25 June 2007

The Bellewether Factor

By Galia BarHava-Monteith

(or: Why Women At The Top Are Good for Everyone )

You've heard it all before and perhaps you're getting somewhat sick of it: the 'war for talent' There are experts who warn us of the increasing doom and gloom for companies trying to find talented employees, especially in knowledge based industries. Then there's the media, running stories on the 'brain drain' of skilled New Zealanders who have set their sights on working on faraway shores where they can use their excellent New Zealand education to earn lots more money. And let's not forget the employers who try to understand what motivates 'Gen Y' so that they can entice them to become employees and to stay for longer than five minutes.

 

What's this all about? Intellectuals and researchers, mainly in the US, note that the one-dimensional view of a career as a process of joining a company and climbing up its ranks is no longer what employees seek. Increasingly, middle, and even senior, managers are reluctant to take the next step up in their careers. The corporate ladder is simply not as appealing as it used to be and the price it demands is seen as being too high. People are now setting their own career paths based on what they value and how they themselves define success.

Changing expectations among the highest achievers

The Families and Work Institute (FWI), a New York based non-profit research organisation, recently conducted a study with the world's top 10 multinational companies such as Citicorp and IBM. They described what they found as "troubling" for corporate America. Fully a third of the top 100 women and a quarter of the top 100 men interviewed in these multinationals have reduced their career aspirations. The most common reason given by these respondents was not a fear they couldn't perform in a more senior role, but that they expected the sacrifices they would have to make in their personal lives would be too great.

Here at Professionelle, we believe these trends have significant implications for employers. This research and our own, together with anecdotal observations, suggest to us that, from the employee's perspective, securing a 'good' job with a commercially successful company is no longer the goal for many highly educated and talented job seekers. In an economic environment where the lack of talent is having an adverse impact on growth, this is surely something employers who are serious about their growth and future success must take heed of.

The most desirable employees are increasingly seeking to work for companies who have more to offer to society and the individual. They want to work for firms whose values they relate to, values that align with their own. And equally as relevant, they want to feel respected and valued for who they are, and what they contribute.

R-E-S-P-E-C-T

Being respected at your workplace is integral to a healthy working life.

Wharton University Management Professor Sigal Barsade, found in a recent study of workers in long term healthcare facilities that employees experience the highest levels of burnout when they don't feel respected or valued by the organisation they work for. Barsade concluded that it is often not the demands of job per se, nor even the individual's personality, that burns employees out, but the organisation and its culture.

The researchers also found that the impact of organisational respect on burnout is felt most strongly when job autonomy is low. People are most likely to burn out when working in high pressure environments, with little control over how they structure their work. The effect is exacerbated when the company they work for doesn't respect them as individuals. Sound familiar? And so, highly talented employees are voting with their feet.

They can do this because they've gained the experience and developed their own personal brands - which is what most corporates and professional services firms expect them to do.

Are employers responding?

Employers are beginning to recognise and acknowledge that if they want to attract the best talent, they need to offer something 'more'. Increasingly, they're presenting job candidates with beautifully-bound corporate values statements. They point to their 'employee support' policies, that might involve an assigned internal mentor to guide new hires through the complexities of the organisation. Perhaps they note their 'family friendly' policies, which may include the possibility of working 'flexi-time'.

Unfortunately, there is a big gap in most organisations between the formal aspects of the culture (the policy book, the values statement etc) and the real culture. A company's culture can be described as the unwritten norms and values which determine how employees are treated as individuals. And the best indicator of a culture is to see what behaviours are reinforced in the workplace.

So, short of knowing someone who works for a potential employer, and who is willing to 'spill the beans', how can you, the prospective employee, know that what is being sold to you is for real?

Bellewethers

To find out where the herd was headed, shepherds used to hang a bell around a wether's neck. Where this male sheep led, bell clanging, the flock would be sure to follow. He was a guide to the location of the flock, and a predictor of where it would head next.

Why this diversion into animal husbandry? Because, at Professionelle, we believe that an excellent indicator of the real culture of an organisation is the number of senior women at the executive level of the organisation. If you can see a group of these bellewethers - not just one token female who is rolled out at any occasion where the organisation feels it needs to show its 'feminine side' - but 30% plus of senior executives who are women, then we predict you are onto a promising organisation.

What leads us to make this claim?

Three reasons actually -

  1. Women have more socially acceptable choices than men.
  2. Men will put up with a lot more than women will.
  3. Women are more likely to shy away from a highly competitive environment even if they can win. And they are more likely to prosper in environments that encourage and endorse feminine leadership styles.

We believe that taken together, these points suggest that if an organisation has the bellewether factor of a significant portion of senior women, then this is a sign that it has to be offering something different to your average company.

