Despite the research that is published, despite the facts that we know, despite common sense – women have still not found their place in upper management and in the boardroom. Women in leadership is bottom line issue. In a previous post, we learned how important it is that companies have women on their Board of Directors. Return on Equity is higher, Return on Sales is higher and Return on Invested Capital is higher.
Does your company want more success? Here are three big reasons your company needs women in leadership positions:
Engaged employees impact profit margins.
According to Gallup’s 2013 report, State of the American Workplace, “organizations with an average of 9.3 engaged employees for every actively disengaged employee in 2010-2011 experienced 147% higher earnings per share (EPS) compared with their competition in 2011-2012.” If you work for a multinational company, understand that the same trend exists.
Female managers are better at managing their employees than male managers.
Why? Because engaged employees are more productive and women managers are better at engaging employees. According to Gallup, “Individuals who work for a female manager are more engaged, on average, than those who work for a male manager (33% to 27%, respectively). Female employees who work for female managers are the most engaged, at 35%. Male employees who report to male managers are the least engaged, at 25%.”
Women leaders are underrepresented.
Although change does not happen overnight, acquiring and retaining women in leadership could be the proverbial “low hanging fruit” that companies are always searching for. Women are the largest pool of consumers (over represented) and the smallest pool of leadership (underrepresented). Women make up more than 70% of all consumer purchasing decisions worldwide. The global female consumer market is worth about $20 trillion — bigger than the consumer markets of China and India combined. Boosting gender diversity in leadership makes sense.
What are you waiting for?
Source: “Gallup Business Journal, “Why Women Are Better Managers Than Men,” Kimberly Fitch and Sangeeta Agrawal, Oct. 16, 2014