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In an ever-changing globalized workplace, organizations must be cognizant of the importance of inclusiveness and diversity. Embracing them has a multiplier effect on motivation and job satisfaction for employees, which leads to an overall better performance in the workforce.
The Business Impact of Corporate Diversity
- Companies with more diverse executive boards had 53% higher returns on equity (ROE), as well as higher earnings. (McKinsey, 2012)
- Ethnically diverse organizations are more likely to have a 35% better performance. (Forbes, 2015)
- Gender-diverse organizations are more likely to have a 15% better performance. (McKinsey, 2015)
- 85% of CEOs reported that having a diversity strategy has enhanced business performance. (PWC, 2015)
- More than three in four job seekers say a diverse workforce is essential when considering job offers. (Glassdoor, 2020)
- Nearly half of Black and Hispanic employees have quit their jobs after witnessing or experiencing workplace discrimination, compared to 38% of white workers. (Glassdoor, 2020)
- 78% of employees who work in companies that have established DE&I policies believe that people from all backgrounds have the same opportunities to succeed at work. (Culture Amp, 2022)
- 32% of job seekers wouldn’t apply for a job in a company that lacks diversity. (Glassdoor, 2020)
- Inclusive teams are 35% more productive. (Research and Markets, 2022)
- Gender-diverse companies outperform least gender-diverse companies by 48%. (McKinsey, 2022)
The Importance of Diversity & Inclusiveness
- 80% of respondents rate inclusion as an important issue and 39% said they would leave their current organization for a more inclusive one. (Deloitte, 2017)
- 23% of respondents said they have already left an organization for a more inclusive one. (Deloitte, 2017)
- 12 trillion could be added to global GDP by 2025 by improving gender equality. (McKinsey, 2015)
- By 2044, traditionally unrepresented “minority” groups will reach majority status. (SHRM, 2017)
- 81% of workers say that DE&I initiatives benefit their organization. (Culture Amp, 2022)
- Almost 80% of employees want to work in organizations that value diversity, equity, and inclusion. (CNBC, 2021)
Leadership Diversity & Inclusion
- 77% of CEOs plan to adopt a strategy that promotes diversity and inclusiveness. (PWC, 2015)
- More than two-thirds of executives rate diversity and inclusion as an important issue. (Glassdoor, 2020)
- Inclusive leaders can drive up to a 70% increase in individuals’ feelings of inclusion. (Deloitte, 2018)
- A study of more than 20,000 firms in 91 countries found that companies with more female executives are more profitable. (ScienceDirect, 2016)
- Women account for 39% of the total supply chain workforce, and only 11% of the executive leadership positions. (Gartner, 2019)
- 74% of employees say that the senior leadership supports efforts to improve the DE&I in their organization. (Culture Amp, 2022)
- Only 26% of executive positions are held by women, and only 5% are women of color. (McKinsey & Company, 2023)
- 40 countries out of 95 have extremely high levels of economic gender-inequality. (McKinsey, 2015)
- Women of color potentially suffer from a double burden of bias, therefore they hold the smallest share of leadership roles. (McKinsey, 2015)
- Only 4.1% of Fortune 500 CEOs are women. (Fortune, 2016)
- Only 3.2% of Fortune 500 companies share diversity data. (Fortune, 2017)
- Diversity programs have a high failure rate (70%), mainly because management does not make them a priority, or does not believe in them. (McKinsey, 2015)
- The labor force participation of workers who have professional certification is significantly higher (87.7%) than those without them (57.8%). (Bureau of Labor Statistics, 2019)
- In 2022, 59% of women experienced non-inclusive behavior at work. (Deloitte, 2022)
- Almost 60% of women in hybrid settings say they are excluded from meetings, discussions, and interactions. (Deloitte, 2022)
- Less than half of companies have formal DEI policies and explicit, documented enforcement processes. (Culture Amp, 2022)
- Almost half have a strategic diversity plan to improve the DE&I at their company. (Culture Amp, 2022)
- 60% of businesses don’t have official DE&I dedicated roles. (Culture Amp, 2022)
- 71% of Black and 72% of Hispanic workers say their employers should do more to increase organizational diversity, compared to 58% of white employees. (Glassdoor, 2020)
Corporate Diversity & Financial Impact
- “Highly inclusive” organizations generate 2.3 times more cash flow per employee. (Glassdoor, 2020)
- Companies in the bottom quartile of both gender and ethnic diversity were 29% less likely to achieve above-average profitability. (McKinsey, 2015)
- Diverse companies have 2.5 times higher cash flow per employee. (Research and Markets, 2022)
Additional Benefits of Inclusiveness
- Inclusive businesses are 1.8 times more likely to be change-ready and are 1.7 times more innovative. (JoshBersin, 2015)
- Millennials are 83% more actively engaged in their work when they believe their organization is inclusive. (Deloitte, 2015)
- Minority workers can enjoy greater job satisfaction when representation exceeds 15% of the workforce. (McKinsey, 2015)
- Diverse teams make 87% better business decisions when compared to individual decision-makers. (Cloverpop, 2018)
- Women who work for Gender Equality Leaders are more motivated at work (90%), more satisfied with their jobs (90%), and have better mental health (62%). (Deloitte, 2022)
- Increasing DE&I investments lead to improvements in areas related to fair and equitable processes and systems. Thus, employees in companies that invest in DE&I report that their job performance is evaluated fairly, workloads are divided fairly, the total compensation is fair, and they receive appropriate recognition. They also say they know what to do to be successful at work, have the information necessary to work effectively, and have access to L&D opportunities. (Culture Amp, 2022)
The benefits of inclusiveness have already been stated and proven, as such, the converse is also true, to not have policies would be damaging to companies in the long term.
Written by shortlister editorial team
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