Top Reasons Women Leaders Keep Switching Companies In 2023

Recent study reveals top reasons why women leaders switch companies. Find out what they are and if your company is doing enough to retain talent.

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Uvaro

Mar 10, 2023

Women leaders are on the move, and the corporate world isn't ready. Even before we get over the Great Resignation, the Great Breakup is here. This new trend is set to shake up the gender balance in organizations in an ugly way.

So what's happening? I would have asked the same if I hadn't been a woman leader myself. In pursuit of Career Success, I managed to work my way up the corporate ladder before changing careers and switching to entrepreneurship.

Twice, I faced a troubling question — should I stay or should I go? It wasn't an easy decision then, but finally, I decided to switch companies in pursuit of better opportunities. I know the frustration of a lack of understanding and support.

This leaves me wondering: could these be the same reasons why other women leaders keep switching companies? Let's take a look at what could be the top reasons these women are moving elsewhere.

We based this article on a report from McKinsey & Company in partnership with LeanIn.Org.


Women face stronger headwinds

Women leaders have the same ambitions as cis-gendered men to reach senior-level roles. Unfortunately, several headwinds intersect and make the path to senior-level roles much harder for them.

Women face microaggressions every time they aim to move up the ranks. Compared to men, women are less likely to receive the support they need to advance.

For instance, it's difficult to receive critical assignments and stretch roles that could propel their careers. They may also lack advice, sponsorship, and Career Coaching that can help them take the lead.

Another impediment is the implicit assumption that they don’t qualify or are incapable. According to the McKinsey & Co. report, people mistake women leaders for someone junior to them twice as often as men in leadership positions. People may not take these women seriously and may ignore their ideas due to the assumption they don’t belong in the role.

We can't discuss barriers to women leaders' advancement without mentioning gender or parental status. Most employers perceive women as less capable if they have children or care for older family members, which they are statistically more likely to be doing.

The impact is that the women leaders don’t get a raise, a promotion, or any other opportunity to attain Career Success. They must work extra hard to prove that their family responsibilities don't impede their effectiveness at their job.

Women are overworked and underrecognized

Women leaders always go the extra mile to improve employee satisfaction and retention in their companies. For instance, compared to male leaders, women are more involved in diversity, equity, and inclusion (DEI) initiatives. Female leaders work harder to improve employee well-being and improve retention.

This is a billion-dollar worth of work given the cost of employee turnover. Data shows that replacing a salaried employee costs an average of 6 to 9 months’ salary. Not forgetting the cost of lost productivity and low team morale when a member leaves.

Female leaders do an amazing job at preventing these costs. Unfortunately, they rarely get any recognition for their hard work. 40% of the women leaders who participated in the McKinsey & Co. study reported that their companies don’t acknowledge DEI work during performance reviews.

We all know how frustrating it is not to get recognition and reward for our hard work. Women can't help but feel demotivated when no one acknowledges their extra effort. They can't achieve Career Success because their hard work doesn't pave the way for career advancement.

Over-commitment to employee satisfaction means women leaders stretch themselves thinner than their male counterparts. The result is stress and burnout as they try to balance career demands and personal lives. It’s no wonder 43% of female leaders experience burnout compared to only 31% of men in similar roles.

Women are seeking a different workplace culture

Who wouldn't want to work in an organization whose values align with their own? Or an environment where you feel valued, respected, and appreciated?

Women leaders want that too. That's why they're moving to companies that value flexibility and diversity. And it's not hard to see why.

Women are more likely to juggle other commitments, such as caring for their kids and aging parents. Nothing can stop them from looking elsewhere if they don't work for a company that gives them the flexibility they need.

Women leaders are also interested in organizations that value DEI and employee well-being. They're 1.5 times more likely than men leaders to leave a job in search of a company committed to DEI. These women know that a company dedicated to DEI and employee well-being will be less likely to overlook their contributions.

In such organizations, women leaders can live to their full potential and contribute to the company's success. For instance, they can lead policy changes to bridge gender pay gaps and create better opportunities for women in the workplace.

Implications of women switching companies en masse

The Great Breakup of women leaders presents a challenge to organizations. For a long time, there has been an underrepresentation of women in leadership. The broken rung of the corporate ladder for women makes it more difficult for aspiring female leaders to rise in the ranks.

The McKinsey & Co. report shows that for every 100 men who get a promotion to managerial positions, only 87 are women. It’s even worse for women of color, as only 82 of them get a promotion.

But that doesn’t explain the implications of women switching companies. Women leaders’ departure means companies have to do more to retain the few women they have in leadership.

Retaining these women is vital for creating gender parity and improving diversity in the workplace. If the female leaders leave, the organizations must start the recruitment process again.

With the current exodus of women leaders, companies will suffer a double blow, as they will also likely lose the next generation of female talent. The younger generation cares more about Career Success and advancement opportunities.

About two-thirds of women under 30 aspire to be senior leaders. Most of them, even more than the current female leaders, prioritize companies committed to DEI and employee well-being.

The young women are taking note as senior women leave their companies searching for better opportunities. They won't hesitate to follow suit if they aren’t getting the career advancement and recognition they deserve.

Potential solutions

If you want to attract and retain women leaders, it's time to do the right thing. Lip service and empty promises won’t do; you must put words into action. Here are some of the changes you need to make:

Introduce flexible working policies

As we mentioned earlier, women leaders love work flexibility. They’ll appreciate the freedom to choose the work arrangement that suits them best.

According to McKinsey & Co., flexibility is not the only reason women prefer remote working. They appreciate that remote work minimizes the macroaggression they usually experience working on-site. So, give women the option to work on-site or from home and watch them be happier and less stressed.

Create DEI initiatives

You should focus on diversity, equity, and inclusion (DEI) in your organization. Women leaders won’t stay if they feel like second-class citizens in the company. Start by creating a culture of respect and equal opportunity for female employees.

Women should always have a chance to participate in discussions, showcase their ideas, and lead problem-solving initiatives. Also, recognize their achievements and reward them. Ensure there's no gender pay gap, especially for similar roles.

Provide career progression support

Women leaders will not only stay but also thrive when they have the support and resources to reach their career goals.

Ensure they have access to training, mentorship, and Coaching opportunities to help them advance in their careers. If women know your company has an interest in their growth and career progression, they’ll stay longer.

Train managers to recognize and respect gender differences

Ensure that managers know how to treat employees, regardless of gender. The managers should know how to give equal opportunities without prejudice or bias. Train them to encourage respectful conduct and reprimand any form of inequality and discrimination.

Managers should also understand and meet the specific needs of female employees. For example, they need to appreciate that women need support to balance their work and personal lives.


Navigate discrimination with Uvaro

As the Great Breakup of women leaders continues, companies need to rise to the challenge and plug the gaps. Women bring valuable skills and perspectives to any organization. So, why not give them what they need to stay and thrive?

At Uvaro, we help women overcome the challenges they may face while navigating a new leadership position.

Our Impact Scholarship equips women and women of color with the skills they need to break into a tech career and excel at a higher level. You can apply for one of our amazing Impact Scholarships for women and WOC.

Download our Career Success Catalog for a glimpse of our Courses and Workshops that can help you build a tech career!

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