Women Can Improve Your End Results

Are you aware that companies that hire more women can greatly benefit; it is estimated that companies with three or more women in senior management functions score higher in all dimensions of organizational performance?

Not to mention, “women’s economic equality is good for business.?Companies greatly benefit from increased employment and leadership opportunities for women, which is shown to increase organizational effectiveness and growth.” (McKinsey & Company, n.d.)

Women entrepreneurs have become a force to reckon with in the business world. As the market grows, it is proving to be a critical source of innovation plus job creation to fuel economic growth.

Nonetheless, woman-owned businesses are not granted equal capital in investment opportunities, which roughly shows to be more than a $300 billion-dollar credit gap. (WGDP, n.d.) The concepts are simple, but in today’s society, having just an average credit rating may not be enough. If you are female with a lower score, the chances of credit approval decrease. Employers are beginning to check credit history to ensure an employee is a good fit. Think of your credit score as a resume, your life history.

On average, men have an average credit score of 630 out of a possible 850, but many women?lag at 621. In most cases, credit scores improve with age, but women tend to never draw even, let alone pull ahead.?(Morad, n.d.)

In case you are wondering why the difference, it mostly boils down to the gender pay gap. Yes, the imbalance has improved since 2016, but women are generally paid about 22 percent lower than the average men’s salary. The lower annual income causes many women to use a larger portion of their available credit.

?“That hurts their creditworthiness,” Steve Millstein, a certified credit counselor at Credit Repair Expert. (WGDP, n.d.)

But it is important to understand that credit bureaus do not prefer one gender over another. It is simply a numbers game; they care about creditworthiness, which is influenced by income, outstanding debt, and the history of repaying loans or making timely payments for goods and services.

“They simply use numbers and facts to draw their inferences,” Millstein said. (Morad, n.d.)

The basic concepts of credit stability are simple, but most people consider these topics taboo when they are essential to becoming a successful financially independent individual.

Your credit score determines two factors that can affect your loan approval.?First, lending money involves risk; lenders need to know you are reliable. Second, it determines the terms of your loan.

A rule of thumb is to keep the credit utilization under 30 percent; that is, the amount of credit you owe compared to the credit limit. In other words, if the limit is $1000, the balance should stay below $300 on average. Remember, think of your credit as a resume, it tells everything about your habits in daily life.

The women who pursue higher education and find meaningful work prove to be more impactful on their families, community, and economy.

A?study by UNESCO?indicated that every year a country’s average year of schooling increases, the country can expect long-term economic growth by as much as 3.7%. Today, there are more social enterprises, celebrities, and philanthropists dedicated to empowering women than a decade ago. And influential leaders such as Jack Ma, Richard Branson, and Kevin O'Leary have also championed the narrative for more women in leadership and management positions.?(Today, n.d.)

In today's political climate change, the lobby has gained momentum. So much so, that it might receive the backing of the law. If the Paycheck Fairness Act of 2019 becomes reality, the tables may well change. The news for women, in general, is fantastic, especially for those seeking higher education. It may also work on rebuilding communities and creating a sustainable economy. (Tran, 2019)

The statistics prove that having more females in the workplace is linked to improved productivity, along with organizational health. Besides the fact that a gender-diverse atmosphere tends to be less aggressive, enhancing collaboration between employees and management.

“A?study by the Center for Creative Leadership?found that having women in the workplace increases the level of job satisfaction and dedication in the organization.”

One other key factor has shown to be valuable. In organizations staffed with over 45% females, the burnout rate decreases, and most find their work more meaningful. In light of this fact, employee retention would increase, limiting the amount of hiring additional staff, thereby improving an overall human-centric environment.

In recent years, some Fortune 500 companies with the highest representation of women on boards financially outperform companies with the lowest representation of female staffing. ?(Center for Creative Leadership, n.d.)

Another surprising fact you may not know is that rebuilding a neglected neighborhood can open the door for most local businesses. If these local businesses have a higher concentration of female workers, they reportedly have improved workplace morale and the overall bottom line. It especially applies if there are females in leadership positions in those companies.

“A study conducted by the?Peterson Institute of International Economics?suggested that companies with 30% or more females in leadership positions can yield as much as six percent more profit. Building a diverse and inclusive workplace isn't just good for the community, it’s also good for business.

“Alibaba, China’s biggest online e-commerce company with a net worth of over $84 billion, is a great example of how a company’s focus on building an inclusive and supportive culture for women greatly affected their financial success. The company claims that over?34% of its senior management?are females. Alibaba's workforce also claims to have over 40% females. Jack Ma, the previous CEO of Alibaba, once said, “If you want your company to be successful, then you should hire female workers!”.

Women are more likely to get their families out of debt. Families living in recovering communities are often weighed down by economic burdens, such as neglected mortgages, high-interest loans, and unpaid debt that keeps them financially stable. However, in most cases, when women in the household have a say in financial decisions, that may not be the case.

According to Bankrate,?“men are 4.3% more likely to carry debt?than women. Men are also more likely to fall behind on their mortgages and spend more than their credit allows. Women, on the other hand, are 67% more likely to seek credit counseling than men. And post-counseling, women are more likely to follow through with payments and eventually be out of debt.”

The total contribution of over seven trillion dollars in annual consumer spending in the US alone is among the female gender. Of that 83% are consumer purchases, it’s no secret that women are the biggest and best consumers. In underrepresented areas, women are more likely to purchase from local businesses, keeping the doors open. Consequently, these traits increase local wages and produce a thriving local economy, one that supports business owners.