In the book, McKinsey identified that for every 100 men who advance at the first opportunity from entry level to manager, only 81 women do (All photos: McKinsey & Company)
Almost 60% of students enrolled in public higher education institutions in Malaysia are female. Yet, women comprise only 46% of the college-educated labour force, less than 40% of senior management positions and about 30% of board seats at the top 100 public companies.
Let’s be clear: These figures represent enormous progress. Women in Malaysia play critical leadership roles in every sector of the economy and in numbers that our mothers and certainly our grandmothers could only have dreamed of. Even so, there are gaps and soft spots. For example, women earn 93.8 sen for every RM1 a man does.
In short, the gender gap, while much smaller than it was, still exists. This is often attributed to the “glass ceiling”, referring to hard-to-see barriers women encounter as they climb the corporate ladder. However, research by McKinsey, our global management consulting firm, identified another factor: the “broken rung”. In its recent book The Broken Rung: When The Career Ladder Breaks For Women — and how they can succeed in spite of it, three of our colleagues note that for every 100 men who advance at the first opportunity from entry level to manager, only 81 women do. And when women stumble at this rung, many never catch up.
Based on our own research and experience, we believe many of the book’s insights apply well to Malaysia too. Specifically, the authors estimate that about half of a person’s lifetime earnings come from the education and other attributes they bring to their first job. The other half comes from “experience capital” — the skills, experience and wisdom acquired on the job. The research says men, on the whole, build experience capital more systematically, putting them in a better position to get promoted and make more money.
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The solution, then, is for women to stretch themselves to build their own stocks of experience capital. Many do not, often for family reasons. Among mothers who remain in the workforce, for example, many consciously downshift their careers — choosing part-time work, slower career pathways, roles with less pressure or jobs with more flexibility. In North America, women average 8.6 years at work for every 10 years men work. Imagine this: menopause occurs right at the peak of women’s careers!
So, what strategic choices can women make to maximise their experience capital?
Pick the right company. This is more important than the specific job. In this context, the “right” company is one that prioritises both performance and people (P+P) equally. These companies provide employees with clear organisational vision and performance incentives while empowering them with targeted training and internal mobility programmes. Our research shows men and women who pass through P+P companies go on to have higher lifetime earnings on average than those who
do not.
It is also worth considering if the company offers a “round-trip ticket” for new parents, ensuring that they have access to networks, sponsors and worthwhile projects when they return to work. Encouragingly, more varied programmes are emerging among Malaysian companies. For example, Hewlett Packard Enterprise’s transition to part-time work for up to 36 months and PwC Malaysia’s “Plan B Childcare”, to name two.
As one of the authors put it, “If you join a company that invests in you — through training, development and opportunities for mobility — you start building experience capital early.”
Dare to make moves with big skill distance. Many women hesitate to apply for the next job, thinking they need to “check all the boxes” before making a move. But the most successful professionals — men and women alike — apply for roles that stretch them, even if they don’t feel 100% ready. Growth happens when we push beyond our comfort zones; pursuing opportunities where it is possible to fill a skill gap is a sure way to build experience capital.
Along the same lines, those who want to advance to senior leadership roles should consider taking jobs with direct profit-and-loss or revenue responsibility. This is a great way to build experience capital. Line positions require individuals to have a thorough understanding of the business, which is not necessarily the case for most support positions. Additionally, they typically receive higher compensation.
It is a partnership between employees and their companies. Organisations such as Petroliam Nasional Bhd, for instance, have promoted women to senior roles — CEO, group CFO, country manager — in the male-dominated oil and gas industry.
Challenge biases — for others and yourself. This is not news, but women in leadership are often judged more harshly than men based on personal likeability. They are expected to be likeable, yet strong, while delivering on everything. One way to counter this — and other types of biases — is through allyship. Call out moments when you see bias happen.
Rejina Rahim, managing founder of Wahine Capital, recounts a piece of advice she received during the early days of her career: “You aren’t here for a popularity contest, so don’t let them get you down.”
Build a network of male sponsors. Research shows women are less likely to have substantive interactions with senior leaders. In other words, they are over-mentored and under-sponsored. Yet, the research also found that women with male sponsors are more likely to have their ideas endorsed, developed and implemented.
Sponsorship is a two-way street. Senior leaders can be held accountable for creating opportunities for less-tenured women in the organisation or host mixed-gender sponsorship groups, and women too can find opportunities to collaborate with someone with whom they share common goals and values.
Women may not be able to change the structure of the workplace — at least not overnight — but they can be intentional in how they navigate it. We are on this journey, too — juggling our families and our careers. By betting on themselves and supporting each other, Malaysian women can build on the progress they have made and continue to narrow the gender gap.
This article first appeared on Apr 7, 2025 in The Edge Malaysia.
Vidhya Ganesan is managing partner of McKinsey & Company’s Kuala Lumpur office, where Victoria Ngow is an associate partner.
