Throughout the past year, a noisy debate has erupted in the media over the meaning of what Lisa Belkin of the New York Times has called the “opt-out revolution.” Recent articles in the Wall Street Journal, the New York Times, Time, and Fast Company all point to a disturbing trend—large numbers of highly qualified women dropping out of mainstream careers. These articles also speculate on what might be behind this new brain drain. Are the complex demands of modern child rearing the nub of the problem? Or should one blame the trend on a failure of female ambition?
The facts and figures in these articles are eye-catching: a survey of the class of 1981 at Stanford University showing that 57% of women graduates leave the work force; a survey of three graduating classes at Harvard Business School demonstrating that only 38% of women graduates end up in full-time careers; and a broader-gauged study of MBAs showing that one in three white women holding an MBA is not working full-time, compared with one in 20 for men with the same degree.
The stories that enliven these articles are also powerful: Brenda Barnes, the former CEO of PepsiCo, who gave up her megawatt career to spend more time with her three children; Karen Hughes, who resigned from her enormously influential job in the Bush White House to go home to Texas to better look after a needy teenage son; and a raft of less prominent women who also said goodbye to their careers. Lisa Beattie Frelinghuysen, for example—featured in a recent 60 Minutes segment—was building a very successful career as a lawyer. She’d been president of the law review at Stanford and went to work for a prestigious law firm. She quit after she had her first baby three years later.
These stories certainly resonate, but scratch the surface and it quickly becomes clear that there is very little in the way of systematic, rigorous data about the seeming exodus. A sector here, a graduating class there, and a flood of anecdotes: No one seems to know the basic facts. Across professions and across sectors, what is the scope of this opt-out phenomenon? What proportion of professional women take off-ramps rather than continue on their chosen career paths? Are they pushed off or pulled? Which sectors of the economy are most severely affected when women leave the workforce? How many years do women tend to spend out of the workforce? When women decide to reenter, what are they looking for? How easy is it to find on-ramps? What policies and practices help women return to work?
Early in 2004, the Center for Work-Life Policy formed a private sector, multiyear task force entitled “The Hidden Brain Drain: Women and Minorities as Unrealized Assets” to answer these and other questions. In the summer of 2004, three member companies of the task force (Ernst & Young, Goldman Sachs, and Lehman Brothers) sponsored a survey specifically designed to investigate the role of off-ramps and on-ramps in the lives of highly qualified women. The survey, conducted by Harris Interactive, comprised a nationally representative group of highly qualified women, defined as those with a graduate degree, a professional degree, or a high-honors undergraduate degree. The sample size was 2,443 women. The survey focused on two age groups: older women aged 41 to 55 and younger women aged 28 to 40. We also surveyed a smaller group of highly qualified men (653) to allow us to draw comparisons.
Using the data from the survey, we’ve created a more comprehensive and nuanced portrait of women’s career paths than has been available to date. Even more important, these data suggest actions that companies can take to ensure that female potential does not go unrealized. Given current demographic and labor market trends, it’s imperative that employers learn to reverse this brain drain. Indeed, companies that can develop policies and practices to tap into the female talent pool over the long haul will enjoy a substantial competitive advantage.
Women Do Leave
Many women take an off-ramp at some point on their career highway. Nearly four in ten highly qualified women (37%) report that they have left work voluntarily at some point in their careers. Among women who have children, that statistic rises to 43%.
How Many Opt Out?
Factors other than having children that pull women away from their jobs include the demands of caring for elderly parents or other family members (reported by 24%) and personal health issues (9%). Not surprisingly, the pull of elder care responsibilities is particularly strong for women in the 41 to 55 age group—often called the “sandwich” generation, positioned as it is between growing children and aging parents. One in three women in that bracket have left work for some period to spend time caring for family members who are not children. And lurking behind all this is the pervasiveness of a highly traditional division of labor on the home front. In a 2001 survey conducted by the Center for Work-Life Policy, fully 40% of highly qualified women with spouses felt that their husbands create more work around the house than they perform.
Why Do They Leave the Fast Lane?
