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Add to Preferred SourcesBusinesses with genuine gender diversity, particularly at senior level, perform better, including seeing significant profit increases, according to a new report from the Bureau for Employers’ Activities of the International Labour Organization (ILO).
The report, Women in Business and Management: The business case for change, surveyed almost 13,000 enterprises in 70 countries. More than 57 percent of respondents agreed that gender diversity initiatives improved business outcomes. Almost three-quarters of those companies that tracked gender diversity in their management reported profit increases of between 5 and 20 percent, with the majority seeing increases of between 10 and 15 percent.
Almost 57 percent said it was easier to attract and retain talent. More than 54 percent said they saw improvements in creativity, innovation and openness and a similar proportion said effective gender inclusivity enhanced their company’s reputation, while almost 37 percent felt it enabled them to more effectively gauge customer sentiment.
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.
“We expected to see a positive correlation between gender diversity and business success, but these results are eye-opening,” said Deborah France-Massin, Director of the ILO Bureau for Employers’ Activities. “When you consider the efforts companies make in other areas to get just an extra two or three percent in profits, the significance is clear. Companies should look at gender balance as a bottom line issue, not just a human resource issue.”
Almost three-quarters of the enterprises surveyed had equal opportunity or diversity and inclusion policies, however, the report says more specific actions are needed to ensure that women are visible and promoted to strategic areas of business.
Read and download the report: Women in Business and Management: The business case for change.
Original source: ILO
Published on 22 May 2019