The Potential Projects Spring 2022 Report found that female leaders inspire more employee job engagement than their male counterparts. In short, when a female leader is paired with a female employee, job engagement increases by 5.5%.
Conversely, when a male leader is paired with a male employee, job engagement increases merely by 2.6%. Yet, when a female leader is paired with a male employee, job engagement is almost doubled (4.8%).
In addition to that, the report also suggests that female leaders can increase the job performance of their male subordinates by 5.5%.
Why does this matter?
Well, keeping employees engaged saves your company money. Replacing an employee costs 1/2 to 2 times the worker’s annual salary. So, if a worker is disengaged, it costs your company $9,000 per year.
Moreover, if a worker quits, it costs your company between $30,000 and $120,000 per year. If we do the math, female leaders could potentially save a substantial $1.4 million per 1,000 employees.
Speaking of which, based on the latest stats, the number of businesses owned by women has been steadily growing for the past few years, with a growth rate is about 5% each year.
So, what do women leaders do differently?
According to research, female leaders are seen as being wise and compassionate by their subordinates. In fact, surveys show that they possess 28% more wisdom and compassion compared to their male counterparts.
In addition, women leaders scored higher than men leaders on three out of four attributes that make up a wise and compassionate leader (candor, presence, courage, and transparency).