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Why Diversity & Inclusion is Good for Business

By March 24, 2020 December 8th, 2020 No Comments

A 2019 study found that there are more ASX200 CEOs named Andrew than there are female CEOs.  The same study also revealed that three quarters of these CEOs attended the sandstone university in the city in which they were born and the vast majority of them have domestic rather than overseas experience.  Yet the results are clear.  Study after study found that the more inclusive an organisation, the better it is for the organisation and its employees.  According to Deloitte Access Economics, effective management of workplace diversity is linked to the improvement in organisational performance, effectiveness, profitability and revenue generation.  Diversity typically is a precursor to higher levels of innovation and better decision making in an organisation – a Boston Consulting Group study found that companies with more diverse management teams have 19% higher revenues due to innovation.  McKinsey & Company found in their 2019 Diversity Wins: How Inclusion Matters that diverse companies more likely to financially outperform their peers, with the difference in the likelihood of outperformance growing over the years:

  • Top quartile companies in gender diversity were more likely to outperform lower quartile companies by 15% in 2014, 21% in 2017 and 25% in 2019.
  • Top quartile companies in cultural diversity were more likely to outperform lower quartile companies by 35% in 2014, 33% in 2017 and 36% in 2019

The 2019 Inclusion@Work Index study conducted by the Diversity Council of Australia found if  you work in an inclusive organisation you are:

  • 5 times more likely to innovate
  • 3 times more likely to work extra hard
  • 3 times more likely to be highly effective than workers in non-inclusive organisations
  • 3 times more likely to provide excellent customer/client service
  • 5 times more likely to be satisfied with your job than workers in non-inclusive teams
  • 3 times less likely to leave their current employer
  • 2 times more likely to receive regular career development opportunities
  • 2 times more likely to have been given constructive performance feedback.

Everything from revenue and profit, to risk management and employee turnover costs are better in an inclusive organisation.  Inclusion is much more than a ‘feel good’ exercise – it creates a better work environment which fuels performance. What’s holding your organisation back?

Written by Lisa Stockwell

Contact our expert team if you need support in bringing your diversity and inclusion strategy to action.