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Women Leaders: The Secret Ingredient for Investment Returns


Women Leaders: The Secret Ingredient for Investment Returns

Posted by Payroll Data Processing in Blog Aug 29 2016

It’s been a little over forty years since women began to enter the workforce. Young women in the old days could have a stable job and income until they were married. But in the seventies more women entered the workforce to help supplement their husband’s income. Now women dominated the workforce and today there are more women entrepreneurs and business managers than ever before. But why are men terrified to see the potential in women business entrepreneurs?

For most business, the best areas where they can get the most profit is their return on investment or ROI. Here is where women thrive. In many studies women are better at managing risk assessment and planning out their decisions. Female leadership also gives an average 63% higher ROI for companies and females are better at communicating than their male counterparts. But why haven’t some companies gotten the ball rolling? It could probably be because most of these companies are often stuck in the old age thinking. But now is the best time to come out of the dark ages of corporate business management and work on making more success and achievements met for your company when you think about the possibilities in hiring and making more successful business developments when women are at the top.

So the first breakdown will include female leadership alone. Harvard reviewed the research based on 600 companies alone, of which 300 had higher than 63% return on investments and one female leader. This research showed that women at the top are better at managing the company’s profits than white men at the top. In fact, many female leaders often engage in different forms of leadership, such as leadership that includes employees and other people in the company as part of the decision making.

When it comes to female leaders, profit margins are often going through the roof. Why is that? Well if companies have more women on their leader board compared to the country’s average, there is an increase in profit by about 7.4%, according to a study on global businesses. However, there were also some exceptions, including the company has one female CEO and one women on the leader board. But the point of the study shows that profit margins are one area where women work the most because staying on top of budget means that you can work with what you have and earn more in return.

The key importance of women leaders is going to be risk assessment. This means they understand and plan out the best what-of strategies for the worst that is yet to come. Overall, men often fail in this area of expertise. Women on the other hand work on ways to make sure that the risk is worth the profit and the measure of experience. A study found that women can guide decisions and actions accordingly, which in the example of car insurance premiums means that women often pay less because they make the best decisions behind the wheel, whereas the male counterparts don’t do so hot and often pay more and risk more for the sole purpose of egoism.

But the biggest takeaway is always going to be communication. It is key in every strategy played by the office. Women are the most communicative because of dishing out advice and tuning in to what the employees would like to consider with the company. Women are listeners and discussion-pioneers by trade. Their value is in their knowledge and information obtained over time. Women may have a smaller brain than men, but our areas of perceiving and processing language are the most wired. This means that women are often the best ones to be the active listener than their male counterparts, an adaption worth noting in the evolution of a woman’s abilities.

When you want bigger returns on your investment, look no further than a woman. They have more components to their leadership abilities than some companies have ever realized. Better communication allows more clientele and profits to increase overtime. Plus with more women in the field, it can’t be a better time to invest in their evolutionary skills.