Naperville Business Lawyer on the Benefits of Women in Company Leadership

women, Naperville business law attorneyThere are countless variables that all combine to make your business successful. You need to offer a desirable product or service to a customer base that is willing to spend money on that which you can provide. Your location, visibility, and marketing strategies, of course, are also important as potential clients need to be to able find your business in the first place. A major key to success for many business owners, though, is putting the right people in the right jobs within the company.

As an experienced business law attorney, I work with business owners every day as they look to assemble a management team that highlights individual strengths while minimizing areas of weakness. In many cases, this requires a diverse staff with different types of people from all sorts of backgrounds. In addition to being more representative of the public as whole, a diverse team may even contribute directly to your company’s profitability.

Strong Women

To examine the impact of diverse leadership, at least from a gender standpoint, the Peterson Institute for International Economics and the accounting/audit company EY, conducted an international study of almost 22,000 publicly traded companies from more than 90 different countries. Over half of the participating companies had no female representation in their executive ranks, and just under five percent had female CEOs.

According to the study, companies with female chief executives did not perform particularly better or worse that those with males in the similar roles. However, when women comprised at least a portion of a company’s management team, profitability increased rather dramatically. In fact, companies with 30 percent of management roles filled by women saw, on average, an increase in profitability of about 15 percent. Interestingly, the study also found that quotas requiring female representation on boards were not as effective as a more comprehensive approach to education, childcare, and nondiscrimination policies.

Paternity Policies?

As an international project, the research also tried to account for various state policies that potentially contributed to the success of women in corporate management. One of the more interesting elements that the study found was that nationally-mandated maternity leave had little correlation with women in leadership positions. Stronger paternity policies, on the other hand, allows fathers to assume some of the burden of childcare, freeing women to return to work more quickly with less disruption to their careers.

While the study was more of demographic analysis and did not examine the exact nature of the contributions of executive women, the measurable impact to companies’ bottom line is hard to ignore. To learn more about developing more inclusive workforce policies designed to help your business thrive, contact an experienced Naperville business planning lawyer. Attorney Denice Gierach is uniquely suited to help you address the needs and concerns of the women on your team and will work with you in creating professional and personal opportunities for every member of your staff. Call 630-756-1160 to schedule a confidential consultation today.

 

Sources:

New York Times

Peterson Institute for International Economics