Advancing Women Executives is a Solid Investment Strategy
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The lack of women executives in Board and C-suite roles isn’t only a roadblock for women – it’s a financial loss for companies. Advancing females is a solid investment strategy.
Research illustrates that having three or more women leaders delivers substantial gains for businesses. Credit Suisse’s study of 28,000 executives demonstrates that companies with 10% greater representation of women in top operational jobs achieve 27% higher ROE and 42% higher ratio of dividend payouts.1
In addition, a Catalyst report found that companies with a high representation of women executives in Board roles for an extended period of time outperform their competition and increase ROS by 84%, ROIC by 60% and ROE by 46%.2
Need further proof?
McKinsey Global Institute has reached similar conclusions. In fact, their Women Matter Report displays that mixed gender boards outperform all-male boards in the U.S.3 Furthermore, increasing women executives from 0% to 30% leads to a 15% increase in an organization’s net revenue margin.4
Those are some big numbers to consider. And they aren’t the only ones that lead to gains.
A long-time customer has offered a leadership development program for women for seven years. As their CHRO shares, this program “has had a noticeable impact on our employees.” From achieving a retention rate of 90% for program participants (compared to their company average of 82%) and realizing a promotion rate of 37% for program participants (compared to SHRM’s average of 6%), their investment is paying off in more ways than one. “We believe in the power of diversifying our workforce, and must be proactive about advancing women executives to enhance our business,” Augie comments.
Women executives will realize long-term benefits, as well.
Along with the promotion and retention rates, 92% of the Women in Leadership program participants expand their network within their company. The same percentage – 92% – increase their self-confidence. In addition, managers see this as a game changer. Eighty-eight percent (88%) of managers believe their employee has increased career potential after completing the program.
The numbers are in your favor – if you commit to empowering more women executives.
The financial case for propelling women executives is clear. What changes need to happen for your company to realize these returns? Download our Analyze Gender Diversity Workbook today. It’s the smart financial move.
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1 The CS Gender 3000: Women in Senior Management, Credit Suisse
2 The Bottom Line: Corporate Performance and Women’s Representation on Boards, Catalyst
3 Women Matter, McKinsey & Company
4 Is Gender Diversity Profitable?, Peterson Institute for International Economics