Workplaces Need Feminine Energy

Why Women's Leadership Drives Growth, Innovation, and Profit

The current backlash against diversity, equity, and inclusion (DEI) policies, along with moves by companies to dismiss these initiatives, is stifling creativity, economic growth, and missing out on the immense potential of diverse leadership.

The so-called "soft skills" — empathy, trust, and collaborative leadership — are the power skills of the future. These are forms of feminine energy, a attributes present in everyone, regardless of gender. Unfortunately, it often remains dormant, especially in male-dominated environments. Empowering women is crucial to unlocking this untapped potential.

The Data Speaks Loud and Clear:

• Higher Profits: Companies with the highest proportion of women in executive positions outperform their competitors by 47% in return on equity. Businesses in the top quartile for gender diversity are 27% more likely to surpass their industry's average profitability. These are not predictions — they are the findings of a decade-long McKinsey study.

• Economic Growth: According to a recent Bruegel article, women and men contribute complementary skills that enhance decision-making, innovation, and risk management. Boosting female workforce participation could increase GDP by up to 25% in advanced economies. These findings, moreover, are in line with the microeconomic evidence.

• A Competitive Advantage: Data from the European Institute for Gender Equality shows a stark divide between northern European nations progressing toward leadership diversity and others stuck in single-digit female board representation. Failure to adapt is a competitive disadvantage in a fast-evolving global economy.

This isn't about swapping one type of leadership energy for another — it's about embracing balance because the evidence overwhelmingly supports diverse leadership as the better performer.

Despite the politicized language surrounding DEI initiatives, workplace experts suggest that most companies are striving to find a middle ground rather than abandoning these programs altogether. Instead of dismantling DEI efforts, organizations should focus on practices that effectively elevate women to leadership roles. This includes investing in women's personal and professional development, addressing gender biases in hiring and promotion, and fostering mentorship and leadership opportunities.

By adopting these actionable strategies, companies can unlock the immense potential of diverse leadership, fuel innovation, and secure a competitive edge in the evolving global economy.

Author: Agata Spissu, Co-founder of LunaLab

Refences:

• McKinsey & Company: Diversity Wins: How Inclusion Matters (2020). Link

• McKinsey & Company: Women in Workplace report (2024) Link

• Bruegel: Jonathan D. Ostry, The Economic Case for Workplace Gender Diversity (2023). Link

• European Institute for Gender Equality (EIGE): Positions held by women in senior management positions (2024) Link 

• The Financial Times: The DEI backlash: employers ‘reframing not retreating’ (2024) Link