Why should we care about the gender divide?

Why should we care about the gender divide?

In my earlier post, I spoke about the state of women’s representation in business. This article captures more insights into women’s representation across levels and the reasons for the divide. Let’s dig in.

An important stat to understand how big the gap is-

It would take us 133 years, 99 days, 9 hours, and 6 minutes until the economic gender gap is closed. This means that even our kids and their kids will experience the divide.

Let’s also look at women’s representation in leadership roles.

Globally, the ratio of women leaders moving up the ladder decreases- support staff 47%; professionals 42%; managers 37%; senior managers 29%; executives 23%. The very low rates of women CEOs before the COVID-19 pandemic have become even lower, now at 5%.

So, overall, the lack of representation is across levels and roles.

Even the funding landscape reflects this divide. If you are a woman entrepreneur, you might find it more challenging to raise money. In 2021, $330 billion in venture capital was deployed, and only 2% of that number was allocated to companies founded only by women.

But..

Why should we even care about a better representation?

In an ideal world, why should gender representation be a topic of discussion? Shouldn’t we all have equal opportunities to be whoever we want to be as long as we have the right skills and attitude?

Then why is there so much fuss about gender equality? And does better representation change anything for businesses and countries?

Based on a survey by the International Labour Organization (ILO), two-thirds of companies agreed that diversity initiatives improved their business outcomes.

Here is how better gender diversity translates into better business outcomes and stronger economic growth for a country:

  1. Make more money: Two-thirds of companies with better gender representation report a 5 to 20% profit increase.
  2. Get shit done faster: Enterprises with equal employment opportunity policies and gender-inclusive cultures are over 60% more likely to have improved productivity.
  3. Accelerate innovation: Firms with a higher proportion of women on their boards invest more in innovation. For example, a recent study found that a 10% increase in female representation on boards was associated with a 7% increase in innovation patents and citations.
  4. Boost economic growth: Increasing women’s labor force participation has been shown to boost gross domestic product at the national level.

Gender inequality and better women's representation are not new issues. We have discussed this for decades now. So why does the divide still exist? Let’s look at the challenges.

The glass ceiling that remains unbroken

The insights in this section are based on my experience, conversations with women, and secondary research.

  1. Not a stereotype! Going above and beyond.

You are too polite to lead? You are too bossy? Why are you so emotional? We have all heard these comments from our male bosses or counterparts. Associating emotions with gender puts women at a disadvantage versus men who exhibit the same behavior. Here are some of the other stereotypes:

  • Batman? Superman? It’s time to obsess over Wonder Woman….

The bias around the roles women should take up needs to be changed. While women naturally perform better in some areas of business, that shouldn’t limit us from taking up other roles.

  • Not just HR! But a strategic partner.

While over 70% of HR managers are women, we still see a divide in the strategic role women play vs. men in HR. Based on research, female HR leaders spend more time on functional activities than strategic ones and are less likely to be considered strategic advisors or executive coaches.

  • Tough enough to get the work done!

In my experience of working in the manufacturing industry, I wasn’t absorbed in a department because I was a woman and I was told that to my face. And I worked with 100s of men on the shop floor with no other women in the department. Of course, this has changed a lot over the years. But women are still underrepresented in the manufacturing industry.

2. It isn’t propaganda! We mean serious business.

The male-dominated world looks at women leaders only for their gender, not their skills. POV: When two women PMs meet, reporters ask them if they are meeting because they are women. The same mindset is prevalent in the corporate world as well. McKinsey research suggests:

Women leaders are twice as likely as men leaders to be mistaken for someone more junior. Women leaders are also more likely to report that personal characteristics, such as their gender or being a parent, have played a role in them being denied or passed over for a raise, promotion, or chance to get ahead.

3. Playing small to fit in and not to win it.

Data suggests women rate their performance 33% lower vs men at equal performance levels. Women undersell their work and are more self-deprecating about their skills.

Sheryl Sandberg mentioned in her book “Lean in” that men would apply for a position even when they met 60% of the requirements, while women would apply if they met 100% of them.

Despite their achievements or success, women don't market themselves or take credit for their accomplishments because of deep social and cultural conditioning. Women feel forced to compete on their record, whilst men can compete on their vision — Zoe Chance

4. It’s a break, not a breakup.

We are nurturers, caregivers, and child bearers. It is natural to take a maternity break and prioritize family at different stages of our lives. But should it cost us our ambition? Our careers?

The stigma associated with women taking time off work for caring responsibilities or other reasons remains a big challenge for women to get back into the workforce.

69% of women have acknowledged that career breaks have made them less confident in their careers and diminished their self-assurance based on this study.

We need a shift, and we need it now!

Women have taken up support roles to help men build kingdoms, dynasties, and nations for centuries. It is time we led from the front. We are equally ambitious, capable, and hardworking. We are, in fact, more empathetic leaders. And we need better systems, processes, and a cultural shift that will cultivate more women leaders.

We need to create workspaces where we appreciate differences and encourage more women to express themselves. When we celebrate differences, we drive equality. If we make workspaces inclusive and empathetic, we encourage people to bring their whole selves to work.

Technology is still and will always remain an enabler. The less we dehumanize our workspaces, the more inclusive they become for everyone to shine.

We need interventions to support and train women to take leadership roles. Having the right mentors will help women to ask for help and receive guidance.

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