Evolution of Equality for Women in Business
Currently, the United States is beginning to backtrack on the women’s equality progress made due to the increased domestic demands of COVID-19.
Abstract
At the time of this writing, it is 2020. The world is still being heavily affected by COVID-19. Many women face difficult decisions on whether they should continue their careers or abandon them ultimately to care for their families and loved ones. A pioneer of the women’s equality movement, Justice Ruth Bader Ginsburg, recently passed on, which has further brought attention to women’s multiple roles. In drastic numbers, women are choosing their families over their careers. This paper discusses the effects COVID-19 has had on women in the workplace, the history of women’s equality and how the equality trends have adjusted to continue the path to true gender equality in business.
Women in the Workplace During COVID-19
The Women in the Workplace Study was conducted in partnership with LeanIn.Org. This study “tracks the progress of women in corporate America. The data set this year reflects contributions from 317 companies that participated in the study and more than 40,000 people surveyed on their workplace experiences; more than 45 in-depth interviews were also conducted to dive deeper on the issues” with data from June to August 2020 (LeanIn.Org & McKinsey & Company, 2020). An alarming statistic is how badly affected women of color have been by the COVID-19 virus when they were already not virtually represented and underemployed in the workplace. One in four women is evaluating the potential of stepping down from their careers or leaving them entirely to focus on their families due to the insurmountable stress COVID-19 has added to their lives.
Before COVID-19, women in corporate America were gradually increasing their representation in companies and in the pipeline for executive-level positions. Especially, when evaluating the pipeline for senior management tracks for women in corporate America, the last five years has seen a five percent increase in the number of women in senior-vice-president positions, from 23 to 28 percent. The number of women in C-suite positions increased by four percent, from 17 to 21 percent overall (LeanIn.Org & McKinsey & Company, 2020). The issue with these promotions is that for every ten men promoted to management roles, only 8.5 women were promoted to management positions, with this gap being even more massive for women of color.
The root issue here is that while many companies believe they’re doing more in COVID-19, they’re not doing enough to combat and prevent stress and burnout for working mothers. While they are offering remote work, increased tools and resources along with paid-leave policies, the root of the issue is the lack of adjustment for performance review criteria, which means that families who are having to slow down on their workload and workflow are being negatively viewed when performance reviews come through (LeanIn.Org & McKinsey & Company, 2020). Working mothers are at a crossroads of either pushing themselves to the point of burnout or falling short on their expectations and responsibilities.
The research was conducted on the effects of COVID-19 on women and men facing different life and career challenges. In an overwhelming response, mothers, senior-level women, and black women are more exhausted, burned out, and feel pressured to work more than their male counterparts (LeanIn.Org & McKinsey & Company, 2020). This data is accompanied by overall financial stress and anxiety being felt by families due to all of the uncertainty in COVID-19. As COVID-19 continues, women leaders’ risk to leave the workplace and directly impact decades of work towards gender equality is a significant issue the United States is currently facing.
Balancing Childcare, Entrepreneurship and COVID-19
Amidst the COVID-19 pandemic, there has been the burden of additional childcare and familial care responsibilities throughout the world, “More people at home also means that the burden of unpaid care and domestic work has increased for women and girls, literally driving some to the breaking point” (Azcona, Bhatt, Encarnacion, Palzaola-Castaño, Seck, Staab & Turquet, 2020). With the increase in home responsibilities, there have been prioritization shifts in both public and private sectors that have resulted in increased negative effects on women in the pandemic. In evaluating the sociopolitical side of the issue, “in countries with women at the helm, confirmed deaths from COVID-19 are six times lower, partly due to these leaders’ faster response to the pandemic and greater emphasis on social and environmental well-being over time” (Azcona, Bhatt, Encarnacion, Palzaola-Castaño, Seck, Staab & Turquet, 2020). The life-saving measures pursued by women directly correlates to the positive outcomes both individuals’ lives and whole countries have when women are in positions of leadership.
There have been positive outcomes due to COVID-19 where female entrepreneurs and small business owners have found ways to pivot their businesses. Throughout the COVID-19 pandemic, there has been both an economic and humanitarian crisis (Manolova, Brush, Edelman & Elam, 2020). This is an outlier situation and one that hasn’t been fully studied from a modern-day entrepreneurial standpoint. Throughout research, it’s been proven that while men are more affected by the disease of COVID-19, women are more affected by the economic impacts of COVID-19 (Manolova, Brush, Edelman & Elam, 2020). The differing effects on women is due to the average age of the firm, the average size of the firm, and women-owned businesses are commonly in industries that are susceptible to the negative effects of economic hardships (Estrada, Dolun, Schuber & Schmidt, 2020).
The COVID-19 pandemic has caused major challenges to female entrepreneurs and women in business. Specifically, there are three areas where the pandemic has hit the hardest, “(1) the industries where most women operate are disproportionately affected by the recession; (2) women are more likely to run many of the youngest, smallest, most vulnerable businesses; and (3) with schools closed and elderly family members under threat, women are more likely to be juggling primary care-giving and homemaking, while they are scrambling to save their businesses” (Estrada, Dolun, Schuber & Schmidt, 2020). While this is a business-altering issue, there are options and ways for female entrepreneurs to maintain their role as women in business (as the business owner instead of an employee). The two areas this can be adjusted from the female entrepreneur’s side is by reducing costs and keeping their horizons open to any potential pivoting opportunities, as there is always new potential despite a pandemic that affects both economics and humanitarianism (Estrada, Dolun, Schuber & Schmidt, 2020).
