Women and men enter the workforce in roughly the same roles and levels. They advance almost equally from entry to mid-level positions. But a 2019 study by McKinsey and LeanIn.Org found that only 70% of females make the transition from Senior Vice President to C suite, as compared to 98% of SVP males. The promotion opportunities for women decrease across the board as they build seniority. But why, other than to satisfy the long fight for women’s equality in the workplace, should companies go out of their way to work against these numbers? The answer is simple—gender diversity is good for business—and here are five reasons why.

Higher Profitability.

Companies with a more equal gender balance are more lucrative and are linked to higher stock values. McKinsey and LeanIn.Org found that the most gender-diverse companies in the United States were 21% more likely to see above-average profitability. This trend holds true globally as well. The Peterson Institute for International Economics conducted a compelling global survey that included 22,000 organizations from 91 countries. They found that companies with women in at least 30 percent of leadership positions had over 6 percentage greater profits when compared with competitors that had fewer or no women in leadership.

2. Increased Collaboration and Problem-Solving.

Researchers from a Workplace study concluded that women are stronger readers of non-verbal cues, boosting group collaboration and improving the effectiveness of team processes. They also observed that groups with women were better at taking turns in conversation, so the group could maximize knowledge and skills from every participant. Generally, diversity has been proven to increase creativity and problem-solving. Furthermore, when a group values diversity, they encourage the exchange of diverse ideas.

3. More Representative of the Customer Base.

Recognizing that women make up around 51 percent of the population, having female representation at every level will increase the understanding of needs, stressors, and motivators of women and may better cater to the needs of the population as a whole.

4. Leads to Effective Recruiting and Retention.

When prospective employees interview, they are more likely to be interested in the role if there is a welcoming atmosphere and they see people who look like them working in equivalent positions. Inclusive workplaces have higher retention rates, saving time and money otherwise spent on recruitment.

5. It’s Supported by the Law.

Title VII of the Civil Rights Act of 1964 prohibits employers from discrimination on the basis of sex, race, color, national origin, and religion. Employers must consider all qualified candidates, increasing the chance of a diverse workplace.

Of course, gender diversity does not require a company to be exactly half female and half male, but it does mean that every level in the company has a fair representation of gender. Regardless, the research is clear—gender diversity will make a company more successful. And while we are slowly moving toward a more gender inclusive future, we still have a long way to go.