Why We Need More Women on Boards

Research from NEOMA Business School discovered that having more women on organisational boards leads to less excessive risk-taking and greater efficiency. Yet, women continue to be underrepresented in leadership roles, despite making up 47.7% of the global workforce. It’s a necessity that businesses must continue pushing for gender equality, especially in leadership roles. Creating an environment where all genders feel valued and respected so that women have the same opportunities for success as men is essential.

We recently ran a poll posing the question, “How do you feel about the current representation of women on the board in your organisation?”. A total of 107 respondents were recorded, with only 30% of those stating that they were “very satisfied” with the representation in their current organisation. 27% were somewhat satisfied, whereas a notable 43% were not satisfied with the representation of women on their boards.

Amanda Underhill, our HR Business Manager, provided her insight – “Women on the board bring diverse perspectives, different communication styles, and varied experiences, enriching the decision-making process and helping foster an inclusive environment. Companies that have more diverse boards tend to have better financial performance. Organisations should encourage more women to apply for board positions and create policies that are conducive to their participation.”.

Elisabeth Pichler, Senior HRBP at Grassfish, enlightened us by revealing that her firm holds both a female Managing Director in Austria and a female CEO.

There are promising signs following a recently released report on women in senior leadership roles. The campaign group, Women on Boards, carried out research to find that the percentage of women on boards of the 585 FTSE all-shared listed companies rose from 36% to 40%. However, the study also found that only a tenth of executive roles were occupied by females, a number which has appeared to flatline.

Efforts are being made in Japan to combat this after Prime Minister, Fumio Kishida, ordered his government to begin working on increasing the number of female executives in major companies by at least 30% by 2030. This was actioned after it was revealed by a Cabinet Office survey that only 11.4% of executives in major listed companies were female in 2022.

So, why should more women be sat on organisational boards? Board diversity enables better decision-making, increased innovation and diversified perspectives. Having a diverse range of perspectives at the decision-making table can lead to better outcomes for both the business and its stakeholders. These skills are essential in today’s business world, where collaboration and relationship-building are vital components of success.

Not only this, promoting gender equality and equity makes good business sense. Increased gender diversity allows for more agile and adapted approaches to challenges in the industry and provides resilience within the market. This also correlates with attracting and retaining top talent. Diversity and inclusion are essential elements of company culture. By creating an environment where all genders feel valued and respected, companies can attract and retain high-performing individuals who are more likely to drive innovation and success.

In conclusion, the necessity of gender equality on organisational boards cannot be overstated. This does not solely concern implementing diversity and inclusion in the workplace, it’s about providing added value and equipping your organisations with skill sets to help achieve business success and continue to remain resilient and adaptable in today’s challenging business environment. As a combined effort, we should continue to push for increased female representation and work to foster an environment where all employees are valued and respected, creating a more just and equitable society for all.