Many good reasons exist for why gender diversity is important in the workplace. Attitudes have changed significantly over the last few years, with notable achievements recorded and positive developments ongoing.
As more women continue to pull their weight and take up roles in traditionally male-dominated industries, businesses should create more opportunities for gender parity.
The facts and data today indicate things are changing over the last three decades, more women are earning bachelor’s degrees compared to men in different fields of study, and they are clamouring for promotions and negotiation of salaries to match the rates men earn. And according to a 2018 McKinsey & Company study, women are also staying longer in jobs as much as the opposite sex.
While researchers are still not able to determine exactly why companies with women perform better, however, the benefits of their presence speak for themselves. We take a look at five great reasons why companies need a stronger representation of women.
1. Better Business Results
Besides accessing even more talents, studies have shown that companies can boost their bottom line by recruiting women. Research has shown that Fortune 500 companies with more women on their boards performed better than those with fewer women.
A company with up to 30 per cent of its leaders being women is likelier to add more than 1 percentage point to its net margin, compared to a company with none. In addition, according to a KPMG report, Australia’s economy could be boosted by $60 billion over the next 20 years if more women continue to enter the workplace.
2. More Job Satisfaction for All
Gender balance could create a more productive workplace and yield more positive organisational outcomes for all. When more women are included in the workplace, job satisfaction improves for both women as well as for men, and this is based on a study conducted by the Centre for Creative Leadership and Watermark.
Companies with a higher percentage of women in their ranks had employees ranking their organisation more favourably on parameters, such as job satisfaction, employee engagement, organisational dedication, and burnout.
3. Women Are More Supportive as Bosses
Employees that are supported by their bosses typically perform better. Female bosses create confidence in employees and their career development is being considered compared to male bosses, a study revealed. Gallup, an American global analytics firm found in one of its studies that people who work for female managers engaged more in the workplace and suffered burnout stress less. Women have been shown from numerous research to be more likely to implement innovative leadership styles compared to their male counterparts.
4. Increased Employee Retention
Less gender discrimination occurs in the recruitment process in organisations with more women in senior leadership positions. These kinds of organisations also attract and retain more female employees, which mean by investing in women now, companies can reap the rewards of gender diversity down the road.
Employees from workplaces with high gender balance have cited benefits such as enjoyable work, more opportunities to have their voices heard and a job that fits well into their life.
5. Women Boost Company Creativity and Status
Companies that have women in top management positions tend to be more innovative and produce more patents compared to those with male leaders.
More female representation within organisations is likewise associated with a higher status. The most respected companies typically have twice as many women in senior management than the less reputable ones.
Related article: International Women’s Day: Invigorating Women at Work
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