While global companies are making some progress in attracting more women into senior leadership roles, it's been slow. It’s no secret that women have historically faced greater barriers in climbing the corporate ladder and disparities between income levels persist. But the countries leading the way across the globe are France, Iceland, and Norway, with more than 40% female representation on company boards (based on a study by the World Economic Forum).

Meanwhile, the US falls behind with only 10% of top executives in Fortune 500 companies with 5% of CEO level roles held by women. In the UK, numbers have been increasing, with the total number of women on FTSE 350 boards rising from 682 to 1026 in five years – an increase of 50%. There are also no longer any all-male boards in the FTSE 350. However, around half of FTSE 100 companies don't yet meet the Hampton-Alexander Review target of 33% representation of women on the board by 2020. At the other end of the scale, Japan, Indonesia, and Korea currently have the lowest percentage of female leadership roles.

Based on research, companies with more women in leadership positions significantly outperform those without, and businesses with more gender diversity among leaders tend to be more profitable. However, despite making up 50% of the workforce, women are only employed in 15% of STEM jobs. Though the number of women in engineering courses in the UK has almost doubled in the last decade, there is still room for improvement.

Considering the commercial benefits of having female leaders, it makes sense that businesses should be focusing their attention on increasing the potential number of female leaders candidates.

In addition to inspiring and empowering women leaders, many citizens believe business plays a role in impacting a cultural change in society.

What are the main challenges holding back women from leadership positions?

The working landscape is changing, and the corporate world is no longer a man’s world. However, competing for a seat at the table can still be challenging for many qualified and competent women.

While there are several challenges they face, many of the most common issues women experience are:

1. Stereotyping: The view that men make better leaders still exists, particularly in some specialist sectors like tech, sports, and healthcare. Often, men and women leading with the same qualities are treated differently, simply based on gender. The crucial difference is that peers tend to be more forgiving of a more autocratic leadership style in men than they are with women. There are also stereotypes about job roles and career progression. CFOs are less likely to be promoted to CEO than COOs, which is significant as 25% of senior female leaders are in a finance role. The same pattern is noted with women in senior legal positions.
2. Lack of flexibility: In the UK, almost one in four older women care for a relative while working, compared to one in eight men. Besides this, in most cases, women are either solely responsible for ‘home-making’ duties or play a more active role in raising families. Organisations that lack flexibility for caregivers can lead to women leaving the workforce.
3. Networking difficulties: Time and time again, a scenario appears that revolves around building a supportive network in a space where males dominate. Women in leadership positions tend to have fewer connections within the industry than their male counterparts. This means they're less likely to learn about upcoming opportunities or have access to great mentors.
4. Lack of representation: The obvious challenge is that the majority of the people in  engineering and high-tech companies are often men. This creates the potential for unconscious hiring/promoting bias as people often hire and promote in their image. With fewer women in senior roles, there is no critical mass to promote other women for leadership roles. The lack of representation also makes it harder for women in junior or middle management roles to visualise themselves at the top.

The benefit of women leaders

Diversity is a key factor for organisations that value innovation. Women bring unique perspectives and experiences to leadership roles, contributing to a more diverse and well-rounded decision-making process. This is largely due to varying life experiences and perspectives. This diversity fosters creativity, innovation, and a broader range of solutions to complex problems giving a business a boost.

Women make up approximately half of the global population and having them represented in leadership positions ensures that the interests and needs of the entire population are considered. This inclusivity promotes a more equitable and just society. Women leaders are often better equipped to tap into this market.

Though technical skills and knowledge are important, a lot of leadership success comes from soft skills. Experts argue that being a successful, inspiring leader is about a core set of leadership skills and abilities, regardless of gender. This includes attributes such as good communication, conflict management, teamwork, flexibility, and being empathic and self-aware. This level of emotional intelligence can be hugely beneficial for a business and is often more prevalent in women.

Gender-diverse leadership can contribute to a more inclusive and supportive workplace culture. When women are well-represented in leadership, it sends a message that the organisation values diversity and is committed to providing equal opportunities for all employees.

