The advantages of getting women into leadership roles
Two recent articles, one by Angela Priestly and another by Libby Lyons, have both highlighted the improved performances of ASX listed companies when women are CEO’s, members of their boards or in Key Management Personnel.
The figures are taken from a study over several years by the Workplace Gender Equality Agency and the Bankwest Curtain Economics Centre.
In the example of this causal link between increasing the number of leadership positions for women and improved company performances the figures speak for themselves. Appointing a female CEO increases productivity by 5%, Board representation by 4.9% and Key Management personnel by 6.9%. (Bankwest Curtain Economics Centre 2014-2019).
That productivity amounts to more than $262.7M per year improvement in the bottom line of these companies’ profits.
The study clearly demonstrates that putting women into leadership positions in ASX listed organisations and placing women in key decision-making roles adds additional worth to those companies.
The latest Gender Equity Insights reports in 2020 have highlighted a persuasive social and economic case for organisations to increase the number of women in leadership roles. It shows that more gender-balanced leadership delivers better company performance, greater productivity, and greater profitability.
The study began in 2012 and has continued on to 2020. It covers six gender indicators: workforce composition, equal pay, composition of Boards, support for flexible work and caring, employee consultation and sex-based harassment and discrimination.
The latest findings based on six years of data collecting has produced hard evidence to prove the value of gender equity. Despite this clear evidence women today still only make up 17.1% of chief executives, 14.1% of board chairs and 26.8% of board directors. Women have not actually come all that far in the last six years.
Post COVID-19 this hard evidence will support the importance of gender equity in leadership roles as a commercial imperative.
That is the clear message to chief executives, executives, and boards. They could otherwise be accused of neglecting their fiduciary duty to their shareholders and owners.
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