The amount of women CEOs in America in 2021 was a record, but with the bar so low, it wasn’t difficult to cross. Only 41 women are currently in leadership positions at Fortune 500 corporations, This accounts for only 8.2 percent of all Fortune 500 organizations.
More than half of the organizations questioned did not even consider any female applicants. This is according to a 2020 research from Development Dimensions International (DDI). According to a 2019 S&P Global report, businesses headed by women often have higher profitability than those run by men. So why aren’t women considered for CEOs more often than 50% of the time?
A company’s financial stability is often used to gauge its performance. However, there are important variables that contribute to its success that are never acknowledged. Incorporating more women into the C-suite would be advantageous for businesses for the following five reasons:
The majority of consumers are women.
75% of discretionary expenditure will be in the hands of women by 2028. This makes them the biggest influencers in the world as per a 2020 Nielsen study. According to the Bureau of Labor Statistics 2021 American Time Use Study, women spent 2.38 hours on average per week in 2020 buying consumer goods compared to men’s 1.47 hours per week. Many organizations are probably not achieving their full potential as a result of the gender gap at the C-level. Particularly those whose products are largely purchased by women.
Companies with women CEOs frequently provide superior results.
According to the S&P Global report noted earlier, companies with women CEOs and CFOs often outperform the market average in terms of stock price performance. Additionally, the stock prices of the companies led by female CEOs increased by 20% within 24 months of their appointment.
This demonstrates how the lack of women in prominent leadership roles directly lowers the value of Fortune 500 stocks.
On several important leadership attributes, women surpass men.
According to a 2019 Harvard Business Review study, women outperformed men in 17 out of 19 leadership qualities. These included taking the initiative, inspiring and motivating others, and resilience. All of which are excellent skills for any leader to possess.
Having the management and leadership qualities that women often possess can help retain great employees. It also helps build long-lasting professional partnerships in a variety of enterprises, roles, and industries.
Women-owned businesses frequently offer unique workplace benefits.
In a Harris Poll survey from 2018, 50% of participants said they preferred to work for a female-led business. 46 percent of those who felt this way were men. The causes? Women-led businesses are regarded as being more caring, mission-driven, and able to offer childcare. Having childcare choices can help many working parents achieve a better work-life balance. It can be the turning point for many women to reenter or leave the workforce.
Pay equity is a big issue at some businesses. However, without concentrating the wealth largely at the top, everyone can be fairly compensated at or above industry standards.
The creativity of a corporation is impacted by women executives.
The findings of a study conducted in April 2021 and published in the Harvard Business Review demonstrated that organizations become more open to change when women are in the C-suite. It can place more emphasis on expanded research and development and less on risky decisions. Overall, the researchers concluded that having women in senior roles was sufficient to change company culture. It emphasises knowledge-building as opposed to merely buying or purchasing.
How can you find the kind of female leadership you have to have? Consider hiring from inside by taking a look at those who have already demonstrated their dedication to the job you’re doing. From your current talent pool, develop your next CEO. There are also professional networks, word-of-mouth recommendations, networking with female-led businesses, and corporate boards if that is not a practical alternative.