Women in leadership positions: statistics, advantages and challenges

The representation of women in leadership positions is a central issue in the modern corporate world. Despite much progress, however, there are still significant differences between the privileges enjoyed by men and women in the workplace. The statistics also demonstrate the undeniable challenges women face in various countries and industries. 

In this article, we take a look at the many benefits that female leaders bring and explore why women are still underrepresented in leadership positions and how we can change this.

What is the proportion of women in leadership positions?

While one might think that there should be no difference between the career opportunities of men and women in 2024, the statistics on the proportion of female managers paint a different picture.

The good news is that the proportion of women in leadership positions in Germany has been slowly but steadily increasing in recent years. According to statistics, approximately one in three management positions in Germany is held by a woman. This shows a significant increase compared to previous years – because according to the Federal Statistical Office, it was still less than 30 percent in 2022.

The introduction of the women's quota in 2016, which requires listed companies to fill at least 30 percent of their supervisory board positions with women, has naturally favored this increase. Nevertheless, in a European comparison, Germany lags behind countries such as Norway, Latvia, and Sweden, which have had a high proportion of women in leadership positions for years. 

But in many countries, women in leadership positions are even rarer than in Germany: In the United States, the proportion of women in leadership positions in Fortune 500 companies is only about 8 percent.

Countries such as Japan and South Korea also have particularly low proportions, which is due not least to traditional gender roles and a work culture that favors long working hours and a presence culture. This makes it difficult for women to combine work and family.

The representation of women in leadership positions is also very low in the Arab states and in many African countries. In addition to cultural norms, legal and educational policy factors also play a role here, making it difficult for women to access higher education qualifications and professional networks. There is therefore a need for action, especially outside Europe.

Well-known women in leadership positions

Nevertheless, you can find some women in leadership positions in the world's most famous companies – a shining example that women can also lead companies to success:

• Mary Barra: CEO at General Motors
• Belén Garijo López: CEO at Merck
• Ginni Rometty: Former CEO and Chair of the Board at IBM
• Marissa Mayer: Former CEO at Yahoo and former Vice President at Google
• Sheryl Sandberg: Former COO at Meta
• Ursula Burns: Former CEO and Chair of the Board at Xerox (and the first African-American woman to lead a S&P-100 company!)
• Safra Catz: CEO at Oracle
• Indra Nooyi: Director at Amazon and former CEO and Chairman of the Board at PepsiCo
• Ana Botín: Manager and CEO of the Santander Group
• Jane Fraser: CEO at Citigroup
• Mary Callahan Erdoes: CEO Asset & Wealth Management at JPMorgan Chase
• Ruth Porat: CFO at Alphabet Inc., the parent company of Google
• Julie Sweet: CEO at Accenture

Reasons for the underrepresentation of women in leadership positions

Despite numerous advances in gender equality, women remain severely underrepresented in leadership positions. Only in very few companies does management reflect the diversity of the workforce – this has not only social and cultural implications but also economic consequences. 

To change this, companies must first recognize the reasons for the continued underrepresentation of women in leadership positions:

Self-doubt

A major obstacle is the structurally lower self-assessment of many women regarding their leadership abilities. Studies have shown that women tend to underestimate their abilities and achievements, while men tend to overestimate their abilities. This self-doubt leads to women being less likely to aspire to or apply for leadership positions.

Rejection of existing male managers

Women's low self-esteem doesn't come from nowhere. A significant reason for the low number of women in leadership roles is that existing male managers don't trust their female colleagues to take on the task. 

In addition, many men tend to prefer managers who are similar to them – and these are usually other men. This leads to a kind of "men's club" that makes it difficult for women to access top positions.

Less networking

This “men’s club” is also noticeable in terms of networking. Professional networks are crucial for career advancement – and women often have less access to the networks available to men. These networks not only offer support and mentoring, but also important career opportunities. The fact that women are underrepresented in male-dominated networking seriously reduces their chances of securing leadership positions. 

Traditional gender roles and work models

Traditional work models that require long working hours and constant availability are difficult to reconcile with the responsibilities and demands of family life. Women are still expected to do most of the family and housework. This, of course, makes it difficult for them to assert themselves in such a work environment. 

