Despite progress in gender equality over the last few decades, women remain underrepresented in leadership roles across New Zealand and Australia. While both nations pride themselves on being progressive, the data on women in leadership reveals a persistent gap that highlights a crucial area of inequality. This gap isn’t just a result of systemic issues, but also reflects a significant lack of investment in the development of women as leaders.
The Numbers Speak for Themselves
In New Zealand, women make up just over 50% of the workforce, yet they occupy only 29% of leadership roles across the country’s top 100 companies, according to the latest Gender Diversity Report by the New Zealand Stock Exchange (NZX). While this figure represents gradual improvement, it’s still far from equitable representation. In politics, women are making strides—New Zealand has had three female prime ministers—but the corporate world lags behind.
Australia's situation is similarly unbalanced. While women make up nearly 48% of the workforce, they hold only 34.5% of managerial roles, according to the Workplace Gender Equality Agency (WGEA) 2023 data. Even more striking, only 23% of CEOs in Australia’s largest companies are women, and women are still underrepresented on boards despite incremental progress.
Why the Gap?
The reasons for this disparity are multi-faceted. While overt discrimination has been reduced, unconscious bias, cultural norms, and structural barriers still prevent many women from reaching senior leadership positions. One of the most critical factors is the lack of investment in leadership development for women.
The Lack of Investment in Women’s Leadership Development
Leadership development is crucial for career progression, yet companies in New Zealand and Australia consistently underinvest in training and mentoring programs specifically aimed at women. According to Deloitte’s Global Human Capital Trends report, less than 30% of leadership development budgets are allocated to women’s programs, and in many cases, this figure is even lower.
Women are often not afforded the same access to leadership training, mentorship, or sponsorship as their male counterparts. In a 2022 survey by Chief Executive Women (CEW) in Australia, only 16% of senior women reported having a mentor within their organisation, compared to 35% of men. The same survey highlighted that women in leadership development programs often face tokenism, with many programs focusing on surface-level topics rather than providing the tools women need to advance into senior roles.
This lack of investment extends beyond corporate initiatives. Governments and educational institutions in both countries have yet to prioritise women's leadership development in a meaningful way. While there are programs in place, their reach is limited, and they are often seen as add-ons rather than essential components of workforce planning.
The Cost of Neglect
Failing to invest in women's leadership development has broad repercussions. Studies by the McKinsey Global Institute show that gender diversity in leadership correlates directly with improved business performance. Companies with greater gender diversity in senior roles tend to have 21% higher profitability and are more innovative and adaptable.
Beyond the financial impact, the lack of female leadership influences workplace culture. When women are underrepresented in decision-making roles, workplace policies are often less inclusive, which can lead to higher turnover and lower engagement, particularly among female employees.
The Need for Change: Prioritising Women's Development
If New Zealand and Australia want to close the gender gap in leadership, a cultural and strategic shift is needed. Organisations must start investing in women’s leadership development as a core part of their business strategy.
Here are a few key steps that need to be taken:
Mentorship and Sponsorship Programs: Companies need to establish formal mentorship and sponsorship initiatives, connecting aspiring women leaders with senior executives who can guide and advocate for them.
Tailored Leadership Development: Women need access to leadership development programs that are specifically designed to address the unique challenges they face, such as overcoming unconscious bias, building executive presence, and negotiating effectively.
Flexible Work Policies: Many women in leadership roles balance career progression with caregiving responsibilities. Companies that prioritise flexibility, such as offering parental leave, job-sharing, and remote working options, will be more likely to retain and promote women in leadership.
Government and Educational Support: Governments in both New Zealand and Australia should incentivise companies to invest in women’s leadership development through grants, tax benefits, or recognition programs. Additionally, universities and schools should encourage leadership development programs from a young age, focusing on empowering girls to see themselves as future leaders.
The Future of Women in Leadership
In both New Zealand and Australia, the gap in women’s leadership is not just a gender issue—it’s a leadership crisis. Companies that fail to invest in the leadership development of women are not only missing out on the talents of half the population but are also limiting their own growth potential.
The time for action is now. Closing the leadership gap requires deliberate and sustained investment in women's development, from the boardroom to the classroom. With the right support, the next decade can see a future where leadership is not defined by gender but by talent, vision, and the opportunity to lead.
BSc.psychology, Diploma Professional Coaching, Master Trainer Extended DISC
Blanchard Aotearoa NZ Affiliate
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