Closing the Gender and Race Gaps in North American Financial Services

From McKinsey. An updated view into gender and racial diversity in financial services—as well as women’s day-to-day work experiences—reveals some progress. But challenges in building an equitable and inclusive workplace persist.

At the beginning of 2021, women in North America remained dramatically underrepresented in the financial-services workforce—particularly at the level of senior management and above. A new industry-specific analysis of data from the latest Women in the Workplace report, a McKinsey collaboration with LeanIn.Org, reveals a leaky pipeline from which women are falling out in greater numbers as they progress up the career ladder, resulting in significant inequality at the top. Consistent with previous years, women in financial services continue to experience a “broken rung” at the first step from entry level to manager—where they are significantly less likely than men to be promoted (for more about our research, see sidebar “About the research and findings”). At the same time, women leaders have taken on the additional responsibilities of supporting employees and investing in diversity and inclusion during the COVID-19 pandemic—but they aren’t being rewarded for this critical work.