Female Executives Changing Companies, Why Do They Seek Flexibility? [Jjinbit]

[Asia Economy Reporter Jeong Hyunjin] "We are in the midst of the 'Great Breakup.'

Last year, during the height of the COVID-19 pandemic, female executives in the United States and Canada began leaving their companies in large numbers. The voluntary turnover rate of female executives at the director level and above exceeded 10% last year, reaching an all-time high, and the gap between the turnover rates of female and male executives widened to over 1 percentage point, the largest ever recorded. So, where did these female executives go?

A female vice president at a company said, "For the first time in my career, I witnessed people leaving for companies that offered more generous remote work policies. They were all women." This means that female executives, having experienced flexible work arrangements due to the expansion of remote work after COVID-19, are moving to companies that guarantee greater flexibility.

This is according to the "Women in the Workplace 2022" report released on the 18th (local time) by global consulting firm McKinsey and LeanIn, a nonprofit organization founded by former Meta Platforms Chief Operating Officer (COO) Sheryl Sandberg. The report analyzed data from 12 million employees and executives across more than 330 companies in the U.S. and Canada and conducted surveys with over 40,000 respondents. Why are about one in four senior executives who are women changing companies?

◆ Female Executives Say "We Go to Companies That Truly Recognize Us"

McKinsey and LeanIn identified three main reasons for female executives' turnover. First, women feel they have fewer promotion opportunities compared to their male colleagues at their current companies. Second, women often feel unrecognized despite taking on additional work related to employee welfare and Diversity, Equity, and Inclusion (DEI) initiatives compared to male executives at the same level, leading to overwork. This indicates that in a workplace where gender equality is still not fully realized, women are leaving to find places that better acknowledge their achievements and abilities.

The last reason mentioned is workplace 'flexibility.' Flexibility has become a key term reflecting changes in work styles during the pandemic. According to the report, when female executives were asked about the top three factors they consider when deciding whether to change companies, 49% cited flexibility as one of them. In contrast, only 34% of male executives mentioned flexibility, highlighting a stark gender difference.

This gender gap in perspectives appeared regardless of rank. In surveys conducted across all levels, 61% of women preferred remote work, compared to 50% of men. Only 10% of women preferred working in the office, while 18% of men did. The report analyzed that "women experience less subtle discrimination and enjoy higher psychological comfort when working remotely for at least some of their time."

Rachel Thomas, CEO of LeanIn, explained, "Women are not breaking up with work itself but with companies that do not provide the organizational culture, opportunities, and flexibility they value."

◆ Women Burdened with Housework and Childcare During the Pandemic... Female Executives Are No Different

To understand why female executives desire flexibility, we need to understand their reality?specifically, the burden of housework and childcare. It is well-established through various statistics that women spend more time on housework and childcare than men. According to the Organisation for Economic Co-operation and Development (OECD), while there are slight differences by country, on average among OECD member countries, women spend over 4 hours per day on these tasks, about twice as much as men, who spend around 2 hours.

Studies indicate that this trend worsened after the pandemic. In December last year, the OECD pointed out that the COVID-19 pandemic significantly reduced women's paid working hours and employment rates compared to men, exacerbating gender inequality. Women, especially working mothers with children under 12, faced greater impacts in unpaid labor such as childcare, and some even left their jobs. This phenomenon led to the creation of terms like "Shecession" and "Momcession," combining "She," "mom," and "recession."

This situation is no different for female executives. The gap becomes even more pronounced when compared to male executives. In the McKinsey and LeanIn survey, 30% of male entry-level employees reported being primarily responsible for housework and childcare, compared to 58% of female entry-level employees, a 28 percentage point difference. At the senior management level, 13% of men and 52% of women reported the same, widening the gap to 39 percentage points. While male employees tend to reduce their share of housework as their rank increases, female employees show almost no change based on rank.

Response rates of male and female office workers by job level who answered that they are mainly responsible for household chores and childcare (Source: McKinsey & LeanIn Report)

Because of this, some argue that flexibility could worsen the unequal situation for female workers. Working from home may increase stress and reduce productivity as women juggle work alongside housework and childcare. Additionally, studies suggest that after the pandemic, as executives push for a return to the office, remote work could disadvantage women in terms of promotions and performance evaluations.

"If companies do not take action, they risk losing not only current female leaders but also the next generation of female leaders," McKinsey and LeanIn warned. This underscores why companies must prioritize gender equality during the experimental phase of new work styles triggered by the pandemic. It is crucial to secure talent regardless of gender and create environments where they can adapt well and demonstrate their capabilities. Understanding the realistic context and fostering a work environment with diversity, equity, and inclusion is essential to enhancing corporate competitiveness.

Editor's Note[Jjinbit] is short for ‘Jeong Hyunjin’s Business Trend’ and ‘Real Business Trend.’ It is a segment showcasing trends in 'work' such as organizational culture and HR systems after the pandemic. Based on analyses from foreign media and major overseas institutions that have not received much attention, we aim to deliver fresh and differentiated information and perspectives.

This content was produced with the assistance of AI translation services.