Companies' Perception of Talent: Where Confidence Trumps Results
A growing number of CEOs and HR managers are grappling with a pressing issue - the perception that women's careers are being hampered by their perceived lack of confidence. In reality, research suggests that companies misjudge talent by confusing confidence with competence. This not only limits women's career advancement but also has a negative impact on overall business performance.
Studies have shown that women consistently outperform men in their current roles yet receive lower ratings for "potential." Moreover, those labeled as having less potential go on to outperform male colleagues with identical scores. The problem lies in how feedback gets delivered, with large-scale text analysis revealing that women's performance reviews focus on personality traits rather than business impact.
The root cause of this issue is the emphasis placed on confidence over results. Companies prioritize "executive presence" and "gravitas," masking bias and rewarding self-promotion over substance. Calibration meetings designed to standardize ratings can even amplify this dynamic, with confident storytelling trumping comparable results.
This perception trap not only disadvantages women but also affects companies' bottom line. Research has shown that less diverse leadership teams make weaker strategic decisions and correlate with lower innovation and reduced long-term financial performance.
To fix this problem, some forward-thinking companies are adopting evidence-based advancement approaches. They define potential concretely using measurable competencies, audit the ratings that gate opportunity, and replace confidence tests with readiness trials. They also refrain from trait-only feedback in calibration and reframe the opportunity itself by providing clear scope, resources, success metrics, and structured onboarding.
Companies must acknowledge the systemic issue at play - treating confidence as evidence of capability. Instead, they should focus on pipeline quality control by converting performance into advancement using clean, auditable criteria. This will help build deeper leadership benches, minimize flameouts among newly promoted managers, and shorten time-to-impact on critical work.
Ultimately, companies must be willing to measure what they currently take on faith and act on the data. As Professor Ginka Toegel notes, "The confidence premium feels intuitive as charismatic leaders do inspire trust, after all." However, intuition is expensive when it systematically mislabels high performers as lower potential. The fix lies in raising the evidentiary bar for everyone.
A growing number of CEOs and HR managers are grappling with a pressing issue - the perception that women's careers are being hampered by their perceived lack of confidence. In reality, research suggests that companies misjudge talent by confusing confidence with competence. This not only limits women's career advancement but also has a negative impact on overall business performance.
Studies have shown that women consistently outperform men in their current roles yet receive lower ratings for "potential." Moreover, those labeled as having less potential go on to outperform male colleagues with identical scores. The problem lies in how feedback gets delivered, with large-scale text analysis revealing that women's performance reviews focus on personality traits rather than business impact.
The root cause of this issue is the emphasis placed on confidence over results. Companies prioritize "executive presence" and "gravitas," masking bias and rewarding self-promotion over substance. Calibration meetings designed to standardize ratings can even amplify this dynamic, with confident storytelling trumping comparable results.
This perception trap not only disadvantages women but also affects companies' bottom line. Research has shown that less diverse leadership teams make weaker strategic decisions and correlate with lower innovation and reduced long-term financial performance.
To fix this problem, some forward-thinking companies are adopting evidence-based advancement approaches. They define potential concretely using measurable competencies, audit the ratings that gate opportunity, and replace confidence tests with readiness trials. They also refrain from trait-only feedback in calibration and reframe the opportunity itself by providing clear scope, resources, success metrics, and structured onboarding.
Companies must acknowledge the systemic issue at play - treating confidence as evidence of capability. Instead, they should focus on pipeline quality control by converting performance into advancement using clean, auditable criteria. This will help build deeper leadership benches, minimize flameouts among newly promoted managers, and shorten time-to-impact on critical work.
Ultimately, companies must be willing to measure what they currently take on faith and act on the data. As Professor Ginka Toegel notes, "The confidence premium feels intuitive as charismatic leaders do inspire trust, after all." However, intuition is expensive when it systematically mislabels high performers as lower potential. The fix lies in raising the evidentiary bar for everyone.