Keeping workplace diversity on the agenda
Diversity, or its absence, certainly garners enough column inches, but how diverse would you say executive workplaces are in practice? Heightened awareness of the gender pay gap is helpful, as are open discussions about subtle and less-than-subtle forms of professional harassment, but are we coming along at a reasonable pace? Let’s look at a few key statistics:
- only one in five construction company board members are women
- LGBT employees are less likely to secure top positions
- England has no black or minority ethnic (BME) chief executives in local authorities
- women make up less than 30% of FTSE 100 boards
- just 8% of executives in the UK are black, Asian or minority ethnic (BAME)
Reiterating diversity’s importance
It’s not always easy to put a number on it, but a diverse workforce means more magic, with opportunities for innovative ideas and collaborations that wouldn’t form without it. Bringing together a mix of cultures, genders and generations benefits both the employees and the company. Norman Broadbent’s ‘Diversity of Thought’ report cites studies from Morgan Stanley and IBM that show diversity sitting behind more energetic profit growth.
Recent research from McKinsey delves further into the links between diversity and financial performance, unearthing some rather pointed findings:
- boards in the top quartile for gender diversity oversee companies that are 21% more likely to enjoy above-average profits
- boards in the top quartile for ethnic and cultural diversity oversee companies that are 33% more likely lead their industry profit-wise
- companies in the bottom quartile for any diversity category are 29% less likely to obtain high profits
How, then, to be more diverse?
If companies want the more robust performance that comes from workplaces that aren’t one-size-fits-all, then adjusting their recruitment strategy is a must. A new report from the Financial Times points out that diverse candidates are attracted to senior management teams that walk the walk – that are themselves characterised by a diverse make-up. To get there, there needs to be more and better opportunities for women and LGBT and BME workers to obtain top-level executive positions.
There is merit in establishing which aspects of diversity matter most to the organisation and which will move it forward. Is the goal better representation by women on the board? Does the company suffer from a dearth of different socioeconomic backgrounds and therefore credibility with its market? Or would a healthy mix of cultures in middle management positions be just the ticket for injecting some badly needed creativity? Understanding company diversity in relation to company strategy is the first step in planning recruitment around it.
According to the ‘Diversity of Thought’ authors, discerning executives are not coming to these ideas anew:
‘Enterprising leaders have long understood that bringing together people of different backgrounds and experiences is both ethically sound and good for business. Companies scoring highly on diversity scales consistently outperform their less diverse competitors.’