1. Women's choices

We argue that in today's world, women have more socially acceptable choices than men. This is to us one of the most important legacies of the feminist revolution. Women can choose to have children and stay home, they can choose to have children and work full or part time, or they can choose not to have children at all. They can start their own businesses or become contractors. And every one of those choices, at least in New Zealand, is seen as valid and acceptable by society.

Faced with all those options, some highly talented and capable women choose to stay in companies and advance to senior positions. And in today's tight labour market they can also decide where they'll do it. They are more likely to choose companies that align best with their own personal values and that can help them meet the demands their life choices place on them.

2. Putting up with rubbish

Lets face it, men, for hundreds, if not thousands, of years have been socialised to take on roles and jobs that can be lethal. From soldiers, to coal miners, to deep sea oil exploration to name but a few.

Women, on the other hand, have been socialised to care for the new generation and thus actively discouraged from taking on roles that may jeopardize that nurturing role.

Of course, there are exceptions that show how some women do thrive at taking risks that may even involve placing their lives in jeopardy. But the point is that until very recently this was not an option open to women in most societies.

We believe that one consequence of these societal patterns is that men in the modern corporate workplace are more willing (and perhaps able) to tolerate the rubbish that goes on. We're talking about the long working hours, the highly competitive environment, the political game playing and subtle put-downs that readers who have spent some time in corporates and/or big professional services firms will recognise.

Take law, for example. We've chosen it because of the long hours required to 'make it' and the heavy proportion of men in senior positions in most large private practice firms.

The results of a recent study conducted with 2400 New Zealand lawyers by professional services consultancy Team Factors in association with the Corporate Lawyers Association, publisher Thomson-Brookers and recruitment firm Law Staff, demonstrate this point beautifully. Of the lawyers who worked in private practice, approaching one in three of the women surveyed rated the effectiveness of their organisation's practices in looking after staff as 'very poor' or 'poor'. This compared with agreement from just under one in five of their male counterparts.

These women are also far more likely to be exercising their choices. Just over half of the women lawyers surveyed in private practice were either open to the possibility of a new job or actively seeking one! This compared to only over a third of their male colleagues.

3. Competition and feminine leadership styles

Many corporate environments and large professional services firms are highly competitive. Arguably, it is that competitive drive that has successfully delivered good bottom line results.

Unfortunately, most women, including the most talented ones, don't flourish in these environments.

Muriel Niederie, a Stanford University economist, found in her research on gender attitudes towards competition, that even when women perform as well as men on a task, they are more likely to underrate their performance compared with poorly-achieving men. These high-performing women are also less likely to select a competitive setting next time than the poor performing men.

To us, this means that men favour a competitive setting even if their ability is low, while women avoid a competitive setting even if their ability is high!

Muriel and her colleagues concluded that, "Women may shy away from competition simply because they dislike being in an environment where they have to compete. That is, even though they may be very good at something, they might still not want to compete on it."

Women are also more likely to have a "feminine" leadership style which is described as more relationship-oriented and "democratic". By comparison, the traditional "masculine" leadership style tends towards assertive and task-based behaviours.

Anne Cummings, a professor of business administration at the University of Minnesota, found that the culture of an organisation or even that of a division, can determine the degree to which a woman's own leadership style fits. She argues that,

If your leadership style is more feminine and you are in a masculine culture, you have more role incongruity - the expectation that a person will act a certain way based on his or her gender. When someone does not meet that expectation, perception of leadership ability can wane, regardless of the leader's actual effectiveness. You may not be that effective because the people around you will perceive you as not fitting.

The catch is that even if a woman has a more "masculine" leadership style and is working in a masculine environment, she's still likely to be rated as less effective than men, because she's acting in away that is incongruent with her gender role! Damned if you are, in other words, and damned if you're not.

Taking this research together with our own experience suggests that women are much more likely to flourish in environments that are not aggressively competitive, where their leadership styles are valued and where they can behave in ways that are true to who they are. And in today's economy, the highly educated, talented and successful women are in a position to choose these environments.

Why women at the top are good for everyone

At a time when there are more jobs for highly experienced people than ever before and where women have real choices, it is noteworthy that they choose to stay and progress in some organisation rather than others.

Job seekers could ask themselves what is it about those organisations that makes them different from others in the same industry or profession that have few women at the top. They may or may not find those differences attractive, but this highly visible outward sign of an organisation's culture is worth serious consideration by the savvy job/career seeker.

Companies should also examine this highly visibly sign of their culture and ask themselves what this says about them and their prospects to attract and retain the best talent in the long run. A lack of bellewethers could well prove be a leading indicator of future difficulties to hire and retain the best and brightest.

© Professionelle Ltd 2007

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