The Power of Female Leadership in Companies

Having women in positions of power is not viewed as a choice but rather an obligation by the newer generations. Having female representation means diversity and inclusion efforts are a priority for companies, which leads to stepping stones for all DEI areas. Leadership is considered a skill, but having this role encompasses not only being prepared but also having an environment that addresses and enforces policies to make the organization accepting of them.?

In this article, we will discuss the importance of female leadership in companies, global representation, and the advantages it can bring to organizations.

What is female leadership?

Female leadership can be understood as the participation of women in positions of power as well as in decision-making within companies or organizations. The exercise of this role implies leading groups and being able to implement proposals and strategies to put their leadership into practice.?

Why is female leadership important??

As of 2023 the share of women CEOs of Fortune 500 companies reached an all-time high of 10.6%, with 53 women heading major firms.? Representation of women in leadership boast a handful of benefits for companies, from increased revenue as stated in McKinseys report “For every 10% increase in gender diversity, earnings before interest and taxes rose by a glaring 3.5%.”?

The number of women in leadership roles has risen consistently with the number of senior management growing to 29% since 2029. Having women in leadership gives a different perspective and skill set giving way to structural and cultural advances as well as effective solutions. It is a matter of how to enforce these roles, not when.?

Main characteristics of female leadership

The predominant characteristics of female leadership:?

• Empathy and orientation towards people: It tends towards closeness and understanding of the other, with a focus on the people with whom it relates are important share of socialization which leads to the formation of bonds and ties. For example, all of the above is usually applied with emotional intelligence and active listening.?
• Effective communication: There is a tendency to share knowledge and ideas among collaborators of an organization. This is linked to the previous point, as it requires an important sense of empathy and listening.
• Tendency to cooperation and horizontal leadership: Female leadership is collaborative, which enables teamwork to occur naturally. This implies characteristics of inclusion since it promotes participation and gives the opportunity to other team members to participate in the management, which allows generating identities in the work team and promoting new women leaders. In addition, the cooperation processes are orderly and healthy.
• Ability to act and make decisions: A way of thinking and acting in various directions or issues at the same time is applied. Different actions can be carried out simultaneously and there is a great capacity for analysis. This is an advantage when making decisions and facing crises.
• Negotiation skills: There is a tendency to promote a collaborative and participatory debate to reach agreements in negotiations; this is typical of more supportive, flexible and cooperative leaders who look beyond.?
• Openness and flexibility to change: Female leadership knows that change exists and is open and flexible when it occurs. This leads to an innovative and communicative look to find solutions to problems and to evolve positively.

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Importance of women and business leadership

Having female leadership is not a detail, a fashion or a sort of “quota” of positions. It is, without a doubt, a necessity for organizations. Women’s leadership brings a diversity of thought, effective communication skills and a strategic vision that helps in decision-making and innovation in a company.?

Soft skills, understood as the development of interpersonal skills, are usually attributed to female leadership, and these are of vital help not only to strengthen human relations but also to achieve the objectives of an organization from a perspective that focuses on communication, emotional intelligence and the ability to solve problems in a divergent way and beyond the merely theoretical. Not to be confused with emotional thinking but rather a different approach to the everyday structure of work.?

Benefits of female leadership

According to the research “The Business Case for Change “, carried out by the World Labor Organization, there are several benefits associated with female leadership that a company obtains, among them are:

• Profits increase between 5 and 20%.?

• Companies show greater innovation and creativity.?

• They project a better external image and reputation.

• Retain and attract talent more effectively.

Our expert take

"As a businesswoman who has climbed the ladder through sheer determination and hard work, I've seen firsthand the unique challenges and opportunities that come with female leadership. Leadership isn't just about making decisions; it's about fostering an environment where everyone can thrive and contribute to their fullest potential. We must push for more women in leadership, not as a mere gesture towards diversity but as a strategic move towards richer, more innovative problem-solving and decision-making. The path to leadership for women is fraught with obstacles, but it's through facing and overcoming these challenges that we grow. Companies must not only open doors to female leaders but also support their journey, ensuring they have the resources and environment to succeed and drive growth." - Cristina Spagna , CEO Kilpatrick?

"In the network of global business, diversity is not just a buzzword; it's the foundation of a resilient and innovative company.? Recently I did an interview for ‘AIDDA builds the future’, a book that highlights the incredible journey of women entrepreneurs and leaders, showcasing that diversity in leadership not only fosters a more inclusive corporate culture but also drives significant economic benefits. Female leadership brings a unique perspective to problem-solving and decision-making, rooted in empathy, cooperation, and a genuine connection with people. These qualities are indispensable in today's fast-paced, ever-changing business landscape. Encouraging and supporting more women to take up leadership roles is crucial in building a future where companies not only survive but thrive through inclusivity and innovation." - Claudia Paoletti , Managing Partner Kilpatrick?

In line with our commitment at Kilpatrick, a leader in global headhunting, we specialize in identifying and placing distinguished women in leadership positions worldwide. Let us partner with you to advance female leadership in your organization, enriching your team with visionary women who are ready to drive success and innovation.

Resources:

https://www.apa.org/topics/women-girls/female-leaders-make-work-better

https://www.naturalhr.com/2021/03/23/10-reasons-why-the-world-needs-more-women-in-leadership-roles/

https://www.pewresearch.org/social-trends/fact-sheet/the-data-on-women-leaders/