A Winter 2020 Study Examining the Effects of Women in Leadership Positions on Business Performance in Canada and the United States

Executive summary

This study was conducted to examine the effect of women in leadership positions on business performances in Canada and United States. The study includes analysis of history of Canadian and American women in workforce from being domestic workers up to position of leadership as entrepreneurs. Also, this research analyzed how women in Canada and America have been improving business performances. In this context, the study includes analysis of cases where some influential women in Canada have been improving business performances. Canada and America considered to be some of the leading countries in ensuring gender equality in workforce. The Canadian and American government has been offering all support to see women become entrepreneurs and influential business leaders in the country. Therefore, Canadian and American women have started being represented in professional and political leadership. More than half of working population in Canada and America include women but in in the past decades were underrepresented in the position of leadership hence recording few women as entrepreneurs (Epp & Iacovetta, 2016). Despite working at staff level women workers have more advanced academic degrees as compared to men. Having more women with the required knowledge, there is need to include women in business leadership to serve as role models to girls and other women. This study used secondary data from relevant literature materials authored by Canadian and American scholars. The study was original work of the author but some information was quoted directly hence involving in text citation to indicate the source of information.  

1.0 Introduction

1.1 Purpose

The purpose of this report is to determine the effects that female business leaders have exerted on their companies in order to answer the following question: is the increase of female leadership in the business world helping businesses thrive? And if it is helping businesses to thrive, why?

This report will be research based and will examine the increasing trend of women in leadership positions at businesses across Canada and the United States, as well as how and why this trend is affecting businesses.

If it is found that this increasing trend is a factor in the success of businesses, the report will strive to conclude how businesses can encourage women to lead in order to contribute to improving business performance.

1.2 Background

There is a deeply integrated idea in society that men are the influencers of the business world. Although this may have been true some time ago, there is a flourishing development of women in business leadership and the ratio of men to women is beginning to smooth. Gender inequality in business leadership is still prevalent, however new research is bringing to light that women in leadership roles bring higher profitability and new and effective leadership styles among many other benefits to a company (McCallum, 2014).

For much of history in North America, the typical societal role of a woman was to remain in the home as a housekeeper and a caretaker. Today, this no longer holds true. Although the ratio of males in the workforce persists to be higher than that of females, the gap has greatly narrowed. In Canada in 2014, the labour force participation rate of women reached 82%, compared to a rate of 91% for men. This finding is quite significant when compared to the early 1950s, when the rate of women in the workforce was greater than 70% less than that of men (Statistics Canada, 2014).

The significant economic impact of such a trend may be rather evident, however this report intends to explain how women in business have risen to positions of leadership and how women in leadership are affecting the performance of the businesses for which they are employed.

Female leadership within businesses may result in a number of positive outcomes which go far beyond financial success. Substantial evidence exists showing that having gender diversity at the management level enhances the performance of a company and it is well established that diversity aids in making companies profitable, innovative and respected. Additionally, having female leaders within a company creates less gender discrimination in recruitment, promotion, and retention, allowing companies to acquire and retain the most qualified individuals. A large female presence in a company has been shown to benefit the workplace environment and has also been associated with higher company status (Peterson Institute, 2016). When combined, all of these factors and more ultimately contribute to a greater likelihood of financial success.

Despite extensive research outlining the positive effects of women in business leadership, women still have to overcome a number of challenges in the workplace. From gender wage gaps to stereotyping and more, women continue to struggle with proving their competency at work more-so than their male colleagues. Although these issues have become decreasingly apparent throughout the years, they are ongoing. This report aims to shed light on research demonstrating that women possess the capabilities necessary to become powerful and influential leaders that greatly contribute to the innovation and success of businesses in hopes of re-shaping conventional and outdated views surrounding women in leadership.

