Idea in Brief

The Problem

Women make up about half of all college-educated workers in the United States, but they remain dramatically underrepresented in positions of power. For example, just a small minority of Fortune 500 companies are led by women.

The Insight

This imbalance reflects a systemic talent-management problem. To move beyond it, companies need to identify the patterns that prevent them from fully leveraging women’s talents and contributions.

The Solution

Companies must address inequities in seven main areas of talent management: attracting candidates, hiring employees, integrating them into the organization, developing them, assessing performance, managing compensation and promotion, and retaining good performers.

Women’s career opportunities may seem limitless today. Women make up about half of all college-educated workers in the United States, and they hold jobs in virtually every industry, working in more than 300 occupations tracked by the federal government. Yet women remain underrepresented in positions of power, often dramatically so: Just 8% of Fortune 500 companies are led by women, and less than 1% by women of color.

A version of this article appeared in the May–June 2021 issue of Harvard Business Review.