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Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

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The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

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Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
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Black women take more career risks to reach the top. That’s not a good thing

By
Ruth Umoh
Ruth Umoh
Editor, Next to Lead
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By
Ruth Umoh
Ruth Umoh
Editor, Next to Lead
Down Arrow Button Icon
June 19, 2024, 10:13 AM ET
black woman in business professional clothing speaking onstage
SAIC's Toni Townes-Whitley is just one of two Black female Fortune 500 CEOs.Mike Coppola—Getty Images

In 2021, white women held 32.6% of managerial positions in the U.S., while Black women held only 4.3%. This year, women run 52 Fortune 500 companies. Black women run just two of them.

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Despite modest female representation progress in senior leadership roles, Black women still face unique barriers to reaching the upper ranks, and their much slower promotion pace has led them to, on average, take more frequent career risks than their white counterparts.

Researchers from Durham University Business School, Cambridge University Judge Business School, Cranfield School of Management, The University of Sydney Business School, and Charles Sturt University reviewed the speeches, backgrounds, and career paths of 757 women leaders of all races and over two centuries to understand their career challenges and how they overcame them. 

The subjects studied came from fields spanning politics, science, and technology and included Black female figures like Rosa Parks, Michelle Obama, and Oprah Winfrey.

While Black women were likelier than white women to take risks to reach the next level of their career across each stage, the study found it to be especially true in the early career stage. Black women in this stage were more likely to take risks to diversify their careers and experience, working in an average of 2.13 sectors, compared to white women who worked in an average of 1.59 sectors. Researchers cited Hazel O’Leary, who was the first woman and Black American to serve as the U.S. secretary of energy from 1993 to 1997 and who engaged in three professional fields: She was a lawyer, politician, and university administrator and excelled in each.

The study also found that as white women’s careers progress, they tend to reduce their risk-taking behaviors, while Black women increase theirs to compensate for career stagnation.

The findings underscore the need for organizations to recognize the distinct experiences and challenges faced by minority female leaders and devise policies and strategies tailored to their unique needs so they don’t feel pressure to take extreme risks to succeed, researchers said. They added that it’s not enough for organizations to take an ad-hoc approach to increasing the number of minority leaders by, for instance, creating promotion opportunities for one particular minority female leader. 

Instead, companies should take a holistic view and facilitate organizational changes that create positive leadership experiences for all employees and elicit more opportunities for minority leaders to emerge. 

“Becoming a successful leader has a very costly barrier for minority leaders…because they are required to take a lot of risk to succeed,” researchers wrote. “If they start to see that problems are resolved and if their experiences become more positive, minority representatives will enter the leadership scene more as the cost of entry will be reduced because they will not need to compensate [for] the lack of change with risk-taking.”

Ruth Umoh
@ruthumohnews
ruth.umoh@fortune.com

What’s Trending

New attack. Congressional Republicans have introduced a bill to ban DEI programs and funding for agencies, contractors, organizations, and schools that receive federal funding. WaPo

MEI. The CEO of Scale AI, the buzzy six-year-old data startup valued at $14 billion, said the company will hire only for meritocracy, writing on X: “There is a mistaken belief that meritocracy somehow conflicts with diversity.”

Witness stand. Alphabet’s CEO testified at the fraud trial of Carlos Watson, cofounder of the Black media startup Ozy Media, that the search giant never planned to buy the company despite Watson allegedly claiming it had offered to do so. Bloomberg

Slouching off. Gen Z workers are fighting against Asia’s rigid corporate structures, citing long hours and inflexible hierarchies as reasons for their dissatisfaction with work. Economist

Legal protections. The Biden administration announced a new policy that would allow DACA recipients who earned higher-ed degrees and are seeking jobs in those same fields to receive work visas. NYT

The Big Think

As persistent labor shortages spur businesses to broaden their applicant pool, a new study from Harvard Business School sheds light on how immigrants can best contribute to their new economies.

The research looked at the wave of migration after the Vietnam War in the late 1980s and early 1990s and found that those immigrants were able to financially outperform their older peers when allowed to work immediately upon arrival and receive placement in the U.S. school system.

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About the Author
By Ruth UmohEditor, Next to Lead
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Ruth Umoh is the Next to Lead editor at Fortune, covering the next generation of C-Suite leaders. She also authors Fortune’s Next to Lead newsletter.

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