March 06, 2024
Women Leaders Are Good for Business
Companies that have women as senior leaders are more profitable. The New York Times reported this in 2016. McKinsey has been saying this since 2020. Harvard Business Review was writing about it in 2021. In 2022, Forbes summarized the research, which included findings that:
So why are women still underrepresented in leadership? And why do women still get paid less?
The easy answer is discrimination, and that's certainly part of it, whether it's intentional or not. The harder answer involves talking about the fact only people with uteruses have babies.
If I wanted a successful career as an attorney, I had to choose between advancement at work and having a family. There is only one me and only 24 hours in a day. I knew I could not get the opportunities and experience I needed to do the work I wanted to do unless my career was the priority. I waited until my late 30's to get married and have children. That relationship did not last and I had to start my life over in my 40's. The truth is I had no idea who I was, what I wanted, or how to do it. And I don't think my story is unusual. Big jobs and little kids are all consuming.
We can do better supporting women, parents, and people by making work a part of our lives instead of our lives. The real problem is bigger than simply inclusion or empowerment of women. It also has to do with politics, power, and gender roles in our culture.
I believe, and the research supports, that companies that address the issues that women face at work and in our lives will be the most successful.
The theme of International Women’s Day this year is “Inspire Inclusion.” While it is important to consider the inclusivity and diversity of our workplaces year-round, IWD — which takes place annually on March 8 — is a perfect opportunity to assess and enhance your efforts to foster a work environment that includes and empowers women. Here’s an update on the most recent trends regarding women in the workplace and your 10-step plan to bolster women in your organization.
The Current State of Women in the U.S. Workforce
Women make up nearly half the U.S. workforce but remain underrepresented in management roles and continue to earn less than men on average across all industries.
According to 2023 data from Pew Research Center, women make up 47% of the civilian labor force and now outnumber men in the college-educated workforce, making up 51% of those workers who are 25 and older.
There is some good news to celebrate: Women’s overall employment has recovered to pre-pandemic levels. In fact, the labor force participation rate for women between the ages of 25 and 54 has exceeded its 2019 levels by reaching 77%, according to Department of Labor data analyzed by the Center for American Progress.
Despite these positive trends, women are still paid less than men. Women earn approximately 76 cents for every dollar earned by men, per data from the U.S. Government Accountability Office. Notably, the wage gap for women of color is even greater. Women also bear a disproportionate burden of caregiving responsibilities at home and lag behind men in top leadership positions in business and government.
How Can Employers Improve These Numbers?
Here are 10 ways your business can work to advance the fair treatment and representation of women in the workforce.
IWD is a powerful reminder to celebrate the achievements and contributions of women, even as we acknowledge the growth that is still needed to achieve gender parity. By implementing these ten steps, employers can contribute to building a more equitable and inclusive future, where women of all backgrounds thrive and lead in their workplaces.
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