Public sector advances more women into leadership roles than private sector

Public versus Private

Globally, women are increasingly being elected to leadership positions within the public sector – such as heads of state, ministers and cabinet members and legislators.

The research shows that almost 10% of United Nations members have female heads of state, against 3% of the top 1000 multinational companies that have a woman president or CEO.

Furthermore, the women comprise nearly 20 percent of parliamentary seats worldwide, compared with 13.5 percent of women executive officers of the top 500 U.S companies.

“Talent and knowledge are the most important resources a nation can possess”, said Greg Pellegrino, Deloitte Touche Tohmatsu, Global Public Sector Industry Leader, and one of the authors of the report.

“Women’s progress has vital implications for the health and growth of governments, companies and nations. Therefore, it is crucial that governments and companies work together to harness and cultivate global female talent, to help create positive change and ensure continued growth and success.”

Women�s progress in the public sector, a model for the private sector

Countries that have women in government leadership positions have an increased number of issues affecting women on the legislative agenda, often resulting in positive societal and economic developments.

For example, after ten women won parliamentary seats in Kenya, legislation relating women’s issues, such as combating domestic violence, was passed into law.

Likewise, research has shown companies with women in leadership positions perform better and achieve more economic rewards that those without women representation.

The top 500 multinational firms, which had at least three women on their boards, saw 16.7% return on equity, while average companies just saw an 11.5% return.

Women in leadership begets more women in leadership

Evidence suggests that as female representation in government increases, their shared interests emerge, bringing about increased attention of issues affecting women.

It also paves the way for more women to move up the ranks, as their predecessors break down many of the cultural and institutional biases still in existence.

What accelerates women retention and advancement?

As the world grows ever more interconnected, talent is becoming increasingly mobile.

With the exception of North America, regions throughout the world are experiencing a “brain drain”, in which educated women are emigrating at alarming rates in search of advancement opportunities.

For example, in Africa alone, 27.7% of females with tertiary education emigrate –10% more than men. An organization-wide culture shift is required to nurture an environment that is friendly to women and encourages their advancement.

Women are a critical national resource for economic growth

Women’s progress has vital implications for the health and growth of governments, companies and nations.

Both the private and public sectors must continue to nurture and advance diverse talent – including high-potential women – in order to stay competitive and grow.

“While women have used individuals strategies to achieve their ambitions, accelerating the advancement of women into positions of leadership in the government will require new organizational strategies led by those in senior positions”, said Anne Weisberg, Director, Talent, Deloitte Services LP in US, and one of the authors of the report.

“Among other steps, it will require organizations to establish metrics and accountability measures, focus on career development for women and promote work life integration.”