Gender Diversity in the C-Suite

As the number of women participating in the workforce grows, their potential influence on business is becoming ever more important.  Seventy-two percent of respondents to a recent McKinsey survey believe there is a direct connection between a company's gender diversity and its financial success.  Yet, companies have not so far successfully bridged the gap between men and women in the top levels of management.

At companies where gender diversity is higher on the strategic agenda and more related policies are implemented, executives say that company leadership is also the most diverse.  Between respondents at companies that include gender diversity as a top-three agenda item and those at all companies, there is a 32 percentage-point difference between the shares who say women fill more than 15% of their C-level positions.

The degree of support from CEOs and other top managers is another important factor influencing a company's performance on diversity, respondents say, so it is notable that few companies' top management teams currently monitor relevant programs.

Where diversity is a higher priority, executives also report a higher share of women in their senior ranks. 

At companies where gender diversity is a top-three agenda item, for example, 87% of respondents report that more than 15% of their C-level executives are women; only 64% of those whose companies rate diversity as a top-10 item, and 55% of all respondents, say the same.  There is also some geographic variability: Respondents in Asia-Pacific and developing markets are more likely to say that gender diversity is a top-10 agenda item for their companies (35% and 34%, respectively) than those in other regions.  In Latin America, just 21% of respondents say their companies' agendas include gender diversity as a top-10 item, with 27% of those in Europe and 28% of those in North America also saying so.

Source: McKinsey Quarterly, October 21, 2010

Comments

[Abbi Placzek]

I think that having gender differences throughout your company will enhance the financial success because it broadens the demographic of the company and allows for a more diverse and welcoming company.

[Lisa Ramirez]

Broadening the diversity of a company does nothing to increase its chances of being successful. A company should hire the best candidate for an opening. Hiring people solely based on their race only segregates them further. If you look at someone solely based on their skills, there is no way to discriminate against them.

[Guy Farmer]

Thank you for the insights. I've found that an organization's commitment to diversity is always evident in the makeup of its workforce. I've found it helpful to focus on diversity as a way to use the varied talents and abilities of our workforce in order to help the organization as a whole thrive. Gender becomes less of an issue when leaders focus on the things they have in common rather than jockeying for position.

[Matthew Johnson]

I believe that diversity and especially gender diversity can help a company in many ways. The higher the demographic of the people working there will increase the demographic of people and other companies they appeal to. Have a mixture of men and women and a company seems like a statement that we want the best in our industry and gender doesn't matter. Since femine movements the industries for the past decades have seen that women can do the jobs that men do. For these reasons I believe that gender diversities will buiild a company.

[Letina Wise]

Women are becoming a growing influence in the workforce. Their presence is beening felt in the workforce today.These women are making strides in their feild for the next generation of women.With the workforce becoming more diversed, more and more oppurtunities will increase for women.

[Guy Farmer]

Thank you for the insights. I tend to think of diversity as a foundation building element that can help any organization succeed. It allows us to tap into the ideas, talents and abilities of all our employees rather than just a few. It also builds a more harmonious workplace.

[Sherri Schwindt]

The number of women in the workforce are growing. More women are also obtaining more degrees than men and that equates to women having more management opportunities than before. The more diverse an organization is the more successful it can become. To understand from the inside will be reflected in its behaviors to outside customers, clients, and colleagues.

[Tricia]

I do love that women are becoming more and more successful, but even as a woman, I have difficulty with a companies goal being becoming more diverse and the reason being that putting requirements on a position that do not ensure a candidate is more successful can not possibly be good for the company, the department, or the employee. Unfortunately, we are still as a society fairly discriminatory so the attempt for some companies to focus on diversity is commendable, but if we could focus solely on the person's abilities, and the requirements of the position we would not have to have these kinds of policies.

[Yozaira Soriano]

I think it is great that more companies are wanting to become more diverse whether it being in race, ethnicity or even gender. But I agree with some of the post above that companies should look at the persons skills and experience only. When they take in consideration only what relates to the job, they will not make themselve seem discriminatory against any specific group of people.

[Jordan Randle]

I believe that gender diversity in the work place would really enhance the financial success. Really, any diversity would be good. Diversity brings different ideas, thoughts, and skills to the table. More women in the top positions would change the way that some of the companies are run. The main components that a company should consider are the experience of the person and the skills of that person. If a minority has what it takes to get the job done and bring more to the table than that is what should happen. With many women postponing the "family" idea they are obtaining more degrees and getting more experiences in their fields. This is putting them above and beyond most men today. This should give women more opportunities to shine in the work force and really show the world what they have to offer.

[R. Hardebeck]

Jordan makes a valid point, however, if the woman is not the most qualified candidate for the position then she should not be hired just to create some diversity. But you are right in saying that diversity in the work place would bring many more views, ideas, and insights to light and could potentially make the business more successful. Career driven women do have a lot to offer the workplace and it is refreshing to see more and more of them becoming a part of the workforce.

[Abby]

I do think that creating diversity within a company includes giving each person an equal chance to obtain a job and advance in the company. They need to focus on a person's credentials. I believe this will allow a company to be most successful. I think women can bring a lot to the workforce when they are in management positions. It will be interesting to see if more women begin to fill manager roles and how that shapes and changes the workplace

[J. Orrantia]

Increasing a business’s diversity will not increase the chances of being successful. A company should always hire the best candidate. In my opinion, hiring someone based on their race will only segregate them more. If you evaluate a potential employee solely based on their skills, then you are eliminating the chances of discrimination.

[Kim]

Companies should hire individuals that are right for the job without discrimination. How are companies supposed to avoid discrimination if they have a higher hire rate of males vs. females? While I think it is important to hire individuals merely for their successful attributes in the workplace, I also think interviewing is a road block for many women because of the stereotypes and gender roles interviewers have personally. Perhaps a good alternative to having a quote of how many women work at a company, or how many individuals from a certain race, etc, etc, perhaps a hiring board, where individuals of various background, races, religion, sexes, and titles in the work force could come together to fully examine an individual that is being hired. Expensive? Time-consuming? Perhaps, but how else are we to steer clear or prejudices?

[Yunho Kim]

Male executives may have a misconception that gender diversity is to be feared because 'the females' can take their job from them. The McKinsey survey clarified that is not true. For the long term, gender diversity in executive society promotes financial status. While the correlation between gender diversity and financial status of a company should be inspected more, it is evident that the misconception against diversity is not true,at least, in this case.

[Agnellah]

Hi, I love your blog. I am glad you referred to Dr. Pat Allen's book. This book hepled me understand that I am feminine energy and how to communicate as a "fem". I learned to negotiate the commitment, continuity, and longevity of my relationship with my husband. (I learned from her book not to let him "in".) I learned how powerful sex is to women. It is sad the past generation thought that for women to be equal to men, they had to have sex like them. This has hurt too many women. I feel you can also help women see that feminine behavior is not detrimental to your safety or emotional health. You do not have to submit/acquiesce/surrender to just any blithering idiot that comes into your life. YOU CHOOSE A MAN THAT YOU CAN RESPECT. Feminine wiles are power--not weakness. You will automatically choose a better man when you want to be able to respect him.