According to a World Economic Forum Gender Gap Report, it will take another 108 years to close the global gender gap. Closing the pay gap globally could increase the world economy by about $160 trillion. This is nearly double the current worldwide GDP.
Diversity equals profitability
It is well documented that companies embracing diversity and inclusion are more profitable, innovative, and respected. That said, companies matching wages with gender diversity in leadership outperform less diverse peers. Companies promoting gender diversity in equal pay net a 48% higher operating margin. Additionally, these companies see a 42% higher return on sales while also reporting a 45% greater earnings per share. It has also been documented that up to 73% of the time, gender-diverse teams will make better business decisions.
The majority still create gaps
Unfortunately, there still is a majority segment of business where an unconscious bias still exists that affects the gender pay disparity. Active support training by recognizing and addressing unconscious bias in an inclusive culture is needed to bring disparate pay scales in line. Creating an environment in which women can expect positive support, such as executive sponsorship and formal succession planning, contribute to a decrease in gender diversity gaps.
Gender diversity is more than just seeking a ‘seat at the table.’ It’s about making smart decisions with dynamic business values and outcomes. Companies who do not sponsor gender diversity in leadership undercut their own potential in business profitability as well as maintaining a strong talent pool to lead the company through its many iterations over time.
Advancing women in the workplace is possible by changing the conversation to include mentorship, recruit sponsorship led by women, and building a safe environment where the path to leadership is measured equally for both women and men.