The Very Real Benefits of Gender Diversity in the Workplace
It goes without saying that we all want to be treated equally and be given the same opportunities. Although when you take a look at the real world, especially the world of business, that sentiment doesn’t seem quite so universal.
So what’s the holdup?! Why aren’t businesses still doing the bare minimum? There are no excuses whatsoever (as you’re about to see) for why workplaces should be bereft of gender diversity.
But before we take a look at the benefits of gender diversity in the workplace (backed up with stats and research), let’s make sure we’re all on the same page…
What is Gender Diversity in the Workplace?
Gender diversity in the workplace usually refers to the equal ratio of men and women in the workforce, and that they receive the same pay, opportunities, and treatment. However, in the 21st century, this definition doesn’t cut it as it should also cover those who identify as non-binary or gender non-conforming.
The Depressing Statistics
While some may point to the fact that the gender pay gap has been declining (almost 25% over the last decade), fields such as computing, engineering, medicine, and science are still heavily dominated by men. According to data from the Women's Engineering Society, just 14.5% of the engineering workforce in the UK was female in 2021.
And even though women make up more than half of the UK population, they’re also underrepresented in many areas of public life, including politics and leadership positions.
While we’ve had 3 female Prime Ministers (out of 56), just 34% of members of Parliament were women according to the House of Commons Library. That puts the UK in the 45th position for the proportion of women in the lower (or only) house of parliament as of February 2022.
And finally, one of the most depressing statistics you’ll see is that according to a 2020 Sexual Harassment Survey by the UK government, 29% of those surveyed reported that they have experienced sexual harassment at work or work-related environment in the last 12 months.
Why Does Gender Diversity in the Workplace Matter?
There are numerous benefits to having gender diversity in the workplace, both for individual companies and for society as a whole. Let’s go through the key benefits of gender diversity in the workplace:
Enhanced Reputation
Companies with a reputation for promoting diversity, equity and inclusion often attract a wider pool of top talent - not to mention positive media attention. This can help to enhance the company's standing with the outside world (you know – customers) as well as improve employee morale.
More than 60% of female participants in a PWC survey said they looked at the diversity of the leadership team when deciding to accept a position with their most recent employer.
A journal from Psychology of Women Quarterly (PWQ) found that gender-diverse organisations were rated as more prestigious than a company that did not address its gender diversity.
Better Employee Retention Rates
A great company reputation goes hand in hand with great employee retention rates. By having a diverse workforce, you will create a more inclusive and welcoming culture for all employees, which can lead to increased job satisfaction and a sense of belonging. This can help to reduce turnover, as employees are more likely to stay with an organisation if they feel valued and supported.
A study by McKinsey found that companies with the highest levels of gender diversity had a 15% lower turnover rate for female employees and a 25% lower turnover rate for male employees.
A report by Sensu Insights found that 31% of Gen Z (16 to 24) will choose to work for employers who proactively prioritise diversity and inclusion in their workforce, compared to 11% of Gen X (42 to 57) and 13% of Millennials (26 to 41).
Enriched Company Culture
And great reputation and increased job satisfaction inevitably lead to much better company culture. This is because gender-diverse workplaces have a more inclusive and welcoming culture for all employees. A strong sense of belonging can help to create a positive work environment where employees feel valued and supported, which can improve overall morale and productivity.
Improved Decision-Making
Studies have shown that diverse groups tend to make better decisions than homogenous ones because they bring (surprise, surprise!) diverse perspectives and approaches to problem-solving. This can lead to a more dynamic and successful organisation that makes decisions faster and, more importantly, with more wisdom.
Research conducted by Forbes found that inclusive teams make better business decisions up to 87% of the time. Teams that follow an inclusive process make decisions 2X faster with half the meetings.
Research by Celeverpop also found that compared to individual decision-makers, all-male teams make better business decisions 58% of the time, while gender-diverse teams do so 73% of the time.
Boosts Collaboration and Teamwork
As we’ve mentioned already – gender-diverse workplaces will bring different approaches to problem-solving and decision-making. This will no doubt boost teamwork and collaboration as employees are more open to hearing and considering different perspectives.
A review published by ResearchGate observed that women are more skilled at reading non-verbal cues.
The same study also concluded that groups with more women were better at taking turns in conversation. This meant that everyone else taking part in the group had a better chance at effectively saying their piece, thus making the most of a group’s combined knowledge and skills.
Increased Creativity and Innovation
Boost your collaboration and teamwork, and you will most certainly boost creativity and innovation. By bringing a range of perspectives and experiences to the table, you are guaranteed to find creative and effective solutions to problems that have never been seen before – especially when it comes to new markets.
A study by BCG found that diverse management teams were more innovative than less diverse teams.
Another study by BCG found that businesses with a diverse workforce are demonstrably more innovative in aggregate.
Greater Financial Performance
Ultimately, everything you’ve seen above will contribute to an organisation’s bottom line. Highly reputable businesses that make better and more innovative decisions with happy and engaged employees are bound to succeed. It’s not rocket science.
A study by McKinsey & Company in 2019 found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile.
A study by Credit Suisse found that companies in which women held 20% or more management roles generated 2.04% higher cash flow returns on investment than companies with 15% or fewer women in management roles.
Closing Thoughts
Well, there you have it; creating a truly egalitarian society isn’t just better for everyone living in it, but also for business.
While most of us already held this to be true in our heart of hearts, it’s always fantastic to have these beliefs backed up by hard, real-world evidence. So, the next time someone tells you you’re a naïve idealist for believing in gender diversity in the workplace, you’ll be more than prepared to politely put them in their place.
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Written by Michael
Michael Mauro is the founder of a forward-thinking organisation specialising in leadership, HR and employee development. With over a decade of global experience, Michael has become a leading voice on topics such as culture, inclusion, wellbeing, and the future of leadership.
