Building better organizations with Women in Leadership
Women account for 38.8% of the global workforce. Yet only 7.2% of Fortune 500 companies have women CEOs. Though the representation of women in C-suite jobs has increased by about 5% in the past five years, the gender gap remains vast, to say the least. This blog will discuss a few issues preventing the rise of women in leadership and the benefits that an organization can experience with gender-balanced leadership.
The Leaky Pipeline
The leaky pipeline refers to the pattern where the number of women declines as the management grade rises. According to the International Labour Organization (ILO), while almost 75% of companies identify as equal opportunity employers, less than a third of the organizations could reach the critical mass of 30% women representation in their board rooms. A primary reason has been identified as the lack of specific action to encourage women in visible strategic roles. Societal expectations and domestic demands of gender roles have been discussed widely to demonstrate the disproportionate effect on women. There is a lot that needs to be done in terms of policy, for both men and women, to support a better work-life balance that will promote gender inclusivity. The need is to maintain a healthy pipeline for all employees equally from the early stages of the career so that women can also be carried right to the top of the line.
Source: https://www.mckinsey.com/featured-insights/diversity-and-inclusion/women-in-the-workplace
Gender Diversity – A Smart Business Strategy
A lack of gender diversity is a barrier to business performance. Diversity brings with it innovative thinking, new perspectives, and working styles that ultimately work towards creating better ideas and customer experiences. Gender-diverse organizations can better understand a wider pool of customers and address problems in ways that truly make an impact. Companies with women in leadership roles are more likely to achieve gender balance throughout the corporate pipeline than men-only or male-dominated boards.
The proof is in the pudding, as companies with gender-inclusive cultures are 60% more likely to have improved profits and productivity. Also, organizations with women in management roles are 60% more likely to experience enhanced reputation, attract and retain talent and have greater creativity and innovation.
Having women in leadership roles also translates into tangible economic benefits if that isn’t reason enough. Gender diversity in leadership has led to an increase in profits to the tune of 5% to 20%.
Achieving Gender Parity in Leadership
Economies and organizations cannot succeed by discounting almost half the demographic. But reaping the rewards of a gender-diverse organization requires concerted efforts, starting from the hiring process. This applies especially to roles where women are conventionally not hired. For example, there are more women in human resources, finance, and administration than STEM. The need is to encourage and employ women in STEM roles as well. Gender stereotyping also occurs during promotions with women already working in technical roles. This is also known as the “glass wall,” which hinders the rise of women to top executive levels.
Enterprises worldwide are finding merit in hiring women in the workforce, and specifically in leadership roles. Human resource initiatives on recruitment, retention and promotion, followed by skills and executive training programmes, flexible working hours, mentoring programmes, maternity leave, and part-time work have proven effective measures for encouraging workplace diversity.
Gender diversity is a complex topic with many factors at play. From recruitment to company policies and cultural behaviors, a lot influences the way gender diversity is viewed and valued. The bottom line is that an organization needs to shape its culture to close the gender gap by itself. On this women’s day, that’s what we truly hope for-a a diverse workforce.