Men and women will inevitably have different experiences and backgrounds, which shape their approach to business. Challenging each other and collaborating with people who think differently can breed creativity and promote the innovative ideas that push organizations forward. Hence, what challenges for women in business will meet?
Challenges for women in business
Women are still underrepresented in key fields
While a number of industries are showing trends of a growing female workforce, sectors like finance, engineering, and tech still tend to be strongly male-dominated. In STEM (science, technology, engineering, and math) industries overall, women make up just 24% of the workforce in the U.S. and less than 15% in the U.K.
Women’s under representation could be down to the continued stereotype that an interest in “hard science” is unfeminine. But with STEM occupations projected to be among the fastest growing and best paid, it’s important that women feel empowered to gain the skills and embrace the opportunities afforded by a career in science, tech, and related fields. Organizations like the National Girls Collaborative Project and Girls Who Code are working to inspire women to pursue computer sciences and engineering and close the gender gap in STEM industries.
Gender bias in the workplace
While most executives agree that the best person—regardless of gender—should get the job, the stories of women finding more success with a male or gender-neutral name on their CV demonstrates that unconscious bias still exists.
The women who are in or want to position themselves for leadership roles often feel they come under particular scrutiny. Where men may be encouraged to be ambitious or assertive, women are programed from a young age not to be “bossy”. Underlying gender bias means the same behavior and characteristics—initiative, passion, and taking charge—can be interpreted differently in men and women in the workplace.
Women are less successful when it comes to salary negotiation
Women’s own reluctance ask for higher pay is often cited as a factor behind the gender pay gap. When Glassdoor did a recent survey on salary negotiation, it found that 68% of women accepted the salary they were offered, while nearly half of the men surveyed negotiated before accepting a role. It also revealed that when women did try to negotiate their starting salary, the outcome was generally less favorable.
Challenging the notion that women don’t ask for raises, a 2016 study from Cass Business School, the University of Warwick, and the University of Wisconsin, found that women are equally as likely as men to ask for a wage increase. But they’re also 25% less likely to get one.
It’s almost an accepted truth that men have a better sense of self-belief when positioning themselves for leadership roles or negotiating pay. Even highly successful women suffer from “imposter syndrome”, feeling inadequate and underestimating their worth. Women believing in their own value and demanding a salary that reflects it is an important step in closing the wage gap, while greater pay transparency can also help to level the playing field.
Advantages of women in business
Women excel at the soft skills needed for business leadership
While technical skill and knowledge are fundamental to career success, CEOs consistently cite soft skills as the most desirable professional attributes. Although characteristics like effective communication, empathy, and self-awareness are difficult to measure, they are highly valued and can make a real difference to the bottom line. Recent research has drawn a connection between strength of character and business performance—with CEOs who rank highly for attributes like compassion and integrity also enjoying a 9.35% return on assets over a two-year period.
Soft skills and emotional intelligence may prove a key competitive advantage for women in business. A 2016 study published by the global consulting firm Hay Group found that women outperform men in 11 of 12 key emotional intelligence competencies. These competencies included emotional self-awareness, empathy, conflict management, adaptability, and teamwork—all essential skills for effective leadership in the workplace.
Women represent huge economic power and offer important consumer insight
It’s been estimated that women contribute in excess of $20 trillion in consumer spending every year, representing a bigger growth market than China and India combined. Women also account for 85% of consumer purchases.
Despite this, only 11% of creative directors in advertising are women—up from just 3% in 2008. When Boston Consulting Group did a comprehensive study of the “female economy” it’s unsurprising that they found women feel undervalued and underserved by the marketplace. With the power of the female consumer in mind, it’s evident that women are best placed to tap into that opportunity and bring valuable consumer insight to the table.
Tapping into the insight both men and women offer can make products and services more marketable and a business more profitable. In fact, recent research from McKinsey shows that gender-diverse businesses are 15% more likely to outperform financially above the industry median.