It’s better for the bottom line when women help run the show. Here’s why.

Plenty of research proves the secret to business success is hiring and promoting women into the top ranks.

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It hasn’t been a great year for women, caught in the wake of a pandemic that pushed millions of us out of the workforce across the globe. One bright spot, however: women leaders.

From Jacinda Ardern of New Zealand to Tsai Ing-wen of Taiwan and several more, female leaders steered their countries into safer waters during the coronavirus crisis.

It was the same story in the business world, with recent research suggesting that women outperformed their male counterparts this past year.

Experts on gender in the workplace will tell you that research has shown for a while now that companies with women in senior management are more successful—which makes it all the more puzzling (and enraging) that there are so few women in the C-suite. As of January 15, 2021, women made up only 5.8 percent of CEOs and only 26.5 percent of executives and senior-level officials and managers of S&P 500 companies, according to Catalyst.

If you’re a regular reader of this site, you’re probably aware of the biases that keep women from shattering glass ceilings—we’re too emotional, or less committed, or not tough enough, to name a few—but you might not know just how wrong these sexist assumptions about women leaders are.

So, here’s a list of reasons, backed by research, why companies with women in senior management are more successful. We highly encourage you to share this with your colleagues who might need to read it, ahem.

Companies with women leaders are more profitable.

Since boosting the bottom line is a pretty important business imperative no matter where you work, this reason alone should convince stakeholders to hire and promote more women into their top ranks. Here are just a few pieces of evidence: Companies with female leaders often perform better on the stock market than those led by men, according to a 2018 report published by S&P Global. Having women at the C-suite level significantly increases net margins, according to a survey of 21,980 firms from 91 countries by The Peterson Institute for International Economics. And a 2016 Credit Suisse report found that companies with one-third of women in management had a 25.6 percent annual return, compared to an 11 percent return for the average company during the same period.

Women are ranked as better leaders by those who work with them.

According to an analysis of thousands of 360-degree reviews by researchers Jack Zenger and Joseph Folkman, women outscored men on 17 of 19 capabilities, including “takes initiative,” “drives results,” “bold leadership,” and other take-charge capabilities that are wrongly attributed more to men. The only two areas where men ranked higher? “Technical or professional expertise” and “develops strategic perspective.”

“This data continues to reinforce our observations from our previous research—women make highly competent leaders, according to those who work most closely with them—and what’s holding them back is not lack of capability but a dearth of opportunity,” Zenger and Folkman wrote in the Harvard Business Review. “When given those opportunities, women are just as likely to succeed in higher level positions as men.”

Women leaders are better in a crisis.

The same researchers decided to see if the results held true during the pandemic—and they did, plus some. Women were once again rated as more effective leaders, but “the gap between men and women in the pandemic is even larger than previously measured, possibly indicating that women tend to perform better in a crisis,” they wrote. Zenger and Folkman suggest it’s because workers “want leaders who are able to pivot and learn new skills; who emphasize employee development even when times are tough; who display honesty and integrity; and who are sensitive and understanding of the stress, anxiety, and frustration that people are feeling.” Their analysis shows that these are traits that are more often displayed by women.

Companies with women leaders are more open to change, less open to risk and more focused on research and development, versus mergers and acquisitions.

New research provides a fascinating glimpse at why companies with female leadership are more successful. A study in the Academy of Management Journal examined R&D expenses, merger and acquisition (M&A) rates, and the content of letters to shareholders for 163 multinational companies over 13 years to determine how these firms’ long-term strategies shifted after women joined their top management teams. “First, we found that after women joined the C-suite, firms became both more open to change and less risk-seeking,” the study’s authors wrote in the Harvard Business Review. They also found that when those teams added female executives, “they gradually shifted from a knowledge-buying strategy focused on M&As—which could be described as a more traditionally masculine, proactive approach—towards a knowledge-building strategy focused on internal R&D, which could be described as a more traditionally feminine, collaborative approach.”

As the way we work continues to evolve—and new generations move into the workforce—women might have exactly the skill set that’s needed to help companies move forward.

Roz Brewer will make history as the only Black woman leading a Fortune 500 company when she takes over as Walgreens CEO on March 15. Brewer was tapped for the position while she was working as Starbucks’s COO and group president. She will succeed Stefano Pessina, who will become Walgreens’s executive chairman after serving as the drugstore’s CEO for six years.

“She is a distinguished and experienced executive who has led organizations globally through periods of changing consumer behavior by applying innovation that elevates customer experiences,” Pessina said, according to the Associated Press. 