Alongside these “pull” factors are a series of “push” factors—that is, features of the job or workplace that make women head for the door. Seventeen percent of women say they took an off-ramp, at least in part, because their jobs were not satisfying or meaningful. Overall, understimulation and lack of opportunity seem to be larger problems than overwork. Only 6% of women stopped working because the work itself was too demanding. In business sectors, the survey results suggest that push factors are particularly powerful—indeed, in these sectors, unlike, say, in medicine or teaching, they outweigh pull factors. Of course, in the hurly-burly world of everyday life, most women are dealing with a combination of push and pull factors—and one often serves to intensify the other. When women feel hemmed in by rigid policies or a glass ceiling, for example, they are much more likely to respond to the pull of family.
It’s important to note that, however pulled or pushed, only a relatively privileged group of women have the option of not working. Most women cannot quit their careers unless their spouses earn considerable incomes. Fully 32% of the women surveyed cite the fact that their spouses’ income “was sufficient for our family to live on one income” as a reason contributing to their decision to off-ramp.
Contrast this with the experience of highly qualified men, only 24% of whom have taken off-ramps (with no statistical difference between those who are fathers and those who are not). When men leave the workforce, they do it for different reasons. Child-care and elder-care responsibilities are much less important; only 12% of men cite these factors as compared with 44% of women. Instead, on the pull side, they cite switching careers (29%), obtaining additional training (25%), or starting a business (12%) as important reasons for taking time out. For highly qualified men, off-ramping seems to be about strategic repositioning in their careers—a far cry from the dominant concerns of their female peers.
For many women in our study, the decision to off-ramp is a tough one. These women have invested heavily in their education and training. They have spent years accumulating the skills and credentials necessary for successful careers. Most are not eager to toss that painstaking effort aside.
Lost on Reentry
Among women who take off-ramps, the overwhelming majority have every intention of returning to the workforce—and seemingly little idea of just how difficult that will prove. Women, like lawyer Lisa Beattie Frelinghuysen from the 60 Minutes segment, who happily give up their careers to have children are the exception rather than the rule. In our research, we find that most highly qualified women who are currently off-ramped (93%) want to return to their careers.
Many of these women have financial reasons for wanting to get back to work. Nearly half (46%) cite “having their own independent source of income” as an important propelling factor. Women who participated in focus groups conducted as part of our research talked about their discomfort with “dependence.” However good their marriages, many disliked needing to ask for money. Not being able to splurge on some small extravagance or make their own philanthropic choices without clearing it with their husbands did not sit well with them. It’s also true that a significant proportion of women currently seeking on-ramps are facing troubling shortfalls in family income: 38% cite “household income no longer sufficient for family needs” and 24% cite “partner’s income no longer sufficient for family needs.” Given what has happened to the cost of homes (up 38% over the past five years), the cost of college education (up 40% over the past decade), and the cost of health insurance (up 49% since 2000), it’s easy to see why many professional families find it hard to manage on one income.
But financial pressure does not tell the whole story. Many of these women find deep pleasure in their chosen careers and want to reconnect with something they love. Forty-three percent cite the “enjoyment and satisfaction” they derive from their careers as an important reason to return—among teachers this figure rises to 54% and among doctors it rises to 70%. A further 16% want to “regain power and status in their profession.” In our focus groups, women talked eloquently about how work gives shape and structure to their lives, boosts confidence and self-esteem, and confers status and standing in their communities. For many off-rampers, their professional identities remain their primary identities, despite the fact that they have taken time out.
Perhaps most interesting, 24% of the women currently looking for on-ramps are motivated by “a desire to give something back to society” and are seeking jobs that allow them to contribute to their communities in some way. In our focus groups, off-ramped women talked about how their time at home had changed their aspirations. Whether they had gotten involved in protecting the wetlands, supporting the local library, or rebuilding a playground, they felt newly connected to the importance of what one woman called “the work of care.”
Unfortunately, only 74% of off-ramped women who want to rejoin the ranks of the employed manage to do so, according to our survey. And among these, only 40% return to full-time, professional jobs. Many (24%) take part-time jobs, and some (9%) become self-employed. The implication is clear: Off-ramps are around every curve in the road, but once a woman has taken one, on-ramps are few and far between—and extremely costly.