But senior women more likely to be laid off
At Scotiabank, leadership development is one of the financial institution’s top strategic priorities. And an important part of that development is encouraging cross-functional experience to give high-potential employees, and senior leaders, a broader understanding of the business, said Naomi Shaw, vice-president of leadership at Scotiabank in Toronto.
Despite the economic downturn, the bank is still focused on ensuring top talent receive the development opportunities they need to grow and stay engaged in the organization, said Shaw.
This was highlighted in changes to the executive management team, which included lateral moves for three executive vice-presidents and a promotion for one senior vice-president.
The lateral moves show employees further down the chain just how important cross-functional experience is, said Marianne Hasold-Schilter, senior vice-president of leadership and top talent development at Scotiabank.
“The more senior you want to go, the more important different perspectives are,” she said.
Lateral development at the bank’s vice-president level has been increasing year-over-year and about two-thirds of the moves at the director level (just below vice-president) have been lateral, said Shaw. Providing these development opportunities helps the bank retain high-potential employees, she said.
“Our executives realize we’re not going to be in this economic downturn forever. As soon as the economy starts to pick up, we’re very well positioned to ramp up the business as necessary. The economic downturn is really an opportunity to really focus on development, strengthen our bench strength so we’re positioned well moving forward,” said Shaw.
If organizations don’t take the initiative to hold onto these employees, they’ll leave, even in a poor economy. One-in-five high-potential employees changed employers between November 2007 and June 2009, according to a Catalyst survey of 873 MBA alumni who graduated between 1996 and 2007 from 26 business schools in Asia, Canada, Europe and the United States.
These employees were also able to find opportunities in different geographic locations, with 11 per cent making an international move and four per cent moving to a new location in their own country.
“Even in the toughest of economic times, top talent in organizations have options and they’re willing to move for greater career opportunities. Employers must continue to put policies and practices in place to advance top talent. If organizations aren’t focusing on developing them, they might choose to leave the organization,” said Christine Silva, a Toronto-based senior associate at Catalyst, a New York-based advocacy group for the advancement of women.
Overall, 22 per cent of high potentials received a promotion, 23 per cent took a lateral move and 12 per cent both received a promotion and took a lateral move. With 65 per cent of these opportunities taking place with employees’ current employers, many businesses are recognizing the need to develop high-potential employees during tough economic times, said Silva, who is also co-author of the study Opportunity or Setback? High-potential women and men during economic crisis.
Canadian high-potential employees were the least likely to be promoted, at just 23 per cent, compared to 41 per cent in Europe, 40 per cent in Asia and 33 per cent in the U.S., found the study.
However, some high potentials weren’t so lucky, with 12 per cent of women and 10 per cent of men reporting they lost their jobs due to the economic downturn. Unfortunately, senior women were more likely to have lost their jobs than male peers (19 per cent compared to six per cent).
“Years of Catalyst research has indicated some of the barriers that women face to advancement. Not being as connected to informal networks, facing gender-based stereotypes, not having role models at senior levels in organizations, not having access to mentors or champions the same way as their male colleagues might — any of those could be part of what we’re seeing,” said Silva.
Overall, women were as likely to be promoted as men (31 per cent compared to 36 per cent), found the study. But Canadian and European women were less likely to be promoted than their male counterparts (13 versus 27 per cent and 26 versus 44 per cent, respectively).
While more women than men took voluntary leaves (nine per cent compared to three per cent), their departures kept pace with the rate of returning talent (at 10 per cent for women and two per cent for men).
To hold onto a diverse slate of top talent, organizations must ensure talent management systems are bias-free and all top talent has access to networks and role models, said Silva.
Scotiabank also focuses on recognition. For example, Rick Waugh, the bank’s CEO, hosts a quarterly luncheon for high-potential employees.
Scotiabank’s efforts have paid off. In surveys of employees who leave, the proportion of high potentials who choose to leave the bank is much smaller than for other employees, said Hasold-Schilter. And the proportion of high-potential men and women who leave is the same, she added.
