Why putting women in top roles can boost profits

Every business is always looking for ways to increase profits. Research suggests that those firms where top echelons are still male-dominated may want to expedite their gender-equality goals. Here’s why.

Recent Harvard Business Review research has found that businesses with more women in senior management perform better than those with fewer women in such roles. 

When women are promoted to top roles, it opens up a world of possibilities for other women. For example, a female CEO is more likely to mentor and sponsor other women in the organisation, leading to more women being promoted. 

In addition, a female CEO is also more likely to advocate for policies that support work-life balance and gender diversity, which can create a more positive and inclusive workplace for all employees. 

Moreover, when women are represented in leadership positions, it helps to change the narrative that only men are capable of business success. This can encourage more women to pursue careers in business, leading to even more gender equality in the workplace. 

Therefore, promoting women to top roles is not only good for individual women but also has the potential to create lasting positive change in how businesses are run.

How can promoting women in the workforce bring in business profit?

There are several reasons why having female executives in top roles can help to boost profits. 

• Women tend to be strong communicators and consensus builders, skills that are essential for successful leadership. 

• Women are often more collaborative than their malea counterparts, meaning they are more likely to work together to find creative solutions to problems. 

• Other research has shown that companies with female leaders are more profitable than those without. This is likely because women are typically more risk-averse than men, and as a result, they are better able to avoid costly mistakes. 

The authors of the Harvard Business Review research emphasise that though they make no claim as to whether shifts towards better female representation in the highest levels of a company makes firms intrinsically “better”. Rather it shows that business with such representation “can lead firms to consider a wider variety of value creation strategies”.

Time to talk to HR?