A larger number of women in leadership roles leads to higher profits, according to Catalyst. On average, companies with the highest percentages of female board directors outperform those with the smallest percentage by up to 66 percent. Learn why women business leaders increase revenue and how they excel in their roles.
Initiative and Adaptation
A survey published in the Harvard Business Review found that women ranked higher in 12 out of 16 core leadership competencies, including collaboration, driving results, and self-development. They also showed a higher propensity for resilience and outside-the-box thinking. These qualities indicate that female business owners may be able to recover from setbacks more easily, and they can also advise colleagues and junior employees how to do the same.
Women also tend to take initiative and drive projects more often than their male counterparts. According to Wall Street Insanity, one explanation is that women constantly feel pressure to prove their worth. Even as high-performing MBA degree holders, many women feel a need to perform better than their male colleagues in order to be taken seriously or to maintain job security.
In a male-dominated corporate environment, Fast Company explains that less than a quarter of female executives aim to take over the corner suite, while about one-third of male executives set the same goal. In fact, an average of 68 percent of North American female executives have entirely eliminated the concept of rising to the top.
When female business leaders work for female CEOs, however, their ambition rises significantly. In a female-led corporate structure, female executives’ interest in taking on a top role climbs from 23 percent to 29 percent, nearly on par with their male colleagues.
Female CEOs also have a substantial impact on female staff, as Fast Company states. In fact, 70 percent of female executives who work under a female CEO state that their boss’s strong reputation helps with retention and encourages them to stay at the company.
According to the National Bureau of Economic Research, some studies reveal that gender diversity in senior management increases the chances of a business developing a pipeline of female business leaders. As McKinsey & Co. explains, gender diversity can also impact a company’s bottom line, as the most diverse businesses are about 15 percent more likely to achieve greater financial gains than their competitors.
As the roles of media and marketing become more and more important for corporations of all sizes, giving these components adequate attention becomes critical. In recent years, female executives have demonstrated greater capacity for both.
Fast Company explains that about 39 percent of women business leaders are willing to interact with the media on behalf of their companies, as opposed to 33 percent of male executives. In the world of online media, about 20 percent of female executives are willing to participate in their companies’ social media marketing. In contrast, just 15 percent of male leaders are willing to perform these increasingly critical roles.
As women take on more substantial roles in the business world, their impact continues to grow. Their roles as initiators, representatives, and connectors have proven financially successful in the marketplace, giving them the potential to fill more high-ranking corporate positions.
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