2020 for many people has been a period of rethinking and improving how companies operate and realizing what can be done to make them stronger and more resilient for the future. Actively employing people of different gender, and diverse backgrounds including varying race, education, faith, disabilities, lifestyles, and ages will help to create the business longevity we all strive for.
Embracing diversity will potentially lead to:
- A larger pool of people, and talent, to choose from when employing new staff.
- Better problem-solving.
- Creativity - more minds and backgrounds coming together with multiple ideas.
- Increased profitability.
- Improved company culture and reputation.
- A strengthened competitive edge.
Why organizations should embrace diversity was reinforced in a recent article by Annabel Crabb from ABC News titled, " World-first research shows female CEOs boost companies by $80M on average." The research concludes that companies who appoint women to leadership positions perform better further illustrating that companies actively embracing diversity excel best! The study is a world first because of the role it recognized between improved gender diversity and business success.
Previous studies have concluded that such a relationship is likely, but the data provided by the Workplace Gender Equality Agency (WGEA) allowed genuine case studies and leadership appointments to be tracked over a period of years to demonstrate direct proof of this link. "What our research shows clearly is that broadening the talent pool drives better company performance and one of the most obvious ways to do this is by having more women at the decision-making table," said Rebecca Cassells - one of the researchers of this study.
It is the first time, anywhere in the world, that this comprehensive data has been collected, consistently, to reach a conclusion such as this. For six years companies in Australia have been gender reporting to the WGEA, and WGEA director Libby Lyons said while the headline data concerned gender, the concept demonstrated was about diversity and leadership in organizations reflecting the community. "If I were a shareholder and there were no women and no diversity, I would be agitating big-time right now," said Ms Lyons. "Because it's irresponsible. Really, it's irresponsible to shareholders to ignore a report such as this."
A company that employs people of diverse backgrounds brings to the organization different perspectives and ideas. This in turn leads to improved creativity, and innovation resulting in greater problem solving and decision making. The result being improved productivity and a strengthened competitive advantage.
When we embrace diversity, we invest in company success and longevity. Our workplaces are better, improved, and happier when people are chosen because they are the best qualified person for the job regardless of their gender, race, faith, disability, age, or lifestyle of choice. And importantly, when people see an organization embracing diversity, they want to be a part of it!
1. Crabb, Annabel., “World-first research shows female CEOs boost companies by $80m on average.” ABC News, June 18, 2020. https://www.abc.net.au/news/2020-06-19/women-in-leadership-boost-success/12370516
2. Pincincu, Andra., “What Are the Advantages of a Diverse Workforce?”, Chron, July 6, 2020. https://smallbusiness.chron.com/advantages-diverse-workforce-18780.html