The multiplier effect helps to have more Women in Leadership positions

💡Without a more concerted effort, global growth in the share of women financial leaders may not even reach 25% by 2031. More women in the C-suite may help attract more women in the boardroom, and vice versa.

For each woman added to the C-suite, there’s a positive, quantifiable impact on the number of women in senior-leadership levels just below the C-suite - called multiplier effect - and continues to be observed on the organizational level in select countries, according to a new interesting research published by Deloitte Insights using data from 1998–2022 and forecast growth by region and roles through 2031. This research includes more than 68,000 financial services institutions (FSIs) across nearly 200 countries.

The number of women in financial services who reach to the highest levels of leadership the C-suite and the board is rising. Over the past decade, more women have been added to FSI C-suites than men. Women now account for 18% of C-suite positions globally.

✅Women Senior-Leadership roles will decline by 2031

Researchers found that at a global level, women’s representation in senior-leadership and next-generation roles has grown at a much slower pace than C-suite roles. If the status quo continues, the share of women in senior-leadership roles could stagnate while that of next-generation roles is likely to fall by almost 2% points by 2031.

South America is the only continent expected to witness growth, albeit off a low base, in women’s share of senior-leadership and next-generation roles.

👉 Forecasts suggest Oceania, followed by Africa, will bear the biggest losses to women’s share of senior- leadership and next-generation roles by 2031, despite having the highest proportion of women in the C-suite.

Researchers noticed that over the past decade, more women have been added to FSI C-suites than men. Women now account for 18% of C-suite positions globally.

The growth mirrors progress in board gender diversity over the same time period, suggesting a synergistic relationship may exist between the two.

✅More women in the C-suite may help attract more women in the boardroom, and vice versa

✅The multiplier effect for Women in Senior-Leadership Levels

Researchers found the a multiplier effect in : For each woman added to the C-suite, there’s a positive, quantifiable impact on the number of women in senior- leadership levels just below the C-suite. 

Researchers found that the multiplier effect can be extremely powerful. An analysis of European countries revealed that Germany lags its regional counterparts on women’s representation across role categories.

However, at the organizational level, it showcases the highest multiplier effect. Every woman added to the C-suite results in nearly four additional women among the senior-leadership ranks, suggesting that even one additional woman in a C-suite role can make a significant difference, especially when there’s a dearth of women role models.

✅The Within Reach framework to progress on Gender Equity

Researchers create a progress on gender equity continues to move incrementally. Years of small gains are at risk if meaningful action isn’t taken. They have developed a Within Reach framework of actions, CARE – Collect, Assess, Report, and Engage, that outlines a series of steps FSI leaders should consider to help enact change

Regarding reporting, researchers recommand some practices financial services firm leaders can consider:

✔️ Report progress on diversity goals, both internally (to the board and workforce) and externally. Making a public commitment can perhaps increase accountability and bolster DEI advancement.

✔️ Communicate clear metrics for success within the organization to create a more equitable environment.

✔️ Include measurable DEI goals, recruiting, advancement and retention efforts, pay-gap information, and strategies to close diversity gaps.

✔️ Focus on outcomes achieved rather than just measuring activities and effort.

This research highlights the importance of gender-equity efforts and building a sustainable talent pipeline across organizations and geographies.

Thank you🙏 Deloitte researchers team for these insightful findings:

Alison Rogish Neda Shemluck Samia Hazuria, Chartered Accoutant Patty Danielecki Amanda Pullinger Narasimham Mulakaluri Gaurav Vajratkar 

Dave Ulrich George Kemish LLM MCMI MIC  

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