Companies outperform by nearly 30% when they support Women representation in their workforce, promote and provide more maternity leave to women!
By | Nicolas BEHBAHANI | People Analytics Leader @ Future of Work | HR analytics, HR KPIs
💡Investing in companies with more women-friendly culture may help boost performance.
📈 Companies closest to parity across key roles, including revenue-producing, engineering and top-paying roles, outperform by 29% the companies that are furthest away from parity in these roles in terms of RoA over recent years but the representation of women tends to deteriorate with seniority, to the detriment of performance.
🏆 Higher women’s representation in the workforce is statistically positively linked to higher future performance, especially prior to reaching parity of 50% and companies that promote women tend to show higher returns.
📊 Also improving women’s underrepresentation at higher ranks by 5 p.p. is associated with a 3.6% decrease in turnover rates. Women tend to be underrepresented at higher ranks and overrepresented in clerical roles and there may be a persistent glass ceiling, making it difficult for women to reach the very top ranks. So better disclosure and more standardization of metrics will help improve understanding of the financial linkages, according to a new interesting research published by BlackRock using data from last past ten years, mainly from Bloomberg MSCI Inc. WORLDSCOPE INC. sources.
