Historically, increasing the representation of women in leadership roles has been approached as a fairness issue rather than a business issue. But recent research suggests that increasing your organization’s female leadership can be a highly profitable decision as well.
In part, this performance opportunity is driven by the general lack of key leadership skills in organizations today. Apparently, 72% of CEOs around the globe rank this issue as a top concern. Increasing the number of women in leadership roles can be a big part of the solution to that problem. More women in leadership means a stronger leadership pipeline over all.
However, the story doesn’t end there
According to recent research from MSCI, companies with a strong female presence in leadership roles had higher Return on Equity (ROE) than companies without. Organizations with a higher percentage of women leaders also reported a superior price-to-book ratio.
In a related report, DDI found that companies in the top 20% of financial performance, 37% of their leaders were women. This information contrasted sharply with companies in the bottom 20% for whom women made up only 19% of the leadership ranks.
These and many other reports suggest that more inclusive organizations benefit financially from the diverse perspectives at their disposal. Unfortunately, this is an area where all too many companies struggle.
But how can organizations cope? How can they help their female employees thrive and realize their full potential?
Click here and register for an upcoming HCI webcast on how to overcome the unseen obstacles to women in leadership. Hear Jodi Detjen of Orange Grove Consulting describe the 9 key steps to progressing women in leadership.