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WHY COMPANIES WITH WOMEN LEADERS ARE 20% MORE PROFITABLE

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WHY COMPANIES WITH WOMEN LEADERS ARE 20% MORE PROFITABLE

Why Companies with women leader are 20% more profitable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

African companies with boards that are at least one-quarter female, experience on average 20% higher earnings than the industry average. However, with only 5% of CEOs and 29% of senior managers being women – as well as only 36% of all promotions going to women – there is still huge room for improvement.

Some of the reasons why companies with a greater number of women in leadership positions perform better include: enhanced risk management; openness to new ideas and ways of doing things; improved collaboration and cooperation between stakeholders; and stronger ethics and consistency in making fair decisions.

Companies with greater gender diversity are also better equipped to understand the needs of female customers – who directly influence 70-80% of global spending.

This is according to the findings of McKinsey & Company’s recently released Women Matter Africa report. The research draws on surveys conducted with 55 leading companies across the continent; interviews with 35 African women leaders; and analysis of the financial performance of 210 publicly-traded African businesses.

What companies can do to improve gender diversification

So what should South African companies do to improve their gender balance?

  • First, they should make gender diversity a top board and CEO priority. Once these transformation strategies have been developed and enforced by senior leaders, progress needs to be monitored.
  • Secondly, company leaders should anchor their gender diversity strategies in a compelling business case. This must be effectively communicated, so that employees understand how to use these strategies to further their individual interests.
  • Companies must also address attitudes towards women in the workplace by educating employees and reviewing and changing processes (such as recruitment and performance reviews) to make decision-making more objective.
  • Companies should include men in gender-diversity transformation initiatives and conduct surveys to better understand what some of the limiting attitudes towards women are.
  • Companies should implement a fact-based gender-diversity strategy. Develop a strategy based on solid gender-diversity metrics and address the root causes of lower shares of women’s representation. Metrics must include pay levels of female versus male staff, the percentage of women receiving promotions and in which roles/ functions, and organisational health metrics (such as job satisfaction, perceptions of meritocracy, work-life balance, and desire for advancement).
  • Finally, companies should implement a leadership strategy to focus on, or include women.

What aspiring women leaders can do

Little has been done within the structural levels of the organisation, particularly in the private sector. So it really comes down to the drive of the women themselves.

Some of the strategies that helped existing women leaders get to where they are today include going above and beyond what was expected of them, and building resilience in the face of adversity. Many said they developed this work ethic in response to gender bias, noticing that they had to work twice as hard as male peers to earn the same recognition. They also had to cultivate a veneer of toughness, refuse to take setbacks personally, and have the courage to dissent.

Other common characteristics of women leaders include persistence in achieving goals, a willingness to take risks and a commitment to professional leadership skills development, where they actively looked for career opportunities and ways to improve their professional skills.

They also found mentors (both male and female) to provide advice, feedback and self-reflection, as well as becoming mentors themselves. They encouraged other senior women to do the same.

First published on www.howwemadeitinafrica.com

Warmest Regards,

 

eta 

 

 

 

 

 

 

Eta Lyons

Chief Executive Officer

Tel: 021 531-3050

Mobile: 083 638 9811

Email: eta@etalyons.co.za

Website: www.etalyons.co.za