Why the World Needs More Women in Leadership Roles

Women CEOs comprised a mere 8.2% of the Fortune 500 companies in the United States in 2021. While this is depressing news, the other information is that companies with a higher representation of women on their boards outperform those with a poor representation of the fairer sex in their boardrooms. Various studies have shown that companies with greater gender diversity, not just among their workforce but also among senior leaders, are more profitable.  

According to a Forbes report, this alone bears testimony that the need for more women leaders has never been so critical. Aside from greater gender equality, closing the gender wage gap is also essential. Women have made a more significant impact in the boardrooms in recent times, but still, there is a fundamental lack of women in leadership roles. We will have more women leaders when organizations fulfill their responsibilities by creating better policies and opportunities for women. Simultaneously, women should also step forward and overcome the obstacles holding them back.  

Why is women's leadership important?

A report by McKinsey & Company showed that greater gender diversity on the senior executive team in the United Kingdom corresponded to the highest performance uplift in their data set. The report found that for every 10% increase in gender diversity, earnings before interest and taxes rose by 3.5%. This data shows that women leaders have a critical measurable impact on an organization's bottom line. Women leaders provide different skills, imaginative perspectives, and structural and cultural differences that drive effective solutions.   

Main challenges for women leaders

The working landscape is changing fast, and the business world is no longer just man's domain. Nevertheless, there are still challenges in their way, from the most experienced women leaders who have been making strides along to the upcoming young talent looking to make a severe impact. The first and most palpable challenge is that most people in the room are men, but this creates an opportunity for women to stand out and make a long-lasting impression. What is unfortunate for many women is that expectations can often be set lower, but they need to change their vision and realize it's easier to achieve their goals and showcase why women shouldn't be overlooked. Moreover, women are often perceived as more emotional and less decisive than men, yet women bring more diverse physical, mental, and emotional experiences to everyday conversations.  

Most of us know that women may not always realize their true potential, but they do have a direct route to success. When women are in a leadership role, their capability and abilities are undeniable. Below are a few reasons why we need more women in leadership roles in business today.  

Women leaders will shape the future

In 2019, the proportion of women in senior management roles globally increased to 29%, the highest recorded number. A year later, this percentage remained static. While this is seen as positive news, women just entering the workforce will need to be inspired by other women who are currently smashing their roles as a leader in the workplace. Once achieved, it can carve a direction for all young aspiring women leaders to increase the global percentage and break new records. Moreover, a meta-analysis comparing male and female leaders identified that those female leaders were more transformational. They demonstrated more reliant reward behavior than the two-dimensional actions presented by male leadership.  

Women leaders to enhance teamwork

We've all seen women demonstrate passion, enthusiasm, and the capability to take command of a situation when need be. They can make bold and wise decisions as leaders; this helps make the team environment less authoritative and more cooperative, bringing a family-like feel to the team. Having more women leaders boosts teamwork and helps implement a new culture within the business.  

Women show superior values

A national Pew Research Center Social and Demographic Trends survey showed that 2,250 adults ranked women better than or equal to men in seven primary leadership traits assessed. The key statistics from this survey is that 50% of the respondents ranked women as more honest than men, with 20% saying that men are more honest than women. As far as intelligence is concerned, 38% of respondents said they viewed women as more intelligent, with only 14% suggesting that men are more competent. Women were also ranked for being more compassionate, outgoing, and creative.  

Women achieve better financial results

More creative ideas will likely be presented when the workplace is more diverse. Diversity in the workplace helps fuel growth and helps create more sustainability within an organization. Diversity in the workplace should not just prioritize women but instead, have a fluid combination of both genders throughout the organization. Workplace gender diversity helps increase productivity, creativity improves performance and staff retention, and boosts collaboration throughout the business. In a workplace study, 21% of businesses are more likely to experience above-average profitability if the workforce is gender-diverse.  

Women leaders provide better mentorship

The power of role models cannot be overlooked, especially for the younger generation. Irrespective of an individual's gender, all people need someone to guide them to progress in their careers. Women leaders are better mentors than men for mentoring and coaching young talent. According to a study, 29% of women believe that their gender will be an obstacle to advancement. To overcome this obstacle, women in leadership positions can take this opportunity and begin empowering the bright young minds of the next generation.