By Catherine Ngo Content writer, presenter and podcaster

Gender equality in leadership positions within Australian top companies has stalled, with women's path to leadership widening instead of narrowing. The 2024 CEW senior executive census reveals that the number of women chief executives in ASX 300 has decreased from 26 in 2023 to 25 in 2024. This decline is unexpected, as gender equality in the workplace is a crucial goal for Australia.

According to the report, gender equality stagnation is now at a critical point. There are fewer women CEOs in the ASX 300 this year than last year, and women are being appointed as chief executives at a decreased rate compared to men. This is only the second time in the census' eight-year history that there has been a decline in female representation at the most senior level, the first time being during the height of the COVID-19 pandemic.

CEW president Susan Lloyd-Hurwitz expressed concern about this development, emphasising the importance of promoting gender equality in leadership positions. She noted that companies need to take proactive steps to address the issue and ensure that women have equal opportunities for career advancement.

In corporate Australia, talented individuals are often overlooked for leadership positions despite discussions about gender equality. The reality is that regression, not progression, has occurred.

Gender segregation in the workforce has significant economic implications, as Australia continues to have one of the highest levels of gender-segregated workforces in the OECD. Closing the gap between male and female workforce participation rates could add $60 billion to Australia's annual GDP over the next two decades.

Despite reporting and resources focused on gender equality in the workplace and awareness and education efforts, the statistics are disappointing. The economic consequences can be severe.

Research shows that companies with diverse leadership teams perform better. CEW advocates for a '40:40:20 by 2030' gender target, which could unlock substantial economic growth and productivity.

Greater success for employers with DEI policies

Organisations with DEI policies and gender-balanced targets are 3.6 times more likely to achieve gender equity in leadership positions. CEW emphasises the importance of creating pathways for women leaders to enter these roles.

An expanded pathway can set women up for opportunities leading to leadership roles. For instance, a census revealed that 70% of women in ASX 300 ELTs were in non-pipeline roles, limiting their chances of being considered for CEO positions.

CEW advocates for re-evaluating traditional pathways to CEO roles, broadening the criteria to include human resources, strategy, and marketing roles. This can help companies’ future-proof their leadership teams while promoting gender diversity.

Leadership is more than managing a P&L. CEW encourages expanding the definition of what makes a successful CEO, encompassing a broader range of skills and experiences.

Over to you: How to promote more women into leadership

Organisations and individuals can implement various strategic actions to address the gender gap in leadership.

Early identification of leadership potential is crucial.

This involves providing aspiring leaders with valuable feedback early in their careers through various channels such as assignments, mentoring, and coaching. These opportunities enable them to build networks, showcase their abilities, and assume greater responsibilities.

Focus on Mentorship and Sponsorship

Organisations must emphasise the importance of sponsorship to maximise the impact of mentoring programs. Countless studies have shown the benefits of effective mentoring, including increased career success for individuals, enhanced employee engagement, improved retention, and knowledge-sharing within organisations.

For women, seeking mentors who can offer advice, support, feedback, and knowledge is essential. However, finding sponsors who go beyond the traditional mentor role is equally important. Sponsors use their position and influence to champion and advocate for the advancement of others.

Focus on allyship. 

Beyond women, male executives can significantly contribute to increasing the representation of female leaders. Those who recognise the importance of allyship are more inclined to address incidents of gender inequality compared to their counterparts who are oblivious to the concept. Their position of power enables them to speak out without fear of retribution, unlike women who may face consequences for doing the same. Therefore, male executives play a crucial role in fostering gender equality in leadership positions.

The concept of allyship encourages individuals with privilege and in-group status to recognise and actively use their advantages. It involves examining our privileges and biases, acknowledging the historical disadvantages of identity groups, and leveraging our influence to step forward or step back to support and advocate for those who have historically been disadvantaged in leadership roles.