Gender diversity in leadership positions makes companies more resilient
In times of crisis, employees look to leaders who are committed, prudent and confident. But gender diversity in leadership positions also supports the resilience of companies, according to a study by Towers Watson.
Companies with greater gender diversity in leadership positions and that also employ more women in high-paying, high-revenue positions create more positive employee experiences. This is shown in a recently published analysis by Towers Watson. Companies with leadership structures that support diversity (e.g., with a chief diversity officer) are perceived by employees as more inclusive, the study found. "Companies that show a strong commitment to inclusion see a payoff across the entire organization," Krisztina Csedő, head of Talents & Rewards at Willis Towers Watson in Switzerland, commented on the finding. "In the current challenging environment, gender diversity in leadership positions can help companies provide employees with the much-needed experience of trust, support and the ability to have a voice."
Switzerland has some catching up to do in terms of gender diversity
The study by Willis Towers Watson shows that Switzerland still has some catching up to do in terms of gender diversity. Women are still overrepresented in various areas, such as business support positions. These include, for example, administrative services, HR services or corporate communication. They are underrepresented at executive and manager level, as well as in sales and technical support. This trend is particularly visible in high-tech companies or those in the financial sector.
"We are currently conducting a large number of pay equity analyses. In addition, there is an urgent need to review HR processes to eliminate systematic biases against women," says Krisztina Csedő. "For example, women who are hired at a lower salary than men with the same qualifications have great difficulty making up for this difference later."
Visible industry differences
A certain variation in gender distribution by function and by sector can also be seen. While administrative services, HR or communications departments employ a large proportion of women in all industries, marketing in the high-tech sector, data science in the FS sector or finance positions in both the high-tech and FS sectors have an even lower proportion of women than the typical - already low - proportion in other industries.
Gender diversity promotes career development
Among the main findings of the global analysis, which also apply to Switzerland:
- Companies with more women in leadership and management positions have more positive employee experiences in terms of overall career development, fair pay, skill building, trust in leaders, and management support. Employees in these organizations also express higher levels of engagement and a greater likelihood of staying. The benefits are particularly evident when there are at least one-third women in management and one-fifth in executive ranks. For example, companies with at least one-fifth women in management perform 12 percentage points better on a measure of career development than companies with fewer women in management (73% positive versus 61% positive). Similarly, companies with at least one-fifth women in leadership positions perform 10 percentage points better on measures of fair pay (62% vs. 52%) and likelihood of retention (71% vs. 61%).
- Companies with a higher percentage of women among the highest-paid employees (top 10 %) have more employees who feel they are part of an innovative, market-leading organization and also have a voice. These companies are more likely to offer women's health and wellness programs and pursue retention of female customers, which is further evidence of the company's commitment to how employees experience the company.
- Companies that promote more women generate more positive employee experiences in terms of workplace fit, confidence in leaders, and overall support for inclusion. In addition, these companies typically offer financial literacy and leadership development programs for women.
- Companies with diversity-focused leaders, such as chief diversity officers, and action plans for women in leadership are viewed by employees as more effective in creating an inclusive work environment that also gives employees a better understanding of their goals and job roles. Companies with a CDO or equivalent leader have an 11 percentage point advantage in inclusion (84% positive vs. 73% positive) over companies without this role.
Source: Towers Watson
