Boost Profits With a Diversity Strategy

I’ve said it before and I will say it again. The economic case for gender equality in the workplace is clear. It’s not a conversation about what is fair or what is right: It’s about what is fiscally responsible. Companies looking to boost profits can do so by getting more women into their leadership teams.

However…

In 2021 there wasn’t a single female CEO appointed to an ASX 200 company, and just 5% of them were female-led. If we expand that to ASX300 companies, we get one female appointment. Beyond structural, long-term changes of mindset, we need to change the system. But how?

Firstly, there is a pathway problem.

Since Chief Executive Women began doing an audit of female executives in the ASX200 four years ago, the numbers have been in decline. One of the key issues identified in the census was the lack of women in chief financial officer (CFO) roles and line roles, which are positions responsible for profit and loss.

It also found that 96% of CEO appointments were chosen from those roles.

Unfortunately for women, they only represent 16% of CFOs and 12% of the line roles. 

So we either need to change the concept of what makes a good CEO or promote more women into roles with fiscal responsibility. Let’s put the steps back on the ladder!

Some other quick fixes:

• Flexible roles for everyone so both men and women feel supported to play an important part in their children’s early development without losing out on opportunities at work; 
• Blind recruitment where names are not included in applications (when hires are made purely on merit, the gender balance is restored pretty quickly);
• Accountability: set targets, measure results. Make D&I something leadership teams are responsible for and part of their KPIs;
• Women not being the first volunteer at work: cleaning up, buying the birthday cake or gift, organising the work function. Everyone has an equal role in this. 
• Being conscious of the language we use and women taking care not to slip into bias. I find the description ‘pale, male and stale’ deeply offensive. As offensive as I do a strong female leader being labelled ‘aggressive’. I know many fine men who fit that description who are great, conscious, long-term supporters of diversity and inclusion and are amazing mentors to the Rare Birds community of mentees. 
• Applaud male allyship and enable the space for them to feel and know how important this role is. 
• Picture the world you want your own daughters and granddaughters to live and work in and make the subtle and conscious changes to enable that firstly at home and then supporting at school, further education and work. Be involved. 
• Finally, an end to single sex events and talks. I was once asked to speak at a large accounting firm about gender equality and when I looked out across the room, the company had only invited its women to attend. For sustainable change we change things together, creating systems and workplaces that work to support everyone euqally.

Australian business – and our economy – will benefit greatly from a more diverse and inclusive workforce and we can all play a part in creating one.

What are you doing in your business? I’d love to know.