Despite immense progress toward gender equality in many fields, there is still a concern for women in leadership roles. According to the Global Gender Gap report, 31% of people in leadership roles are women, and an analysis found that in 2022, only 21 of the FTSE 100 and FTSE 250 businesses had female CEOs.
This imbalance has important implications not only for gender equality but also for organisational performance, social and economic development, and, ultimately, the well-being of our communities. As a result, it is critical to understand why the world requires more women in leadership positions and to take real action toward achieving this goal.
Why is it Important to Have Women in Business?
Given today's very uncertain economy, gender diversity and gender balance in leadership roles are more critical than ever. Women bring unique perspectives and experiences to the table, leading to more innovative and collaborative decision-making.
According to a McKinsey & Company report, organisations with higher gender diversity at the CEO level are 25% more likely to attain above-average profitability than those with lower gender diversity. Furthermore, the report concluded that promoting gender equality may boost global GDP by $12 trillion by 2025.
Despite these potential benefits, women remain underrepresented in leadership positions, accounting for only 29% of senior management positions globally.
The Benefits Of Having Women Leadership in Business
Queen Elizabeth II was the longest-reigning queen in history and a role model for many female leaders. The queen's work and approach to the role for 70 years have already influenced many women in politics, and others have spoken about how she has inspired their work over the years.
In the modern world, women may not always realise their full potential, but once they find themselves in a leadership position, their potential and qualities are undeniable. Let's explore how their unique perspectives, skills, and approaches contribute to the enrichment and evolution of the business landscape.
1. Women Leaders Will Shape the Future
In 2019, the global share of women in senior executive roles increased to 29%. This remained unchanged in 2020 and increased to 31% in 2021, the highest ever recorded. While this is good news, women just starting in the workforce must be encouraged by other women already succeeding as business leaders. Once achieved, it could open the way for ambitious young female leaders to raise the global percentage and set new benchmarks.
2. Female Leadership Inspires the Team
When women take up leadership positions, not only do they benefit, but so does the entire organisation. According to a study conducted by the American Psychological Association, female leaders are more likely to demonstrate transformational leadership styles, as well as inspire and motivate teams to work collaboratively towards the organisation's mission and values, than male leaders.
Compassionate leadership, which involves a focus on carefully listening, understanding, and empathy, has been shown to result in more engaged and motivated teams, which can lead to increased profitability across the company.
3. Achieve a Better Financial Outcome
Nielson predicts that by 2028, women will account for 75% of discretionary spending, making them the world's most powerful influencers.
To truly connect with women, businesses must interact with their needs and desires as customers. By having more women in leadership roles in the commercial environment, they can have a better understanding of women's buying habits, behaviours, and motivations, potentially contributing to increased company performance.
4. Improved Collaboration within the Organisation
A study on the psychology of 699 persons divided into working groups of two to five people found that the proportion of women in each group corresponded with the group's collected intelligence. The study's findings revealed that groups with a higher proportion of women engaged in more conversational to take turns, allowing more members of the group to express their opinions, share their ideas, and use their skill set.
Collaboration is an essential component of any business, regardless of industry. Teams work together to identify bottlenecks, optimise workflows, and reduce redundancy, and businesses benefit from each individual's skills.
5. Women Drive Creativity and Innovation
Having a varied group of people around the table when dealing with workplace difficulties not only allows you to hear from different perspectives but may also lead to breakthrough, innovative ideas that can boost business performance.
According to science, men and women approach problems from various angles; thus, hearing from a variety of views may help businesses identify fresh approaches to solving their particular challenges. Research reveals that organisations that adopt and prioritise developing an inclusive workplace culture are six times more likely to adopt innovations and, hence, twice as likely to reach financial targets.
How gigCMO Empowers Women In Leadership Positions
Supporting women in leadership positions is a vital step towards fostering diversity and equality within the business. Leadership training and assistance will help women to lead genuinely, leveraging their natural talents rather than striving to lead like males.
At gigCMO, our approach embraces the understanding that successful leadership is about harnessing the strengths and talents of individuals, regardless of gender identity. gigCMO's Fractional CMO Service will provide the knowledge, strategies for leadership, and frameworks required to succeed in a dynamic and transformational business environment. Women deserve the opportunity to thrive and realise their full potential, and we want to facilitate this by allowing you to develop leadership abilities and succeed in your business.
