The High Cost of Inaction: How to Kickstart and Thrive

by | Nov 25, 2024

The High Cost of Inaction: How to Kickstart and Thrive

This year, I’ve been reflecting deeply on the challenges talented women leaders face in today’s workplace.

Frustration, burnout, and disengagement often dominate their stories. These struggles aren’t isolated but represent systemic issues impacting not just the individual but their teams and organizations as a whole.

I recently spoke with a highly skilled woman who once led a team but now finds herself as an individual contributor at her current employer. She dreams of becoming a director, yet the path forward feels so distant that even visualizing her success is difficult. Despite having a mentor, she feels isolated and mistrustful of colleagues who act differently in her presence than behind closed doors. This lack of support leaves her feeling vulnerable, undervalued, and stuck.

Now, imagine working in an environment where trust is scarce and opportunities seem unattainable. How does that affect performance, confidence, and the ability to envision a brighter future?

The challenges female leaders face aren’t due to a lack of ambition, resilience, or skills. They stem from internal challenges and environments that fail to provide the resources, recognition, and support they need to thrive.

The High Cost of Staying Silent 

Women leaders often encounter hurdles that leave them feeling disconnected and undervalued. These include:

Being overlooked for promotions, eroding their confidence. Witnessing less capable peers rise to leadership roles. Lacking a robust network of mentors, allies, or sponsors. Feeling burned out, questioning their future, or even considering leaving their role, hesitating to prioritize their professional goals due to overwhelming responsibilities. These challenges impact not only individual leaders but also team morale, productivity, and organizational health.

The Hidden Costs of Inaction

Organizations today face immense pressures from clients, investors, and the marketplace to deliver results while fostering inclusive and high-performing teams. Balancing these priorities is no small task, and the challenges of retaining and empowering female leaders often go unspoken but carry significant costs. The financial and operational effects are substantial when female leaders disengage or leave. Here are three key areas where the status quo becomes costly, supported by data:

  1. Replacement Costs
    Replacing a mid- to senior-level leader can cost 1.5 to 2.5 times their annual salary. For example, replacing a leader earning $150,000 annually can cost between $225,000 and $375,000, factoring in recruitment, onboarding, and lost productivity (Salary.com, 2024).
  2. Lost Productivity and Team Impact
    Disengaged employees cost organizations 18% of their annual salary in lost productivity. This equates to about $27,000 yearly for a $150,000 salary leader (MGR Workforce). Teams under disengaged leadership experience a 10-20% drop in productivity, adding $50,000-$150,000 in losses for a small team.
  3. Ripple Effects and Diversity Setbacks
    Companies in the top quartile for gender diversity are 25% more likely to outperform their peers. Losing female leaders diminishes diversity, stifling innovation, decision-making, and financial performance (Crestcom). It’s also about the loss of institutional knowledge, the disruption of workflows, and the erosion of team cohesion. Turnover can signal underlying issues within the organization, such as inadequate support for professional development, a lack of work-life balance, or ineffective leadership.

The cost of doing nothing is far greater than the investment needed to retain, re-engage, and empower female leaders. We must ensure that your organization thrives by addressing these challenges head-on.

What’s Possible?

Despite these pressures, organizations that actively invest in empowering their female leaders can turn these challenges into opportunities. Empowering female leaders benefits individuals, teams, and organizations. Research shows:

Female leaders foster collaboration and trust through transformational leadership styles (APA, 2023). Companies with higher gender diversity in leadership are 21 percent more likely to experience above-average profitability  (McKinsey & Company, 2024). Diverse leadership teams generate 19 percent higher innovation revenues (Boston Consulting Group). Imagine an environment where women leaders feel valued and supported, enabling them to:

Break through internal limitations and pursue leadership roles with confidence. Build strong networks of mentors and sponsors. Develop actionable plans to achieve their career goals and drive organizational success.

A Bridge to Empowerment

Taking the first step can be the hardest, which is why we created The Bridge to Claim Your Seat Sprint. This tailored solution provides foundational tools and a reliable results framework, including leadership development and assessments, coaching, and community to help women:  

  • Clarify their vision and align their actions with goals while removing inner conflict.  
  • Build and expand a supportive network to guide and champion their growth.  
  • Design an actionable roadmap to create momentum and achieve their objectives.  

This is not a quick fix but only an example of one of the many creative and personalized solutions we design with our partners to build a sustainable pathway to leadership and organizational success.

A Call to Action

Reflect on this: How many talented leaders in your organization are affected by these challenges? How much untapped potential is waiting to be unlocked?

At ExecutiveBound, we understand the competing demands organizations face. That’s why we partner with mid- to senior-level women leaders and organizations in STEM, financial services, and Fortune 500 companies to co-create tailored solutions that empower female leaders, strengthen teams, and meet organizational goals.

Leveraging our holistic solutions, tailored programs, and proven frameworks, such as the C.A.R.E.S. Leadership Success System, we help them empower women leaders and create thriving leadership pipelines.

If this resonates, let’s connect. No strings attached, just a conversation about your goals and challenges and explore how we can help you achieve them. Visit www.callwithginny.com or email us at Info@executivebound.com. Let’s build the future your leaders and organization deserve.

Live with purpose, live with joy!
Coach Ginny

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Dr Ginny Baro

DR. GINNY A. BARO, Ph.D., MBA, MS, CPC, CEO, ExecutiveBound.com, immigrated to the U.S. at age 14 with nothing more than a dream. Today, she is an award-winning international transformational speaker & leadership coach, career strategist, and #1 bestselling author of Healing Leadership and Fearless Women at Work. Named one of the Top 100 Global Thought Leaders, Dr. Ginny Baro has successfully delivered keynotes, leadership training, and coaching programs for organizations, ERGs, and Fortune 500 companies. She’s been a Leadership Coach for the McKinsey & Company’s Hispanic/Latino Executive Program since 2021. Leveraging over 20 years of corporate leadership experience, in 2020, Dr. Ginny Baro created the Fearless Leadership Mastermind™ to help high-potential female leaders advance and gain critical leadership skills to lead, engage, and influence their teams confidently and deliver business growth and personal well-being. She earned a Ph.D. in Information Systems, an MS in Computer Science, an MBA in Management, and a BA in Computer Science and Economics, and she is a Certified Professional Coach (CPC). To learn more, please visit https://drginnybaro.com/.

 

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