7 Key Benefits of Women Leaders

Author’s Note: This article has been revised and expanded to include additional insights on women’s leadership benefits and updated with current data.

This article explores why women make great leaders. Over the past decade or more, companies have hired more women for top executive positions. While the gender gap remains significant, organizations now realize the value of women leaders and the benefits of more gender diversity. Women currently hold 29% of C-suite roles, yet represent 43.4% of the global workforce and occupy just 30.6% of leadership positions. Despite these disparities, closing the gender gap could double the current world economic growth rate over the next decade, increasing global GDP by more than 20%. Below are ten benefits that women leaders provide to their organizations and followers.

Women Have Soft Skills

Women in the workforce have often been recognized as essential collaborators in business, able to reduce employee burnout and encourage, motivate, and inspire dedication, thereby enhancing any organization.

While the talent, skill set, experience, and personality of an individual should always be essential factors in choosing a leader, organizations now recognize the importance of emotional intelligence and interpersonal, or soft, skills as well. Such skills include networking, collaboration, critical thinking, self-motivation, positive work ethic, and communication. A 2016 study found that women scored higher than men in 11 of 12 emotional intelligence competencies, with women being 86% more likely to show consistent self-awareness and 45% more likely to show consistent empathy. According to Forbes, emotional intelligence was the number one leadership skill in 2024.

Women Increase Revenue and Productivity

Countless reports show that women-led organizations are more profitable and have lower turnover rates than those led by men. According to a BCG study, women-led startups generated more than twice the revenue per dollar invested compared to male-led startups, with $0.78 in revenue per dollar raised for women versus $0.31 for men. For the first time in 2025, women lead 11% of the largest U.S. Fortune 500 companies by revenue.

Additionally, research shows that American citizens prefer working for companies with women leaders. Among those surveyed, the common theme was that women are more purpose-driven, nurturing, and promoters of a healthy work-life balance. 56% of women-owned businesses reported profitability in 2024 despite economic challenges, and 56% of women entrepreneurs surveyed reported higher revenues in 2025 compared to 2024, with 66% expecting growth in 2026.

Women Encourage Teamwork

When asked, everyone says they prefer to work in a positive, healthy, trauma-free environment that encourages teamwork and supports everyone's thriving. When everyone involved is focused on the same goal and recognizes that working together is more efficient and productive, it is a win-win situation. Women predominantly have skills to support, inspire, and even compromise to achieve joint success.

These traits are what often differentiate male leaders from female leaders. For instance, men are frequently perceived as more directive and as having a propensity to reward individual accomplishments, which results in a more competitive workplace environment. On the other hand, female leaders routinely inspire, seek feedback, and contributions from each individual. Additionally, females are more oftenable to earn trust and are viewed as empathetic. Followers report that women leaders demonstrate enthusiasm, serve others, and encourage others to do the same.

Women Are Better At Conflict Resolution

One very distinct difference between male and female leaders is how they handle workplace conflict. Men are naturally more task and goal-oriented than women. Therefore, when it comes to resolving conflict among employees, men will take a more linear, straightforward approach to resolving an issue and move on quickly. However, women are natural peacemakers and more sensitive to the possibility of an underlying problem, such as a personality conflict. To improve relationships among staff members, she will help everyone work through issues to prevent recurrence.

Women are Effective Communicators

One of the strongest skills among women in leadership roles is that of communication. Whether communicating with colleagues, supervisors, peers, or employees, women routinely have an open line of communication that is clear but compassionate. This interaction helps ensure expectations are conveyed clearly. Women also use communication skills to encourage others to provide feedback and ask questions. Bottom line, whether a woman needs to relay important information, promptly correct a mistake, or execute responsibilities, excellent communication is critical to success in every facet of life.

Women Bring Diverse Perspectives

Women leaders tend to have viewpoints shaped by different life experiences and cultural perspectives. This diversity of thought leads to more innovative problem-solving and creative solutions. When decision-making teams include women, they consider a broader range of options and potential outcomes. Organizations benefit from this expanded perspective, particularly when developing products, services, or strategies that need to appeal to diverse customer bases and diverse employees. Companies in the top quartile for board gender diversity are 27% more likely to outperform financially than those in the bottom quartile.

Women Excel at Mentorship and Development

Women leaders often prioritize the growth and development of their team members. They invest time in mentoring, coaching, and nurturing talent within their organizations. Mentoring by women leaders often extends beyond team members under their purview to other members of the organization. This commitment to people development creates robust succession pipelines and builds organizational capacity. Women leaders frequently identify potential in others that might otherwise go unnoticed. Their mentorship style tends to be holistic, focusing not just on professional skills but on building confidence and resilience in their mentees.

Women leaders are an imperative for organizational success.