This Week’s Must-Read:
Who it’s for:
Employees. (You may have more success working for a woman).
Managers. (Valuable tips in this article).
Founders. (Better financial performance results from focusing on engagement).
Why it’s important:
Data shows that women-led companies perform better financially than those led by men. One recent study compared the performance of Fortune 1000 companies with women CEOs against the male-dominated S&P 500’s performance, and found that 80 women CEOs produce equity returns 226 percent better than the S&P 500.
There’s also evidence that women are building workplaces that perform better for their employees. According to findings from Capital One’s Small Business Growth Index Survey, female small business owners are more likely than men to market their businesses as a great place to work than men (55 percent compared to 37 percent).
This is a powerful tool, and here’s why:
- Engaging Employees.You can’t engage employees if they don’t understand or believe in where the company is headed. A new study from Peakon found that organizations where women hold at least half of the executive positions are more likely to have employees who understand and believe in the company’s mission and strategy (and feel inspired by its purpose). Gallup research found that female managers are better at engaging employees than male managers; female managers were rated higher in areas like providing helpful performance feedback and getting people in the right role to grow.
- Recruiting and Retaining Talent. Multiple studies have found that more people would prefer to work for a female boss. A recent study from Berlin Cameron and The Harris Poll reveals that half of Americans would prefer to work for a female-led company over a male-led company. Why? A majority say that these companies are more purpose-driven, more likely to include access to childcare, and are more likely to offer equal pay.
- Driving Diversity and Inclusion. In today’s workforce - where companies are waking up to the importance of diversity and inclusion - it’s women who are really leading the way. A recent survey by UNC Kenan-Flagler Business School shows that female-led businesses are more likely to have a mature diversity and inclusion function, and they are less likely to run into hurdles with senior leadership. Organizations with female executives rank higher than male-led organizations in awareness of bias, appreciation of difference, and understanding of diversity.
Top Take-Away: It makes perfect sense that there is a direct correlation between a strong culture/engaged employees and financial performance. Smart business seems to be a natural strength for women – but we now have the data to prove the value. Now that’s progress.