Breaking the Leadership Bottleneck: Why Investing in Women Pays Off

Only 29% of corporate C-suite roles are filled by women, according to research by McKinsey & Company. For women of color, the numbers drop even further. White men, on the other hand, occupy 56% of corporate leadership positions.

These aren’t just numbers; they’re the clearest sign yet of a leadership pipeline problem with real business consequences. Despite women making up 42% of the global workforce, they continue to face systemic roadblocks on their path to leadership and career development.

The largest study of women in corporate America, conducted by McKinsey & Company, found that, despite women having made major progress toward senior leadership from entry-level positions, progress is still lagging.

“The $1 trillion opportunity in corporate America isn’t just a buzzword — it’s the real economic potential of inclusion,” said Merary Simeon, an HR expert with over two decades of experience across various sectors and the co-founder of ZERA Consulting, a firm dedicated to advancing multicultural women in the workplace. “Organizations that invest in leadership development with inclusion at the center of it will build stronger and more adaptable leaders.”

Lack of leadership representation raises a significant business problem for organizations everywhere: Despite an increase in women’s labor participation rates in recent years, why do women continue to lag behind in securing positions of leadership?

The stakes are high for business leaders, HR professionals, and executives striving to maintain resilient organizations in today’s competitive labor market. There’s a dire need to develop tech-savvy, skillful workers from existing talent pools without neglecting the critical needs of the potential women leaders of tomorrow.

A well-rounded development program that considers women’s unique needs in the workforce and includes support systems to ensure their long-term success is the key to equipping high-potential employees with the skills needed to thrive in leadership roles.

Ultimately, investing in skills-based development for women in the workforce, especially for women early on in their careers, benefits both employees and organizations by fostering a stronger leadership pipeline, cultivating a tech-savvy workforce, and enhancing overall business efficiency. 

Systemic Challenges Women Face in the Workplace

Significant barriers still hinder women’s ability to advance in their careers. By being mindful of the issues that persist within organizations and implementing strategic solutions to negate these issues, business leaders can foster work environments that empower women to adopt leadership positions.

“Organizations should assess their workplace culture and, more specifically, answer the question of whether the culture is inclusive,” said Simeon. “Understanding the organization’s strengths and gaps and embedding inclusion into the company’s DNA will be critical to ensuring all talent is valued, empowered, and positioned for long-term success.”

The following list explores some common challenges women may face in their organization:

Lack of Sponsorship

Studies show that men are more likely to have sponsors in the workplace compared to women.

Lack of advocacy — specifically from men in leadership roles who hold the majority of leadership positions within their organizations — poses a significant business challenge.

Organizational Culture Challenges

Microaggressions, a lack of family-friendly policies, and unconscious bias can create an exclusionary workplace culture where women feel unsupported in balancing their professional and personal lives.

Seventy-four percent of employees reported feeling demotivated when they don’t fit into their organization’s culture, highlighting the importance of aligning values and policies with the workplace environment.

Lack of Development Opportunities

Women are 1.5 times more likely to leave their jobs when they don’t receive the development support they need.

Without technical upskilling or strategic guidance, women may struggle to build confidence in their ability to perform their best at work or secure career advancement opportunities.

Pay Disparity

A root cause of pay disparity in the U.S. dates back to the dawn of the agricultural era, with statistics showing women to have lost $61 trillion in wages since 1967. This is a staggering number that continues to rise, with the pay gap showing signs of stagnation over the past several years.

Beyond financial loss, pay disparity contributes to deep psychological tolls, with women being up to 2.5 times more likely to be diagnosed with depression compared to their male counterparts.

How Supporting Women’s Growth Benefits the Entire Workforce

Investing in leadership development for women in the workplace is not a moral case — it’s about effective people management. When women feel supported, valued, and celebrated in the workforce, businesses naturally thrive.

“Removing barriers to advancement isn’t just the right thing to do; it’s a business imperative,” said Tamla Oates-Forney, CEO of SHRM Linkage. “Too often, we see the same people in the same rooms, tackling the same challenges, and then wonder why organizations remain stuck in vicious cycles of stagnation and missed opportunities for innovation.”

It Fosters a Culture of Emotionally Intelligent Leadership

Studies show women demonstrate higher levels of emotional intelligence compared to their male counterparts. Investing in the development of future women leaders in the workplace means creating more work environments where employees feel heard, valued, and seen.

The culture of leadership is shifting, with organizations veering from authoritative styles of working to embrace more empathetic management-direct report dynamics.

According to an EY US Consulting study, 86% of employees believe empathetic leadership boosts morale, while 87% say empathy is essential to fostering an inclusive workplace environment.

“Empathy isn’t optional; it’s the difference between a company that scales and one that self-destructs,” said Olivia Steele, co-founder and co-CEO of Divine Feminine Leader, a membership organization and leadership program focused on helping women lead, build wealth, and create impact. “In my companies, the strongest leaders don’t just manage; they champion. They listen, advocate, and create space for both ambition and humanity, building teams that stay and thrive. When I invest, I look at how a founder sets the tone — tyrant or champion — because if they lead through force instead of trust, they won’t just burn out themselves; they’ll burn out everyone around them. And no business survives that.”