The new Walgreens CEO will bring her years of experience in operations, customer relations, talent development, and digital innovation. While working at Starbucks, she was responsible for revamping stores and making sure employees had the space to focus on customer service instead of administrative work. Brewer was a huge force in growing the coffee company’s rewards program and making sure there was diversity at all levels of the company. She’s also been candid about the challenges Black women face in corporate America.

“When you’re a Black woman, you get mistaken a lot,” she said during a 2018 speech at her alma mater Spelman College. “You get mistaken as someone who could actually not have that top job. Sometimes you’re mistaken for kitchen help. Sometimes people assume you’re in the wrong place, and all I can think in the back of my head is, No, you’re in the wrong place.”

When speaking at the all-women HBCU, she told the story of a time she attended a CEO-only event during her run as Sam’s Club CEO. The now Walgreens CEO said she introduced herself to the men in the room as “Roz Brewer of Sam’s Club,” and one man asked if she led marketing. Puzzled by the question since it was a CEO-exclusive event, she replied, “No, that’s part of my organization.”

Brewer’s appointment is a step in the right direction, but her experience proves there’s still a long way to go.

Goldman Sachs Group Inc. Chief Executive Officer David Solomon said the firm will no longer take a company public in the U.S. and Europe if it lacks a director who is either female or diverse. The bank is Wall Street’s biggest underwriter of initial public offerings in the U.S.

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• As gridlock over another round of stimulus for small business in Washington continues, 5 million Latinos are at risk of bankruptcy, a new study reveals on Sunday.
• Pre-pandemic they were the fastest-growing cohort on Main Street and contributed 4% to U.S. GDP.
• Latino companies that applied for the Paycheck Protection Program have seen a 21% drop in revenue since February while their costs for PPE and other safety measures rise.

Lashana Lynch Says She Received ‘Attacks’ and ‘Abuse’ for Making… World reacts as US awaits results of 2020 presidential election The $700 billion Hispanic business market in the U.S. is now at the tipping point

• As gridlock over another round of stimulus for small business in Washington continues, 5 million Latinos are at risk of bankruptcy, a new study reveals on Sunday.
• Pre-pandemic they were the fastest-growing cohort on Main Street and contributed 4% to U.S. GDP.
• Latino companies that applied for the Paycheck Protection Program have seen a 21% drop in revenue since February while their costs for PPE and other safety measures rise.

© Provided by CNBC Small businesses line Bagley Avenue in the Mexicantown neighborhood of Southwest Detroit, Michigan.

As gridlock over another round of stimulus for small business in Washington continues, 5 million Latinos are at risk of bankruptcy, a new study reveals on Monday. Pre-pandemic they were the fastest-growing cohort on Main Street and contributed 4% to U.S. GDP. Their demise portends a troubling trend that can upend communities across America.

Statistics reveal the story. Latino companies that applied for the Paycheck Protection Program saw a 21% drop in revenue from February through September while their costs for PPE and other safety measures rose and continue to remain high. Additionally, they retrofitted their businesses to deal with the pandemic, which resulted in a huge amount of expenditure that exceeded their revenue in the summer. They spent a lot to stay open and ended with a negative 11% margin.They are now cash flow negative and are on the brink of going out of business, the annual Latino Small Business Biz2Credit survey reveals.

Times were particularly hard for companies in the Northeast and Midwest, but as the coronavirus spread across the country, other areas have suffered, as well. The Biz2Credit research found that non-Latino businesses also have struggled, although their revenue remains slightly above break even.

For the study, Biz2Credit analyzed the financial performance of 35,000 companies, including 3,000 Hispanic-owned businesses, that submitted funding requests through the company’s online marketplace. All companies included in the survey have less than 250 employees and less than $10 million in annual revenue. The report covered small businesses across the country in a wide range on industries, from start-ups to established companies.

Construction is the largest category of businesses, representing nearly 17.18% of the Hispanic-owned companies in the Biz2Credit study. It is followed by: services  (15.74%), accommodation and food services (14.63%), retail ( 9.4%), and transportation and warehousing ( 7.6%).

Research conducted by the Stanford Latino Entrepreneurship Initiative in May found that 86% of Latino business owners surveyed reported immediate negative effects of Covid-19. Nearly two-thirds of respondents said they would likely be out of business in six months if Covid restrictions remain in place. The study also found that Latino business owners are nervous that customers might not feel confident enough to come back and that many may not have money to pay for things.