1.3 Scope

This report will address a number of topics surrounding the effects of female leadership on the success of businesses in Canada and the United States. Firstly, the research will analyze the evolution of women in the workplace; from women being nonexistent in the workplace to their rise to positions of leadership and influence. The report will then examine the effects this has on businesses in Canada and the United States, including specific cases of females in positions of leadership that have had a significant effect on the success of the businesses for which they are employed or own. The analysis of these cases will include facts and figures in order to quantify the significance of any effects to the reader. The report will also explore and explain the reasons why businesses with female leaders tend to perform better than those without female leaders, and aim to explain how businesses can encourage females to enter positions of leadership.

1.4 Proposed Methodology

The information used in the construction of this report will be obtained solely from secondary sources. The secondary sources included will be obtained from peer-reviewed, scholarly journals, articles, web sources and other credible sources in order to accurately depict the effect of women in leadership positions on businesses in North America.

2.0 Research and Analysis

2.1 History of Women in Workplace

Women have a long history from non-existence to the real world of leadership where they participate diligently in workplaces. Despite experiencing various challenges and discrimination in the society women are showing signs of prosperity in every sector of human development (Orser & Riding, 2016). Recently, women have doing more perfect work as compared to men and therefore they cannot be ignored in any sector.

In the beginning of women participation in workplaces, their labor considered expendable and cheap. In Canada and America women work were usually considered less important and men were given first priority in work. Thanks to the current notion about women power in any sector in America and Canada. In the 19^th century and early 20^th century, women are regarded as domestic workers (Marks et al., 2016). More than half of available work for women were to offer services in homes. The available work was characterized with worse treatment, poor working condition and little time to rest. More regrettably, women work was nasty and hard making many of them to develop psychological stress. Women were treated as slaves in workplaces because most of them slept in employer’s basement and in attics. As the women continued to be enlightened they became more attracted by jobs in offices, shops and factories even though they received less salaries than men who were undertaking the same roles.

Involvement of women in the education assisted them to pave the way of moving from unattractive domestic work to admirable jobs. With growth of the education women started participating in professional jobs such as caregiving services, teaching and nursing (Sangster & Smith, 2017). However, despite having education in such fields women were to resign from their careers after marriage. With some education professional education women role were still housekeeping and breadwinning man after marriage.

In the late 1800s, women shifted from domestic work to industrial work due to introduction of clothing and textile industries. Even though more women moved to such industrial work, the working conditions were terrible and also they suffered from long working hours. In 1902, the poor treatment made women to organize strike in “Toronto Carpet Factory”. The increase of large number of women who participated in the strike forced the councils in the Canada to establish favorable working condition through legislation process. The Canadian city councils made laws that promoted better pay for women and fair treatment (Epp & Iacovetta, 2016).

In the early 20^th century, the world war one played crucial role in the development of women in the workforce. The first world is considered by many people as turning point of the women in the workforce. The women participation during the world war 1 painted a clear picture of their powers by replacing men who were participating in the war. However, women were returned to their kitchen roles after the end of the first world war. In the early 1920s, women began to enter in the role leadership participation after they were granted rights to vote due to emergence of suffragette movement (Buckley & Jakub, 2017).   The women participation in workplaces improved after the market stock crashed triggering Great Depression in 1929. Canadian women were considered as people protected by law as their support to war became inevitable. The war required women to actively assist in providing the products since men were recruited in the war. After the end of the war, many women declined the call to step down for men and they instead continued with their employment. After the contribution of women during the war, unions and governed were forced to rethink women mandates despite creating social and cultural change (Buckley & Jakub, 2017).

In 1950s, new opportunities for women were created by the need to deliver and advertise services and products in the market. Also new women opportunities come from increased need for education services, health, goods, production and economic expansion (McCallum, 2014). Many women shifted to work force due to desire to improve living standard of their families. The number of women participating in workforce is increasing every day in the Canada. Statistics of 2014 shows that more than 47% of Canadian workforce are women (Hughes, 2015). With the world changing every day, Canadian women were being praised by men and organizations for their contributions in workplaces. In 2017, Canadian prime minister Trudeau and US president formed a council containing ten powerful women leaders to address issues of women in the workforce (Usalcas & Kinack, 2017). The council formed encourages women to enter into entrepreneurship with fear and Canadian government is offering all support needed to see women excelling in business.

