Women working at small businesses have a higher likelihood of making it into upper management than women at larger employers, a new study shows.
The disparity grows the longer women stay with one company. ADP Research found that 20% of women with eight years on the job who were employed at small businesses with fewer than 50 employees reported having upper management positions, compared to 8% of women at larger businesses.
“We see two possible explanations for this finding,” the report said. “First, large employers have many layers of leadership, while smaller ones are flatter. Upper management at a small employer might be defined as just two levels of leadership rather than the eight levels that larger companies average.”
“A second reason could be that the scope of management roles at smaller companies is often broader for economic reasons, in contrast to the deeper but narrower scope of responsibilities of roles at larger companies. Either way, women could gain greater and broader management experience at small companies than large ones.”
Patrick T. Fallon/Bloomberg
Twenty-eight percent of respondents, both men and women, said they feel strongly connected to their organizations. Similarly, 28% of women in their first year on the job, at any sized business, said the same. But that share rises significantly over time for women at small businesses and remains higher than 40% by their eighth year. At larger employers, women who say they’re strongly connected doesn’t pass 30%.”Some small business owners and managers might be more intentional and assertive in their efforts to build connections with workers,” the report said. “But the relatively large share of connected workers also could be a natural advantage of their smaller size, which might make it easier for employees to communicate, build relationships, collaborate and feel valued.”
Moreover, 37% of women, at any sized business, in their first year report they’re thriving. The figure remains steady for women who stay at small businesses long term, while the figure declines for women at larger businesses in the first four years and never fully recovers after that.
