A new report from the Bureau for Employers’ Activities of the International Labour Organisation (ILO) said businesses with genuine gender diversity, particularly at senior level, perform better, including seeing significant profit increases.
The new report shows gender diversity improves business outcomes, and makes it easier to attract talent.
The report also looks at the reasons behind the continuing gender diversity deficits, and makes recommendations for breaking the cycle.
According to Director of the ILO Bureau for Employers’ Activities, Deborah France-Massin said companies should look at gender balance as a bottom line issue, not just a human resource issue.
The report also found that, at national level, an increase in female employment is positively associated with GDP growth. The finding is based on an analysis of data from 186 countries for the period 1991-2017.
France-Massin said: “We expected to see a positive correlation between gender diversity and business success, but these results are eye-opening.
“When you consider the efforts companies make in other areas to get just an extra two or three per cent in profits, the significance is clear. Companies should look at gender balance as a bottom line issue, not just a human resource issue.
The report says that the beneficial effects of gender diversity begin to accrue when women hold 30 percent of senior management and leadership positions. However, it says that almost 60 percent of enterprises do not meet this target, meaning they struggle to reap the rewards.
In addition, in almost half of companies surveyed, women account for less than one in three of their entry-level management recruits – meaning that the pipeline to senior management may not deliver the talent needed.
“In an era of skill shortages, women represent a formidable talent pool that companies aren’t making enough of”, she say.
France-Massin said: “We expected to see a positive correlation between gender diversity and business success, but these results are eye-opening.
“When you consider the efforts companies make in other areas to get just an extra two or three per cent in profits, the significance is clear. Companies should look at gender balance as a bottom line issue, not just a human resource issue.
The report says that the beneficial effects of gender diversity begin to accrue when women hold 30 percent of senior management and leadership positions. However, it says that almost 60 percent of enterprises do not meet this target, meaning they struggle to reap the rewards.
In addition, in almost half of companies surveyed, women account for less than one in three of their entry-level management recruits – meaning that the pipeline to senior management may not deliver the talent needed.
“In an era of skill shortages, women represent a formidable talent pool that companies aren’t making enough of”, she say.
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