Here’s how Diversity and Inclusion can Transform your Bottom-Line
For many years, companies have thought of diversity as affirmative action or box checking, but it is everything but that. Diversity and inclusion (D&I) is not an HR issue. Instead, when you boil it down, it is about diverse thinking, perspectives, experiences, work styles, and cultural backgrounds, as opposed to counting heads. Research has shown that by embracing a culture of D&I, companies create an environment that allows employees to unlock their full potential and, in doing so, significantly set themselves apart from the competition. Below, we share just a handful of the statistics that present just how much of an asset D&I truly is.
A study by McKinsey and Company provides evidence that:
- The most ethnically diverse companies are 35% more likely to outperform the least ethnically diverse
- Companies in the top quartile for gender diversity on executive teams are 21% more likely to outperform in profitability and 27% more likely to have superior value creation
- Meanwhile, companies in the bottom quartile for both gender and ethnic/cultural diversity are 29% less likely to achieve above average profitability
Research by Deloitte reveals that companies that demonstrate a commitment to D&I are:
- 3.8 times more likely to be able to coach people for improved performance
- 3.6 times more able to deal with personnel performance problems
- 2.9 times more likely to identify and build leaders
John Bersin found that diverse and inclusive companies have 2.3 times higher cash flow than homogenous companies
The Current Situation
While the value of D&I in financial services is achieving greater recognition, statistics show that many organizations often fail to translate this into meaningful headway in advancing diversity in the workplace. The data below demonstrates how far the financial services industry has to go to catch up.
In their Women in the Workplace 2018 report, McKinsey and Company showed that women are under-represented at every level.
Within the c-suite, they occupy just 23% of roles. Additionally, between 2015 and 2018 this number has risen by just 1.6%, while women in entry-level roles have risen by 1% and just 0.6% in senior management positions.
A study by the Boston Consulting Group discovered that, of the respondents surveyed, 91% of companies have a gender diversity program in place.
However, it also found that just 27% of women in those organizations say that they have benefitted from it.
Of America’s Fortune 500 companies, just 1% of CEOs are black, 4% are women and even less are openly gay.
2018 research shows that 71% of lesbian women working in a corporate environment have dealt with microaggressions and are far more likely than other groups to hear demeaning remarks in the workplace about themselves or others like them.
What do These Statistics Say About the State of D&I today?
People are quite clearly one of the biggest assets for a companies success. But, evidently, there is still some way to go for organizations to truly cultivate a culture of D&I and make it a core part of their DNA.
In an exclusive content piece, OPEX in Financial Services speaker and former Prudential Financial VP, Amita Mehta provides a first-hand insight into the current state of D&I in today’s industry and provides actionable steps to implementing a culture that creates true results.