Gender diversity is not only a moral imperative, but also a key factor for business success and innovation. Research shows that diverse teams are more creative, productive, and resilient than homogeneous ones. However, achieving gender equality in the workplace is not an easy task, as it requires addressing structural barriers, unconscious biases, and cultural norms that hinder women’s advancement and inclusion. In this article, we will explore why gender diversity matters for businesses, and how some entrepreneurs and leaders are promoting it in their organizations.
The Benefits of Gender Diversity
Gender diversity refers to the representation and participation of people of different genders in a given setting, such as a company, a team, or a project. Gender diversity can bring many benefits to businesses, such as:
- Improved performance: Studies have found that companies with more gender diversity in their leadership teams and boards have higher profitability, revenue, and market value than those with less diversity. Gender diversity can also enhance decision-making, problem-solving, and innovation, as diverse teams can generate more ideas and perspectives, and avoid groupthink and blind spots .
- Increased customer satisfaction: Gender diversity can help businesses better understand and serve their customers, especially in markets where women have significant purchasing power and influence. For example, a study by McKinsey & Company found that companies with more women in senior roles were more likely to outperform their peers in terms of customer satisfaction and retention.
- Enhanced reputation and brand value: Gender diversity can enhance a company’s reputation and brand value, as it signals a commitment to social responsibility, inclusion, and fairness. Customers, investors, partners, and employees are increasingly looking for companies that align with their values and expectations, and that support gender equality and diversity in their practices and policies .
The Challenges of Gender Diversity
Despite the benefits of gender diversity, many businesses still face challenges in achieving it, such as:
- The broken rung: This term refers to the phenomenon that women are less likely to be promoted to managerial positions, which is the first step toward senior leadership. According to a report by LeanIn.Org and McKinsey & Company, for every 100 men promoted to manager, only 85 women are promoted, and this gap is even larger for women of color. This creates a bottleneck that prevents women from advancing to higher levels of leadership and representation.
- The glass ceiling: This term refers to the invisible barriers that prevent women from reaching the top positions in their organizations, such as stereotypes, biases, discrimination, and lack of mentorship and sponsorship. Women often face higher expectations, scrutiny, and criticism than men, and are more likely to be penalized for their mistakes or perceived as less competent, confident, or likable .
- The work-life balance: This term refers to the challenge of balancing the demands and responsibilities of work and personal life, such as family, health, and leisure. Women often bear a disproportionate share of the domestic and caregiving tasks, which can limit their time, energy, and opportunities for career development and advancement. Moreover, women may face stigma or backlash for prioritizing their work over their family, or vice versa, or for seeking flexible or alternative work arrangements .
The Solutions for Gender Diversity
To overcome these challenges and promote gender diversity in their organizations, businesses can adopt various strategies and initiatives, such as:
- Setting clear and measurable goals and targets: Businesses can set specific, measurable, achievable, relevant, and time-bound (SMART) goals and targets for gender diversity, such as the percentage of women in leadership positions, the number of women hired or promoted, or the gender pay gap. They can also track and monitor their progress and performance, and hold themselves and others accountable for the results .
- Implementing fair and transparent policies and practices: Businesses can implement policies and practices that ensure fair and transparent recruitment, selection, evaluation, compensation, and promotion processes, and that eliminate or reduce biases, discrimination, and harassment. They can also provide equal access and opportunities for training, development, mentorship, and sponsorship for women, and create a culture of feedback and recognition .
- Providing flexible and supportive work environments: Businesses can provide flexible and supportive work environments that enable women to balance their work and personal life, and that accommodate their needs and preferences. For example, they can offer flexible work hours, remote work options, paid parental leave, childcare support, wellness programs, and employee resource groups .
The Examples of Gender Diversity
To illustrate how gender diversity can boost business performance and innovation, here are some examples of entrepreneurs and leaders who are promoting it in their organizations:
- Aba Schubert, CEO of Dorae: Dorae is a software company that provides solutions for global trade. Schubert values diversity since she was a child, and believes that it feeds a curious mind and helps connect the dots in new ways. She has built a diverse team that spans the world and generations, and that can leverage novel perspectives and experiences from each other and from their market.
- Bryan Dechairo, CEO of Sherlock Biosciences: Sherlock Biosciences is a biotech company that develops molecular diagnostics platforms. Dechairo recognizes that structural biases have prevented certain communities from accessing opportunities within the biotech industry, and has committed to creating pathways to overcome them. He has established a Diversity, Equity, and Inclusion Council, and has partnered with organizations that support underrepresented groups in STEM fields.
- Sara Menker, Founder and CEO of Gro Intelligence: Gro Intelligence is a data analytics company that provides insights on food, agriculture, and climate. Menker is passionate about empowering women in technology and agriculture, and has created a diverse and inclusive culture at Gro Intelligence. She has hired women for key roles, such as chief technology officer, chief operating officer, and chief data officer, and has supported initiatives that mentor and inspire young women to pursue careers in STEM fields.
