How star women build portable skills

Area of Science:

• Business Strategy
• Organizational Behavior
• Human Capital Management

Background:

• Hiring star performers from competitors carries significant risks, often leading to decreased individual and firm performance.
• Previous research indicated that star stock analysts experienced performance declines after changing employers.

Purpose of the Study:

• To investigate why female star stock analysts consistently maintain their performance after switching firms, unlike their male counterparts.
• To identify the factors contributing to the portable performance of women in high-talent roles.

Main Methods:

• Analysis of data from over 1,000 star stock analysts, with a specific focus on the performance of 189 star women before and after changing employers.
• Comparative analysis of the relationship-building strategies and employer assessment approaches of male and female star analysts.

Main Results:

• Female star analysts reliably maintained their star rankings after switching employers, outperforming male analysts who switched firms.
• Male analysts' performance declined post-switch, suggesting a reliance on firm-specific human capital.
• Female analysts demonstrated portable performance, attributed to strong external client relationships and meticulous employer selection.

Conclusions:

• The study highlights that star women's success is linked to building portable, external relationships rather than firm-specific internal networks.
• Female analysts' careful assessment of new employers contributes to their sustained high performance.
• Understanding these gender-based differences in career mobility and performance is crucial for talent management strategies.