However, the study on gender diversity by Marcus Noland and Tyler Moran suggest that having a woman in an executive position leads to better performance, with many saying they’re stronger than men in terms of being compassionate and organized leaders. So what are the advantages of attracting and retain a female candidate for top position in your company? Let’s check the answer in this post.
1. Good for the financial performance of the company
Multiple research studies have been carried out in this direction and they also draw the same conclusion that companies which have females as board members outperform those having low female representation. Let the parameters speak themselves. The surveys took into account three points. Fortune 500 companies with three or more women on the Board show significantly better financial performance with 42 percent more return on sales, 53 percent more returns on equities (ROE) and 66 percent more return invested capital (ROI).
It can be seen that women bring a different perspective and thought which are based on a different set of life experiences, This leads to better problem solving, broaden and deepen the executive board's insight and pre-sight in this respective market
However, at the top 100 companies in the tech industry, women made up only approximately 7% of companies board. That is a modest number when comparing to the quality of the female workforce.
2. Have relationship building skill
Women are usually equipped with better relationship building skills than their male counterpart. This is backed by research from Harvard Business Review which reveals that women are better making deals, collaborating and working across sectors in greater numbers than the men. Not to mention, in the category of a friendly workplace, women show the outstanding performance in making the harmonious environment across teams, functions, and departments, creating camaraderie and motivating their employees at work. This is essential for keeping up productivity at its optimum level.
Additionally, the relationship between company and customers is also encouraged as women are good at understanding the demand of people. Hence, this boosts a company's client satisfaction levels and help expand the business.
3. Encourage others to step up
Today’s young women (millennials) are more and more educated, who are critical tools to ignite the growth of a company. And when we have more women in leadership roles where they have the authority to decide and negotiate on issues that affect them, it will operate as an encouragement to other women in the workplace. Hence, our attempts to end gender inequality in the workplace will work.
In the other hands, when women climb in the high mountains, it’s also better for men on the whole. That said, men have the chance to break the norm such as a man must be the breadwinner of his families or the sole earning member and they will have more time to spend with their child and be a better parent.
So it’s evident that gender equality is good for your company as well as the country. Faro hopes that this post partly has a positive impact on the prejudice of some people about the power of the female. At Faro, we broaden the labor network to choose the best candidates matching with your business.