Today, more than 44% of companies globally have women in their C-suite. As per the reports of WeForum, companies that promoted women to C-suite had a 9.7% more profitable financial year. Similarly, according to reports from McKinsey, companies with gender-diverse workforce and women leaders have 21% more chances to cut above the rest. Reports also suggest that companies where the board includes women have a higher productivity percentage.
The above numbers are more than enough to prove that women leaders are beneficial for a firm not only in theory but also in reality.
While there are many challenges that women have to face, for instance, stereotyping, lack of flexibility, lack of access to mentors, cultural resistance, and above all, male dominance. It is a proven fact that men alone can’t take the business forward. According to a few reports, women leaders tend to have a “transformational” style and are considered more collaborative and democratic.
Where the core responsibilities and abilities are common for both men and women, many studies prove that women have higher emotional intelligence and excellent soft skills. Combining all the qualities that women leaders bring to the table, women at the C-suite have a significant impact on the workforce.
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Women at C-suite Impacting The Workforce
Women are known to wear many hats. They act as a mother, homemaker, wife, and in the case of working women, they also handle corporate responsibilities. Though even men have all these roles, they are not pressured by the pay gap and cultural & societal restrictions. Yet there is no force that can stop goal-oriented women. When a company hires or promotes a woman to C-suite, she brings a unique and imaginative perspective to the table along with structural and cultural differences that drive effective solutions. With unique and emotional skill sets, having women in top leadership impacts the workforce.
Bringing Transformational Ideas
There are many studies and reports that suggest that women have more transformational ideas. A meta-analysis from the State University of New York between males and females concluded that women are more transformational. Similarly, the Hay Group suggests that women have 86% more emotional self-awareness, and acceptance. Both the qualities are of utmost importance to be a top leader and are proved to be higher in women. Further, these qualities also lead to transformational ideas. Women are demonstrated more contingent and bring more than just two-dimensional thinkers! Women leaders think beyond business, plus women leaders are of even more importance in tech industries to kick start the Fourth industrial revolution.
Enhanced Communication Across the Business
Almost all the studies and research papers have concluded that women have higher emotional self-awareness. Furthermore, not only this trait leads to adaptability but also better communication. As a matter of fact, communication is demonstrated to be the strongest trait of women. Having women in top leadership results in better communication throughout the business. Seema Unni, HR head of Fidelity Investment is the best example to showcase this impact. In a recent interview, she told the Economic Times, “Women professionals can be allied by participating in employee resource groups, leadership groups, and special interest groups”. Not only did she enhance the communication channels and hierarchy across the business, but also in industries across India.
Better Financial Outcome
Women leaders promote gender diversity. Though men leaders have started steering towards it as well, women attract women more easily. Reports suggest that businesses with gender diversity have 21% more chances to experience above-average profitability. Women, in general, are transformational and more adaptable, plus they are driven by a zeal to prove. When positioned in C-Suite, women impact and significantly transform active and passive management. Further, women leaders impart a safe and trustable workforce, with a gender-diverse approach leading to more women in the workforce. This fluid combination steers ahead of the basic business strategies resulting in higher profits.
Closing the Gender Pay Gap
The biggest challenge that women in the workforce still face is the pay gap. For the same skill set, same job role, and same productivity, the pay scale for men is higher as compared to women. Considering, the growth opportunities for men and women further demonstrates the gender pay gap. With women as leaders of a company, the hierarchy is enhanced. Additionally, a better hierarchy leads to equal opportunities for both men and women. This promotes an equal pay scale for women. Positioning a woman in top leadership, evidently closes the pay gap and steers the business toward unbeatable growth.
It can be concluded that the skills that women bring not only increase the ROIs for business but also transform the workforce into a more collaborative, diverse, and supportive one. In 2022, Fortune 500 proved the impact of women leaders. 2022 brought the highest number (44) of women CEOs on the list. This proved that now, more than ever, companies are starting to see women for their capabilities and skill set.
The bottom line here is that women in top leadership demonstrate superior values and are proven to bring more profitable financial years along. Women have the ability to wear many hats and curbing down all the challenges that are thrown their way!