Of every hundred entry-level men promoted to manager positions, only eighty-seven women receive promotions. Because of this, significantly more men than women are involved in leadership, and the inequality does not seem to be reducible, according to the latest Women in the Workplace report from McKinsey, in partnership with LeanIn.Org.
The glass ceiling is a well-known barrier limiting women’s workplace advancement. But what about the leadership glass ceiling? This is a term used to describe the lack of women leaders in specific industries, which initiatives such as Estée Lauder’s Emerging Leaders Fund help to rectify, by nurturing the next generation of female entrepreneurs.
LOS ANGELES, CALIFORNIA - NOVEMBER 02: (L-R) Mandana Dayani, Amanda Gorman, and Sophia Bush as Estée ... [+]
Biotech is one such industry where women are still underrepresented in leadership roles. According to the third annual, ‘Measuring Diversity in the Biotech Industry’ report, only 34% of executive teams and 20% of CEOs are reported to be women.
Leen Kawas, the co-founder and managing general partner at Propel Bio Partners, said, “if we don’t like the statistics of women-led companies, it is upon us to make a change,” in an email. She proposed four key strategies that will help break the leadership glass ceiling in biotech.
1. Increase funding for women-led companies
There is a clear correlation between the amount of funding a company receives and its success. However, “Funding for female-founded companies has not improved in recent years and has, in fact, decreased,” said Kawas—who, according to Business Insider and GeekWire, was the first woman to take a company public in 20 years in Washington state, one of only 22 female founders and CEOs to lead their company to an IPO—in an interview. “Only 2.0% of venture capital went to these companies in 2021, down from its height of 2.8% in 2009,” she added. Kawas continued, “Only 12% of decision-makers in investment firms are women, and 65% don’t have any women in their senior leaders and decision-makers.” This lack of female representation among investors may be of the main reasons why women-led companies receive less funding.
2. Eliminate hidden bias
The first step in addressing bias is acknowledging that it exists. According to a study published by Harvard Business Review, hiring an equal number of women to men in an organization will not stop bias against women. In fact, even when more women are present, prejudice against women continues because it’s ingrained in the system. These biases can manifest themselves in several ways. For example, another study published by Harvard Business Review concluded that when VCs evaluate companies, they pose different questions to male and female entrepreneurs: men typically receive questions about the potential for gains, while women are asked about the risks. Giana Eckhardt, professor of marketing and vice dean at King’s Business School at King’s College London, believes that one way to eliminate hidden bias is by using explicit, inclusive criteria to assess individuals. “Women are judged to have less leadership potential than men, even though they consistently have higher performance ratings,” Eckhardt said in an interview. Her view aligns with new research conducted by McKinsey, which identifies that women are switching jobs at the highest rate in years, making it, according to Eckhardt, “imperative upon biotech companies to combat unconscious biases in the promotion process or lose their female talent.”
3. Establish mentorship
In order for more women to succeed in leadership positions, it is important to have role models and mentors in the industry, according to Sunitha Narendran, dean of Roehampton University’s Business and Law faculty. She believes that women supporting other women is essential in any workplace but particularly relevant in an environment where the odds seem stacked against them. “Based on available statistics, I agree that while the proportion of women in life sciences is equal to men, the percentage of women in executive-level roles in biotech continues to be low, getting even lower at the CEO level,” said Narendran in an interview. She added, “A recent study by S&P global research on leadership style narratives of women leaders during economic uncertainty found that women CEOs leadership used more terms associated with inclusivity, empathy, adaptability and transformation.” So, while the number of women in leadership positions in the industry is still low, there are signs that this is changing. Mentorship can help by providing opportunities for women to learn from more experienced leaders in the industry and gain the skills and confidence they need to be successful. For example, last month Manchester Digital established a mentoring programme to help women in tech grow their careers. Kawas believes this type of initiative can positively impact the number of women in leadership roles in the future.
4. Commit to sponsorship
Sponsorship differs from mentorship in that it is a two-way relationship in which the sponsor uses their influence to help the person they are sponsoring. A study published by Harvard Business Review found that women are less likely than men to be sponsored by senior leaders. This is because women are more likely to be perceived as competent rather than as leader material, as inferred by Eckhardt. As a result, they are less likely to be chosen for positions of power and influence. “Women are less likely to find sponsors that help them advance their careers,” said Kawas. “They need people who will actively help them get ahead within and outside their organizations.” Several initiatives and programs are trying to help. For example, the National Institutes of Health (NIH) offers leadership development programs for women in the biomedical sciences. Meanwhile, the Society for Women’s Health Research delivers networking and educational events for women in the biotech industry. These events provide a supportive community for women and can help them develop the skills and connections they need to succeed in leadership roles and, importantly, find sponsors.
In summary, it is evident that women are still significantly underrepresented in leadership roles within biotech. But, Kawas is optimistic. “I believe we will see more women in leadership roles as the industry continues to mature and become more diverse,” she said. “The next generation of leaders will be more inclusive, and we’re already seeing that happen, and at Propel, we aim to be part of the change.”
As such, with time, effort, and the effectuation of the four discussed strategies, it is possible to realize a more diverse and inclusive industry that provides opportunities for everyone. This has the potential to accelerate innovations and deliver significant returns to all stakeholders impacted across life sciences more broadly, including patients, physicians and investors. And isn’t that what we all want?
