Gender equality is a fundamental principle that promotes fairness, inclusivity, and equal opportunities for individuals regardless of their gender identity. While gender equality has been a topic of discussion for decades, its impact on the economy has not been given much importance. It is a common belief that gender equality is a social issue and not an economic one. However, studies have shown that gender equality has a direct impact on the economy. Companies that prioritize gender equality have proven to yield significant positive results for both the company’s finances and the economy.
What are the economic advantages of gender equality and why should companies prioritize it?
Let’s explore:
- Boosts the economy – Gender equality positively impacts the economy. According to the World Economic Forum reports, gender equality will help to add $12 trillion to the global GDP in the long run. Gender equality leads to better decision-making, increased productivity, and innovation. It is a win-win for the economy.
- More diverse teams – Companies that promote gender equality have more diverse teams. Diversity brings various perspectives and ideas to the table and increases creativity, innovation, and problem-solving. A diverse team also helps the company to understand and cater to a diverse target audience.
- Better financial performance – Companies that prioritize gender equality have better financial performance. According to a study conducted by McKinsey & Company, companies with gender diversity are 15% more likely to have financial returns above their industry medians. The reason behind this is simple: gender equality leads to better decisions, better decision-making leads to better performance and increased market share.
- Attracting and retaining talent – When companies prioritize gender equality, they attract and retain talent. Gender equality helps to increase employee satisfaction and retention. Employees want to work in companies that treat them with respect and dignity. Gender equality in the workplace ensures that employees are treated equally without any discrimination.
- Enhanced corporate brand – Companies that prioritize gender equality have better brand value and reputation. Consumers want to associate themselves with companies that promote gender equality. A positive brand image helps to attract more consumers, and increased revenue leads to better economic growth.
How do you know if a company has gender equality priorities in place?
There are several ways to determine if a company has gender equality priorities in place. Here are a few indicators to look out for:
- Publicly stated commitments: Look for companies that have publicly stated commitments to gender equality, such as diversity and inclusion policies or initiatives aimed at promoting gender balance in their workforce.
- Gender diversity metrics: Companies that prioritize gender equality often track metrics related to gender diversity, such as the percentage of women in leadership positions or gender pay gap data.
- Programs and initiatives: Companies with gender equality priorities may offer programs and initiatives aimed at supporting women in the workplace, such as mentorship programs, leadership development programs, or flexible work arrangements.
- Employee resource groups: Check if the company has employee resource groups (ERGs) focused on gender diversity and inclusion. ERGs provide a platform for employees to connect and collaborate around shared identities and experiences.
- Industry recognition: Look for companies that have received industry recognition or awards for their gender equality efforts. This can be a good indication that the company is committed to creating an inclusive and equitable work environment for all employees.
It’s important to note that these indicators should not be taken in isolation and should be considered in the broader context of the company’s culture and practices.
One excellent indicator of a company prioritizing gender equality and diversity is if they have an Ellect Stars in Gender Equality badge in place.
Ellect Stars in Gender Equality is an acknowledgement of a company’s practices to support gender equality, specifically in their board and senior leadership team. Eligible companies receive a digital badge that they can proudly display on their website and social media.
Small businesses qualify if they have at least 25% women in their most senior leadership team or among all employees. Large businesses receive a point for meeting certain criteria, including having a woman CEO or CFO, having a woman board chair, and having at least 25% women on the board and senior leadership team. Companies with 3 or 4 points are then awarded Ellect Stars in Gender Equality.
Prioritizing gender equality is key to achieving economic growth and success
Gender equality has proven to have a direct impact on the economy. Companies that prioritize gender equality have better financial performance and contribute positively to economic growth. Gender equality increases diversity, decision-making, employee satisfaction, and brand value. However, gender inequality is still prevalent in many workplaces. Companies need to prioritize gender equality by implementing policies that promote gender equality. This will lead to a win-win situation, both for the company and the economy. By prioritizing gender equality, we will create a more inclusive, diverse, and prosperous society.