Will Companies Value the Leaders Who Invest In Inclusion?

While women report being both increasingly burned out from the pandemic years and vulnerable to leave the workforce, they are also most likely to be rising up to embody the leadership our times ask for.

Will companies begin to put their money (financial and career trajectory rewards) where their mouths are? If not, allowing women to disproportionally shoulder the “unpaid work” of empathetic management and DEI is a strategy for losing the leaders who are tapped in and more valuable than ever.

Our Times Call for Compassionate Leadership

Amidst the pandemic, leadership has become more oriented towards supporting individuals as a whole person, not just as employees, with qualities such as emotional intelligence and active listening. As written in Forbes: “One of the key lessons young people can take from today’s successful executives and leaders is the value of taking care of your people.”

According to Catalyst, employees who report their leaders are empathetic are far more likely to feel engaged, respected and valued, are more likely to stay in their place of work, be innovative and feel a sense of inclusion. When people sense their leaders are empathetic, they also feel more able to navigate the demands of work and family life.

People who see their leadership as empathetic in decision making are also likely to be collaborative and empathetic themselves. And when leaders are more empathetic, it fosters better levels of mental health in their organization. Using empathy as the catalyst for leading with more compassion (not ‘I feel with you’ but ‘I am here to help,’ as we are inherently interconnected) creates even more effective leadership.

As Tracy Bower, Ph.D. sociologist and the author of The Secrets to Happiness at Work, writes in Forbes, “Leaders don’t have to be experts in mental health in order to demonstrate they care and are paying attention. It’s enough to check in, ask questions and take cues from the employee about how much they want to share” – and this drives positive relationships, engagement and organizational results.

Women Are Leading The Deep Cultural Work

According to the Women in the Workplace 2021 Report – a collaboration between McKinsey & Company and LeanIn.org collected from over 423 organizations and 65,000 employee surveys – women are more likely to be carrying the torch of the “deep cultural work” necessary to transform workplaces “healthily and sustainably” in these times.

Women managers are consistently more likely to be supporting employees in their work lives (making the workload manageable, navigating work/life challenges, preventing and managing burnout). Women are also much more likely to be checking in on employee’s overall well-being and supporting them emotionally. In essence, employees are reporting that their female managers are showing up more with the active compassion of ‘how can I help?’

Also, women are more likely to be doing informal DEI work, beyond formal job responsibilities, and spending substantial time doing so. Compared to their male peers, senior female leaders are twice as likely to be making DEI work a part of their weekly work flow (1 in 5 vs 1 in 10). Women are also likely to recruit from and support underrepresented groups, be allies to women of color, to educate themselves, to speak out again discrimination, and to advocate for, mentor or sponsor women of color – although it’s important to note there are still big gaps to bridge in embodying the allies people would most value.

Ultimately, the work women are doing is driving better outcomes for everyone – because employees who feel their managers support their well-being, or who feel DEI is a priority and strong allies are present, are significantly happier, less burned out and more likely to stay around.

Women Are Stepping Up, And Burning Out

Yet while women managers and leaders are heeding the leadership call of our times, they are also undeniably overburdened themselves, with many not only carrying the double-shift of childcare and work, but also feeling the expectation to be “always on” in the absence of clear work/life boundaries in the remote and hybrid workplaces – another issue companies can help to address.

In 2021, 1 in 3 women were thinking about downshifting their careers or leaving the workforce, up from 1 in 4 women a few months into the pandemic in 2020. 4 in 10 women were looking to leave their company or switch jobs. 42% of women felt often or almost always burned out in 2021, a big jump up from 32% in 2020, and compared to 35% of men. That burnout feeling escalates with responsibility level. Among senior women who are managing entire teams, 50% were often or always burned out, and 40% were considering leaving the workforce or downshifting their careers.

Valued in Words, But Not In Actions

Companies are espousing that DEI and employee well-being are important to them. But while 87% of companies say that supporting employee well-being is critical and 70% say DEI work is critical, only about 25% are formally recognizing this work – and even fewer are rewarding it.

Despite stating gender and racial diversity as top priorities, only two-thirds of companies hold senior leaders accountable for progress on DEI goals, and less than one-third hold managers accountable, who are essential to creating cultures of inclusion. Among those who hold senior leaders accountable, fewer than half factor progress on diversity metrics into their performance reviews and less than a quarter build in financial incentives for progress on performance goals – meaning ultimately, the work is overlooked.

Right now, these highly sought leadership behaviors are adding up to be the new “unpaid work” highlighting where companies need to put more value. That women are disproportionally carrying this is a dangerous liability for employers during the Great Resignation. According to the report authors, “Companies risk losing the very leaders they need right now, and it’s hard to imagine organizations navigating the pandemic and building inclusive workplaces if this work isn’t truly prioritized.”

The authors urge organizations to treat DEI like any business priority, including following goals through to assessing effort and progress within performance reviews, and relating that to career advancement and compensation.

It’s Time to Recognize and Reward The Work

Right now, women are feeling burned out while taking personal leadership initiative on collective responsibilities. Companies are sabotaging progress on what they allege to be business priorities by not threading that priority through to enacting accountability, monitoring results and rewarding effectiveness.

“Companies need to incentivize and reward the things that women are doing to create these better working cultures,” says Jess Huang, co-author of the report. “This helps all employees because if it’s rewarded, more leaders will do it.”

Going further, she suggests: ”One solution companies should consider is incorporating criteria into performance reviews that recognizes the work managers are putting into supporting their teams and DEI efforts. Companies should use upward feedback provided by employees on their managers to help take this into account.”

It’s not enough to talk about valuing DEI and supporting the well-being of your employees. More companies need to demonstrate they value the work it takes to make it happen – to retain the leaders that are doing that work.

By Aimee Hansen