Why We Need More Women on Executive Boards?

Women of different castes and colors are shattering glass ceilings. In earlier times, women mostly used to hold junior positions. With the changing times and increasing knowledge, women have started exploring different fields and leading organizations. Women represent 58.4% of the US workforce, but less than 35% hold senior and managerial positions. Women on boards drive innovation and fight their way to rank in the professional world. Less than 10% of Fortune 500 CEOs are women. Let us understand why companies should focus on having more women on boards and what difference it could create in an organization.

Women Contribute to Board Performance

Women on boards show exemplary performance and significant results. According to a study, a company with more women executives is 30% more likely to outperform companies with male counterparts. However, the company’s acceptance and lack of mentorship are the reasons which pose to be the biggest threats to the growth of women. Another study reveals that women are awarded 60% of the total US graduate degrees. This highlights that women are taking up more educational careers and contributing by sharing immense knowledge in the company.

Women Leaders Bring New Perspective

With different ideologies, women on boards are set to bring new perspectives to the decision-making process. It is even said that women in business and leadership positions tend to be more empathetic and observant. They take every decision carefully and try their best to come up with effective solutions. Besides this, women in society face different experiences in their personal life, which tend to reflect in their professional arena.

For instance, married women and mompreneurs look after their homes and maintain a balance between personal and professional life. This allows them to look at business activities from a new perspective. Women on corporate boards are even well-versed in when they should multitask and when they should delegate the task to somebody else. 

Women Leaders Drive Innovation

An increase in the number of women on boards has shown the boosting innovation capacities of the companies. Women on boards and female leaders take steps to fight the issues that exist in the industries and corporate world. They do not repeat the same models that prevail in the company. Rather, women leaders tend to challenge and like to experiment with new ideas. One cannot deny that innovation is integral and beneficial for every business’s success. Consumers have multiple choices and keep switching brands to find the ideal solution that meets their requirements. Innovative women leaders tend to balance this out and take the right approach to scale up their company in the fast-paced world.

They Drive Transparency

Women in business understand the importance of maintaining transparency in the professional world. Be it, employees, clients, suppliers, or any other stakeholder involved, a business cannot grow appropriately until everybody is aligned with the status. There is a need to inform and ensure that the key stakeholders are aligned on the goals and objectives. If there are any challenges or unfavorable circumstances happening, female leaders drive transparency. They even seek equal participation from the employees and encourage a healthy working environment.   

They Encourage Social Inclusion

Women leaders not only focus on the growth of the company but also on the growth of the employees. Women on boards and managerial positions encourage every individual to share their opinions and perspectives. Most companies have primarily started focusing on diversity and inclusion initiatives. Hiring people from different backgrounds may help them learn about different cultures and perspectives. However, this can lead to biases and may cause conflicts. Women on boards understand this concern and focus on encouraging each employee to share their thoughts on the same. Women leaders are often termed, good listeners. They make the final decision only after listening to everyone and understanding the entire process.

They Encourage Collaborative Work

As mentioned above, women encourage everyone to participate equally. We can say that female leaders are effective team players and focus on encouraging others to collaborate. Let us understand this with an example. Mothers understand that their children and siblings have different thought processes but encourage their children to play along so that they can interact and learn how to socialize. Similarly, female leaders and executive boards take the same approach and encourage teamwork in the organization. They understand the importance of employee engagement and teamwork and take that as a priority. Paying attention to these aspects can also help increase the organization's retention rate as it will keep employees satisfied.  

Improved Corporate Reputation

The choices of consumers and how they look up to an organization have changed in this age. Millennials also prefer working in organizations that value inclusivity and take initiatives for the betterment of each employee. Having equal women employees or women on boards can significantly improve a company’s reputation. Besides, the board of directors should never be only dominated by men. It should comprise a mix of people with different thought processes and can help build the organization's foundation.  

Women on boards can contribute to the growth in these ways. Every company should consider encouraging female employees to participate in office activities and plan out mentorship activities to help promote women in their careers. Women executives give priority to social issues and consider the welfare of each employee into consideration. Therefore, it could be highly beneficial for the company's long-term success.