Women in the Boardroom: Why Is It Important?
This is circa 2020 – the era of immense technological boom and massive scientific innovations. This means, as a community, we have access to innumerable revolutionary resources to make our lives easier and economically more viable. However, amidst all these, it is pretty appalling to see that the condition of women in our society hasn’t risen as much as standing in 2020 we expect it to be.
Even now, women just make about 5% of the top 500 CEOs in America. Of course, this rate is much better than what it used to be even a decade back, but it’s really not adequate.
Of course, the number of women employees is extremely large now (though the 50-50 division is yet a dream). However, considering the number of corporate women employees in the United States, the number of women who make it to the boardroom is really low. Women’s apparent inability to function during tense moments and their reluctance to sit through the hassles of a board has often been deemed as the reason for their failure to make it to those high-profile meetings. But, it’s nothing more than a gender stereotype.
Here we present certain simple and practical reasons why women MUST be a part of the boardroom –
1. Women’s perspectives transform the way the board works – albeit for the better
Contrary to the general assumptions, Harvard Business Review thinks that women directors bring in more perspective to the business.
They are more likely to raise questions to understand various tasks at hand, and much less likely to make decisions until they have a grasp over the matter at hand.
Women in boardrooms further tend to seek a spectrum of opinions from the other members before signing any deal or making any decision.
2. Diverse diversity in boardroom attracts more investment opportunities
More and more investors nowadays, who are attuned to the socio-economical issues, are more likely to invest in firms with boards boasting of healthy gender diversity.
Furthermore, having a gender-diverse boardroom sends a positive message on the progressive attitude of the company – recognizing merit before anything else.
3. A better mix of leadership skills and qualities
Numerous researches have been conducted on the differences between the leadership qualities and skills of a male and a female (company) director.
Most of the researches made in this direction nod in affirmation with a woman’s style being more coaching-and-mentoring than that of a man, which tends to be more on the controlling side.
Furthermore, women have been found to be more collaborative than men and do not tend to disrupt the harmony of the board of directors.
4. Foremost talent retention
Business enterprises with women directors are in a position to attract better employees.
Once again, having women in the boardroom sends a positive message about the company appreciating merit ahead of one’s gender, which is why many talented people, especially female professionals prefer being a part of those companies to advance their careers.
5. Has the power to supercharge the world economy
Gender diversity and equality can have a catalytic effect on the world economy.
According to experts if equal economic equality is achieved globally, it might contribute as much as $28 trillion to the world economy, which is indeed a massive deal for everyone.
In short, women directors are the economic accelerators we all need.
6. Targets a larger consumer base
According to another research conducted by Harvard Business Review, women control nearly $20 trillion of the total global consumer spending.
This is enough evidence that having a gender-diverse board ensures great flexibility when it comes to targeting the consumer base.
The needs and requirements of women consumers are more likely to be understood by women than men, who would in this case bank mostly on statistics.
Thankfully, slowly but steadily more business enterprises are opening up to recruit women as much as men, if not more. The wage disparity is also tending to feeble away. Of course, a 50-50 work population is still far from achievable as of now – but someday definitely! What do you think?