Most companies strive to create a work environment that embraces diversity. Differences in age, gender and other characteristics benefit companies in numerous ways, such as various perspectives for problem solving or creating new business opportunities.
New research from DDI and The Conference Board highlights a critical difference between the top and bottom corporate financial performers—companies with more women in leadership roles perform better. Another finding from the survey indicates that millennials in leadership roles can also impact business success positively.
The Global Leadership Forecast (GLF) 2014/2015, Ready-Now Leaders: Meeting Tomorrow’s Business Challenges is the seventh edition of the annual report that DDI has put together since beginning this research in 1999. This year’s report includes responses from 13,124 global leaders and 1,528 human resources executives within 2,031 organizations. Survey results represent 48 countries and 32 major industries.
Here are some insights the survey revealed:
- Men and woman are equally competent workers. However, men tend to portray themselves as more effective leaders overall than woman do.
- In comparison to men, women are not as likely to rate themselves as highly-effective leaders.
- Women are also less likely than men to have completed international assignments, led across geographies or countries or teams spread out geographically.
- Of the participating organizations, those in the top 20 percent of financial performance have 37 percent of their leaders as women and 12 percent of their leaders are high-potential women.
- Organizations in the bottom 20 percent count only 19 percent of their leaders as women, and 8 percent of their leaders as high-potential women.
- An organization’s rate of growth is directly linked to the number of millennials in leadership roles.
- Companies that were more financially successful were also more likely to have a higher percentage of millennial leaders.
“To improve business outcomes, bolster current development programs so that all leaders, including women and millennials, can improve their skills,” said Evan Sinar, Ph.D., DDI Chief Scientist, Center for Analytics and Behavioral Research (CABER) Director and study co-author. “Development opportunities build confidence. Provide opportunities for stretch assignments, ensure formal practices are in place to facilitate those opportunities and fully-commit your support to mentoring programs to develop and prepare new leaders.”
Receive full access to the report on DDI’s website here.