When we listen and celebrate what is both common and different, we become a wiser, more inclusive, and better organization. ~Pat Wadors
For an organization, promoting diversity, inclusion, and gender equality is more than a mission statement or slogan. When diversity is at the core of a business's values, workplace culture, and overall branding, it accelerates growth and brings more revenue.
A 2019 analysis by McKinsey, Diversity Wins, shows that businesses with a diverse managerial team see better performance, productivity, and profits. The report is third in a series of studies conducted and published by McKinsey & Company in 2014, 2018, and 2019.
A comparison of the reports declares that companies that implement gender and cultural diversity in corporate leadership outperform their competitors.
According to the report, the organizations in the top quartile for gender diversity showed a 25% more chance to earn above-average profits than those in the fourth quartile. This shows a steady rise compared to 15% in 2014 and 21% in 2017.
Likewise, companies in the top quartile for cultural and ethnic diversity have a 36% more chance to improve profitability. This is slightly higher than 33% in 2017 and 35% in 2014.
The findings of the reports provide statistical evidence to support the fact that diverse organizations perform better.
Let’s now look at why diverse organizations perform better
Organizations with a diverse workforce enjoy a diverse and enriched intelligence potential. This helps them increase their capabilities and improve their performance on all levels.
Whether or not your employees come from diverse backgrounds, your consumers do! Therefore, women and minorities help an organization broaden its perspective and develop better strategic plans to target its consumers.
When people of different groups and ethnicities work in the same place, it is important to make them feel safe.Diverse leadershipwithin an organization will help the employees feel safe to speak up, and considering themselves as an equal and valued part of the company.
Diversity brings energy to the workplace. It urges people to get out of their comfort zone and get in touch with others on their team. When a team engages more, they are able to establish a strong connection and team spirit. This helps them perform better and work as a unified team for the success of the organization.
Businesses of all sizes need to practice and promote diversity and inclusion. This is also true for small businesses and startups. According to a research report, 80% of investors now look at a company's ESG (environmental, social, and governmental) criteria before making a decision.
No matter how big or small your organization is, having a diverse workforce and inclusive company culture can help you improve your business’s potential and performance. The organizations that show gender equality and cultural diversity in their company’s leadership inspire their entire work team to become more perceptive, responsive, and innovative. As a result, they perform better and make more profits and revenue.