During this Women’s Month, we have had the chance to reflect on the stark reality of female underrepresentation in positions of power. Data shows that one of the biggest gaps in representation is located at the top of organizations: women’s presence decreases as the hierarchy of positions increases. This lack of parity in leadership, whether in public or private organizations, fails to reflect the population governments serve or the clients that companies aim to attract.
When writing this blog, I had the privilege of gaining insights from some remarkable women I know who have triumphed in male-dominated sectors. I asked them: What strategies would you implement if you were in leadership positions in your organizations or communities?
This is what they told me:
Ana Inés, chemical engineer
“Of all the job interviews I had throughout my life, only once did they not ask me if I was planning to have children. The first time they asked me, I didn’t know what to say. Basically, you have to lie, say you don’t want to have children. Otherwise, you risk being eliminated from the process. (…) I noticed that this question is always asked by the person who makes the final decision. If I were on the other side interviewing candidates, I would change that.”
Julieta, environmental engineer
¨ I would promote equal conditions. It is essential that men have the same parental leave as women, the same number of days. I would also offer training and opportunities for personal growth. Once a year, we could have optional courses or training that workers could take.¨
Carmen, banker
“I would like to push for creative ideas that promote the caring of our town and its green spaces. One idea I have, if I were the City Mayor, is to hold a contest every year for the best orchard or garden. The one with the most votes wins, and the prize will go to a different local social institution each year.”
What the data says on female leadership
These affirmations show how much of a different perspective women can bring to the table. Now, let’s add some quantitative context. A study at the IDB shows that even when women represent 52% of the labor force in public administration, only 25% of ministers in Latin America and the Caribbean are women, and about 30% of seats in national parliaments in the region are occupied by women.
These numbers are even more discouraging for the private sector. Research points out that at the highest ranks in listed firms—Chief Executive Officers (CEOs) and Board of Directors members—women are dramatically underrepresented, accounting for only 10 % on boards and 6 % of CEOs.
What do we miss when women are not represented at the top of organizations?
Female leadership boosts economic growth. Women’s participation in the labor market generates greater growth rates and reduces poverty. Estimates for the region project growth of up to 6% of the GDP per capita resulting from modest policies that promote female labor participation, such as expanding quality care services. Additionally, the number of women in public decision-making positions has been linked to economic growth.
For example, evidence links Rwanda’s robust recovery and development post-genocide with women’s high representation in Parliament. In part due to gender quotas, women in Rwanda hold more than 60% of the seats in the lower house, and this has resulted in significant improvements in health care, education, and economic policies that favor gender equality. Nordic countries also offer examples of the effects of gender parity on GDP and well-being. Women leaders also showed to have a good response to the COVID-19 pandemic, research from Brazil, for example, identified that localities with female mayors experienced fewer deaths per capita than those led by men.
In the private sector, evidence points to a link between the representation of women in boards and firms’ performance. A study that looks at more than 1,000 companies covering 12 countries shows that companies within the top quartile of female presence at the executive level were more likely to outperform their peers on profits (by 21%) and longer-term value creation (by 27%).
Can the incorporation of female leaders produce better results?
A study in Turkey that analyzed 2,000 professionals working in corporations finds that female leaders have more empathy, are less likely to seek risk, and are less competitive than their male colleagues. Additionally, research from Brazil points out that women in positions of power are also less likely to engage in corruption.
Female representation in the public sector translates into greater social spending on education, health, child care and environmental protection.
New perspectives, new outcomes
The testimonies I shared reflect a wider panorama: women can offer changes in perspective, bring new abilities to teams, and build more effective leadership. So called “soft” skills, together with diverse life experiences and perspectives, translate in better outcomes for all. When women occupy leadership positions, policies become better at responding to previously unseen necessities, and everyone benefits.
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