27, May, 2016
The Peterson Institute for International Economics recently surveyed over 22,000 firms and found that those with more women in high-level executive positions had a higher increase in net revenue than companies without women in top positions.
As you can see, the increasing presence of high-ranking female employees is not a coincidence, but rather a well-thought move by organizations. Hiring females, which was once just viewed as a move to promote equal opportunity, is now a strategy to accelerate business growth.
Firms are beginning to see positive business results after deciding to increase the number of women within their organization. But how does having a larger female population benefit a business? Let’s find out.
Women Bring Diversity and Drive Innovation
Take an all-male team where members have a similar background, upbringing, and outlook. When they try to tackle a problem or develop a strategy, you will find the solutions and ideas provided within this group to be quite homogenous in nature.
Adding a woman to your team can change the entire outcome of a meeting. This is because women are inherently different from men, and grow up under different social and psychological circumstances.
As a result, gender-diverse teams will come up with a wider range of solutions to address problems. Having gender diversity in a business provides much more perspective on an issue, along with multiple ways to solve it.
More Women = Less Testosterone
According to Christine Lagarde, one of most powerful women in the world, too much testosterone in one room can be disastrous to any endeavor.
She states that most men, when surrounded by other males, feel the need to show off how brave or masculine they are. They are biologically driven to prove themselves, even at the expense of potentially jeopardizing a business venture. Instead of collaborating or cooperating to formulate ideas and strategies, men often compete with one another, making progress difficult.
Include a woman or two on the team to lower the testosterone levels, and you will notice a significant boost in productivity.
Women Improve Customer Relations
Depending on the type of business, women may be able to better cater to your customers than men.
Let’s take household items for example. In the US, 85% of household purchases are made by women. Guys sometimes have no clue about what is going on at home or the kinds of products needed to maintain a household. So if you have a business that makes and sells household items, perhaps a female could better relate to the customers.
In such a situation, female employees are imperative can often connect with customers on a personal level. They can provide expertise from first-hand experience, which can work wonders for the growth of your business.
‘Baby Brain’ Is Not a Myth
During pregnancy, women show increased activity in the right side of their brains – the area that is responsible for human emotion. This change in cerebral activity prepares women to empathize and bond with their babies; a transformation that is extremely significant in business.
Thanks to this, women (mothers in particular) have a knack for creating tight-knit, loyal teams at the workplace. Their ability to listen, nurture ideas, and collaborate with a team is a boon for the growth of any business.
These are just a few of the several reasons why firms should consider adding more women to their workforce. Gender discrimination aside, having a male-only workforce reduces diversity in your company, which in turn leads to reduced innovation. So, if you’re looking to enrich your organizational culture and provide fresh perspective, experiences, and ideas, consider hiring more women.