Getting to the top as a woman? Start networking!

Turn it for the better 4 min. Lieke Steijvers

Women still earn less than men and have fewer opportunities to hold leadership positions. Economist Ashley Wong researches gender inequality in the workplace. Her research demonstrates that social networks are crucial for women in building a career or starting a business.

Women remain significantly underrepresented in top hierarchical positions across many sectors. They earn less than their male counterparts and are less likely to hold leadership roles. However, recent research by Ashley Wong and her colleagues sheds new light on the role that social networks and connections play in advancing women's careers.

Ashley Wong: ‘Recent studies increasingly emphasize the importance of social connections in the workplace, yet little is known about how they influence women's professional trajectories. Can they truly help women attain leadership positions? To gain more insight into this, I conducted two studies: one focusing on having a network of female colleagues at a business school (MBA), and another in a completely different setting: women in Ghana running their own businesses.’

Having more female colleagues appears to enhance women's career opportunities

More female colleagues mean a better career

Ashley: ‘In the MBA study, we wanted to see if having more female classmates influences the chances of attaining leadership positions after obtaining an MBA. After collecting data from LinkedIn profiles and school records, we found that women are less likely to reach senior management positions than men, despite having similar levels of education. However, interestingly, we observed that women who were in groups with more female classmates were much more likely to attain senior management positions than those with fewer female classmates. This effect, however, was not observed among men. In short, having more female colleagues appears to enhance women's career opportunities.’

Additionally, having more female colleagues also encourages women to transition to female-friendly companies and advance their careers there. Women share information among themselves about these companies, such as generous family leave policies, flexible work schedules, and equal career opportunities for men and women. This effect is particularly evident six to 10 years after obtaining an MBA, when women often have young children. This suggests that support from female colleagues is particularly effective when the gender gap in the labor market widens.

The lack of networking opportunities seems to be a significant constraint for female entrepreneurs

Online network

Wong's second study focuses on female entrepreneurs in Ghana. ‘We know from the literature that building relationships is important for business growth, but women often have smaller networks and are more likely to rely on their friends and family due to social norms. Therefore, we are investigating whether providing female entrepreneurs access to online networking groups on WhatsApp can improve their business results. We find that access to online networking groups offers significant benefits for female entrepreneurs, who see a 21% increase in profits.

Women assigned to groups with more university-educated women or women from different sectors are more likely to benefit. We also observe that women are more inclined to collaborate with individuals outside their circle of friends and family. This suggests that the lack of networking opportunities is a significant constraint for female entrepreneurs.’

With more female connections, women are more likely to have higher ambitions and succeed

Encouragement

Ashley Wong's findings shed new light on the power of social networks in promoting female leadership and entrepreneurship. They demonstrate that by connecting women, they can support each other, share information, and encourage each other to pursue higher ambitions.

Ashley: ‘I believe that women face different challenges in the workplace and entrepreneurship. Female networks are crucial in providing the information and support they need to succeed. For instance, we recently conducted a large-scale survey among female MBA alumni in our sample. We found that almost all women experienced gender bias and discrimination during their careers, and most had to make changes at work, such as reducing work hours, once they had a child.

Female networks matter! The friendships and connections you make with other women can go a long way in helping and supporting each other. With more female connections, women are more likely to have higher ambitions and succeed.’