Across Europe and globally, there’s a growing trend toward appointing more women to executive boards and top positions. However, challenges persist in breaking down barriers that limit female representation at these levels. Although women are often well-qualified and motivated, their representation in senior roles does not always reflect their potential.
The European Union Landscape
Women remain underrepresented in managerial positions across the EU. As of the third quarter of 2020, Eurostat reported that among the 9.5 million managers in the EU, 34% are women, despite women comprising nearly half of the EU’s employed workforce. Countries such as Latvia (45%) lead in female representation, while others, including Croatia (24%) and the Netherlands (26%), lag behind.*
Research Findings and Challenges
Studies highlight that women often encounter significant obstacles in advancing to the highest leadership levels. Gender biases and stereotypes influence promotion decisions and perceptions of women’s leadership suitability. Microsoft research among European girls reveals that young women in some EU countries are less likely to see themselves in STEM or leadership roles, with only a minority believing they can match their male counterparts.
Executive Search Industry Insights
Within executive search, client expectations are shifting, with an increased emphasis on gender diversity in top-level recruitment. Recent experiences reveal:
- Clients increasingly expect gender-balanced candidate lists for executive roles.
- International clients often prefer qualified female candidates, recognizing the value of diverse perspectives.
The EU’s Directive on Women on Boards
The “EU Directive 2022/2381” or “Women on Boards” initiative aims to increase transparency in recruitment processes, requiring that by July 2026, at least 40% of non-executive board positions or 33% of all director positions be held by women. The directive encourages prioritizing candidates from underrepresented genders when qualifications are equal, marking a significant step towards improved gender balance in corporate leadership.****
Client Attitudes and Benefits of Diversity
More companies are recognizing the tangible benefits of diversity, including:
- Improved Financial Outcomes: Firms with diverse leadership often report higher profitability and a better understanding of market needs.
- Innovative Decision-Making: Diverse boards bring a broader range of perspectives, enhancing creativity and strategic insight.
- Inclusive Leadership: Female leaders tend to foster inclusive team dynamics, which supports collaboration and employee engagement.
The Way Forward for Executive Search Consultants
To meet growing expectations for diversity, executive search consultants must adapt recruitment practices to minimize bias, expand candidate sourcing, and promote mentorship and development programs for women with leadership potential. These efforts help organizations build balanced, forward-looking leadership teams, supporting a more inclusive and innovative business world.
Sources:
(https://ec.europa.eu/eurostat/web/products-eurostat-news/-/edn-20210305-2)
** (https://www.destatis.de/Europa/EN/Topic/Population-Labour-Social-Issues/Labour-market/Female_Executive.html)
*** (https://eur-lex.europa.eu/eli/dir/2022/2381/oj)
**** (https://euwonder.jus.unipi.it/2023/05/22/women-on-boards-directive-gender-quotas-for-listed-companies-in-the-eu/)
