The success of women in business is a topic of much debate and one that’s also been under scrutiny for years. Many people still believe that women should be in the home, while others think they shouldn’t be working at all. Even so, as more women become entrepreneurs and expand their roles outside the home, it’s important to remember that they’re just as capable of being successful as men.
According to recent research released by Harvard University, there is an increasing number of successful female business owners who have risen through the ranks and made it to executive positions—that’s something we can all celebrate!
The study found that there are now more women than men running large companies around the world. But there’s still work to do on this front; according to another report McKinsey’s 2021, only 24% of companies worldwide had at least one woman in their top three executive positions last year. And while this number increases over time, it’s still woefully low compared with other countries like Germany (where nearly 40% of companies have at least one female executive).
Challenges Faced by Women in Business
Some key factors that prevent women from reaching decision-making positions have been identified. Enterprise cultures that demand “anytime, anywhere” availability disproportionately affect women due to their household and family responsibilities, whereas policies that promote inclusivity and work-life balance (for both men and women), such as flexible working hours and paternity leave, need to be improved.
Another factor is the “leaky pipeline,” which refers to the tendency for the proportion of women to decrease as one rises the corporate ladder. The “glass wall” refers to the prevalence of women in positions such as human resources, finance and administration, that are perceived as less strategic and less likely to lead to CEO and boardroom positions. Only about one-third of the polled companies had reached the critical mass of one-third of female board members. One in every eight companies still has all-male boardrooms. Male CEOs oversaw more than 78% of the businesses that responded, while female CEOs were in charge of more small businesses.
Even though women are equally capable of earning and excelling in leadership positions, a legacy of workplace imbalance is gradually being corrected. “Change starts at the top” as the adage goes. Looking at the country’s most powerful corporations can be beneficial when forecasting business trends. According to Fortune 500, there will be 37 female CEOs in charge by 2020. Although this represents only 7.4% of CEOs, it represents a significant increase from just two female Fortune 500 executives in 2000.
Those gender-diverse Fortune 500 companies may have recognised the obvious business benefits. A 2019 S&P Global study found that companies with female CEOs and CFOs generate excess profits (in the trillions of dollars) and outperform the market in stock price performance. Higher profits are also associated with greater gender diversity on a company’s board of directors.
Women may be hired for previously reserved jobs for men due to their education. According to the Pew Research Center, by 2019, women had surpassed men in the labour force in terms of workers with a bachelor’s degree (29.5 million women to 29.3 million men). Men with a bachelor’s degree earn an average of $74,900, while women with a bachelor’s degree earn an average of $51,600. There is still much work to be done to close the gender wage gap.
Women’s Importance to Leadership
The good news is that, because women are now as educated as, if not more educated than, men in the workforce, there is little that can prevent them from rising to positions of leadership. Women are increasingly being sought after by organizations to provide valuable leadership qualities related to communication, which is an important component of successful business practice. Communication is just one of the soft skills that help a professional’s “emotional intelligence.” Critical thinking, a strong work ethic, and the ability to work well with others are other aspects of emotional intelligence.
Better decision-making results from emotional intelligence, which is an essential skill for leaders to have. Analysis, planning, and action all contribute to a tactical, emotionally intelligent approach that produces thoughtful outcomes. Adults in our society consistently teach girls that empathy is the essence of being female. Empathy facilitates the acquisition of new communication skills. Empathy also helps women consider multiple points of view and develop innovative business solutions.
According to Dr Shawn Andrews’ book, The Power of Perception, fewer women are in positions of leadership due to societal perceptions of leaders, rather than a lack of skills. Our culture instils in men the need to be assertive, self-assured, decisive, and competitive. Historically, these are also qualities associated with leadership, resulting in the de facto exclusion of women from leadership positions. Women have long been thought not to be “leadership material,” but this is no longer the case. Women seeking positions of leadership must continue to dispel these myths. In general, America’s gender perspective is changing, and we now have a new responsibility to socialize future generations with fewer gender assumptions.
Creating a Pathway for Women in Leadership
The truth is that society still accepts that women spend more time caring for children than men, making it more difficult for women to excel at work, Finding a work-life balance as a female leader balance isn’t always easy for women who strive to build a successful career.
Since the pandemic, mothers are twice as likely as fathers to spend five or more hours a day on chores in a two-parent household where both parents work, according to McKinsey research. That is equivalent to working part-time! Not surprisingly, many women in leadership positions have discovered ways to advance their education and careers that allow them to be flexible without sacrificing quality.
Female leaders have emerged over the last forty years and are making their mark in the business world. On the other hand, inequality in the workforce leads to salary gaps and struggles for promotions. Strides have been made, but there is more work to be done.
Female managers/leaders should understand the history of inequality all around the world. They shall understand the traits of a charismatic leader as these traits could help boost their desirability within the business world.
Finally, identifying a profile of a successful female leader can help demonstrate the direction in which any female manager should head. The good news is there is support for women wanting to advance their careers and find a community of like-minded women, via the annual Women Thrive Summit that takes place virtually every March to empower women to thrive in life and career. This is one of the largest global women empowerment events for successful career-driven women.
Recommended reading
Check Out the Report Made by McKinsey "Women in the Workplace 2022"
Women leaders are switching jobs at the highest rates we’ve ever seen, and ambitious young women are prepared to do the same. To make meaningful and sustainable progress toward gender equality, companies need to go beyond table stakes. That’s according to the latest Women in the Workplace report from McKinsey, in partnership with LeanIn.Org.
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