The Benefit of More Women in Leadership Roles

Women account for half the world’s working-age population globally. However, the persisting imbalance of women in positions of power has started a debate in corporate circles about the viability of a gender quota so as to encourage gender equality in corporate positions of power. But why so much hoopla about gender equality? For one, reports suggest that more women in higher roles reflect in the form of better performance for the companies. Moreover, companies that have women in leadership roles have traditionally fared better than their counterparts during times of financial crisis, similar to the recent one. Here is a detailed account of why women leadership would work better in certain situations and how can you promote the same in your office.

A study carried out by Pew Research Center on women and leadership; there is little difference between men and women in key leadership traits like ability to innovate and intelligence, while many observing they are even better than men when it comes to being compassionate and organized.  Despite these facts, we see a very limited participation of women in boardroom discussions and at the upper management level. The story is same across all the continents, whether it is Asia, Europe and the US. In an extensive survey carried out by 20-first, a UK-based global gender consulting firm in 2014, women held only 11% of the 3,000 executive committee positions in 300 surveyed companies.


It’s good for financial performance of the company

Multiple research studies have been carried out in this direction. In 2007, a not-for-profit organization Catalyst reported that Fortune 500 companies having females as board members show significantly better financial performance than those having low female representation. The surveys took into account three points- return on sales, return on equity and return on the investment and found that companies having better female representation excelled on all the three parameters. Another major research that reports similar findings is that of DDI, (Development Dimensions International), a global talent management firm based out of US. According to DDI survey, companies that had majority of board members as women witnessed a substantial 87% better performance than their competition.

women in leadership


It’s better for the job economy, as a whole

Better financial performance of the organizations obviously leads to a better economic state where there are greater number of job opportunities, better productivity and more development.  This improved financial health will directly reflect in the number of jobs that will increase proportionally. Whether it is marketing jobs or healthcare, the industry hardly matters as long as it is working towards better gender diversity.


It’s Better for Relationship Building

We all have a common understanding that women are equipped with better relationship building skills. This is backed by research from Harvard Business Review, which notes that female leaders are consistently rated a notch higher than their male counterparts in the category of relationship building. This is obviously a good thing for the organization as good peer to peer camaraderie is essential for keeping up the productivity at its optimum level. In addition to inter-office relationships, this skill is also going to boost a company’s client satisfaction levels and help expand the business.


It’s better for Collaboration

With good networking skills comes the ability to easily collaborate with colleagues, clients and workers across teams, functions, and departments. A paper from the National Bureau of Economic Research agrees on the fact that women are more attracted to cooperation than men.  Men, often overestimate their capabilities, while downplaying those of their colleagues, while women are a better judge of their abilities and therefore are not averse to suggestions and help from their team members. In short, women make better team players than men.


Women are Better Communicators

While women undisputedly rule the roost when it comes to communication at personal level, does this also extend to businesses? If experts are to be believed, on the whole, women often make better communicators than men. Zenger Folkman, in their survey, also reported the same. A leader should and must have the ability to establish a crystal clear communication with his team members, clients and consumers. Women tend to be better listeners than men, and that’s what makes for a good leader.


It’s also better for men on the whole

Surprised, you might be, but gender diversity at leadership level or in the corporate in general is a good thing for men. This might sound lopsided, but there are many aspects to this argument. We could deal with them one by one.


Men have the freedom to break the norm

In the male dominated corporate world, a man’s identity is inseparably connected to his job, role and pay package. However, once the corporate world comes to term with the rising prominence of women, and their increasing participation in management decisions, this will take some performance pressure off the men’s shoulders. They will no longer be expected the default bread winner of their families, the sole earning member, who has to earn more than his spouse, and lead the family. Men can also try to be what they really want to be. They can break the stereotype and follow their passion, at least once in a while. It does give some breathing room and creates some kind of financial cushion to which they can fall back in case their plan B doesn’t work out as well.


Men can try to be a better parent

As more women take up careers and become an equally important financial support of the family, men can take some time off their work to be a better parent and run the family in a more involved, holistic fashion. When fathers work fewer hours per week, the family benefits, and it reduces the risk of behavioral problems in the kids that is often witnessed in children who had their fathers missing due to work.


About the Author: Saurabh Tyagi is a career and motivational author who consistently writes articles on various job related themes, including gender diversity in organizations.  He has been published on various career sites such as and blog.simplyhired.comYou can follow him on LinkedIn or Twitter or visit his jobs website here.


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It’s interesting to learn that 500 companies that have female leaders showed better financial performance. Although, you’re also right that women are equipped with better relationship-building skills. Well, I’ve always been fascinated by African woman leader; maybe there’s a blog about them that I can read.


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The Global Leadership Forecast 2014–2015 concluded that “gender diversity in your leadership pool means a greater diversity of thought, which, in turn, leads to improved problem solving and greater business benefits.” In the same study, when researchers asked leaders what would help increase their effectiveness, they answered “my organization needs to start creating more transparency, more attention to promoting women in leadership roles, and an atmosphere in which everyone has a chance to be a leader.”

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