“Shecession” Caused by the COVID-19 Pandemic

Women in the workplace — more important now than ever

“Underrepresentation of women in the workplace is a severe problem. If the effect of the COVID-19 is not fixed, the global GDP could be 13 trillion dollars less than it would be if men and women were equally affected by the pandemic.”

Women occupy a much smaller portion of the workforce worldwide. Despite the introduction and emphasis of DEI (Diversity, Equity, and Inclusion) policies in our corporate companies, the overall progress has been minimal.

The meaning of DEI is commonly misunderstood. Diversity means all the ways people differ. Equity means treating everyone fairly, and inclusion means ensuring that one’s decision-making authority is independent of their identity. People tend to think that diversity and equity imply inclusion, but that’s not true. An individual from a minority community can feel like an outsider when treated differently, even if they are given equal rights. A woman could be in a senior position in a company and still feel weird because of her peers’ exclusion.

A study conducted in the workplace concluded that 20% of women said they were the only person in the room of their gender. Think about it, how many times have you heard someone automatically refer to a person in a managerial role as “him” without considering that the manager could be female? Appraisal systems in corporate companies are not always meritocracy-based. Social and cultural limitations are actively thought upon when considering a woman for a senior position.

“One in four women considered leaving or downshifting their careers during the pandemic.”

A study conducted by PayScale states that the opportunity pay gap (overall ratio of median earnings of women to men) has decreased by $0.08 since 2015, and women make $.82 for every dollar a man makes. And when women are in similar roles, locations, have equivalent education levels and work experience, women earn $0.98 for every dollar a man makes. These wage gaps exist even at directive and executive levels!

McKinsey conducts an annual study on women in the workplace, and for 2020 they found that for every 100 men promoted and hired to manager positions, only 72 women are promoted and hired.

Covid-19 has worsened the state of this disparity. One in four women considered leaving or downshifting their careers during the pandemic. This impact is seen mostly among mothers, women of color, and those occupying higher positions.

It’s no surprise that a 2020 study by McKinsey showed that women feel more burned out than men as they have increased responsibility for work they do not get paid for. According to a report by Deloitte, one-third of women’s workload have increased during the pandemic, and 53% of those with children reported home-schooling responsibilities. 46% of women also felt like they were expected to be available for work calls even during “off” hours.

Women in emerging economies are struggling with these challenges more than those in developed countries. The black community has had a disproportionate impact due to COVID-19, thus affecting black women even more than others.

The factors leading to this are lack of flexibility at work, the expectation of being available at work at all hours, and spending time at home with kids due to COVID-19 restrictions. Women worry that their performance is being judged owing to their household responsibilities.

This condition of a “female recession” is dangerous to our economy. From a business perspective, concentrating on improving DEI principles in our society can have highly positive results.

“Companies with more inclusive business cultures and policies see a 59% increase in innovation and a 37% better assessment of consumer interest and demand.”

International Labour Organization reported that companies with more inclusive business cultures and policies see a 59% increase in innovation and a 37% better assessment of consumer interest and demand. It is common sense that only a diverse workforce can successfully serve a diverse group of consumers. McKinsey found that organizations with gender-diverse executive teams were 25% more likely to outperform on profitability. In comparison, those with ethnically and culturally diverse executive teams were 36% more likely to achieve above-average profitability.

Underrepresentation of women in the workplace is a severe problem. If the effect of the COVID-19 is not fixed, the global GDP could be 13 trillion dollars less than it would be if men and women were equally affected by the pandemic.

So what should companies do? They should alter their performance criteria to meet the achievements in the present situation. We need to work towards a sustainable workplace suitable for all the employees facing burnout, including mothers and senior-level women. Work-life boundaries should be reestablished.

Companies should promote outspoken leadership and bias training. Women have to be fairly compensated for their work, and transparency in the pay system can reduce the gender wage gap. Also, parental leave and sick leave policies would go a long way in supporting working mothers. Companies must provide their female employees with the flexibility they need to stay in their careers and thrive in them.

“organizations with gender-diverse executive teams were 25% more likely to outperform on profitability.”

I am a VP of Sales and Marketing, a woman leader, a diverse leader, a DEI advocate, and I live in Nicaragua, leading teams across the United States and Canada. And I work for Swoon, a US-based company. Swoon embraces a remote and flexible culture, an environment that not only allows women and diversity to thrive but promotes it.

To all my fellow women reading this article, what we have discussed so far is about everything that the companies we work for must do to make the workplace better. The pandemic may have caused a “Shecession,” but there are companies making leaps towards building and promoting a more diverse, equal, and inclusive workplace.