It Cultivates Highly Skilled Teams

Sixty-four percent of employees think companies should focus on upskilling and training existing staff for internal roles rather than immediately seeking external hires.

Empowering women through skill development is essential to creating a work environment where employees feel confident in their abilities to contribute to optimal business outcomes.

By integrating live feedback loops into skill development, business leaders can equip potential women leaders with the skills needed to tackle complex business problems.

Furthermore, employees who receive regular feedback are more likely to be highly engaged. In fact, employees are 3.6 times more likely to strongly agree that they are motivated to do outstanding work when their manager provides daily (versus annual) feedback, according to research by Gallup.

“In my experience, the best learning happens live instead of in the confines of a document,” said Amy Jackson, who leads an all-women team and is the founder and CEO of the public relations agency TaleSplash. “Receiving feedback in real time helps my team learn the skills needed to meet with clients and editors and be able to respond on the fly to their questions.”

It Helps Reduce Business Costs

Recruiting new team members is not a cheap endeavor. Many employers estimate the total cost to hire for new employees can be three to four times the position’s salary. 

“A lack of developmental support can drive turnover and be costly to organizations,” said Oates-Forney. More than three-quarters (76%) of employees say they are more likely to stay at a company that offers continuous training, according to SHRM and TalentLMS research. Employees whose needs are met are more likely to stay with that organization, which helps reduce turnover costs and enhances overall retention rates.

What Organizations Need to Do Differently

Leadership development programs designed with women’s needs in mind are applicable to all members of an organization. The emphasis lies on ensuring women’s needs are considered first and foremost when implementing these programs.

To support women’s leadership advancement in the workplace, organizations should prioritize key development needs that make career progression more attainable for women.

• Inclusive cultures based on empathy. Women in the workforce need leaders and coaches with similar backgrounds, cultures, and perspectives to help drive emotional intelligence in the workplace and develop more creative ideas.
• Broad, flexible access to programs. Organizations need programs that offer customized leadership development solutions, aligning individual growth with the cultural and strategic needs of an organization.
• Enhanced mentorship and sponsorship opportunities. Senior leaders can actively support women’s career growth by advocating for their inclusion in high-profile projects and providing guidance and mentorship within the organization.

3 Steps to Enhance Women’s Role in the Workplace

1. Assess the inclusivity of your organization using the SHRM BEAM Framework.

Leverage the SHRM BEAM Framework to ensure that your organization’s programs comply with all federal regulations to make developmental programs accessible for all within your organization.

When reviewing current or potential inclusion-related practices and programs, organizational leaders should answer five questions:

• Anti-Exclusion: Are the program’s opportunities open to all without regard to an individual’s sex, race, or any other protected status?
• Access for All: Does the program generate opportunities to participate based on an individual’s requisite merit, including their existing skills and proficiencies?
• Merit-Driven: Does the program select individuals to participate based on relevant qualifications while accommodating protected medical conditions and religious practices?
• Unbiased and Available Information: Is the availability of the program effectively communicated to all individuals so that participation is truly open to all? 
• Skills-First Optimization: Does the program provide opportunities to develop relevant skills, qualifications, and experience for all individuals eligible to participate?

2. Conduct empathy checks.

When creating developmental programs for potential leaders in the workplace, business leaders can practice empathy by identifying the intrinsic motivators of the women in their team and tailoring their programs accordingly.

“When leaders genuinely understand and support their employees’ aspirations, it fosters a sense of psychological safety that empowers women to take calculated risks, innovate, and lead with confidence,” said Oates-Forney.

This can be done by asking critical questions such as:

• What are the career aspirations of the women in my team? What motivates them to show up to work and perform their best?
• How do women in my team define success in their roles and careers?
• Do they feel comfortable voicing their concerns or needs to management?

3. Expand internal mentorship and sponsorship.

Leaders must shift their mentality from viewing their employees simply as numbers on an Excel sheet and cultivate an internal talent pool through internal mentorship and sponsorship.

“Companies must be intentional about sponsorship and career development if you want long-term impact,” said Simeon. “Sponsorship ensures that talented women are endorsed for leadership opportunities, introduced to key stakeholders, and positioned for advancement.”

When sponsoring and mentoring talent from within, ask the following questions:

• Is my mentorship aligned with the candidate’s strengths or career trajectory?
• How can I help my team build their confidence in the workplace so they can articulate well in instances where they are caught off guard?
• How can I create more visibility for emerging women leaders in my organization when they’re not present in the room while critical discussions are taking place?

The Path Forward

Developing future women leaders is not about “fixing” women, but rather, it’s about addressing the challenges hindering women’s career advancement in the workplace. Organizations thrive when women have access to inclusive leadership programs and equitable workplace programs, proving that building women up in the workplace levels up the entire organization.

Manuela Domingos is an Executive Communications Strategist & Brand Storyteller with a passion for crafting compelling narratives that elevate leadership visibility and drive brand impact. She partners with leaders and organizations to develop authentic storytelling strategies that resonate with audiences and foster meaningful engagement.