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benefits of women in companies

7 Benefits of having women in companies

Did you know, companies that decide to employ women are able to increase their productivity, adapt better to changes and have a more stable workforce?

According to UN Women, companies where three or more women hold senior executive roles benefit from higher performance in organizational effectiveness.

The participation of women in the workforce decreased from 51% in 2000 to 48% in 2019, globally; and in all countries, they face wage gaps, according to World Bank data. In addition, although women represent 40% of the global workforce, and many of them manage to have their own businesses, according to the International Labor Organization (ILO), 48% of their productive potential is not used, compared to the 22% of men.

Against this background, James Hernández, president and co-founder of Trust Corporate, and a consultant on financial, legal, and organizational issues, states: “It is time to advance in favor of gender equality, where both men and women are guaranteed equal access to work, with emphasis on recognizing women as agents of growth and sustainability in organizations.” 

The consultant mentions below some of the top benefits of having women in companies. 

7 benefits of having women in companies

  1. Increase in creativity and productivity: Having diverse work groups in which men and women coexist encourages creativity. Women are able to bring together people, group opinions, and proposals, which favors the creation of teams, encourages participation and enhances decision-making.
  2. Cooperativity and responsibility: Women are more skillful when it comes to delegating and organizing tasks. They are more responsible, they are more open to change and they work with a greater orientation to success.
  3. Building trust: Female leaders are perceived in work environments as more honest, understanding and ethical. This aspect is fundamental since leading with honesty affects the success of the entire company, based on the satisfaction of the work team.
  4. Multitasking: Most women can perform more than one task at a time and focus on the goal. This is why companies can train them to perform new functions or entrust them with a new position.
  5. Work environment: Women contribute to conflict resolution thanks to the fact that they are often more empathetic and are more willing to communicate and receive feedback. This helps generate a better work environment in companies.
  6. Higher education than men: Young women of the Millennial generation have a higher level of studies at the time of starting their professional career, which guarantees growth and contribution of knowledge to companies.
  7. Better performance: According to an ILO report, incorporating women into management positions can result in an improvement of up to 20% in business profitability, in addition to accelerating innovation and attracting talented professionals. The study found that of 13,000 businesses, 60% benefited from the work of women in managerial positions in terms of earnings, as well as creativity and reputation.

According to UN Women, studies carried out in OECD countries and in some non-member countries show that increased participation of women in the labor force triggers faster economic growth. However, globally, the gender pay gap is 16%, which means that women earn on average 84% of what men earn.

You might be interested: Recent survey data reveal the effects of COVID-19 on women’s careers

“Although the role of women has been increasing in recent times, much remains to be done to achieve greater participation of women in the workplace. Incorporating women into a company, and promoting leadership positions for them, is a wise decision for organizations since there are many benefits obtained from having female talent in their workforce, for example, greater organizational performance and effectiveness,” concluded James Hernández, president and co-founder of Trust Corporate.

Latina worker

Record job losses in December push women out of the workforce en mass

This time last year, we were living in a pre-COVID-19 world. In this world, for three months, something rare happened in the workforce that had only only occurred one other time in history, nearly a decade ago: women held more jobs than men in the U.S. economy. However, the COVID-19 pandemic quickly changed this narrative, leading to record job losses for women. 

Image by Markus Winkler from Pixabay

Shocking gender gap in December job losses 

New data released last week has revealed that in December employers cut 140,000 jobs. A closer look at the data also reveals a shocking gender gap: Women accounted for all the job losses, losing 156,000 jobs, while men gained 16,000. Of course many men lost jobs as well in December, but when taken together as a group, they came out ahead while women fell behind. 

Additionally, a separate survey-study of households, which included self-employed workers, showed a wider gender disparity in the workforce while also revealing a significant racial and ethnic disparity: Black and Latina women made up the majority of job losses, while White women made significant gains. 

Racial and ethnic disparity in the workforce 

Black and Latina women disproportionately work in some of the hardest-hit sectors in the pandemic. These positions often lack paid sick leave and the ability to work from home, putting Black and Latina women and families at an increased risk of exposure to COVID-19. As schools and daycares closed due to the virus, many women were forced to make the hard choice between work and parenting. In many situations, women chose to leave their careers to take on primary care-giving roles in the home, especially if there was an employed male in the household. 

You might be interested: Mariela Dabbah, the perils of a global pandemic for gender inclusion in the workplace

Overall, women are still down 5.4 million jobs from February, before the pandemic began, as compared to 4.4 million job losses for men. At the start of 2020 men and women were roughly on equal footing, with women holding 50.03% of jobs. However by the end of 2020 the gender disparity in the workforce now shows that women hold 860,000 fewer jobs than their male peers. 

This gap is largely due to increased job losses in three sectors: education — which remains a female-dominated industry — hospitality, and retail. All of these industries have been greatly affected by the pandemic.

In December, restaurants and bars cut the most jobs by far, and part-time workers were hit especially hard. 

Among women, Latinas currently have the highest unemployment rate at 9.1%, followed by Black women at 8.4%. White women have the lowest unemployment rate at 5.7%.

As we continue into 2021, we must work toward recuperating these losses for women in the workforce and create better opportunities.