Why Your Company’s Confidence Gap Is Bleeding Profits (And How to Fix It)

(SeaPRwire) –   By: Christian Pierce

Most companies don’t understand confidence. They think it’s a personality trait—something you either have or don’t. So they promote the people who talk the loudest, who seem sure of themselves. But this is a mistake. Confidence is a skill, not a vibe. And when companies ignore that, they’re leaving money on the table.

Take the confidence gap between men and women. It’s not because women are less capable. It’s because the workplace was built for men. COVID and the DEI backlash made things worse. In 2023, women’s share of executive roles in U.S. listed companies fell for the first time in 20 years (S&P Global via The Economist). They got fewer S&P 500 board seats, and Goldman Sachs saw a drop in female partners. But here’s the kicker: companies with more women in leadership outperform their peers. Studies from the IMF, EU, Goldman Sachs, and Pepperdine University all say this. So when women are held back, businesses lose.

Dr. Richard Petty of Ohio State says confidence turns thoughts into action. It’s circular—you build it by doing. Step out of your comfort zone, take a risk, make a mistake, keep going. But workplaces don’t teach this. They reward existing confidence instead of growing it. The solution? Companies need to create programs that let employees practice confidence. Let people take small risks, learn from mistakes, and get feedback. Those that do will keep their best talent and make more money. Those that don’t will keep falling behind.

Author bio: Christian Pierce, a chief financial columnist and markets commentator, analyzes how workplace culture impacts corporate performance and profitability.