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Thursday, September 16, 2021

10 Reasons Why Women Make Better Business Leaders

In the 21st century, we’ve realized that a person’s sexual/gender identity doesn’t describe their potential for leadership positions. Women are equally eligible to become managers and serve as business leaders in today’s world. There are powerful women in leadership capacities who guided their countries during an ongoing pandemic. But there also exist – unfortunately – obtrusive imbalances that prevent women from assuming the positions they deserve. For instance, merely 41 women constitute Fortune 500 CEOs. Studies have shown that women-founded startups also receive less funding. So, how can we remedy this situation? The solution lies in explaining to the world why women make better business leaders.

Reasons why we need more women as leaders

In this male-dominant world, women have always suffered injustice on the false premise that females can’t become effective managers. However, women represent nearly 50% of the American workforce and serve as breadwinners for almost 40% of households in the United States. They earn more degrees – bachelor’s and master’s alike – than men. Yet women employees make less than male workers do, while over 60% of publicly traded companies have no female board members. Though some studies show that women can conduct leadership responsibilities even better than men! Since they possess traits/qualities that make women effective business leaders. Let’s explain what these female-exclusive abilities are:

  • They communicate better with employees

A combination of interpersonal capabilities and emotional intelligence (EI) makes women effective communicators. Effective dialogue requires the leader to be approachable. And women seem more accessible and empathetic. They’re also active listeners and can have an impactful discussion with the concerned employee who feels valued during this conversation. 

Sadly, just 26% of sales managers are women. The world needs more women in sales since they are well-equipped with the skills required in a salesperson. Women socialize naturally and can engage other people in a dialogue successfully. The “woman’s intuition” enables them to build rapport with clients during a sales call, leading to them turning into customers.

  • They create a better work-life balance

In the past, women were cut out from the workplace for their perceived inability to juggle employment with children. These outdated notions aren’t accepted anymore since women do 50% more unpaid domestic work than their male counterparts. They successfully handle personal and professional lives at the same time. Female leaders are more proactive than male managers as well and engage their employees more efficiently. Furthermore, they’re better at forming strong connections with their workers.

  • They don’t have the “male ego”

Who has the bigger ego, men or women? The feminist discourse has disparaged “the big, fat male ego” that makes them have wrong ideas about their self-worth. Women are less reluctant than men to let their ego get the best of them. They’re also hesitant about acting all cocky and arrogant before their colleagues and supervisors. So, while dealing with business partners, this ability gives women an advantage over men. It enables women to become better decision-makers as they keep their egos in check.

  • Female leaders are well-accepted

A survey by Pew Research shows that women demonstrate better leadership capabilities than men. Respondents described women as being more honest, intelligent, compassionate, and creative than men. In comparison, men rated better than women in decision-making. However, both genders scored equally when it came to ambition and diligence. It shows that – contrary to what Europeans think of us – we Americans agree that women can become great business leaders and better workplace managers.

  • They excel at collaboration

Several studies have been conducted to discover whether men or women are better at collaboration in the office. Though these studies aren’t conclusive, they’ve shown that women collaborate more effectively than their male counterparts. Females have this instinct that enables them to work well with others. They possess leadership capabilities, e.g., being good team players and intelligent problem-solvers. Hence, these qualities allow female managers to maintain an organization’s productivity.

  • They wear many hats at the same time

Are women better at multitasking? Recent studies have debunked this myth that women are better at multitasking by revealing that females merely do more work than men. But women do balance many areas of their lives simultaneously. They handle multiple responsibilities simultaneously, while men often have trouble switching gears and refocusing on another task. So, it makes women well-equipped for leadership positions where they alone supervise different departments.

  • They can motivate others

An effective leader encourages others to become productive. Women make better motivators since they can effortlessly distinguish one’s triggers. They learn what excites people and make them put more effort into the task. Contrary to the popular misconception, women can manage emotions better than men as they have a higher emotional quotient (EQ) – the same thing as EI. A brave team requires a leader who motivates them, fills them with confidence, and helps them see the light. In other words, it requires a woman to lead.

  • It’s profitable to have women bosses

Diversity leads to creativity and brings forth innovation. No wonder organizations hire women to make more money than organizations where females are underrepresented. Gender diversity does affect your company’s bottom line positively. A McKinsey report shows that an organization with a diverse workforce and leadership is 21% more likely to become profitable. However, it doesn’t mean that companies should prioritize women over men. Businesses must allow all employees to excel regardless of their sex/gender.

  • They’re more confident than men

A 2018 study confirms that 29% of women consider their gender an obstacle in promotions and career advancement. On the other hand, merely 15% of men believe that their gender prevents them from achieving their goals. This difference makes women more steadfast about their resolve to excel at their employment and rise in ranks. The perception of gender-as-obstacle empowers women and fills them with confidence. This confidence – therefore – leads women to become better managers.

  • They possess better work ethics

Research shows that women are more persistent about ethical standards than men as they commit to business principles faithfully. They also prefer negotiating “in good faith” to fulfill their promises. They even take these ethical standards beyond the realm of business and also apply them while attending private affairs. Organizations respect ethical behavior – generally – therefore, female managers constitute eligible candidates for topmost leadership positions in today’s companies.


In 2019, PayScale revealed that women earned 79 cents for every men-earned dollar. Globally, women hold one-fourth of senior leadership positions. China outperforms the United States, where women have more leadership positions than men! Sadly, only 21% of American women are given such opportunities. But why do we even need more women holding C-suite positions? From the viewpoint of misogynists, it’s better to keep women in the kitchen where they belong! But studies confirm that women have better potential to serve as business leaders. Firms that employ more female managers have seen higher ROIs. Furthermore, a company’s collective IQ improves when women are playing on your side as well.

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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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