Why Women Left The Workplace And How To Bring Them Back

Two ways companies can reverse the effects of this “shecession”

Since the beginning of “The Great Resignation,” the U.S. has seen a tidal wave of Americans exiting the workforce. Among those are the millions of women who left during the pandemic. Some are calling it a “crisis for the American economy” or the “shecession,” with more than 1 million women still out of work today. In 2020 alone, women globally lost $800 billion in earnings. Even more shocking, the number of women working outside of the home reached the lowest it has been in 34 years. This setback has not only been detrimental to the American economy, but has also generated concern about the future of women in the workforce.

Pre-pandemic, women were making significant progress in the workplace. Women’s rights movements like #MeToo were working to end sexual harassment in the workplace and marches for gender equality were proving successful in closing the pay gap. McKinsey reports showed increasing numbers of women in senior positions (28%) and in the C-suite (21%) in 2019 – two all-time highs. The effects of the pandemic have led to a seismic shift, derailing the progress women have made toward solidifying their place and value in the workforce.

A few contributing factors led to this crisis. Many female-dominated industries like hospitality and food services experienced major layoffs as demand for their products or services disappeared in light of the stay-at-home orders. However, a larger contributor is the loss of support systems like child care and in-person schooling, systems integral in providing women the opportunity to devote time and attention to their careers.

Instead, most caregiving responsibilities were taken over by women in their homes during the pandemic. With obstacles, such as navigating online school for children among other roles, many women experienced burnout, stress and were forced to decide whether to keep their jobs or support their family’s needs.

Not only did the “shecession” hurt the economy, but it also caused the loss of two major components of organizational success: gender diversity and female perspectives in the workplace. Studies have shown that diversity in the workplace creates a culture of excellence, as diversity of thought improves the critical decision-making process organizations go through on a daily basis.

In addition, new research shows that female-dominant traits have been effective in the post-pandemic workforce. Particularly, women disproportionately lead with the most important leadership trait: empathy. Empathy’s constructive effects include innovation, engagement, retention, and inclusivity — all things necessary for organizational success, highlighting the importance of female presence in the workplace. It is becoming increasingly important for organizations to take the steps necessary to bring women back into the workplace.

Here are two strategies to best help organizations empower women in the workforce.

Women, who left the workforce, now have work experience gaps on their resumes making it even more important for hiring managers to adopt a skills-based hiring approach when evaluating these potential candidates. Rather than viewing these gaps as potential red flags, companies must focus on the skills female candidates bring to the table that can contribute to the organization’s overall success.

Experience, such as managing a household can transfer to a workplace environment thanks to essential soft skills, such as time management and communication. Embracing a skills-based mindset means hiring managers would shift their focus from years of work experience or specific educational qualifications to the skills a candidate has accumulated over time.

From a time and cost standpoint, pursuing learning in a traditional academic setting can be unattainable for many workers. By utilizing tools that make alternative forms of learning possible, workers have a better chance to excel in the workplace. When upskilling and reskilling are paired with digital credentials, workers are more marketable and employee success increases. Organizations offering their employees opportunities to upskill and reskill can not only increase employee engagement but also establish a more effective talent management strategy.

Organizations can lower the barrier of entry for women to rejoin the workforce by focusing on helping women upskill with digital credentials. It is important for employers to demonstrate support for women by offering opportunities for alternative forms of learning — equipping them with the necessary knowledge and skill-set to begin working in the current job landscape.

Because the work landscape has changed dramatically since the beginning of the pandemic, women need to feel confident their employers will support them as they navigate it. Companies with a deficiency in learning and development opportunities will fall short on gender diversity and, therefore, lack a culture of excellence.

Looking ahead, it is imperative organizations prioritize action that will bring women back into the workforce, especially if they value diversity, equity and inclusion initiatives. Embracing a skills-based hiring approach and using tools to champion upskilling and reskilling opportunities are the first steps companies can take to reverse the effects of this “shecession.”