Women slow to reach senior management positions

Recent studies carried out by the Institute for Employment Research (IAB) have revealed that only about a quarter of senior managers in private sector companies in Germany are women. Although the political commitment to promote more women to management positions is assumed, it seems that the senior management positions are still predominantly occupied by men.

In June 2006, new research was published by the Institute for Employment Research (Institut für Arbeitsmarkt- und Berufsforschung, IAB) on the likelihood of female employees obtaining a management position in the private sector in Germany. While the proportion of women in management has increased in a few economic sectors, the analysis revealed that women were failing to reach senior management positions in the private sector.

Background

In 2001, the federal government along with the employers’ and business associations concluded a mutual agreement (in German) to foster equality between men and women in private sector companies. Among other things, the social partners decided to promote more women to managerial positions. The IAB conducted a review of management positions (IAB-Führungskräftestudie) to evaluate the effects of the mutual agreement.

In June 2006, the second IAB evaluation of women in management positions (in German, 924Kb PDF) focused on two aspects: first, the study investigated whether the number of women in management positions in the private sector had increased since the conclusion of the mutual agreement. Second, it examined levels of work–life balance among men and women in management positions.

The analysis is based on data from the IAB Establishment Panel (in German) (Betriebspanel), which is regularly conducted by the IAB and which covers 16,000 establishments in all economic sectors. Furthermore, the analysis used data from the microcensus of 2000 and 2004, published by the Federal Statistical Office (Statistisches Bundesamt, Destatis). Therefore, the results can be regarded as representative.

Proportion of men and women in management

The first IAB evaluation of women in management positions (in German, 1.06Mb PDF), published in February 2006, found that approximately 45% of all employees in private companies were women. However, only 24% of senior management positions in these companies were occupied by women. It seems that women filled the top-ranking positions more often only in the areas of healthcare, social work and public administration.

The second IAB evaluation revealed that, between 2000 and 2004, the number of women in all types of management positions in the private sector increased by two percentage points. In a geographical breakdown, the proportion of women occupying senior management positions is seen to be slightly higher in the eastern German federal states (Länder): in eastern Germany, the proportion of such positions occupied by women rose from 25% in 2000 to 28% in 2004; in western Germany, by contrast, it rose from only 20% in 2000 to just 22% in 2004. With regard to those top ranks defined as ‘employees with comprehensive managerial responsibilities’ – such as directors or high-level managers – women did not gain ground over the period surveyed.

Differences in relation to age and social status

The proportion of women in management positions also varied greatly between different age groups. More women up to the age of 29 years held management positions. However, women aged between 30 and 49 years were greatly underrepresented compared with men. Women in this age group were less likely to have senior positions because, on average, they are more likely to be absent from full-time work due to childcare responsibilities or pregnancy.

These circumstances were also reflected in the private lives of managers: in 2004, only 32% of female managers had children, compared with 53% of their male counterparts. Thus, two-thirds of women in management were single or lived with a partner, but did not have children. Most of the men surveyed were living with a partner who only worked part time or who was not employed.

Differences in working hours

Furthermore, the analysis revealed that female managers worked an average of 38 hours per week while male managers worked 43 hours per week. The proportion of part-time management positions occupied by women totalled 67% in 2000 and subsequently increased to 71% in 2004. In contrast, female managers who worked on a full-time basis amounted to only 19% of all full-time managerial positions in 2000; this figure increased slightly to 20% in 2004.

Occupying the central role in their families, women generally invested less time in their careers than men, while male managers could rely on their female partners to establish a family life that included children.

Commentary

The IAB analysis shows that women still encounter difficulties in advancing to the top ranks in the private sector. Although the number of women in management positions has increased slightly in recent years, obstacles to successful career development for women can still include raising children and the continuing stereotypical division of labour in families.

The political commitment to promoting more women to senior management positions in the private sector represents a positive step towards integrating skilled female employees into the higher levels of the labour market; however, it must be followed by concrete solutions and support mechanisms at company level. Such solutions must enable mothers to work the same number of hours as fathers and to combine, more flexibly, their family and professional lives. Examples of possible solutions include introducing or extending teleworking options, job-sharing, and full-time nurseries and kindergartens.

Sandra Vogel, Cologne Institute for Economic Research (IW Köln)