Diversity and inclusion are now a CEO-level issue around the world.
Corporate diversity and inclusion are now a CEO-level issue around the world. The diversity of perspectives, experiences, cultures, genders, and age are essential to the growth and prosperity of any company:
Why? Because diversity breeds innovation. And innovation breeds business success
Why has diversity and inclusion become so important?
Six business and cultural changes have come together to spotlight the importance of this issue in 2018:
- Diversity and inclusion now impact brand, corporate purpose, and performance. Companies are starting to regard inclusion and diversity as competitive advantages, and key enablers of growth.
- The global political environment has heightened employee sensitivity to diversity and inclusion. Employees are personally concerned about what they read and hear, and they want their employers to offer perspective.
- Many large organizations now define themselves as global entities, making religious, gender, generational, and other types of diversity a business reality.
- Research indicates that diverse and inclusive teams outperform their peers. Companies with inclusive talent practices in hiring, promotion, development, leadership, and team management generate up to 30 per cent higher revenue per employee and greater profitability than their competitors.
- Issues of age and life transition are becoming more important. As the large Baby Boomer population ages, the need to broaden the focus on diversity and inclusion to account for the elderly in the workplace will increase.
- In inclusive organizations, the way people operate will shift, and the everyday language of the business will change
What is diversity?
“Diversity” is generally defined as the mix of people, including differences in gender, race, ethnicity, national cultures, subcultures within countries, sexual orientation, disability, and age and generation. It also includes other differences such as service line, background or education.
“Inclusiveness” is about making the mix of diverse perspectives work – by teaming and
leading inclusively – to achieve better results. It is about creating an environment where each
individual feels valued, is valued, and inspired to perform at their best.
So why are so many FS organizations falling short on diversity and inclusion, and failing to broaden recruitment as a result? While employers tend to blame a lack of sufficient candidates,
employees point to the lingering assumptions and stereotypes so many women in financial services continue to face. Substantial progress won’t be made until these biases are rooted out.
Why Diversity Matters
McKinsey and Company’s latest research reinforces the link between diversity and company financial performance – and suggests how organizations can craft better inclusion strategies for a competitive edge.
Diversity Trends: Old Rules vs. New Rules
Old models of diversity and inclusion are undergoing change, and this trend is expected to accelerate. Read More …
How To Hire A Diverse Work Force
1) Create Diversity Strategies That Work
Fill the talent pipeline with women candidates and keep the percentage intact as the pipeline matured.
2) Hold Business Units Accountable
Diversity objectives need to be embraced throughout the entire organization. Require each business unit to have quarterly diversity events partnering with local diversity organizations.
3) Set Goals and Measure
Get results by setting goals for diversity and then measure and publicize the results.
4) Interview at Least One Diverse Candidate
Diversity recruiting often cites the Rooney Rule requiring National Football League teams to interview minority coaches which dramatically improved minority hiring. When a major technology company implemented “interview at least one woman” for a highly technical group, it doubled the hiring of women and women now represent 50 percent of this group.
5) Include Diversity in the Interview Panel
Interviewing can be subjective with people tending to hire candidates like themselves. An entirely male interview panel can easily include a female board member, Add different perspectives to the jury and listen to the input.
6) Introduce Diverse Role Models Early in the Interview Process
Clients have seen increased acceptance rates by diverse candidates when similar role models are introduced early in the interview process.
7) Improve Performance Evaluation Processes
Women are often evaluated as lower performers than male peers even when their performance is better. Companies should establish subjective performance reviews and provide equal career progression opportunities.
8) Create a Culture for Inclusion
A company’s culture can cause women to opt out of technical roles and companies. Companies need to diagnose their culture and get rid of these behaviours.
“Diversity and independence are important because the best collective decisions are the product of disagreement and contest, not consensus or compromise.”
~ James Surowiecki
Resources
Gender Equality
Still looking for room at the top: Ten years of research on women in the workplace
How and Where Diversity Drives Financial Performance
Diversity is an issue of fairness and a driver of innovation and performance. This is a large, cross-country study into the relationship between multiple aspects of managerial diversity, the presence of enabling conditions such as leadership support for diversity, and innovation outcomes.
