Women in Leadership: Why Organisations Need More Women Leaders

Miriam Henke
Women in Leadership

Despite decades of progress, women remain underrepresented in senior leadership roles across most industries. This isn’t just a diversity issue, it’s a performance issue.

The conversation around women in leadership has shifted. It’s no longer about whether women are capable of leading. The evidence is clear. The real question is whether organisations are willing to remove the structural, cultural and psychological barriers that prevent women from stepping fully into leadership positions and invest in leadership development for women to support this transition.

Because when women lead, organisations perform better.

The Current Landscape of Women in Leadership

Across Australia and globally, women are well-represented in education and early-career roles, yet significantly underrepresented at executive and board levels.

In Australia, women make up:

  • ~50% of the workforce
  • ~32% of key management personnel
  • Less than 20% of CEOs in ASX 200 companies

Globally, the pattern is similar. According to the World Economic Forum, at the current rate of progress, it will take over 130 years to reach full gender parity. And that’s only if the current anti-women trend doesn’t continue to undo the hard work of the last 60+ years of the feminist movement.

This drop-off is not due to a lack of capability or ambition, it reflects systemic challenges.

As Sheryl Sandberg famously said: “We cannot change what we are not aware of, and once we are aware, we cannot help but change.”

Awareness is no longer the issue. Action is.

The Importance of Women in Leadership

The importance of women in leadership goes far beyond representation. It directly impacts how organisations function, make decisions, and perform.

Research consistently shows that organisations with greater gender diversity in leadership:

  • Are 25% more likely to outperform on profitability (McKinsey, 2020)
  • Have stronger governance and reduced risk-taking behaviours
  • Demonstrate higher levels of innovation and creativity
  • Report improved employee engagement and retention

From a psychological perspective, diverse leadership teams reduce groupthink and increase cognitive flexibility – two critical factors in complex decision-making environments.

As Indra Nooyi stated: “There is no substitute for diverse perspectives in decision-making.”

The Benefits of Female Leadership

When we talk about the benefits of female leadership, we’re not suggesting women lead in one uniform way. But there are consistent patterns in leadership behaviours that many women bring.

Research in emotional intelligence and leadership (including work by Daniel Goleman) has shown that women, on average, score higher in key leadership competencies such as:

  • Empathy
  • Self-awareness
  • Relationship management
  • Coaching and development of others

These are not “soft” skills. They are the backbone of high-performing teams.

Personal reflection: In my own leadership journey, I’ve noticed that the moments where I’ve had the greatest impact have not been driven by authority, but by connection – understanding people, reading the room, adjusting accordingly, and responding in a way that builds trust rather than compliance. That shift alone changes how teams function.

Women as Leaders in Modern Organisations

The expectations of leadership have changed.

Command-and-control models are being replaced with approaches that prioritise:

  • Psychological safety
  • Trust
  • Adaptability
  • Wellbeing

And this is where many women naturally align with what modern leadership demands.

Reflection as a facilitator: In the leadership programs and retreats I run for women leaders, one pattern stands out consistently: that there is a genuine willingness to reflect, to grow, and to do the deeper work. The conversations go beyond surface-level skill building into questions of identity, values, impact, and sustainability. Plus the women are supportive, authentic, vulnerable and give incredible advice to each other. It’s an exceptional learning environment that emphasises the importance of women leaders in the world.

That level of engagement accelerates development in a way that is hard to replicate in more traditional leadership cohorts. It’s way less competitive and ego-driven, and much more aligned to mutual benefits.

The Barriers Still Holding Women Back

If the benefits are so clear, why aren’t we seeing more women in leadership positions? I’ll pause while you answer that in your own head (probably with a hint of cynicism!). 

Because capability is not the problem, context is.

Common barriers include:

  • Lack of sponsorship and advocacy at senior levels
  • Higher performance standards and scrutiny
  • Bias in promotion and evaluation processes
  • Workplace cultures that reward visibility over value

There is also the invisible layer – internalised expectations.

Coaching insight: Many of the women I work with are exceptionally capable, yet they hold themselves to a standard that is often far higher than what is required. They wait until they feel 100% ready before stepping forward, or are plagued with Imposter Syndrome.

Meanwhile, research shows men will often apply for roles when they meet around 60% of the criteria (HP internal report, often cited in leadership literature).

This isn’t a confidence issue in isolation, but it’s a reflection of the environments women have learned to navigate.

Leadership for Women: What Actually Supports Growth

Supporting leadership for women requires more than generic training.

It requires development that addresses both skill and psychology.

Effective approaches include:

  • Building confidence grounded in evidence, not self-doubt
  • Developing influence and communication strategies
  • Navigating organisational systems strategically
  • Supporting sustainable performance and preventing burnout

As Brené Brown puts it: “Clear is kind. Unclear is unkind.”

Developing leadership capability in women often includes strengthening clarity, boundaries, and the ability to lead with both courage and compassion.

Why Organisations Need More Women in Leadership Positions

This is not about quotas. It’s about capability and outcomes.

Organisations with more women in leadership positions are:

  • More likely to foster inclusive and psychologically safe cultures
  • Better at retaining talent
  • More responsive to stakeholder needs
  • Stronger in long-term strategic thinking

A Credit Suisse report found that companies with at least one woman on the board delivered higher average returns on equity and better stock performance over time.

This is particularly relevant in the Australian context, where psychosocial hazards such as poor leadership, low support, and high job demands are now recognised as key workplace risks (Safe Work Australia, 2022). Leadership capability is not just a performance lever but a legal and organisational responsibility. Increasing the presence of emotionally intelligent, relationally skilled leaders, including women in leadership positions, plays a critical role in reducing these risks and supporting mentally healthy workplaces.

The importance of female leadership sits at the intersection of performance and wellbeing, and increasingly, organisations cannot afford to ignore either.

A Question for Leaders

If your organisation is serious about performance, culture, and sustainability, it’s worth asking:

What is currently getting in the way of more women stepping into leadership, and what are you actively doing to change that?

Because the future of leadership isn’t just about developing individuals. It’s about evolving systems.

Supporting Women in Leadership

At Leading Wellness Solutions, we work with organisations to develop leadership capability in a way that is evidence-based, practical, and aligned with the realities of modern workplaces.

We also offer targeted women leadership programs and retreats designed to support women leaders in building sustainable, effective leadership, without compromising their wellbeing.

Because leadership shouldn’t come at the cost of the person leading.If you’re looking to invest in a meaningful women leadership program for your organisation, contact us or inquire today to explore how we can support your team.

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