The Evolution of Workplace Gender Equality Through the Great Depression
In the early 1900s, it was common for women to not work outside the home; when there were women who worked outside the house, it was common for them to be of the younger generation and be unmarried. In the early 1900s, “just 20 percent of all women were “gainful workers,” as the Census Bureau then categorized labor force participation outside the home, and only 5 percent of those married were categorized as such” (Yellen, 2020). While there were so few gainfully employed women, especially those who were married, there were numerous non-financial societal contributions women were making. Areas where women contributed to the economy, included housekeeping, raising children, active work in a familial business, working in the family business, seamstress work, selling agricultural products, and secretarial work. This was when one-third of those in higher education settings were women, and women eventually went on to become homemakers. It is also worth noting that throughout the 1900s, the majority of the schoolteachers were women, meaning that if it weren’t for the elementary education, there would likely be fewer opportunities for men to achieve higher education opportunities that often result in careers that fully support their families (Donald, 2015). The education systems have been a vital piece of the United States’ continued growth and prosperity, and women have been an instrumental part of this.
The first of the women’s movements were in the early 1900s, where the 12th amendment was enacted, resulting in women’s right to vote. Following the 12th amendment in 1920 came an increase in women’s participation in the economy. Many of the positions women were able to hold were dirty, hazardous positions, and they were ones that married women were generally unable to hold. During The Great Depression, 9 states had a marriage work ban, and even through 1940, 26 states had legal restrictions on married women’s employment in government roles (Rose, 1990). Frances Perkins was instrumental in The New Deal, which included reforms, projects, regulations and programs to help revive the economic recovery following The Great Depression, in this, were regulations on increasing women’s employment, the employment only went so far as to approve “women’s work” (Rose, 1990). Between 1930 and 1970, the United States had higher high school education rates (Snyder, 1993). This educational milestone was pushed for as a means of mass education to see as many students as possible reach this education level following The Great Depression (Snyder, 1993). The United States also had evolving technology resulting in more secretarial positions, commonly held by women.
World War II and the Role of Women in the Workplace
As World War II hit, the legal requirements that stopped married women from working began to be removed. Between 1940 and 1950, in the middle of World War II, women were required to do more in the home due to their husbands’ absence, as is typical for military spouses, and the labor income for families dropped when the spouse joined the war efforts (Alves & Roberts, 2012). In focusing on women in the home, there were fewer requirements for supporting the husband and his needs, but the bills still needed to be paid, and the children still needed to be tended to. This is where women joined the labor market during World War II, out of a necessity and an opportunity. The areas where women emerged into the labor market were housekeeping, job training, and factories where military supplies were being made (Golden, 1991).
Over the course of World War II and beyond, between 1940 and 1950, the increase in women’s employment was a record 40–50% across the age ranges of 35–54, an age group that was previously forced out of the workforce due to their marital status, as it was a cultural norm for this age group to be married (Golden, 1991). A few theories are surrounding the reason for a consistent increase in women’s employment following World War II, those being that WWII had a direct impact on cultural norms, showing that women can be a part of the workforce and care for their families, it is also considered that long-run factors are a consideration, where there was an increase in the clerical sector and educational opportunities (Alves & Roberts, 2012). Lastly, there were also changes in the legal bars to married women joining the workforce. Ultimately, these areas combined, amongst others, have resulted in women continuing to participate in the workforce in large ways actively.
The Postwar Era
Following World War II, the two-income family model began to appear. With this, women began planning for their futures, focusing on education over solely focusing on married and their future families. There was an evolution in the way women were seeing their futures, with an expectation to be in the workforce for an extended period. They focused on their education and career goals at the forefront. A large part of the ability for women to keep their focus on their career goals, while not worrying about the effects of their families and marital status was the 1978 Pregnancy Discrimination Act, which bars an employer from discriminating against a woman who is pregnant, needs to take time off for childbirth or any medical conditions that relate to the pregnancy (2020). Another area that impacted women’s employment and ability to pursue their own careers was the 1974 Equality Credit Opportunity Act that allowed women to apply for credit in their name, without a co-signer, and carry the credit on their own without discrimination (Smith, 1976). This change allowed women to be a more involved active member of the economy as many of the women who qualified for credit at the time were working mothers, women who had careers, and heads of households (Nemy, 1974). This was monumental; being able to hold credit in your own name opened up women’s ability to finance vehicles and homes in their own names, without a co-signer, for the first time in American history.
The Fair Labor Standards Act of 1938 and the Family and Medical Leave Act of 1993 have strongly impacted women’s lives in the workforce. The Fair Labor Standards Act (FSLA) was first introduced following The Great Depression in 1938 to identify the minimum wage and overtime laws. The FSLA has evolved to follow current minimum wage laws and to adapt to the evolving economy. The Family and Medical Leave Act (FMLA) that was introduced in 1993 legally requires “12 workweeks of leave in a 12-month period” for childbirth within one year of birth, an adopted or fostered child within one year of placement, to care for a spouse, child or parent with a severe medical condition, for an employee’s serious health condition that stops the employee from completing their job functions (2020). It covers military caregiver leave, which is anywhere from twelve to twenty-six workweeks of leave during a 12-month period to care for a seriously injured or ill servicemember (2020). Both the FLSA and FMLA are in place by the U.S. Department of Labor, Wage, and Hour Division to help employees of covered employers handle their personal affairs with minimal impact on their employment status.
In Conclusion…
The evolution of women’s equality in business has been noteworthy, with significant change over the last 80 years. The beginning of the growth was following The Great Depression, with substantial impacts from World War II. The momentum created by WWII, directly and indirectly, resulted in a continuous increase in women’s place in gainful employment. Currently, the United States is beginning to backtrack on the women’s equality progress made due to the increased domestic demands of COVID-19.
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I wrote this paper for a Business Research Method’s Course as a portion of my M.B.A. work. I feel passionately about the content researched in this paper.
