NEW DATA from McKinsey & Co. reveals a concerning slowdown in the promotion of Black professionals into management positions within US companies.
For all initial efforts triggered by the national conversation on race, equity, and opportunity following George Floyd’s murder in 2020, recent data suggests that companies are losing momentum in advancing Black talent.
While there has been progress at the highest levels, with the number of Black chief executives in the Fortune 500 doubling since 2020, the critical first promotion to management has seen a decline.
McKinsey’s analysis of over 270 companies employing more than 10 million people indicates that promotion rates for Black professionals have reverted to nearly the same levels as in 2019.
It also underscores a shift in companies’ focus from diversity and inclusion initiatives to budget cuts and returning workers to offices.
This shift, according to human resources and corporate executives, has led to a retreat from earlier commitments to hire and promote more people of colour.
James D. White, the former CEO of Jamba (Jamba Juice, doing business as Jamba, is an American quick-service restaurant and juice bar chain) who now serves as board chair of the Honest Co.( an American digital-first consumer goods company), said the promotion data confirm what he has been hearing from Black professionals.
“There is a really dramatic kind of pushback and retreat that I’ve seen in lots of places as it relates to the focus on Black men and Black women in the workforce.”
The data show that, for every 100 men of all races promoted into their first management role in 2022, 54 Black women were elevated.
In other words, they were promoted at about half the rate as all men. In 2021, though, the rate was nearly double that, with 96 Black women promoted for every 100 men, approaching close to parity for a brief time.
First-time promotion rates for Black men have also fallen, dropping to 66 promotions for every 100 men of any race elevated into a first management role in 2022.
That is down from 72 Black men promoted for every 100 men in 2021.
White men and women, meanwhile, were promoted at relatively high rates consistently between 2019 and 2022.
Corporate diversity efforts have become subject to debate and cost-cutting, with some employees advocating for merit-based decisions over diversity goals.
The shift is evident in culture audits, with a decline in companies prioritising diversity, equity, and inclusion.
The importance of the first promotion from an entry-level role into management is highlighted, as it sets the trajectory for earning potential and future career advancements.
Fewer first-step promotions for Black employees weaken the overall leadership pipeline, contributing to the higher attrition rates observed among Black workers.
While McKinsey’s analysis highlights a higher promotion rate for Black women into the executive ranks in 2022, concerns persist about the overall representation of Black professionals at all levels within companies.
The report calls attention to the need for sustained efforts to address the challenges faced by Black professionals in their career progression.
It also signals a critical juncture in the ongoing struggle for equitable representation and career advancement for Black professionals in corporate America.
Subscribe for our weekly news letter here!
You can unsubscribe us at any time
