Companies with female CEOs found to be more profitable on average

June 1, 2022

“Just as people will notice if you aren’t promoting equality within your company, they will notice if you are.”

—Zoë Morris, President of Frank Recruitment Group

The gist:

Research compiled by the Frank Recruitment Group “has found that the majority of Fortune 500 companies with a female CEO are typically more profitable than those helmed by a male CEO.”

“According to the findings, 87% of the top 500 companies last year led by a female decision-maker reported above-average profits, compared to just 78% of companies without a female CEO.”

So how do we get more women into that position?

Frank’s, Morris, suggests the following:

Increase the visibility of women

“It may seem like an obvious statement, but to build an inclusive team you have to actually build an inclusive team,” Morris said. “When a woman is looking at your leadership team, is she seeing any other women? If not, this could be the thing that stops a female employee from moving up into a senior position, with your business missing out on the value she has to offer as a result.”

Offer suitable career progression opportunities

Are “women are able to see the steps to climbing the corporate ladder?” If not Morris suggests, “mapping out their career journey, making sure to include what your employee’s short-term and long-term goals are, as well as any personal circumstances that could affect these. This way you are seamlessly incorporating a focus on these questions into your routine. Once you begin doing this, you will start to see natural–and almost effortless–change.”

Promote equality within the workplace

“Communicating the proper language is extremely important…If the language used within your workplace communicates sexist stereotypes, regardless of whether this is unintentional, it could discourage female employees from believing they have a fair shot at a C-suite level position…this doesn’t just apply to speech used within general office conversations either. Consider what messages both the textual and visual communications you send out are giving.”

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