The COVID-19 pandemic has disproportionately affected women working across all industries, including in travel, tourism and hospitality.
Of women in corporate America, mothers, senior-level women and Black women have faced the most distinct challenges, according to McKinsey & Company and LeanIn.org’s Women in the Workplace 2020 study.
In fact, one in four women are considering downshifting their careers or leaving the workforce due to the challenges brought on by the crisis.
McKinsey calls this is a "critical moment" for corporate America, which is at risk of losing women in leadership, as well as future women leaders, and unwinding years of progress toward gender diversity.
Over the past six years, previous Women in the Workplace reports have indicated that there has been “slow but steady” progress in women’s representation – but COVID-19 is threatening to erase those gains.
Although women, and particularly women of color, remain drastically underrepresented, the share of women grew from 23% to 28% in senior vice president roles and from 17% to 21% in the C-suite between 2015 and 2020.
However, a "broken rung" remains in promotions from the first step of employment up to manager. For every 100 men promoted to manager, only 85 women were promoted. For Black and Latina women, for every 100 men promoted, only 58 and 71 were promoted, respectively.
Overall, at the beginning of 2020, women held just 38% of manager positions, while men held 62%.
With COVID-19, as many as two million women are considering taking a leave of absence or leaving the workforce altogether, the report finds. This is the first time women have indicated they might leave the workforce at a higher rate than men; previously, women and men left their companies at similar rates.
COVID challenges
In addition to juggling childcare and homeschooling responsibilities, women are also experiencing mental health challenges and burnout. Many employees feel the need to be “always on” and available at all hours of the day, plus are concerned about layoffs, furloughs and financial insecurity.
Compared with women overall, Latinas are more likely to worry about layoffs and furloughs, and LGBTQ+ women are almost twice as likely to cite mental health as one of their biggest challenges during COVID-19.
The top factors that contribute to whether an employee considers downshifting or leaving include: lack of flexibility at work, feeling the need to be “always on,” housework and caregiving burdens, worry that their performance is being negatively judged because of caregiving responsibilities and discomfort sharing the challenges they are facing with teammates and managers.
Women in senior leadership are more likely than men at the same level to feel as though they are “always on,” and Black women are more likely than men and women overall to feel like they can’t bring their whole selves to work.
Black women are also more likely than other employees to consider leaving the workforce because of concerns over their health and safety.
Meanwhile, 61% of women with disabilities and 58% of LGBTQ+ women report feeling stressed, compared to 53% of all women and 46% of men. In fact, women with disabilities are the least likely to report getting the flexibility they need at work during the pandemic, and they’re more likely to feel excluded, in the dark and uninformed.
The path ahead
The possibility of losing senior-level women is “alarming,” the report finds, and the consequences could be significant.
Research shows that when women are well-represented at the top, companies are 50% more likely to outperform their peers.
Losing senior women leaders also means companies could lose out on champions of a company’s culture: Over 50% of senior-level women say they consistently take a public stand for gender and racial equity at work, compared to roughly 40% of senior-level men. They are also more likely to sponsor other women, with 38% of senior-level women currently mentoring or sponsoring one or more women of color, compared to 23% of men.
McKinsey finds there are two paths ahead: If companies recognize the scale of the problems brought on by COVID-1i and do all they can to address them, they can help employees navigate this difficult time, even reinventing the way they work to be more flexible and sustainable.
If not, the consequences could badly hurt women, business and the economy as a whole. “This moment requires long-term thinking, creativity, strong leadership and a laser focus on the value of women to their organizations,” the report states.
In addition to making work more sustainable and resetting norms around flexibility, companies should also take a closer look at performance reviews, take steps to minimize gender bias, adjust policies and programs to better support employees and strengthen communication.
Businesses should examine how they can better support Black women by addressing the distinct challenges Black women face head-on and fostering a culture that supports and values Black women.