Impacts of employing women on firm performance


By the history of gender archetypes, men focused on productive activities like hunting and farming, while women were forced to accept caring responsibilities. It took so many Millennials and centuries for the human race to conclude that this archetypal division will not support the modern era. There was a conflict. Therefore, after the industrial revolutions in western countries such as England and France, and the boom of employment, many companies started to employ women. Initial efforts were only able to use women in workspaces as blue-coated laborers, and next tries allow them to be hired in the same careers as men. In the English banking industry, women occupied only 1 percent of carriers in the 1870s, increasing to 11.1 percent in the 1900s and 44.8 percent in 1921 (Seltzer, 2013).

Keeping the workspace healthy is an essential human resource (HR) management rule. Running a company in masculine workers (complete masculinity or semi-masculinity) can alter the work environment to a toxic workplace. A toxic workplace can contain sexual harassment (for both men and minor women), a non-competitive contest over wages and responsibilities between men and women. Men are not immune to harmful forms of masculinity as well. In some cases, the environment created by this masculine ideal may be unhealthier for men than for women in an organization. Men subjected to gender stereotypes at a young age often believe they must be dominant and in control to be manly. When they do not feel they possess the traits of a “real man,” they may overcompensate with behaviors perceived to fit the mold. Unfortunately, these behaviors can affect co-workers, creating a toxic work environment (SHRM, 2017).

Gender diversity has a relatively long history in developed countries and has become a significant concern. Diversity in gender can be listed under the diversity concept in HR management, including gender, racial minorities, and disabled employees. As the most extended challenging aspect of diversity, the effect of gender diversity on a company’s overall efficiency will be discussed in the following paragraphs.

Several types of research have been done to study the impacts of gender diversity on individuals’ feelings concerning their job. Nielsen and Madsen (2017) concluded that the correlation of gender diversity and turnover intentions is negative among male workers in the Denmark public sector. Mousa (2021) indicated that gender diversity could effectively predict workplace happiness in Egyptian universities.

On the other hand, the results of gender diversity can be seen in the company’s overall performance. In inclusive research titled “An Institutional Approach to Gender Diversity and Firm Performance,” Zhang (2020) argues that there is a significant relationship between gender diversity and firm productivity (market value and revenue). An additional investigation is done to indicate how diversity can affect company performance. There are three leading indicators:

A diverse workforce signals an attractive work environment for talent.

When you value diversity, you encourage diverse idea exchange.

A diverse workforce signals competent management for investors.

As a conclusion made by all the above statements, we can assume that there are no strict black and white boundaries for affecting female employment in a masculine work environment; other aspects like industry and country norms can affect job satisfaction and performance. However, keeping the attention on all the above facts and research can help the managers keep workplaces as healthy and productive as possible.

In addition to the positive impacts of women’s employment on productivity, giving women equal job opportunities has social benefits for companies worth no less than an increase in revenue. Employers in many developing countries cite culture as an excuse for their reluctance to hire female employees. Still, many successful experiences in these countries indicate positive and significant cultural changes in women’s employment. If factories and companies can move the most prominent wheels, why not take the lead in turning the wheel of equality of pay and opportunity?




Mousa, M., 2021. Does Gender Diversity Affect Workplace Happiness for Academics? The Role of Diversity Management and Organizational Inclusion. Public Organization Review, 21, 119-135.

Nielsen, V.L. and Madsen, M.B., 2017. Does gender diversity in the workplace affect job satisfaction and turnover intentions? International Public Management Review, 18(1), 77-115.

Orse, 2014. Men and gender equality. Observatories de la responsabilité sociétale des entreprises (ORSE), Paris, France.

Seltzer, A., 2013. The impact of female employment on male salaries and careers: evidence from the English banking industry, 1890–1941. Economic History Review, 66(4), 1039–1062.

SHRM, 2017. How Toxic Masculinity Is Ruining Your Workplace Culture—Society for Human Resource Management (SHRM), 285739644.

Turban, S., Wu, D., Zhang, L., 2019. When gender diversity makes firms more productive. Harvard Business Review, 11.

Zhang, L., 2020. An institutional approach to gender diversity and firm performance. Organization Science, 31(2), 439-457.





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