Gender diversity is important. Ensuring equal representation of women in the workplace can have positive effects across your entire organization. Here are some of them.
It might feel as if women’s presence in the workplace is a given, but globally, despite making up 50% of the population, women generate just 37% of GDP.
So why is diversity important in the workplace and how are organizations missing out if they don’t get the gender balance right? Here are just a few reasons why gender diversity is good for business.
1. A wider talent pool
Companies that don’t encourage women to join them are missing out on the talents and abilities of half the population. Tapping into these can make a huge difference to your productivity and your bottom line.
2. Different perspectives
Having both women and men in your teams means you benefit from the different points of view and approaches that come from different life experiences.
3. Enhanced collaboration
Having women on teams can help improve team processes and boost group collaboration. Researchers have observed that women have stronger skills reading non-verbal cues.
They also conclude that groups with more women were better at taking turns in conversation, which helps them make the most of the groups combined knowledge and skills.
This will benefit groups both when they’re collaborating on projects face-to-face. And it will also help when employees use modern communication and collaboration tools like Workplace Groups.
4. Improved staff retention
Having an inclusive culture in your workplace boosts morale and opportunity. Inclusive workplaces tend to have lower employee churn rates – which represents big savings in terms of time and money spent on recruitment.
5. A better reflection of your customers
Customers come from all walks of life. The more the make-up of your organization reflects your customers the more likely it is you’ll communicate effectively with them.
That means making sure your teams have a diversity of genders, as well as backgrounds and ethnicities. Women are hugely influential when it comes to making purchasing decisions – in 2018, women globally spent about 40 trillion US dollars. That’s a lot of buying power to connect with.
6. Improved recruitment and reputation
Having an inclusive workplace is a powerful recruiting tool. Female millennials look for employers with a strong record on diversity, according to research by PwC, with 85% saying it’s important to them.
A reputation as an inclusive employer will also demonstrate your positive company values and that will enhance your reputation in the recruitment marketplace.
7. Greater profitability
Time and again, evidence supports the theory that gender diversity has a positive impact on the bottom line. According to McKinsey, the most gender-diverse companies are 21% more like to experience above-average profitability.
And a report by MSCI shows that having women on the board of a company boosts productivity.