management Solutions and seasoned human resources leader, encourages senior leadership to actively participate in goal development. “Equally important,” explains Peri, “is the feedback along the continuum to give the associate a sense of where they stand and what changes need to be made if the outcome is not on target.” Request meetings with your immediate supervisor or manager to discuss your performance every two to three months. Specifically ask whether your performance meets expectations and, if not, what changes need to be made.

By definition, companies do not guarantee a bonus. However, incentive payouts play an integral part of the compensation structure and rewards provided to employees in most companies. Assuming the company achieves its desired financial performance, if you engage in active, ongoing communication and meet or exceed performance expectations, you should be well on your way to a nice bonus next spring.

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