10 Reasons to Focus on Diversity & Inclusion
McKinsey & Company’s January 2018 research reinforces the link between diversity and company financial performance—and suggests how organizations can craft better inclusion strategies for a competitive edge. Do you need information to help you make the Business Case for Diversity and Inclusion at your organization? Download our “10 Reasons to Focus on Diversity and Inclusion” document to equip you with all the information you need.
*McKinsey and Company’s 2020 Report for your reference
1. Advance Performance
In a study performed by McKinsey and Company, companies in the top-quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability. A McKinsey & Company study of 1,000 companies across 12 countries found that companies in the top quartile for gender diversity were 27 percent more likely to outperform their national industry average in economic profit.
Firm Success Story: Carr, Riggs & Ingram
2. Foster Innovation & Creativity
Companies with two-dimensional (2-D) diversity (inherent and acquired) out-innovate others. Leaders who give diverse voices equal attention unleash value-driving insights, and employees in a “speak up” culture are 3.5 times as likely to contribute their full innovative potential.
Firm Success Story: Marcum
3. Evolve Productivity
A McKinsey report that covered 366 public companies in a variety of countries and industries found that those which were more ethnically and gender diverse performed significantly better than others. Work environments that are more inclusive of persons with disabilities often see improved productivity levels. Firm Success Story: RSM
4. Competitive Advantage
Companies with a diverse leadership team are 45% more likely to report a growth in market share over the previous year. Companies with a diverse leadership team are 70% more likely to capture a new market.
Firm Success Story: Plante Moran
5. Grow Intellectually
Diverse groups are 58% more accurate in problem solving as compared to homogenous groups. Collective and individual intelligence increases in diverse groups.
Firm Success Story: EY
6. Demographic Shifts
Generation Z is on track to be the nation’s most diverse and best-educated generation yet. Today, nearly half (48%) are non-white. 4 A CNBC article states that, “the traditional 9-to-5 office job doesn’t adequately support the lives millennials and Gen Zs want to live. They are flexible-work natives…”
Firm Success Story: Crowe
7. Social Responsibility
An increasing number of millennials believe that organizations have a moral obligation to give back to the society in ways that create an inclusive environment for everyone to participate and thrive.
Firm Success Story: Deloitte
8. Market Demand
A study of more than 1,300 full-time employees found that an inclusive culture is key to both hiring and retaining talent. 80% of respondents said that inclusion is an important factor in choosing an employer. Nearly a quarter of all respondents left jobs due to lack of diversity and inclusion. An inclusion strategy is key to retaining a diverse workforce.
Firm Success Story: Baker Tilly
9. Talent Acquisition
While 74% of executives view D&I as crucial to the success of their organization, most companies do not take advantage of D&I to attract top talent. All workers benefit from a more diverse workplace. Studies show that working alongside employees with disabilities makes non-disabled individuals more aware of how to make the workplace more inclusive and better for everyone. Staff turnover is also lower —by up to 30 percent—when a well-run disability community outreach program is in place.
Firm Success Story: Sensiba San Filippo LLP
10. Cultivates Engagement
Belonging is linked to a 56% increase in job performance, a 50% drop in turnover risk, and a 75% reduction in sick days. A study in the US by Out Now titled ‘LGBT 2020 – LGBT Diversity Show Me the Business Case’ found that the US economy could save $9 billion annually if organizations implemented more effective inclusion policies for their LGBTQ+ staff. This is partially attributed to avoiding costs from stress and ill-health associated with LGBTQ+ staff who need to hide their identity at work or experience discrimination.
Firm Success Story: KPMG