The number of women on the boards of major companies has stepped into the spotlight as a major issue. There are those who wring their hands and talk about morals and ethics, but the reality is tech businesses don't really care about this. They are more concerned with performance and keeping shareholders happy.
And that's exactly why you need women on your board. They can bring unique benefits to your company, and this guide is going to show you how.
Companies Perform Better
The statistics don't lie. Tech companies with a more equal proportion of women to men perform better by about 3%, in terms of return on equity. They are more profitable. They have better long-term prospects. Furthermore, customers are generally happier. In short, if you want to see an upgrade in your performance it's time to promote some of your promising female talent.
Women Executives Cut the Amount You Spend
The tech industry is more susceptible than any other to overspending. It's easy to spend a ton of money on something that hasn't even made it to market yet. It's why unicorn companies exist. Despite these companies being worth over a billion dollars, the majority of them have yet to generate a single cent in revenue. The unicorn problem of Silicon Valley is a serious issue.
Women on the board are more likely to reduce company expenditure because they prefer to use cooperation and collaboration over directly throwing money at the problem. Studies have said the chances of bankruptcy are much lower when there's a woman on the board.
A New Perspective
The world of tech is a male-dominated world. But while tech companies are like this, their target audiences are relatively balanced between men and women. It makes no sense to have a male-dominated company when your target market is filled with men and women in an almost equal proportion.
Women offer a unique look at your company that you can't get from anyone else. Even one woman on the board can help the men spark some new inspiration.
Women Executives Make Better Decisions
The problem with a lot of male executives is that they are likely to simply nod along with the majority because they don't want to make a problem. When you create a boy's club, you end up in a situation where someone will suggest something and everyone else will automatically agree, even if they privately have some concerns.
Women executives are more inclined to ask questions. They are more likely to bring up their concerns, which can be a good thing in a lot of situations. Tech companies will learn to look inwards. They will learn to question the norm, which can help with innovation.
Some studies have shown that women are more likely to look deeper into the matter at hand. They are more inquisitive and more curious than their male counterparts. Someone who rocks the boat in this way can make a huge difference.
Bring More Women into the Company
The lack of women on corporate boards within Silicon Valley isn't the only problem that has to do with the genders. There's a severe lack of women in all roles. A lot of it starts from a younger age, where women are often discouraged from indulging in techy subjects.
But by promoting more women to the top of the company, more women are likely to be inspired to join the world of tech. The Womens' Wellness Institute says that adding more women to tech companies can uncover solutions never previously thought of.
Is there a Moral Duty?
There's always the argument that companies in all sectors have a moral duty to try to equalize the number of people on the boards of major companies. In some ways, a gender equality policy is good for companies because millennials are more likely than any other generation to choose a company based on such policies. Additionally, millennials make up the largest part of the workforce.
Tech companies are often succeeding or failing based on their personal branding standards. They can have a great product, but if they don't do business in the right way they are going to struggle to beat out their more socially conscious competitors.
The case for a moral duty is down to the individual company. And it's easy to see that companies are exercising this right in both directions.
Regardless of what you believe when it comes to gender equality, there's no denying the benefits of incorporating women into your company. By bringing the female gender into the boardroom, you are going to see your company introduced to new solutions. You are going to perform better with women on the board.