If you want real profit, better hire women at top executive posts – this is the piece of advice to British companies from a gender diversity consultancy that conducted a study into the issue.
The study held by gender diversity firm The Pipeline said that a company can earn more profits if women are placed in lead roles. It said that Financial Times Stock Exchange 100 and Financial Times Stock Exchange 250 indexes that had no women in their executive body missed on 47 billion pounds in 2019.
Meanwhile, the listed companied that had at least 33 per cent of female bosses had a profit of margin of more than ten times that of the companies that did not have a woman in the same post.
The Pipeline study mentioned that at least 15 per cent of the companies in the UK had no women bosses. If they had women in top positions, then they could have attracted more profit.
Noting that there was an increase of women presence in executive committees, the Pipeline said that the women membership on executive committees of FTSE 350 companies grew to 19.8 per cent between April 2019 to April 2020, However, the report said that a deeper analysis showed that the increase was driven by more women being in functional roles like HR, marketing or accounting. They were still out of any decision making roles.
Though Gender diversity was a hot topic in recent years, the Pipeline says that many firms in the country could miss targets set by the Government backed Hampton Alexander Review. The review is for having women in at least a third of boards and executive committees at FTSE 350 companies by the end of the year.