Integre at The White House

The statistics are impossible to ignore: Women in the workforce are essential to economic vitality. We are responsible for $2 trillion in U.S. economic growth since the 1970s. When companies employ more of us, particularly at the executive level, those companies outperform those that employ fewer. When we help to found start-up companies, those companies perform 63% better than ones with all-male founding teams. Despite this clear and compelling evidence, women continue to face barriers at every step of a business career. We are underrepresented in business schools, making up only 38% of North American MBA students. When we enter a business-related major, we are more likely to study subjects like hospitality and tourism versus those with higher earning potential, like finance. We are underrepresented in the corporate world, making up 5% of Fortune 500 CEOs and 17% of Fortune 500 board members. We experience a pay gap that widens over the course of our careers; when we receive MBAs, we earn about the same as our male counterparts, but after 5 years men earn 30% more, and after 10 years they earn 60% more. This discrepancy between the economic contributions of women and our full access to the workforce must be addressed if U.S. companies are to remain competitive.

This August, the White House hosted representatives from the business community and prominent business schools for a dialogue on these challenges and a brainstorming session on how to address them. I was pleased to represent Integrē of Raymond James at the White House Working Families Business Schools Convening, hosted by the Council of Economic Advisors and the Council on Women and Girls. Our discussions focused on the role and impact of women in the workforce, the importance of addressing our challenges, and the role that business leaders and schools can play.

One issue that came to the fore was the importance of early intervention. STEM education is crucial for K-12 girls, providing the skills and confidence that set the foundation for future business leaders. Implicit bias, another major theme of the forum, must also be addressed early. In childhood, girls are less confident than boys in their entrepreneurial potential and in their math and science skills, independent of their actual skills or knowledge. They are also less comfortable with leadership; boys are 70% more likely to say they want to be in charge of other people and 65% more likely to say they want to be their own boss.

At the university level, gender issues must be integrated into the daily curriculum rather than remaining confined to a "special program." We must continue to recognize and address implicit bias. One stark example lies in the case studies used to demonstrate business principles. These case studies overwhelmingly feature male executives and protagonists; when the protagonist is female, she tends to work in stereotypically female professions, e.g. fashion. This kind of implicit bias creates expectations about what the work force will or should look like once students graduate.

Business schools and other graduate schools must also reconsider the traditional two-year, full-time model. Such a program presents tremendous opportunity costs, more so for women. The average age at which a woman enters graduate school coincides almost perfectly with the age at which a college-educated woman is likely to have her first child. Clearly, for women who plan to have children, flexibility in the timing and format of graduate school increases their odds of success.

At the corporate level, businesses can offer programs that help women get back on track after taking time off. These relaunch programs help reduce the "motherhood penalty" that many women face. A flexible work environment can also support employees who are caring for family. This can include a "right-to-request" policy that reduces the negative consequences of requesting flexibility. Such flexibility might include changes in the hours or location of work, adherence to a predictable schedule, or limited hours for a defined period of time. Women are more likely to exit the workforce when they have little workplace flexibility, expectations of long hours, and high penalties for taking time off. Improvements in these areas will allow companies to attract and retain higher level talent.

Across sectors and in the federal government, leaders are taking steps to improve the business climate for women and families. However, we still have much hard work ahead of us. Corporate and government leaders must recognize that, as the President has said, "when women succeed, America succeeds" - and our companies succeed. Policies that support women and families are not just nice perks to offer employees; they are key to remaining competitive. I look forward to continuing to engage with the Washington, D.C. and national business community to find more and better avenues to building on women’s success.

All data taken from the 2015 Council of Economic Advisers Issue Brief: Expanding Opportunities for Women in Business, linked here.Opinions expressed are not necessarily those of Invera Wealth Advisors. Information contained was received from sources believed to be reliable, but accuracy is not guaranteed.