Contributors
Chief Executive Officer
March 12 • 6 Min Read
Kevlar, windshield wipers, the dishwasher, disposable diapers, and the rocket fuel that launched the first U.S. satellite were all invented by women. These breakthroughs, ranging from lifesaving to time-saving, from the most mundane to one that reaches into the stratosphere, all came about because something different—whether it was better, faster, automated, or previously unimagined—was needed.
What do we need today? What has to be different? If there is a common theme for businesses across every industry today, it is rapid change:
- Change in workforce demographics
- Change around workplace norms, including where we work and whose voices get heard
- Change both accelerated and magnified by more widespread adoption of AI
What’s getting lost amid the flurry of change and challenges to social norms is the multitude of ways organizations benefit from having differing perspectives across a variety of individual backgrounds. Research shows that women bring unique strengths to leadership roles that allow for bold decision-making, relationship-building, goal setting, change management, and collaboration.
Progress Toward Parity?
As we reflect on the recent celebration of International Women’s Day, we continue to see signs of progress, albeit not at the quick pace we see in other aspects of business.
Research from the Bank of America Institute shows that the gender pay gap has largely eroded in recent years, with women earning 84% of what men are paid among average full-time workers. The analysis also found that women are driving the growth of the U.S. workforce, as the labor participation rate among prime-age women (25-54) grew twice as fast last year as the rate for prime-age men.
One thing every business leader can do is acknowledge the outsized role that women play in helping organizations navigate increasingly complex challenges.
Yet, the World Economic Forum estimates that it will take until 2158 to reach full gender parity at the current rate of progress, according to its Global Gender Gap Report 2024. This stark reality set the stage for the Accelerate Action theme of this year’s International Women’s Day, highlighting the urgent need to take swift steps toward achieving gender equality.
The International Women’s Day movement encourages companies to optimize their efforts to recruit, develop, and retain diverse leaders and also provide them with opportunities to excel through access to training, mentorship, and allyship. And one thing every business leader can do is acknowledge the outsized role that women play in helping organizations navigate increasingly complex challenges.
Untapped Potential for High Performance
An analysis of 10-year returns among S&P 500 companies between 2014 and 2022 found that women-led companies outperformed those led by their male counterparts. So, too, do female-led startups, according to the Boston Consulting Group.
Meanwhile, researchers at Bryant University who reviewed the managerial characteristics of CFOs at companies struggling with debt found that highly leveraged companies with female CFOs could reduce losses in sales growth by an average of 4.3%.
It’s time to move from recognition to action. Change may start with an increase in knowledge and a shift in thinking, but it doesn’t end there.
Despite the business case for having more women in leadership positions, not many have made it to the top. Research from Crist|Kolder Associates shows that the percentages of female CEOs and CFOs at Fortune 500 and S&P 500 companies have nearly doubled over the past 10 years, but women still only account for 9.7% and 17.6% of these roles, respectively.
Women are also having a significant impact in the boardroom, even though too few have the opportunity to do so. The Conference Board reported that women held 34% of board positions at S&P 500 companies in 2024, along with a record 29% of board seats in the Russell 3000.
However, women accounted for only 11% and 8% of board chair positions among the two indices, respectively. Despite this, an analysis conducted by Bloomberg Intelligence showed that companies with more women on their boards delivered higher returns than those with fewer women.
Beyond Celebration: Igniting Change to Deliver More Value
All business leaders must recognize that they can deliver better results for their customers or clients when they can attract and retain the smartest and most innovative talent from a wide range of backgrounds and experiences. But it’s time to move from recognition to action. Change may start with an increase in knowledge and a shift in thinking, but it doesn’t end there.
In honor of International Women’s Day, let’s not just celebrate the achievements of women but commit to the kind of action that brings about change. The kind of change that can help businesses stay ahead of the competition and deliver more value to their shareholders.
