Originally published January 10, 2022 , updated on January 20, 2023

Gender empowerment is on the rise. We have seen significant feats in parity all over the world. However, there remains a gaping hole of economic gender disparity that must be addressed. 

While there are many motivations to promote economic equality between genders, and there are also many benefits. These positive factors impact our society on every level, one of the most significant being the economic sector. Two of the global Sustainable Development Goals are dedicated to inequality and employment rights. Goal number five is to achieve gender equality globally, while goal number eight calls to promote decent work for all. To achieve greatness in our society, both must be met. 

Improving and empowering women in the workplace cultivates a stronger society. Now, it’s also proven to boost the global Gross Domestic Profit (GDP). Here’s why.

Minimising the Gender Inequality Gap Leads to Increased Revenue

The McKinsey Global Institute published a report in 2015 underlining the GDP profits when we achieve gender equality. The report states that if countries strived for women’s equality to match successful neighbouring countries, the global GDP could increase by up to $12 trillion in 2025. During the time of the report, women accounted for 37% of the global GDP but made up 50% of the global working force. 

According to the McKinsey report, if all businesses and countries embrace equal pay, and women match men’s performances in both the workplace and economic field, an estimated $28 trillion could be added to the global GDP.  

But large gaps remain in gender parity, especially regarding gender equality in the workplace. Impact zones lead to a deviation in women’s empowerment. These include limited pay for overtime and pregnancy leave, fewer legal rights, and gender-based violence. Together, these widespread issues cause a blockage in both societies and the economic sector. 

However, when the gap of gender inequality shortens, the entire world benefits. Advancing women’s parity and gender empowerment, especially in the workplace, can lead to a mammoth increase in the global GDP. To give you an understanding of just how big this increase would be: it would equate to adding the GDP of Japan, the United Kingdom, and Germany combined to the global GDP. 

Diminishing gender inequality in the workplace is economically beneficial on a global scale. But to achieve full gender empowerment, we must understand how we can reach this potential.

Gender Equality Results in Higher Levels of Employment 

Equal opportunities will raise employment rates — it’s as simple as that. According to a 2017 report published by Intereconomics, if gender equality improves and we achieve parity, the EU employment rates will increase to 80% by 2050. That’s an extra 10.5 million jobs on the market. 

More women employees will make large and even unparalleled contributions to both the local and global economy. This, in turn, will shorten the gender pay gap, further attracting more women employees. Gender empowerment is a win-win situation. 

Gender equality in the workplace leads to increased employment rates. With the growth of opportunities, more people will receive jobs and uplift their lives and others around them. In addition, more women will apply and accept jobs from companies that champion equal pay. Women employees will be more motivated to perform at the best of their ability if given the proper rights, respect, and pay they deserve. 

When women are promoted and empowered, so are their skills and experience. These can all be shaped, sculpted, and empowered to create long-lasting solutions and success in the business sphere. A grander workforce consisting of diverse talent increases revenue, bolstering local profits and the global GDP.

Companies that Champion Gender Empowerment Outperform Competitors 

McKinsey’s Delivering through Diversity report states that companies more gender diverse experience greater profits on a global scale. Businesses that prioritise economic parity between genders in the workplace outperform the general marketplace and global working sector by 25%, which adds to their overall profits. 

Companies that empower women attract a more diverse and driven employee base. Employees who receive equal rewards for their labour work harder, upskill faster, and generate more revenue. 

An increase of women employees leads to higher levels of creativity and innovation within the workplace. Here, a multitude of perspectives, experiences, and skills are brought to the table. Companies that champion gender equality can sculpt a working environment that uplifts decision making. Within a more accepting and comfortable environment, employees can perform at the best of their abilities. Therefore, more sustainable solutions can be found, which results in higher levels of success and profits. 

Companies and businesses hold a range of customers. Since half of the population consists of women, many clients and consumers of businesses are women themselves. Women employees have a deeper understanding of the minds and habits of women customers. A company with women employees can curate marketing strategies that speak to their clientele. This way, companies can generate more leads, connect to their audience on a more intimate scale, and increase revenue.

Read up on Why Companies that are Gender and Ethnically Diverse are Outperforming Competitors to learn more. 

Unmatched Benefits to Gender Empowerment 

Lessening the gender inequality gap is not just a tool for advancement: it is a necessity. It is of paramount importance to prioritise gender empowerment in every sector of society.  There is sufficient evidence to suggest that women’s economic empowerment boosts the global economy. 

Gender equality is a crucial policy that measures, defines, and fosters economic growth. 

Economic parity between genders leads to an increase in employment opportunities. More women are more likely to apply for jobs knowing that they will receive equal pay and respect. This will eventually improve the employment rate, decrease poverty, and address vital productivity challenges. With an increase of women workers in various industries, innovation and creativity will rise. This helps create more solution-driven results, bolstering success across the board. 

Gender equality in the workplace helps women fulfil their unwavering potential. Empowering economic equality benefits both the women population and the world as a whole.

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