Those efforts have thus far met with mixed results. An analysis of more than 1,000 large firms in 15 countries conducted by McKinsey & Company found that one-third significantly improved their diversity between 2015 and 2020.
Though that's good news, it also means two-thirds did not improve significantly, which underscores how much more work must be done to create more diverse workplaces across the globe.
Efforts to build more diverse workplaces may prove more successful if companies revisit the many reasons why the pursuit of such a goal is worthwhile.
Diverse workplaces impress employees and prospective employees. A 2021 CNBC/SurveyMonkey survey found that 80% of workers want to work for companies that value diversity, equity and inclusion. Companies that gain a reputation for such values may be more successful at retaining their existing employees, thus driving down costs associated with hiring and training new employees, and be in better position to attract qualified candidates who prioritize positive culture when looking for new opportunities.
Diversity benefits the bottom line. The positive impact of diversity on the bottom line provides more motivation for businesses to become more diverse, equitable and inclusive. In a report released in May 2020, McKinsey & Company found that firms in the top quarter of gender diversity on executive teams were more likely to experience above-average profitability than peer firms in the bottom quarter. Firms in the top quarter of ethnic and cultural diversity also outperformed fourth quarter firms by 36% in regard to profitability. Such data supports the notion that investing in a more diverse workplace is a sound investment that's likely to produce a strong and quantifiable return.
Multicultural diversity can facilitate expansion. Firms looking to expand into new overseas markets can benefit from a culturally diverse staff. Such staffs can provide invaluable insight and experience regarding local laws and regulations. Familiarity with overseas cultures, including local languages and cultural practices, also can help companies attract qualified local candidates and become competitive more quickly.
A diverse staff can lead to a more diverse offering of products. It makes sense that a more diverse staff can contribute to a more diverse offering of products. A more diverse staff increases the likelihood that a company will have a wider range of skills at its disposal, and such a staff also provides companies with a more expansive range of perspectives reflective of a wider customer base. Companies can utilize such diversity when developing new products and adapting to ever-shifting markets.
A more diverse workplace is a goal for many companies. Accomplishing such a goal can help companies in numerous ways, each of which can ultimately benefit the bottom line.