Adding more women on boards and in senior leadership positions improves productivity and economic growth
A recently published study of the tech industry showed women who outperform men in the workplace are regarded as more insightful and trustworthy, substantially increasing the chances of promotion over their male counterparts.
Now, in a new study, released by an Australian team of researchers at the Bankwest Curtin Economics Centre (BCEC) in conjunction with the Workplace Gender Equality Agency (WGEA), it demonstrates the need for businesses to place more women in senior leadership positions and on the boards.
As part of the key findings, published in the June 2020 edition, the Australian research team revealed that only 14 percent of women are on board chairs and 17 percent as company CEOs. What’s more, two-thirds of firms in the construction industry have never placed a woman on the boards.
The paucity of female representation on boards and in senior leadership positions could very well be a significant hindrance for businesses seeking more productivity and economic growth.
In their findings, researchers unveiled how appointing a female CEO resulted in a nearly 13 percent increase in the likelihood of outperforming an industry on three or more metrics.
“An increase of 10 percentage points or more in female representation on the boards of Australian ASX-listed companies led to a 4.9% increase in the company market value, worth the equivalent of AUD$78.5 million for the average company,” according to the report.
“An increase of 10 percentage points or more in female representation on boards led to a 6.0% increase in the likelihood of outperforming their peers on three or more metrics,” the findings also determined.
Overall, as the general population enters a post-COVID world, enacting more female leadership would profoundly increase business outcomes and improve the gender gap, which has systemically inhibited societal cohesion and economic opportunities for women.