What Deloitte’s Report on Women in the Boardroom Tells Us About Leadership Diversity

Last Updated: December 16, 2021

In its sixth edition, Deloitte’s report titled Women in the Boardroom: A Global Perspective examines women’s representation in the boardroom and in positions of senior leadership. The research uncovers some revealing findings about women in the boardroom world over. Here’s what they found, and our analysis of their findings, which emphasizes the need for leadership diversity in an organization.

The gender gap in the workplace is well known. Women tend to face greater obstacles in first obtaining equal pay for equal workOpens a new window , and then they tend to struggle to reach leadership positions sooner. The reasons can be attributed to several factors, including the motherhood penalty, the general mindset that tends to see men in leadership positions than women, and the fewer mentorship opportunities available to women, which seem to have reduced further after the #MeToo movementOpens a new window .

Deloitte’s report on Women in the BoardroomOpens a new window shows exactly what gender diversity in boardrooms across the world looks like. Some countries have seen a significant increase in the number of women on the board, whereas others continue to remain low.

For long enough, we have heard of discussions on leadership diversity as an accurate representation of diversity in an organization. Seeing women on the board of an organization can empower more women to aim for and reach the same position. And overall diversity can ensure a more significant number of innovative, out-of-the-box perspectives, helping a business flourish.

Supporting these discussions are reports such as one by McKinseyOpens a new window , which finds that “gender diversity is correlated with both profitability and value creation.” The same report highlights Sodexo as a great example of diversity in the boardroom and associated value creation. Half of the company’s board comprises women, and 32% of women hold senior leadership positions. This, the report says, has led to the value creation of 13% above the average industry standard in the organization.

What is the current state of women in the boardroom? And how can organizations enable leadership gender diversity? Here’s a look.

Learn More: Gender Inequality in the Workplace Is Becoming Hard to IgnoreOpens a new window

What Global Boardroom Diversity Looked Like in 2018

Deloitte assessed boardroom diversity in 8,648 companies in 49 countries through 2018. The results show some positive and some negative variations in comparison to their 2016 study.

Some interesting findings are:

1. Women leaders encourage women members on the board: In companies with female CEOs, the percentage of women on the board is 29.3%, as opposed to 16.5% in companies with male CEOs.

2. The highest representation is in Europe, whereas the lowest in the Middle East: Norway leads the percentage of board seats among the countries surveyed, with 41% of women in the boardroom. Women find the lowest representation in Qatar at a mere 0.6%.

3. Women in the boardroom reduced in some countries: Surprisingly, in Greece, the percentage of board seats held by women reduced from 15.3% in 2016 to 9.5% in 2018. Even in Luxembourg, the percentage reduced from 14.9% in 2016 to 12.0% in 2018.

4. There are more female CFOs than CEOs: There are three times more women in CFO (chief financial officer) positions globally than in CEO positions, at 12.7%.

In light of these statistics, Dan Konigsburg, senior managing director, Deloitte Global Center for Corporate Governance Deloitte Global, says, “At this rate, we – or our children and grandchildren – will have to wait until 2052 to reach anything close to parity.”

At this point, it appears that no organization has the luxury of waiting for another 30+ years to see a board with equal gender representation. How can organizations and HR empower more women to aim for and become part of the board?

Learn More: 5 Ways Hiring more Women in Senior Leadership Will Positively Impact Your Bottom LineOpens a new window

How Women Can Pave Their Way to the Board

A lot of instances of board membership rely on external factors, such as the existing leadership pipelineOpens a new window , the organization’s culture and perception of women in leadership positions, and its efforts toward gender diversity in the workplace.

Board members – whether men or women – must possess specific skills to be effective in that role. Women who aspire to make it to the board would benefit from developing these skills. Simultaneously, HR and organizational leaders must a) encourage women to aim for diverse roles on the board, and b) offer them the path and the tools to do so easily.

Here are some pointers organizations can communicate to the women in their team to encourage them to make it into the boardroom: 

  1. Developing strong management experience can be a stepping-stone into the boardroom.
  2. Shadow board directors when possible, learning from their experience, studying their decisions and reasons for those decisions.
  3. The report recommends that women also develop strong financial literacy to be capable board members.
  4. The soft skills that define the workforce and the leaders of the future are also necessary. Critical thinking, reasoning, decision-making, and communication are among the top skills that are expected of board members.
  5. Being open about your aspirations is also essential. This is important especially for women, considering that a lot of assumptions are made about their desire to lead in general.
  6. Mastering a specific industry-related skill is essential to be considered a leader in that field.
  7. Create goals for yourself in conjunction with your mentor and develop an action plan to meet each goal step by step. Be ready to take risks, because that’s what is expected of board directors as well – the ability to take risks for the sake of innovation.
  8. Learn how to negotiate and ask for what you want. But make sure you’ve done the background and can prove yourself when you initiate these negotiations.
  9. Build relationships with people who will advocate for you in the board room: people who will support you for promotions and people who will back you in boardroom conversations.

In addition, Jeffery Tobias Halter, president of YWomen, an organization that offers corporate gender consulting, saysOpens a new window , “HR plays a vital role in supporting the company’s women’s strategy by focusing closely on how female employees are hired, retained and advanced through the ranks. Progressive HR practices such as mandatory diverse slates and panels, transparency in pay equity, open job posting and two-deep succession planning are all critical.”

Learn More: AI Has a Gender Diversity Crisis, and Here’s Why HR Should CareOpens a new window

More Women in the Boardroom Is a Representation of Gender Diversity in the Workplace

Deloitte’s report on women in the boardroom makes a compelling argument about the boardroom serving as the “blueprint of the rest of the organization.” The discussion about diversity and its representation must begin at the top. But these discussions and decisions need not be taken in isolation.

Make the women in your organization a part of the discussion – ask them what they expect and what best you can do to make it happen. Put mentorship programs in place, hear them out, and consider their suggestions.

Gender should have no role in deciding who makes it to the boardroom or how much someone should be paid. It should be a non-decider, especially when thoroughly measurable metrics like productivity and goal achievement are available.

And, adding one woman to a board will not be enough. Deloitte’s report recommends having at least three women on the board to have a real impact on the company’s bottom line and to be a positive representative for women in the rest of the organization.

We don’t have the luxury to wait until 2052 to see true gender parity in the boardroom. Efforts toward leadership diversity must begin immediately, supported by a change in culture and the application of technology for an unbiased leadership pipeline.

What are your thoughts on bringing gender diversity into the boardroom? Share them with us on FacebookOpens a new window LinkedInOpens a new window , or TwitterOpens a new window . We would love to hear from you!        

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