Before the pandemic, small firms owned by Latinos were already facing barriers to prosperity. Latino-owned businesses are more likely to be start-ups, have higher credit risks, and thus, have limited ability to secure affordable capital. This can translate into more vulnerability to the pandemic’s economic effects: only 11% of small businesses in majority-Latino communities had more than 14 cash-buffer days in 2019, a JPMorganChase study shows.

A driver of the U.S. economy

As a group, Latinos are expected to comprise almost 30% of the population by 2050, compared to 18% today. Revenue of Latino-owned companies jumped 61% from 2017 to 2020. They are a growing sector of the economy, and contribute to its overall strength, but in 2020 they are struggling mightily.

“The spirit of entrepreneurship continues to thrive among the Latino populations and, until the Covid-19 pandemic set everyone back, Latino-owned businesses blossomed during the past year. As the economy emerges from the pandemic, we expect to see them in the forefront of the economic rebound,” said Manuel Chinea, COO, Popular Bank.

“Latino-owned businesses make enormous contributions to the U.S. to their communities, including job creation, which also benefits our overall economy. Popular Bank is proud to work with them to help solve their financial needs,” Chinea added.

One is Dr. Fausto Gonzalez, 50, a doctor of internal medicine. Over the past 17 years, he has expanded to four offices throughout New York City and much of his patient base are immigrants or their descendants from the Dominican Republic, where Dr. Gonzalez was born. He came to the U.S. almost 30 years ago and worked at a hospital in Brooklyn before setting up his own practice.

In 2020, he borrowed money to purchase PPE and put some protective measures in his four office locations because of Covid. Dr. Gonzalez, whose practice now bills more than $1 million annually, was financially hurt when non-emergency medical visits were discouraged during the early days of the Covid lockdown. Currently he has offices in Jackson Heights, Queens, the East Tremont section of the Bronx, Washington Heights in Manhattan and Ocean Park, Queens, and he still hopes to open another office next year despite the challenges.

Although things have been going well since lockdowns have eased, during the beginning of the pandemic, his offices closed entirely. When the practice reopened, there was a backlog of patients – and eight out of 10 patients had coronavirus. Today, he sees no more than 15 patients a day to be cautious.

“In all of my time doing medicine, I’ve never seen anything like it. The Black and Latino communities were hit hardest,” Dr. Gonzalez said. “People have complications months afterwards. It was a trauma to see them die; they are like family.”

“When you learn something and you help people to get better, you feel like you’ve done your job,” Dr. Gonzalez said. “I feel that all the years of medical school paid off.”

—By Rohit Arora, CEO and co-founder of Biz2Credit

ATLANTA, GA — Howard University, Clark Atlanta University and Morehouse College are part of a group of selected universities to participate in a new Quantum Education and Research Initiative for Historically Black Colleges and Universities. IBM announced its new initiative Thursday.

Led by Howard University and 12 additional HBCUs, the IBM-HBCU Quantum Center will offer access to its quantum computers, as well as collaboration on academic, education, and community outreach programs. https://products.gobankingrates.com/r/d9360ea31bf06ea8b9d0ef49288e28fb

“Howard University has prioritized our efforts to support our students’ pathway to STEM fields for many years with exciting results as we witness more and more graduates becoming researchers, scientists and engineers with renown national companies” said President Wayne A. I. Frederick in a statement.

“Our faculty and students look forward to collaborating with our peer institutions through the IBM-HBCU Quantum Center. We’re excited to share best practices and work together to prepare students to participate in a quantum-ready workforce.”

As part of the Skills Academy Academic Initiative in Global University Programs, a multi-year program, IBM is donating more than $100M in assets, including university guests lectures, curriculum content, digital badges, software and faculty training to select HBCUs by the end of 2020.

“We believe that in order to expand opportunity for diverse populations, we need a diverse talent pipeline of the next generation of tech leaders from HBCUs,” said Carla Grant Pickens, Chief Global Diversity & Inclusion Officer, IBM. “Diversity and inclusion is what fuels innovation and students from HBCUs will be positioned to play a significant part of what will drive innovations for the future like quantum computing, cloud and artificial intelligence.”

The 13 HBCUs intending to participate in the Quantum Center were prioritized based on their research and education focus in physics, engineering, mathematics, computer science, and other STEM fields. Other HBCUs include: Albany State University, Coppin State University, Hampton University, Morgan State University, North Carolina Agricultural and Technical State University, Southern University, Texas Southern University, University of the Virgin Islands, Virginia Union University, and Xavier University of Louisiana.

