For decades, women have become increasingly more prominent in the work place. In 2004, women earned half of the bachelor’s degrees and nearly half of all law degrees; as of 2011, it has been reported that more women than men earn bachelor’s degrees or higher. Recruiting companies have a well-educated talent pool to tap into and it only makes sense that organizations with high-level women in their ranks have a better chance of appealing to female consumers. Additionally, research has shown that capably managed decisions made by more diverse groups rather than homogenous groups tend to be of more benefit to the organization. Yes on average, they are still earning less, but they have become the new trend setters in work-life balance, the flexible work week and penetrated to various male dominated industry like Sillicon Vallley. It’s no coincidence that this country is becoming more diverse each year and companies would be wise to garner different perspectives to afford them a much broader market reach. Case in point Yahoo’s new executive Marissa Mayer; Google executive turned Yahoo. Yahoo surprised by baby in the oven announcement? Don’t think so.
A direct link has been suggested, between gender diversity and financial performance, and that this connection is mutually beneficial. In 2004, a study was conducted that showed, on average, organizations with the largest percentage of women populating their highest ranks had a 35.1% greater return on equity than those with smaller percentages of women among their team members. Shareholders enjoyed a 34% higher total return from organizations with a larger female executive population, as opposed to those with the fewest.
Companies who support and implement gender diversity are on the rise, and reaping the rewards of higher returns. Statistical data from research indicates a strong correlation between high gender diversity and larger returns, and companies would be wise to maintain policies to recruit and retain female executives.
