“Leadership barriers for both genders have climbed in the last two years,” says Forté Foundation CEO Elissa Sangster, “and more women and minorities don’t have a sponsor. A third of MBAs of both genders say they have to change jobs to advance and this is much higher for women and minorities.”
The statement derives from Forté Foundation’s—a non-profit with a goal of achieving gender parity at all levels of business—fourth biennial study. The study surveyed 1,047 MBA alumni between October 24 and December 18, 2024.
“Clearly, we can do better than having MBAs believe they have to move out in order to move up. We create five-year plans for a business, why not employees?” Sangster asks.
Last year, overall MBA enrollment climbed and women maintained a 42% share across member schools, but the research reveals that, despite post-MBA salary boosts, the gender pay and promotion gap has remained resistant to change.
The Pay Gap
The major finding on the pay gap is that it persists—in no uncertain way. While all MBA graduates experience a jump in pay post-graduation, this jump is smaller for women and under-represented minorities (URM—defined by this research as Black, African American, Hispanic or Latin American, Native American, or a combination of these).
Among respondents’ first post-MBA jobs, average salary rises compared to pre-MBA employment were:
- 74% for non-URM men
- 72% for URM men
- 57% for URM women
- 51% for non-URM women.
The second finding is that the pay gap widens over time—and that there has been no reduction in the amount that it widens since Forté’s 2021 and 2023 research.
Leadership, Career Development, and Career Outcomes
Forté’s MBA Outcomes report revealed that the barriers faced by women and minorities on their way to leadership roles are greater now than they were in 2023. The report showed this to be due to a lack of informal or formal sponsorship within organizations, and to a lack of plans for formal career development or advancement.
The gaps in career development were also shown through findings in promotions. Forté’s report showed that men “outpace women in promotions, number of employees managed, budget responsibility, and proximity to the CEO.”
Forté’s research revealed that a lack of career advancement was the primary reason for job changes. While true for both men and women, this reason was “more dominant for women.” Many—43% of women and 38% of men—stated that they planned to change jobs within the next year. The group least likely to leave their job within the next year were non-URM men.
In addition to uncovering these gaps in leadership and pay, Forté’s research revealed a difference in how these aspects are perceived by men and women. Men turned out to be more likely to perceive parity at their organization than women (3.3 and 3.1, respectively), and that women and men have achieved equality in the workplace (3.1 men, 2.2 women).
In working towards their goal of gender parity, Forté collaborates with business schools, corporations, and universities to increase the opportunities available to women and underrepresented minorities. If you want to support Forté Foundation in their mission to achieve gender parity in business, you can do so by posting to Clear Admit’s Decision Wire—and we will donate $10 per entry received to Forté Foundation.
