Workplace diversity impacts the bottom line [Infographic]
“A diverse organization will out-think and out-perform a homogeneous organization every single time”. A. Lafley, CEO – Procter & Gamble
Recent research conducted by McKinsey & Company found that when it comes to the bottom line, diversity matters. Specifically, companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians, and when it comes to ethnic diversity the financial returns are even greater – 35%. McKinsey & Company note that “correlation does not equal causation;” however, “the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful.”
Why are diverse companies more successful? McKinsey & Company believe diverse companies are better able to attract and retain top talent, improve their customer orientation, and have higher employee satisfaction rates than companies that are not diverse. Arrow Electronics’ Cathy Morris points to an additional reason: “Diversity enables better decision-making and diminishes groupthink.”
Workplace diversity has a significant and positive impact on the bottom line – and on the day to day success of your company. How diverse is your company? What can you do to increase diversity within your company?
Fronetics Strategic Advisors is a leading management consulting firm. Our firm works with companies to identify and execute strategies for growth and value creation.