Why Energy Companies Struggle Without Women in Leadership

Companies don’t have enough women in leadership roles

Women in leadership have always been underrepresented across virtually all industries. According to the US Department of Labor, women account for approximately 47% of the workforce, yet little more than 6% of Fortune 500 companies have a female CEO. Moving into the energy sector, the statistics get a bit more grim. The industry has women in just 1% of CEO positions and only 17% of senior and executive roles. There’s an undeniable disparity that cannot be ignored, and the lack of women in leadership isn’t only bad for women; it’s detrimental to the health of the companies too.

Without mentors and examples, fewer women enter the field

PwC research shows that 61% of women look at gender diversity in a company’s leadership team before accepting an offer. And a full 67% research whether there are positive role models who are similar to them within the company too. In addition to this, 56% look into whether a company has publicly shared its gender diversity progress. In other words, companies that don’t focus on placing more women in leadership roles attract fewer female employees overall.

Without diversity, recruitment efforts suffer

Employees today genuinely care about whether a company is diverse or not. Research presented by Glassdoor indicates that 67% of job seekers consider diversity when evaluating job offers. This means that in order to attract top talent (both male and female), energy companies must have women in leadership.

Initiative and results may suffer when women in leadership are underrepresented

Research presented by American Express digs a bit deeper into the differences in leadership styles between men and women. As it turns out, women outperform men in 12 of the 16 essential leadership traits but the areas which showed the greatest differences were taking initiative and driving results.

Less gender diversity contributes to reduced communication and community

The same Amex report indicates that women are more adept communicators and build stronger communities. They’re also more empathetic. These traits are essential when it comes to developing a strong company culture and establishing strategic partnerships.

Innovation diminishes without diversity

Researchers at the University of Arizona’s Eller College of Management discovered that companies with women in leadership roles are more innovative as well, producing 20% more patients than their counterparts.

Green initiatives may lack without women in leadership

Women are more likely to be concerned with climate change and are actively paving the way to a greener future. This in mind, energy companies may benefit even more than others when it comes to bringing more women on board.

Companies without gender diversity perform worse than peers

All this adds up to lost opportunities, and not surprisingly, diminished profits. According to McKinsey, companies in the first quartile for gender diversity are 15% more likely to outperform their peers. To be clear, this is a reference to having gender diversity throughout the company. But, as noted earlier, companies that don’t have women in leadership fail to attract female candidates for jobs, and will ultimately suffer as a result.

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Featured Photo Credit: Photo by Rebrand Cities from Pexels.

Recommend0 recommendationsPublished in Diversity, Inclusion, and Ally-Ship, Leadership

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