Employment rate by sex, 1946 to 2015

(Usalcas & Kinack 2017)

2.2 How Women in The Leadership are improving business performance

Canada and America require more number of women to become entrepreneurs and managers due to their excellent work they are doing to improve business performance in these two countries. Canadian and American women have proved to be great leaders through their innovation and their contribution in assisting businesses growth (Sharafizad & Coetzer, 2016). The government of Canada has recognized that women required to lead companies and that is the reason the prime minister investing large amount of money to promote gender equality in corporate world and workforce. The Canadian government promised to spend $105 million to promote women related businesses. The government also promised to support women entrepreneurs by spending 1.4 billion dollars (Seijts, Clercy & Nguyen, 2018).

Women leadership improve business performance in various ways in Canada. Most of the Canadian women are promoting business performances through high level of innovation as compared to men. Business strategy and design requires innovative thinking and technology, a character that is possessed by many women in Canada. In 2011, Canadian government noted that technical companies owned by women engaged in innovative activities more than technical businesses owned by men experts. Women expert concentrated more in product innovation after compared with other kinds of business innovation (Mitchelmore, Rowley & Shiu, 2014).

Canadian women are improving business performances by promoting staff satisfaction hence creating happy team in the company. Women leaders are highly skilled in ensuring employees’ satisfaction any promoting motivation to workers. Employee’s satisfaction indicates that business is performing well since all stakeholders are working hard to achieve common goal. The study done by Canadian scholars indicated that both female and male are happy working within a company predominated by women leaders (Marmenout & Lirio, 2014). The employees are turnover is minimal in businesses managed by women compared to those predominated by men leaders. Satisfaction of employee cannot be ignored since it affects the performance of business. Therefore, the ability of Canadian women ensure employees satisfaction is improving performance of many companies. Training and recruiting new employees is costly and can cost the company more between $30000 and $40000. Therefore, to ensure staff retention there must be employees satisfaction that can be easily promoted by female leaders.

Female leaders also have skills to promote business growth as compared than men. The report of 2014 conducted by American express in United States showed that businesses owned by female registered 72.3% growth while those predominated by male leaders recorded 41.5 % growth (Leitch, Welter & Henry, 2018). The survey revealed that female leaders focus on business growth as compared to male. The rate of expansion mode on business owned by women was 32% while the rate of expansion mode of business owned by male was only 27%.

Women leadership in business improve business performance by being humble after the success. Perspective of women leaders on success differs of that men since many they lack quality of being humble. The survey sponsored by Barclays bank in United states showed that only 42 % of women acknowledge that their business was prospering while 62% of male owners said that were experiencing success (Kirkwood, 2016). The truth is that both business owned by male and female were almost performing the same but female felt that there is more needed to improve their business. Therefore, this feeling of women to need more improvement makes them to be more successful than men.

Women leaders are better in imparting knowledge to employees than male leaders. In Canada, most women leaders are more educated than men. Employees are always eager to learn from their leaders and therefore women leaders play critical role in delivering knowledge in the company. Female entrepreneurs tend to possess more education than men of which is important in improving the business. The study conducted in Canada showed that 18% of women entrepreneurs had master’s degree while only 12% of male business owners had master’s degree (Kirkwood, 2016). The employees learn from managers and owners on strategies of improving the business hence women are highly preferred.

Women leaders also improve business performances through accepting to take more risk that result to company’s growth. Women are skilled in calculated risk and they are not afraid to any necessary risk. Men on the other hand are afraid of taking risk hence women surpass them by becoming more successful entrepreneurs. The study done recently in Canada through Barclays bank intervention showed that 87% of women business owners are risk takers while only 73% of men entrepreneurs were financial risk takers (Leitch, Welter & Henry, 2018). More women said that when taking risk, they usually see opportunities while only few men accepted to see opportunities in taking financial risk. In this context, it is evident that supporting many women in Canada to become entrepreneurs is a starting point of building economy.

