Having a D&I policy is still all too often considered a “nice to have”. We need to change our thinking on this. Below are some of the reasons why having a strong diversity and inclusion policy will benefit you, your company and your bottom line.
1. Diverse executive boards generate better returns
This study by McKinsey found that diverse boards perform better, delivering returns on equity that were 53% higher than their non-diverse counterparts.
Similarly, this study by Credit Suisse found that large businesses with women on the board outperformed male-only boards. The diverse boards had higher ROEs, lower debt to equity ratios and a higher average net income growth.
2. Diverse groups bring breadth of mind and opinion
This study showed that diverse juries are more comprehensive with decision making and explore more options than their more homogeneous counterparts. Similarly, this study of traders shows that the diverse group picked better stocks. The diverse groups’ picks were 58% better than the homogeneous groups.
3. Diverse groups in inclusive companies are happier and lead to lower attrition rates
When diversity is celebrated and inclusivity is mainstreamed, your best employees stay. They contribute more, perform more effectively and enjoy their work more.
4. Diverse teams produce more revenue
The Center for Talent Innovation found that diverse firms experienced an 80% performance improvement compared with companies with low diversity levels. Likewise, research by the American Sociological Association found that for every 1% rise in the rate of diversity in a business, there was a 3% to 9% rise in sales revenue.
5. Diverse companies are more agile
If your company represents only a tiny segment of your customer base, your campaigns will not reach the majority of people that it could. If you want to connect with customers in Asia, Africa and Latin America, you need to understand these cultures. Getting that understanding from real life experience, rather than studying charts, is infinitely more valuable.