Many companies don’t value gender diversity as much as they should because they don’t understand how it can benefit their bottom line. The benefits of having women in managerial roles are well documented, including increasing collaboration and productivity to decreasing employee burnout and dedication to an organization.
According to a McKinsey & Co study, only one in five senior leaders is a woman. Women earn more bachelor’s degrees than men and negotiate salaries at the same rate as men, so it’s puzzling not to see more of them in leadership, especially as they have so much to offer. Here are some of the benefits of having women in managerial roles.
Women leaders are trusted
Women seem to have the edge over men when it comes to building trust. People generally believe they are honest and ethical even. Trust is a valuable commodity in today’s world and companies have to ensure that their leaders act in an ethical manner. Leaders often have to choose between options that aren’t black and white and the capacity to lead ethically is important to the success of the company.
Unethical behavior can have severe long-term consequences such as a loss of reputation, a lack of confidence from investors and significant financial loss. Sexual harassment is still a problem in a number of workplaces and women who are victims can consult with sexual harassment attorneys from USAttorneys.com to find out more about their rights.
Women have soft skills that offer a competitive edge
Hard skills may be fundamental to success but companies are slowly realizing what soft skills can bring to the table. Soft skills pertain to any ability in relating to others and handling professional life. They include essential leadership qualities such as communication, listening skills, conflict management, empathy, collaboration and teamwork.
Emotional intelligence is another way to describe soft skills and various studies have found that women outperform men in most key emotional intelligence competencies. Studies have also found that CEOs who rank highly for attributes like integrity and compassion also enjoy more return on assets.
Diverse perspectives lead to better problem-solving
Men and women inevitably come from different backgrounds and have different experiences, which shape their approach to business. Challenging each other and bringing different perspectives to the table can enhance creativity and encourage the type of ideas that propel companies forward.
By seeing different perspectives of a problem, it can help with finding solutions and making more competent decisions which ultimately leads to greater success. Companies prioritizing innovation often see better financial gains when they have women in top leadership positions.
Women have important consumer insights
Women generally make more consumer purchases than men, which means they are well placed to offer valuable consumer insights. Tapping into such insights could make products or services more marketable and a company more profitable. Gender-diverse businesses have been found in many cases to outperform others financially.
Study after study confirms that the presence of more females in top positions of corporate management correlates to increased profitability. If more companies promoted women into managerial roles, they would experience more financial success.
Women leaders collaborate more
When women are in leadership positions, they are more collaborative, which tends to lead to more job satisfaction, more dedication and loyalty to the organization, less burn out and more meaningful work.
Women leaders will take time to learn about the personal values, life goals, passions and strengths of employees and find ways for them to experience more job satisfaction. People find their jobs more meaningful when they see them as a central part of their identity.