Leadership among women has improved performance of most businesses of Canada through well-paying of employees. Many employees working under women entrepreneurs are enjoying fair compensation for the services they offer in businesses. The annual payroll between 2007 and 2015 grew by 36.52% in businesses predominated by women as leaders (Green et al., 2016). The annual payroll of business owned by men grew by only 16.54%. As a result, many employees in women dominated have been working tirelessly to appreciate the better pay from their leaders. More importantly, women entrepreneurs have been keen on closing gap of payment. Gender discrimination has been embarrassing many women employees by getting less salary than men even after performing the similar role. According to research done in Canada shows that women leaders in business are becoming the solution to this issue. The study showed that business owned by women paid the staff depending on their role instead of looking at gender hence ensuring equity. Therefore, equity in payment is increasing more attachment between the entrepreneurs and employees hence increasing company’s performance.

Performance measures by gender in Canada

(Hughes, 2015)

2.3 Cases of Women in Leadership Improving the Performance of Businesses

The number of Canadian women leaders in business has been significantly increasing over the last few decades. With support from the government, many women have become entrepreneurs hence influencing many females to the ownership of businesses. The Canadian government has recognized that women leaders in business have great impact in driving country’s economy forward. In 2017, Justin Trudeau, the Canadian prime minister and president Trump formed Canada-united states council to focus on development of women entrepreneurs (Hillmer & Lagassé, 2018). Trump and Trudeau promised to support women with any anything they want to succeed in business. With the believe that women leaders are most influential in business performance, ten powerful women were included in the council to address the issues affecting women in business ownership. Trudeau and Trump said that their aim was to provide advice to more women so they can become influential leaders in business performance.

Female entrepreneurs in Canada are celebrated every year for their leading role in business performances. The Canadian female business owners have influenced both local citizens and also global economy (Orser & Riding, 2016). The women entrepreneurs in Canada surpass men in receive best business award every year. They manage business raging from firms dealing with construction production boutiques. More importantly is that they lead more than nine hundred employees to achieve the success. Some of the leading female business owners improving performances of companies are as discussed below.

Wendy McClelland is a well-established female entrepreneur in Canada having achieved various success business. She is a CEO and president of “Vet to Go”, the first Canadian veterinary service that offers home visits. Wendy created this company after encountering various difficulties in organizing the schedule of work that included her pets and children. After realizing that other women are likely to face such challenges she planned to begin a startup in Calgary and later expanding to other surrounding cities. she Wendy continued with entrepreneurial ambitions and she opened new Wellness Center and Private Surgery to offer more services (Orser, Elliott, & Cukier, 2019).

. Wendy said that for woman to be successful in business must be focused and strict on time including valuing activities you are going to undertake in the enterprise.

Noemie Dupuy is another woman has influenced business performance in Canada. She is the Co-CEO and founder of “Budge Studios Finalist” an enterprise that offers services to more than one hundred million customers in the world. Dupuy business idea began in 2010 after iPad was released in the global market. After she realized that the device was lacking vital contents necessary for her daughters and any other children she decided to create business app. Dupuy opened “children’s app development company” known as Badge Studios and now it offers services to customers across the globe. Dupuy has been encouraging other women in the world to dream big since they have potential to do anything they want in business (Orser, Elliott, & Cukier, 2019).

Lisa Jacuniak is another Canadian woman influencing business performances across the globe. She is a Co-Owner of “Paris Crane Inspection Finalist” a company that deal with gas and oil. Lisa has been partnering with Richard who is brother in law and she acknowledges that she has already found talent in entrepreneurship . Lisa had background in finance and business while her brother 25 years’ experience dealing with cranes. The ability of Lisa to recognize business opportunity in gas and oil industry makes her one of the influential business woman in the world. The record of success as an entrepreneur proves that she is worth all respect in improving confidences and performance in businesses. Lisa business started with ten customers in 2009 and now she enjoys having more than 500 customers. Lisa encourages women all over the world to develop a plan and continue working on it to realize the success.

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