Imagine a world where the leadership landscape – boardrooms, government offices, and executive suites – are as diverse as our communities. We’ve made progress, but we’ve got a long way to go. According to The World Economic Forum’s 2023 Global Gender Gap report, the global gender gap is more than a hundred years’ from closing. It also showed that the proportion of women hired into leadership declined for the first time in eight years.
Women are still underrepresented in key decision-making roles across almost all industries in the Australian Workforce. While women make up half of the employees in the 2022-23 WGEA dataset (51%), women comprise only: 22% of CEOs, 34% of board members, 19% of board chairs and 37% of key management positions.
Women often face barriers in their leadership journeys that their male counterparts might never encounter. These barriers are further compounded for women facing intersecting forms of disadvantage. In the Intersectionality at Work Report (updated 2023), the Commission for Gender Equality in the Public Sector found that first nations women, women with a disability and culturally and racially marginalised women employees were all less likely to hold senior leadership or managerial roles, than men who identify with the same attributes.
We need to address the barriers women face in leadership, not just as a matter of equality (though that’s critical) but because research consistently shows that organisations with gender diversity in leadership are more likely to out-perform and be more profitable than their competitors (McKinsey 2020). This makes breaking down the barriers to women in leadership a strategic imperative for businesses to thrive.
What’s getting in the way?
A woman’s path to leadership is often marked by systemic, cultural and psychological obstacles, some of these include:
Gender Bias and Stereotyping
Leadership qualities don’t have a gender, but our perceptions often do. Gender bias can be a subtle but powerful force that still shapes our workforces, sometimes in ways we’re not aware of and can influence hiring and promotion decisions. Women in leadership face deep-rooted cultural stereotypes and double standards; when was the last time you heard a male leader described as “bossy” or questioned about how he’d balance work and family?
Work-Life Balance Challenges and Inflexible Working Arrangements
Women have disproportionate family responsibilities that influence their capacity for paid work which then impacts their access to leadership positions. According to the Australian Government 2024 Status of Women Report Card, women do over 9-hours-a-week more unpaid work and care than men and 35.7% of women cite caring for children as the main reason they are unavailable to start work or work more hours, compared to 7.3% of men.14% of employer funded paid primary carer’s leave is taken by men and 86% is taken by women.
Looking at these stats alongside the fact that 43.3% of women work part-time compared to 19.5% of men but only 7% management roles are part-time and you can see that the higher proportion of men in full-time employment (67% compared to 43% of women) increases their chances to progress into higher earning and management positions.
Gender Pay Gap
Economic inequalities are another barrier to leadership for women. The Australian national gender pay gap, based on full-time average weekly earnings, is 12% ($238 per week). Women would need to work an additional 44 days a year to earn the same as men. When comparing full-time equivalent total remuneration of private sector employees, which includes superannuation, bonuses, overtime and other payments, the median gender pay gap is 19% ($18,461 per year). The gender pay gap is even wider for women from culturally and racially marginalised (CARM) backgrounds, First Nations women and women with a disability. Financial inequality limits the resources women can leverage for personal and professional development which can support with their career progression.
What do women bring to the leadership table?
Despite the barriers, research consistently shows that having women in leadership brings many benefits to organisations. According to Zenger and Folkman’s research, women excel in seventeen out of nineteen well-researched leadership capabilities. These capabilities include taking initiative, developing others, and driving for results.
Diverse perspectives and innovation
Gender diverse leadership teams tend to foster more creative and innovative environments. Women bring unique viewpoints and a lived experience to problem-solving and decision-making. A range of perspectives can help organisations avoid groupthink and consider a wider range of options.
An inclusive and collaborative culture
Women leaders tend to favour collaboration and adopt a more participative approach to decision-making, valuing input from a diverse group of stakeholders, which fosters a more inclusive and cooperative workplace culture. Women-led teams are more likely to share knowledge, offer mutual support, and work together effectively to achieve goals.
Transformational leadership and inspiration for future leaders
Women are more likely to adopt a transformative leadership style, prioritising mentoring and the development and well-being of their teams. Women in leadership positions serve as powerful role models, inspiring other women and girls to pursue leadership roles. This can create a positive cycle, increasing gender diversity across various sectors and levels of organisations.
Why should we help?
Creating social change
Increasing women’s representation in leadership positions contributes to broader social change in gender equality. When women take on a women in leadership course, they bring their insights and knowledge to their leadership roles. They will be better equipped to challenge systemic inequalities, promote policies that support work-life balance, and advocate for issues that impact women and disadvantaged communities.
Closing the gender pay gap
The WGEA Employer Gender Pay Gaps Snapshot 2024 reports that there is a “clear link between more women in leadership and a lower gender pay-gap, even when the remuneration of those roles (CEOs and Directors) is not included in the gender-pay gap calculation.”
- Employers with a higher proportion of women on boards are more likely to have gender pay gaps in the neutral range
- There is a link between having at least one woman in the CEO position and a lower employer gender pay gap
- Employer gender pay gaps decrease as the proportion of women in management increases.
Tapping into the full talent pool
Women represent half of the global talent pool. Supporting women in leadership ensures that organisations can access and benefit from a more diverse range of skills and talents in the workforce.
It’s good business
Multiple studies, including those by McKinsey and Credit Suisse, have shown a correlation between gender diversity in leadership and improved financial performance.
The Credit Suisse Gender 3000 study in 2021, highlights that gender diversity in corporate leadership is associated with better financial performance, higher valuations and improved stability, making it a significant factor for investors and stakeholders. Diversity Council Australia’s Inclusion@Work Index (2023-24), shows that gender diversity in the workplace can lead to improved wellbeing and opportunities, more connected staff, and less harassment and discrimination.
How can a women in leadership course help?
Breaking down the barriers that women face in leadership is not just the right thing to do, it’s the smart thing to do. Actively challenging biases and creating flexible, inclusive workplaces achieves more than just balanced representation, it builds stronger and more successful organisations. The time for incremental change has passed, what’s needed is a commitment to bold action that transforms our workplaces and unleashes the full potential of all our people—because when women lead, everyone wins.
Dattner Group is a fierce advocate for advancing the place of women in our world, it does this through its suite of transformative programs like our women in leadership course, Compass.
If you are ready to support yourself and step into your full leadership capability, head to Compass Flagship – a public women in leadership course designed to support women at every stage in their leadership journey.
If elevating a group of women in your organisation or community is critical to your success, head to Compass Inhouse Programs, where we can tailor a bespoke program for your needs.
