When it comes to leadership positions in business, women have been historically underrepresented. But let’s be honest, who wants a boring old boys club running the show anyway?
It’s time for some fresh perspectives, and women bring just that.
First of all, studies have shown that companies with a higher percentage of women in leadership positions tend to perform better financially. So not only are women capable leaders, but they can also help boost a company’s bottom line.
Don’t believe me? Well you don’t have to. It’s already been proven.
Women Make Businesses More Successful
According to a study by McKinsey, companies in the top quartile for gender diversity on executive teams were 21% more likely to experience above-average profitability.
Just let that sink in.
Organizations with a greater balance of genders in their executives teams experience higher levels of profitability than those that don’t.
Likewise, a study by Peterson Institute for International Economics found that:
- Companies with 30% or more women in leadership positions had a 15% higher return on equity
- A 34% higher total return to shareholders compared to those with no women in leadership.
Let’s Not Just Focus on the Bottom Line, Let’s Talk About Diversity
Having a diverse group of leaders brings different ideas and approaches to problem-solving—and let’s be honest, if men were so great at running things, the world would be a utopia by now.
Yet, what’s still baffling is that according to data from the World Economic Forum, only 24% of senior management positions globally are held by women.
Another report by Catalyst found that when women held at least 25% of the board seats, there was a significant increase in the percentage of women at the executive level.
It’s worth noting that these statistics are not conclusive and can be affected by other factors, however, they do provide a strong indication of the positive impact of women in leadership positions.
Women in Executive Positions: A Progress Report
Let’s not forget about the benefits for the women themselves. When women take on leadership roles, it helps break down the glass ceiling and opens up more opportunities for future generations of women in the workplace.
It’s like a “You go, girl!” domino effect.
Despite tremendous progress we have made toward gender equality in upper-level management, there is still considerable work to be done. Various factors conspire to make it difficult for both genders to compete equally and take their rightful seat at the executive table.
Despite some progress in recent years, women are still predominantly the carers for their families. This means that moms often need additional consideration when it comes to balancing child care or elderly family members with other responsibilities – a real challenge!
The Changing Economy and Its Impact on Women
In the 1950s, only about 25% of families with children under 18 had two parents who worked. This typically meant that the man of the house was the breadwinner and the woman was left to deal with child rearing and other household necessities.
By the 1980s, that number had risen to roughly 50%.
As the economy began to shift, the need for a two family income rose and women began building careers. Yet, the needs of the household still needed to be met in terms of raising children, preparing meals and taking care of elderly family members.
In the 21st century, it’s estimated that around 70% of families with children under 18 have both parents working.
Women Are Often Passed Over for Leadership Positions – But Why?
It turns out that many times, the board or executive team factors in indirect impacts on family status. Juggling roles as a mom and an employee can be challenging enough, throwing in needing to pick up kids from school, attend Parent Teacher meetings or taking grandma to the doctor—it’s no surprise so much of this responsibility falls on women/
Yet, We Still Press Forward
According to the U.S Bureau of Labor Statistics, in 2019, 47% of mothers with children under 18 participated in the labor force, up from 37% in 1975.
I’m thrilled by the sea of change that’s beginning to emerge.
In 2021, a study by the Pew Research Center showed that in the United States, mothers are the sole or primary breadwinners in four-in-ten households with children under 18.
Men are finally realizing the potential of women in creating strong and successful careers, to a point where some men are sacrificing their employment opportunities for the sake of helping with childcare and other household responsibilities! It’s inspiring to see that attitudes towards gender roles within households have shifted significantly.
Women in Leadership: The Future of Business
Women in leadership positions are not only good for business, but they also bring diversity and opportunities for future generations.
So let’s give them a chance to show their stuff and finally put an end to that boring old boys club.
I personally am ready for the torch to be passed over.
The big question is, are you?
Last modified: February 6, 2023
