Report: Positive Signs, But Big Hurdles Remain For Women & Minority MBAs

GENDER GAP PERSISTS IN CAREER OUTCOMES

The Forté Foundation’s new report builds upon its 2019 research and focuses on the equitability of the MBA application process, academic experience and career outcomes. The online survey polled 3,133 MBA students, prospective students and alumni at 60 elite MBA programs and at Forté member schools. Michelle Wieser, Ph.D., dean of the School of Business and Technology at St. Mary’s University of Minnesota, led the research team. 

Strikingly, it found that women with MBAs make fewer gains throughout their careers than do their male counterparts:

• Women MBAs are less likely to be promoted, averaging 1.2 promotions post MBA compared to men who average 1.7 promotions.
• Women on average climb one organizational level lower than men, achieving on average the role of senior manager while men achieve director roles.
• Women have on average 1.2 fewer direct reports than men do. 

What drives that disparity? Career ambition plays a role. 

“When asked about their ideal job level five years from now, women MBA alumni outpace men in striving for ‘early leadership categories’ such as senior manager, director and VP (women 63%, men 54%),” the report found. “But women trail men aiming for the C-suite, including President/CEO (women 12%, men 22%).”

“When it comes to career outcomes, women are still lagging behind men, and aren’t aspiring as high,” Elissa Sangster says of today’s report. “This research tells us that the focus still needs to be on elevating women overall and, specifically, women of color when it comes to salary.

“Notably, our research found that in five years women MBA alumni seek to be at a level roughly equal to where men are now. Men may not be aspiring to bigger leaps in their early career than women because they are already further ahead on the career ladder. This might also play a role in why a larger percentage of men are striving for C-suite roles than women.”

OTHER KEY FINDINGS

Forté’s survey, conducted in the fall of 2020, also explored disparities in the MBA admission process and in diversity, equity. and inclusion (DEI). It found that perceptions of how much an MBA helps one’s career depends on who you ask: a man or a woman. While all respondents felt favorably about DEI in the admissions process, men were more favorable than women. 

• 75% of men strongly agreed that their MBA admissions interviewer treated them with fairness and respect, compared to 67% of women.
• 57% of men strongly agreed that their MBA applications were handled fairly compared to 55% of women.
• 44% of men strongly agreed that they were treated the same as other MBA applicants compared to 32% of women.

Respondents also reported positive experiences on the survey in the admission process overall, but they were less positive about diversity, equity and inclusion (DEI) in their MBA programs.

• 22% of MBA students and alumni reported that their MBA programs’ DEI efforts did not meet their expectations. But, these percentages rose for both minority men (26%) and non-minority women (24%). 
• More than one third of minority women (33%) but just one in ten non-minority men (10%) said their programs’ efforts did not meet expectations.

DEI IN MBA EDUCATION: ‘SOME WORK AHEAD”

Forté’s research also found gaps by gender and race in functions of the MBA education experience such as course materials and faculty. For example, when asked to assess how well “case studies, course materials, classroom examples, and guest speakers presented in their in their MBA program covered a wide range of diverse perspectives on business,” 27% of minority women disagreed or strongly disagreed compared to 22% non-minority women, 16% of minority men and 7% percent of non-minority men. 

Similarly, women were more likely to respond negatively to the question of whether faculty presented diverse perspectives: 20% minority women, 15% non-minority women, 11% minority men and 5% non-minority men.

“MBA programs must play a pivotal role in building leaders who are inclusive and prepared to lead in diverse environments. Employers and students expect it, and their commitment is on the rise in the last year,” Sangster says.

“This mismatch between expectations and what students are actually experiencing, shows that MBA programs still have some work ahead and shines a light on what areas need more focus now, including case studies and course work.”

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