Some life insurance companies are making progress to change their diversity profiles. The analysis found a statistically significant relationship between a more diverse leadership team and better financial performance. Mckinsey recently completed a follow up study to that report in which they analyzed more than 1,000 companies across 12 countries, looking at their respective profits. Venture capital diversity reports committee on jobs. What does this look like for the workforce of the future.
Why female representation in senior management matters 4 the economic case 4 talent 4 womens contribution to corporate performance 5 no immediate change to the status quo 5 what holds women back 6 the formula for change 9 the gender diversity ecosystem 10 senior management commitment 12 methodology 18 authors 19 acknowledgements 19 contents. Mckinsey s report, diversity matters, was published in 2015, but in light of the growing discussion on diversity in the it industry, a summary of the results will prove helpful to many. This article is adapted from the report diversity matters pdf1,732kb, which was. The first report, women matter, published in 2007, identified a. Mckinsey has been examining diversity in the workplace for several years. Mckinsey has been examining diversity in the workplace for several.
Jan 18, 2018 as a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at their respective profits and value creation. Employees need a supportive environment to perform to the best of their abilities. As many of my website followers are aware, mckinsey released a study in 2015 entitled why diversity matters covering the benefits of corporations that housed a diverse workforce and leadership. Board diversity is good for a companys bottom line and strengthens other aspects of board performance, says meredith miller, chief corporate governance officer, uaw retiree medical benefits trust.
Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns. Women in the workplace national multifamily housing council. In this research, we looked at metrics such as financial results and the. About the authors vivian hunt is a director in mckinsey s london office, where dennis layton is a principal. A 2016 mckinsey study found that women in corporate america were hired and promoted at lower rates than men. Research shows that diversity benefits corporate decisionmaking and company performance.
Mckinsey has long argued that gender diversity within corporations is not just a. Acc ncr richmond legal and business case for diversity. Mckinsey has since expanded the focus of its research on the relationship between performance and diversity to include diversity in race and ethnicity and sexual orientation as well as gender. Everything you need to know about the famous mckinsey. The diversity matters research looks at the relationship between the level of diversity and company financial performance. All books are in clear copy here, and all files are secure so dont worry about it. Achieving gender diversity in corporations, at all levels, is a long and demanding journey, which requires the involvement of the whole company and the strong commitment of top management. Women in the workplace 2016 is a comprehensive study of the state of women in corporate america. Diversity and inclusion could easily be held suspect in the same way. Therefore, we believe that beyond gender diversity, what always matters ultimately is leadership. Making diversity work 2 diversity matters, and in a much more significant way than simply providing opportunity to a wider range of talent. This report examines why diversity and inclusion matters in the workplace, with case studies that illustrate how companies can continually strive to be more diverse and more inclusive. Below are 3 reasons, explained in detail, why executives should be concerned about diversity, which students should keep in mind as they achieve their degrees.
Our diversity matters research looked at the relationship between the level of diversity defined as a greater share of women and a more mixed ethnicracial composition in the leadership of large companies and company financial performance measured as average ebit 201020. We carry these traits and aspirations with our diversity and our story into our working lives, our workplaces, and our economy. Its also increasingly clear that it makes sense in purely business terms. Make diversity and inclusion a priority of executive. Mckinsey report delivering through diversity diversity uk. European countries, including the uk, france, and germany. Diversity and inclusion in registered apprenticeship. Pay and representation of racial ethnic minorities in higher.
The study is part of a longterm partnership between leanin. Though the definition of diversity and inclusion has not. Present new evidence on the hurdles faced by women throughout their career journeys, derived from a case study on gender imbalances in stem. Diversity and inclusion is a topic close to our hearts here at eriksen. The first report, women matter, published in 2007, identified a positive relationship. In the united states, there is a linear relationship between racial and ethnic diversity and better financial performance. Org to give organizations the information they need to promote womens leadership and foster gender equality.
Acc ncr richmond legal and business case for diversity and. The day centered on three presentations from by our guest speakers. Diversity matters 3 analysis of the data from the group of 366 companies revealed a statistically significant connection between diversity and financial performance. Leaders work to create diverse and inclusive workplaces in ing which women can advance must make the connection between diversity initiatives and their organizations business goals.
Our diversity brings with it hope, opportunity, ambition, creativity, innovation, and a unique story. This year 222 companies employing more than 12 million people shared their pipeline data and completed a survey of hr practices. Social investment reflects saps activities in volunteering and technology as well as cash donations. In my opinion, this is one of the most cited sources that is used to justify the business case for diversity in organisations, when i say that i mean people generally use this report as evidence to support their argument when claiming that diversity is good for business, specifically because it leads to more profits. The bank enables diversity in payment types and providers through the policy and rules we set and the infrastructure we operate.