In general, women tend to have more of a 'transformational' style of leadership which is good for engagement, performance, and productivity. Drawing on a range of perspectives, skills and experiences is essential for addressing the multifaceted issues facing business.

Although women tend to be more collaborative and democratic, men can have all these skills, too. And while people often view men as having a more 'command and control' leadership style, this isn't exclusively a male attribute. Instead of hiring women and hoping they lead in the same way a man would, business need to learn to utilise and value their natural strengths.

How to encourage women into leadership roles

As a business, it’s important to recognise and support talented workers, whilst also being conscious about diverse hiring. Women can be encouraged into leadership positions by knowing that support is available and that their contributions to the workforce are appreciated. Women need to have their voices heard in board meetings and opinions need to be taken into consideration equally, regardless of gender. A key part of encouraging women into leadership positions is to demonstrate that it’s a possibility and one that women have a fair chance at pursuing. Some ways to do so are as follows:

1. Setting clear gender diversity goals: Corporations across the world are setting specific goals for gender diversity in leadership. In the UK, GSK has committed to 45% female representation at VP level and above by 2025 in both the UK and the US. UK & Ireland, is a firm believer in the notion of “what gets measured gets done”. As a result, the company has set itself a target of 50:50 male and female representation in its senior leadership team by 2030. Thus, setting clear metrics and tracking progress within the company shifts the collective mindset toward closing the gender gap whilst holding leaders accountable.
2. Ensuring flexibility: A fully flexible approach includes working fewer or different hours, working compressed hours (more hours over fewer days), working from home, and job shares. Senior leaders should find ways to embrace this, so the organisation accepts it as standard. Providing this is also an effective way of showing women that leadership positions are a possibility. As long as deliverables and goals are met, give women the flexibility to balance family life and their careers.
3. Mentoring and career development: Women showing leadership potential need to be capitalised on. Prioritise leadership training, mentoring, and coaching tailored for women. Offer actionable, strengths-based professional development plans. These need to include 360-degree feedback that specifically highlights their strengths and opportunities to grow in leadership effectiveness. Numerous studies show that women often underestimate and underleverage their strengths. To increase leadership diversity, mentoring programmes can be more effective than other initiatives. Internal mentors work well at the junior and middle management levels. But at a senior leadership level, women executives and CEOs benefit from an external mentor or executive coach.
4. Build a talent pipeline: Leaders can be deliberate about inclusiveness by immediately identifying women in the business who are ready and able to fill leadership roles.
5. Advocate for potential women leaders: Become an advocate of high-potential women employees. Recommend them for stretch promotions.
6. Address unconscious bias: In many companies, the male-dominated workforce and culture are so ingrained that they are not aware of the gender biases. Conduct training sessions to raise awareness about unconscious bias. Encourage self-reflection and provide tools for mitigating bias in decision-making.
7. Promote networking opportunities: Encourage women to participate in professional networking events and facilitate internal networking opportunities within the organisation.
8. Celebrate and showcase women leaders: Highlight the achievements of women in leadership roles and showcase diverse role models to inspire others.

Research has found that the global share of women in senior management roles is increasing incrementally, with 90% of global companies having at least one woman in a senior management role in 2021. However, it will still be 170 years until women achieve economic parity on a global scale, according to the World Economic Forum’s Global Gender Gap Report.

In summary, increasing the representation of women in leadership positions is not just a matter of fairness but also a strategic imperative for achieving better outcomes in various domains, from business and politics to social and cultural development.

Having women in leadership roles at the executive and middle management levels has consistently shown us the power of leadership diversity. While, yes, there is a lot of work left to be done, we must also acknowledge that we have come a long way in the recent past. And we are better for it.

At Redline Executive we enable high-technology companies to build world-class diverse teams, providing exceptional professional talent to generate value for shareholders. Our rigorous research and attention to detail mean we have built up a wealth of knowledge, experience, and networks that our clients utilise.

We hire for a multitude of Board, C-suite, and Director / VP functions across the UK, Europe & US, where our singular focus is on delivering executives across the technology and engineering environments.

For more information on board diversity or hiring senior executives call 01582 450054or email us at info@RedlineExecutive.com.