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1-12-2016 | Gender diversity results in more profit for organizations

The Peterson Institute for Internation Economics found out that even though women are catching up in their education level and in management positions, they are still rarely represented in the corporate boardroom and C-suite.

 

A survey in 2014, with 22,000 global firms participating, showed big differences among countries as well as sectors of how many women are board members or C-suite executives. As leading countries Norway, Latvia, Slovenia and Bulgaria showed on average more than 20% women in those positions while Japan did not even reach 3%.

After analyzing the profitability of firms which participated in the survey, Marcus Noland and Tyler Moran from the Peterson Institute found out that 30% women in corporate leadership in comparison to 0% is associated with “a one-percentage-point increase in net margin — which translates to a 15% increase in profitability for a typical firm” (Noland and Moran).

 

Gender diversity and it’s positive effects seem to influence the entire organization as well as potential employees. Vice versa, firms with gender inequality seem to negatively affect their employees and deter potential talents.

 

If you want to read more details on how to increase the ratio of women in higher positions, read the full article here.