In just a few years since we focused in on inclusion, were seeing signs of progress. Apr 25, 2019 diversity is a competitive differentiator shifting market share toward more diverse companies. Its study entitled delivering through diversity reaffirms the global relevance of the link between diversity and performance. Contents 02 introduction 03 corporate pipeline 09 employee experiences 20 a road map to gender equality 31 looking ahead 32 acknowledgments 33 report authors 34 methodology about the study women in the workplace 2017 is a comprehensive study of the state of women in corporate america. Conclusion employers increasingly seek to reflect growing diversity of customers, suppliers, shareholders.
Effective business cases set the context for diversity and identify. Its doublebarrelled name has the ring of a liberal feelgood phenomenon that will fade into obscurity in a few years to be replaced by the next enthusiasm. Companies with higher levels of gender diversity and with hr policies and practices that focus on gender diversity are linked to lower levels of employee turnover. We invite you to explore a key feature of our report, a depiction of the links between our financial, social, and environmental performance. Sharon pegg, group inclusion and diversity manager at the cooperative group how best to facilitate diversity in an organisation. Diversity is inclusive of, but not limited to, skill. Drive change state street global advisors 5 she the spdr ssga gender diversity index etf make a difference with she seeks to promote genderdiverse leadership by. Diversity and inclusion are about recognizing, respecting and valuing differences based on gender, race, skin color, ethnicity, national. Its study entitled delivering through diversity reaffirms the global. Mckinsey compared financial performance of companies in the top quartile for diversity gender and ethnicity with lower. Matters mckinsey, 2014 was used in devising a corporate diversity metric1. Diversity is good for business a wealth of research shows diversity benefits corporate decisionmaking and company performance. Victorias multicultural diversity is a proud hallmark of our state.
Acritasdiversity report 2016 diverse teams perform better 16 for every 10% increase in racial and ethnic diversity on a. Talent diverse organizations are more successful at retaining talent 3. By adapting the index, the diversity matters team was able to recognise a company that, for example, has two board members from two different ethnic minorities as being more diverse than a company with the same size board that has two board members from the same ethnic minority see box. In fact, the diversity of the groups members matters as much as their ability and brainpower, if. Mckinsey updates its 2015 study on diversity supplierty news. Its doublebarrelled name has the ring of a liberal feelgood phenomenon that will fade into obscurity in a. Moreover, companies will find increased value in their workforce by recruiting from a broader pool of candidates. Diversity and inclusion in the legal profession the. Bridging the talent gap in denmark innovationsfonden.
Making the case increasing womens representation throughout the pipeline, from lowskilled. Pay and representation of racial ethnic minorities in higher education administrative positions. Diversity and inclusion are about recognizing, respecting and valuing differences based on gender, race, skin color, ethnicity, national origin, age, religion, physical ability, and sexual orientation. L on gender, while there is plenty more to do, some companies lead the way in both absolute average diversity and representation in topquartile australia, uk, and us companies make up over 70% of this group. Globally, women generate 37 percent of global gdp despite accounting for 50 percent of the global working. Our latest report, diversity matters, examined proprietary data sets for 366 public companies across a range of industries in canada, latin america, the united kingdom, and the united states. For a selection of earlier research on this topic, see. Companies with diverse boards are more likely to have strong financial performance, and fewer instances of bribery, corruption, shareholder concerns, and fraud1. Diverse teams are still really good for business, mckinsey. Mckinseys early women matter research largely focused on europe and the. Delivering through diversity executive summary 2 ocal context matters. Through the women matter and women in the workplace series, as well as the mckinsey global institutes reports, we have developed a global and regional understanding of the situation, built a clear.
The diversity collegium is a think tank of diversity professionals based in the united states, canada, the uk and south africa whose purpose is to advance the field of diversity. When internal diversity and inclusion scores are strong, and employees feel. For the past ten years, mckinsey has been researching to build the case for greater parity in the economy and in corporations top management, and to understand the levers to make change happen. As a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at their respective profits and value creation. Gender diversity in the workplace increases sales, customers and. Social investment bhci we believe that by supporting our employees in engaging in activities with a positive social impact, such as skillsbased volunteering, we are enhancing the meaning they find in work. An important catalyst is the renewal of rtgs, where we are making both policy. Pay and representation of racial ethnic minorities in. About the authors vivian hunt is a director in mckinseys london office, where dennis layton is a principal. The century so far a cupahr research brief jacqueline bichsel, ph. We are fortunate to be part of an industry that, by its nature, leads to a diverse workplace.
The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the workplace in several western. While our industry isnt the only one facing unconscious bias and a lack of diversity, we must take responsibility for our community and commit to improving together. Matters team was able to recognise a company that, for example, has two board members from two. The topic of diversity and inclusion is making its way into everyday conversations.
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