By: Roma G. Velasco
Embracing Diversity, Equity, and Inclusion (DEI) is not only the “right” thing to do, it also makes smart business sense! Here are a few studies that illustrate how companies who invest in DEI improve performance:
A Boston Consulting Group study found that companies with more diverse management teams have 19% higher revenues due to innovation.
76% of job seekers consider workplace diversity an important factor when considering employment opportunities, and more than 50% of current employees want their workplace to do more to increase diversity. (Glassdoor)
The higher representation of women in C-suite level positions results in 34% greater returns to shareholders. (Fast Company)
It has been estimated that closing the gender gap would add $28 trillion to the value of the global economy by 2025 – a 26% increase.
Organizations with above-average gender diversity and levels of employee engagement outperform companies with below-average diversity and engagement by 46% to 58%. (Fast Company)
McKinsey’s most recent Delivering Through Diversity report found corporations that embrace gender diversity on their executive teams were more competitive and 21% more likely to experience above-average profitability. They also had a 27% likelihood of outperforming their peers on longer-term value creation. Different perspectives on customer needs, product improvements, and company well-being fuel a better business.
A study analyzed approximately 600 business decisions made by 200 different business teams in a wide variety of companies over two years, using the Cloverpop decision-making database, and this is what was found:
Inclusive teams make better business decisions up to 87% of the time.
Teams that follow an inclusive process make decisions 2X faster with 1/2 the meetings.
Decisions made and executed by diverse teams delivered 60% better results.
Bonus +1 benefit for your organization…
A survey conducted by Pew Research Centre lists several areas where women are stronger in key areas of both politics and business. Survey respondents noted that women are:
26% better at working out compromises
34% more likely to be honest and ethical
25% more likely to stand up for their beliefs
30% more likely to provide fair pay and benefits
25% better at mentoring
- Checklists to improve decision making: hbr.org/2016/03/a-checklist-for-making-faster-better-decisions
- Correcting decision-making biases: hbr.org/2015/05/leaders-as-decision-architects
- Employee engagement and decision making: www.employment-studies.co.uk/report-summaries/report-summary-drivers-employee-engagement
- How inclusion activates the value of diversity: hbr.org/2013/12/how-diversity-can-drive-innovation
- The competitive advantage of diversity: www.morganstanley.com/pub/content/msdotcom/en/blog/ women/gender-diversity-work/
- The creativity and productivity benefits of diversity: www.scientificamerican.com/article/ how-diversity-makes-us-smarter/
- The financial benefits of diversity: www.mckinsey.com/business-functions/organization/ our-insights/why-diversity-matters
- The importance of decision making to business performance: hbr.org/2010/06/the-decision-driven-organization
- The operational friction of diverse teams: hbr.org/2017/06/does-diversity-actually-increase-creativity