The IBM-HBCU Quantum Center is a multi-year investment designed to prepare and develop talent at HBCUs from all STEM disciplines for the quantum future. It will emphasize the power of community and focus on developing students through support and funding for research opportunities, curriculum development, workforce advocacy, and special projects.

Investing in Under-Represented Talent to Drive Innovation

The IBM Skills Academy is a comprehensive, integrated program designed to create a foundation of diverse and high demand skill sets that directly correlate to what students will need in the workplace. The learning tracks address topics such as artificial intelligence, cybersecurity, blockchain, design thinking and quantum computing.

The HBCUs who are part of the Skills Academy Academic Initiative include: Clark Atlanta University, Fayetteville State University, Grambling State University, Hampton University, Howard University, Johnson C. Smith University, Norfolk State University, North Carolina A&T State University, North Carolina Central University, Southern University System, Stillman College, Virginia State and West Virginia State University

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• Mastercard announced Thursday that it will commit $500 million to help close the racial wealth gap in the US.
• Marla Blow, senior vice president of social impact for Mastercard, said Black Americans have been left behind in the financial system.
• The median white family had more than 10 times the wealth of the median Black family in 2016, the Fed’s 2017 “Survey of Consumer Finances” found.
• The company will work with several cities across the country including Atlanta, Birmingham, Dayton, Los Angeles, New Orleans, New York, and St. Louis to expand digital financial products.
• They will also donate money to people facing evictions, as well as small businesses facing bankruptcy due to the pandemic.
• Visit Business Insider’s homepage for more stories.

Mastercard is committing $500 million to help close the racial wealth gap and promote financial inclusion among Black people. 

The investment will be dispersed over the next five years and will help underserved Black Americans access financial tools and support.

Marla Blow, senior vice president of social impact for Mastercard, told Business Insider that protests in the wake of the killing of George Floyd brought added urgency to the firm’s work toward racial justice. 

“As a corporate leader, a Black woman and a former small business owner, I see very clearly the opportunity gaps that face Black communities. People are being left out and left behind,” she said. 

Video: Businesses owned by Black women were thriving, then the pandemic hit (MSNBC)

Indeed, Black Americans face massive inequality when it comes to wealth accumulation and access to financial services, fueled by decades of racist policies.  https://products.gobankingrates.com/r/d9360ea31bf06ea8b9d0ef49288e28fb

The median white family had more than 10 times the wealth of the median Black family in 2016, the Fed’s 2017 “Survey of Consumer Finances” found. Nearly half of Black households are unbanked or underbanked, according to a 2017 government survey.

While certainly not an end-all solution to systemic inequality, Mastercard’s investment seeks to help thousands of families and small businesses access capital. 

The company will work with several cities across the country to expand digital financial products, like easy-to-use banking tools to help Black Americans avoid predatory payday banking services. It will also donate money to help people avoid evictions and help Black-owned businesses hit by the pandemic.  

Over the last five years, Mastercard has brought 500 million unbanked individuals into the global financial system. Following this success, Mastercard has increased its goal to connect one billion people by 2025. 

“We want to help close the racial wealth and opportunity gap,” Blow said. “Given our role in bringing people together through technology, we believe we have a real opportunity to help address a financial system that has systemically disadvantaged and excluded Black communities.” 

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• A new report indicates the wage gap in the US is closing, at least when it comes to the salaries of new hires.  
• Women who were new hires were offered salaries comparable to about 96% of their male counterparts, indicating the lowest difference, 4%, it’s ever been. 
• That’s according to a new report from the W.E. Upjohn Institute for Employment Research in Michigan that looked at salary data of new hires in July 2020. 
• Despite the hopeful trend, the gender wage gap is still a national problem. 
• White women, on average, earn 80% of what white men do, while black women earn 66% and Hispanic women earn 58%, a pay gap of 42%, according to the US Census Bureau’s 2018 data. 
• Visit Business Insider’s homepage for more stories.

The US may be making strides toward closing the pay gap — at least for new hires.

That’s according to new data from the W.E. Upjohn Institute for Employment Research in Michigan that looked at salary data of new hires in July 2020. The data was originally reported by Bloomberg.

It shows that recently hired women were offered salaries comparable to about 96% of men’s — which is an improvement from previous years. For example, in 2015 new hires who were women earned 88.8% of what men did.