Corporate America has always managed to increase the percentage of women in top-level positions over the last decade. Most notably, the percentage of women at C-suite levels increased from 17 percent in 2015 to 29 percent in recent years.

While palpable, this is only a partial view of the corporate pipeline, as disproportionate effects still exist concerning entry and middle-management levels. The means through which this disparity manifests regarding women's career advancement at these earlier stages remains the cause for preventing true parity, calling for more holistic and structural reforms.

Growth at the Top

The biggest successes of the diversity and inclusion practices are observable at the top tiers of corporate leadership through an increased presence of women. Companies now offer mentorship programs, leadership development, and diverse hiring practices designed to break existing barriers for women entering senior leadership positions with success. The results are promising. Women are leading the charge in areas such as technology, health care, and finance, mostly in areas previously dominated by men.

This represents close to 30 percent of C-suite members. This is a significant shift in the corporate culture since boards and shareholders have, of late, come to realize that diversity is not only the right thing but also an economic imperative. For years, studies by McKinsey and others have proved that companies with more inclusive leadership teams perform better compared to their competitors on profitability, innovation, and employee engagement. As a result, organizations that want to remain ahead of the curve are investing in a strategy to bring more inclusion to the top.

It indicates that progress at the top has been achieved but does not represent proof that the gap related to gender equality has been closed. The pipeline heading toward such top positions remains a bottleneck to women and women of color because, early in their careers, they face major barriers.

The Bottleneck in the Middle

The issue really comes to a head when looking at the entry and mid-management levels. On the one hand, some progress has been made, as it has been noted that women remain seriously underrepresented at these levels, leading to a pipeline issue where far too few women are being moved into more senior positions. Studies show that women make up nearly 50 percent of the entry-level, but this number rapidly declines as they move along the career track. For instance, at the management level, women represent a minuscule share, around 41 percent of the total; it then steadily dips at every successive level.

One of the leading causes is the gender promotion gap. That is to say, people are far more likely to be promoted into management from a gender, with men being more predominant than women. The reason for this could be the well-pronounced "broken rung," for instance, where, for example, 100 men are promoted into that position of management, and only 87 women are so fortunate. Things get even more pathetic for women of color because hardly any women belong to the color race at each step of the corporate rung.

The "broken rung" creates a "cascading effect," excluding too many women from the climb up to leadership. Because women are not being promoted into early management, they can't develop the skills and exposure they need to advance to the executive ranks. Consequently, even though the percentage of women in the C-suite continues growing, the number of women who may be eligible for such promotions remains significantly underrepresented, thereby altering the overall pace of the movement.

Barriers to Advancement

A complex web of structural and cultural barriers contributes to the underrepresentation of women in early management positions. Unconscious bias, lack of sponsorship, and rigid corporate structures all play a role in impeding women’s advancement. While companies have implemented diversity and inclusion programs, many of these initiatives are insufficient to address the deeply entrenched norms that favor men’s progression.

Unconscious bias in promotion and performance evaluations often results in women being overlooked for advancement opportunities. For example, research has shown that women are often evaluated more harshly than men, particularly when it comes to leadership potential. Moreover, women are frequently placed in roles that are seen as less critical to an organization’s core operations, limiting their opportunities for advancement.

Additionally, sponsorship — the practice of senior leaders advocating for and investing in the careers of promising employees — is often less accessible to women. Mentorship is beneficial, but sponsorship is critical for advancement, and men are more likely to be sponsored by senior leaders than women. This disparity is particularly problematic for women of color, who often lack access to influential networks within their organizations.

Moreover, work-life balance and caregiving responsibilities continue to disproportionately affect women’s career trajectories. Many companies still have rigid structures that do not accommodate the needs of working parents, forcing women to choose between career advancement and family responsibilities. While remote work and flexible schedules have become more common since the COVID-19 pandemic, these options are not uniformly available, and women continue to bear the brunt of unpaid caregiving duties.

The Road Ahead

Achieving true parity in the corporate pipeline demands a root-and-branch approach to fixing disparities at every level of an organization. Companies must focus on promoting women into the C-suite and fixing the broken rung at the manager level through better promotion processes, bias training, and ensuring access to sponsorship opportunities.

Organizations need to take steps toward developing a culture in which women feel confident being leaders. This includes providing flexible work arrangements, support for parents, and focusing on issues specific to women of color. Companies need to understand the systemic problems and, thus, create a fairer and more equal corporate environment in which women will be capable at every level.

Wrapping Up

While progress has been made in increasing women’s representation in senior leadership, but the corporate pipeline remains most resistant to parity. Women are scarce at senior levels and very much face extremely difficult barriers to advancement in the early and mid-management levels. Much more than just firm commitments will be required from companies to close gaps; action-fueled, long-term efforts reforming structures and practices that work against change toward parity across the corporate landscape will be needed.