We tell women: “Lean in. Stay in the game. Don’t drop out.”

women promotion penalty

But here’s the part we don’t talk about nearly enough:

👉 Even when women stay, they’re still advancing more slowly.

This is the “promotion penalty”—and it’s one of the most under-acknowledged contributors to the gender pay gap.

McKinsey’s latest research reveals a sobering truth:
🔍 Women make nearly the same number of job moves as men
🔍 They cross similar skill distances
🔍 But they’re less likely to move into higher-paying roles or secure senior-level titles

In other words: Same effort. Same ambition. Slower trajectory!

What’s holding them back? 👇

1. It’s not performance. It’s how leadership potential is recognised.

2. It’s how career breaks are interpreted.

3. And it’s how systemic biases show up in who gets sponsored, stretched, and seen.

After three decades advising global organisations, I’ve seen this penalty show up in nearly every industry—and I’ve worked with leaders who’ve reversed it.

In my whitepaper Closing the Gender Pay Gap: A Strategic Guide for C-Suite and Board Leaders, I call out this exact dynamic:

It’s not enough to ‘retain’ women—you must ensure they are progressing in step with their potential, not just their availability.

Here are three ways to break the promotion penalty:

1️⃣ Redefine Leadership Readiness
Stop anchoring promotion decisions to time in role or linear progression.
Instead, assess readiness based on capability, adaptability, and contribution—even if someone’s path has been non-traditional. In fact, non-traditional pathways bring with it a suite of diverse experiences which help solve business problems systemically.

2️⃣ Sponsor Before You Judge
Mentoring is helpful.
But sponsorship—where a senior leader actively advocates for a woman’s next move—is the real accelerator.
Make this part of your talent system, not a side program.
If you are sitting on a board or a C-Suite Leader, every one of you should be sponsoring at least one female leader.

3️⃣ Track Promotions by Gender and Workload Type
Do part-time employees or those returning from leave advance at the same rate?
If not, that’s a leadership issue—not a talent one.
Have a look at your data from the last 5 years and see what you find. Data never lies! Find out the blockers and remove them one by one. It's doable.

In today’s world, women are doing everything we’ve asked—earning the degrees, staying in the workforce, gaining the skills.
What they’re not getting is the same momentum.

📘 Want to know how to fix that?
Message me for a copy of my whitepaper and leadership health check.

⚡ Let’s stop asking women to prove their commitment and start redesigning systems that reward their capability ⚡

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