For companies, having female executives seems to attract and retain talented professionals at all levels and lead to improvements in creativity and innovation.
According to an analysis from the International Labor Organization (ILO) based on surveys of 13,000 companies in 70 countries, three out of four companies with a high percentage of women in management positions have recorded an increase in profits of 5% to 20%.
Diversity of experience is one of the factors that explains the positive impact of having female executives. Women can share their knowledge of consumer behavior since they account for 50% of consumers. In fact, women represent a larger market than those of China and India combined, which makes them a force to be reckoned with.
But in contrast, the gender wage gap is a measurable indicator of inequality and captures the difference in income between men and women. And although it has decreased in some countries over time, it is estimated that the global gap is 22% in terms of average monthly wages. That according to a 2018 analysis from the ILO.
Gender diversity improves business performance. For every 1% growth in female employment, it is associated with annual GDP growth of 0.16% on average. That elasticity is significant in continents like Africa, where the average GDP is directly affected by female employment. There, every 1% increase in female employment is associated with 0.21% GDP growth on average.
According to The Balance, a study of 353 Fortune 500 companies by Catalyst Group showed that companies with high representation of women on their management teams had 35% higher return on equity and 34% higher total shareholder return than male-dominated companies.
So the advantages of having female executives are proven. Women stand out for their intrinsic characteristics such as intuition, empathy, versatility, and ease of communication in work environments. These attributes, which they demonstrate in their interpersonal relationships, are also linked to their responsibilities and work commitments.
For those reasons, companies that consider women for management positions are more likely to have a better work environment and higher productivity in the long term. Every woman has the ability to perform diverse tasks with versatility and follow-up her work team assignments effectively.