Perceived demands on managers

Often, the job profiles for managers are strongly focused on characteristics that are stereotypically viewed as masculine, such as assertiveness and competitiveness. Skills associated with female leaders, such as empathy and cooperative behavior, are less valued in management. This one-sided perception disadvantages women who may have different but equally valuable leadership qualities. 

Early career choice

Career choice also plays a crucial role in the discrimination against women in management positions. Women remain relatively rare in certain industries and professions traditionally considered male, such as engineering and IT. 

The underrepresentation of women in these areas begins in education and continues in professional life. Initiatives that encourage girls and young women to choose technical and scientific subjects help to increase the number of women in leadership positions in the long term.

Challenges for women in leadership positions

But even women who have made it into management positions face a number of specific challenges that their male colleagues do not experience to the same extent. One of the biggest challenges is the constant need to assert oneself against gender stereotypes and prejudices. 

Women in leadership positions have to work harder to prove their competence and authority. This is often accompanied by frequent criticism to which female managers are constantly exposed.

In addition, the aforementioned societal expectations and the pressure to succeed both at work and at home can lead to considerable stress and, in the worst case, burnout. 

It is only logical that few women want to expose themselves to this stress – which makes it all the more important that companies invest in promoting women in order to eliminate these challenges.

Why should companies invest in women in leadership positions?

Investing in women in leadership positions has a significant positive impact on the dynamics and success of a company. There is no doubt that women bring different perspectives and ways of thinking that lead to new and unconventional solutions. This diversity fosters a culture of innovation, which is essential for the long-term success of a company.

Female leaders also have a strong talent for managing change and navigating uncertain times – and flexibility and resilience separate the wheat from the chaff in the business world.

We at Flexopus have also noticed that the cooperative and empathetic leadership style of women has a positive impact on the working atmosphere and leads to greater satisfaction and motivation among the workforce. For this reason, Flexopus places great importance on the promotion of our female employees. 

Last but not least, the presence of women in leadership positions sends a signal to the team and the public and shows that diversity and inclusion are taken seriously within the company – because we all know how important a strong brand and a positive corporate image are for business success.

Women in leadership positions: advantages

• Diverse perspectives and innovative approaches
• Improved business performance
• Higher employee satisfaction and engagement
• Better decision-making
• Strengthening a diverse corporate culture 
• Positive image
• Promoting diversity and inclusion
• Adaptability and crisis management

Promoting women in leadership positions

There are a variety of ways for companies to specifically promote women and improve their chances of obtaining leadership positions. A key measure is the implementation of mentoring programs in which experienced managers specifically support female talent and help them in their professional development. Training and continuing education programs on topics such as leadership skills, conflict management and negotiation are also worthwhile.

Companies should also ensure that work and family life are compatible to make it easier for their female employees to advance into management positions. The possibility of using flexible working hours, part-time, or home office options plays a major role in the professional development of future female leaders. 

Of course, an inclusive corporate culture in which diversity and equality are actively promoted is also essential. However, all of this is no longer voluntary, as there has been a law on women's quotas in Germany since 2016, which was renewed and amended again in 2021.

What is the women’s quota?

The women's quota is a legal regulation that obliges companies to fill a set percentage of management positions with women. The so-called Leadership Positions Act was introduced in 2016 to promote gender equality and address the underrepresentation of women in leadership roles. This is to eliminate structural barriers so that women have the same opportunities for career advancement as men.

But how successful is the women’s quota actually?

Statistics show that a lot has happened in recent years. In 2006, the proportion of women on the boards of the 100 largest German companies was only 0.2 percent. But by 2022, this share had grown to a remarkable 17.5 percent. And this positive trend continues: In April 2023, the proportion of women on the executive boards of listed companies in Germany reached around 38 percent. So the women’s quota definitely has an impact.

Summary

Although the presence of women in leadership positions is increasing worldwide, female managers are still underrepresented. Because despite much progress, structural barriers remain that make it difficult for women to reach leadership positions.

However, it is clear that promoting women in corporate leadership is crucial for diversity, empathy and innovation – therefore, your company should also aim to minimize the challenges for women in leadership positions and thus create a fairer working world.