Inclusion is it
One distinct reason why many companies in the United States and the United Kingdom place value in diversity is the financial advantage. Many of their competitors in Europe have not realized this to date.
McKinsey'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."
"In the original research, using 2014 diversity data, we found that companies in the top quartile for gender diversity on their executive teams were 15 percent more likely to experience above-average profitability than companies in the fourth quartile. In our expanded 2017 data set this number rose to 21 percent and continued to be statistically significant. For ethnic and cultural diversity, the 2014 finding was a 35 percent likelihood of outperformance, comparable to the 2017 finding of a 33 percent likelihood of outperformance on EBIT margin; both were also statistically significant."1
It is probably fair to consider that in both the United Kingdom and the United States, diversity in society has been mirrored in employees and boards for a longer time than in Germany (not without conflict, not without effort). Changes in German society as well as personnel requirements in the business sector indicate a similar development here over time.
Given the growing importance of diversity for the competitiveness of organizations it is not surprising that other research supports the above findings.
In their 2017 Global Human Capital Trends study of 'Diversity and inclusion: The reality gap,' Deloitte comes to the conclusion that "companies with inclusive talent practices in hiring, promotion, development, leadership, and team management generate up to 30 percent higher revenue per employee and greater profitability than their competitors." Almost 80 percent of respondents now believe diversity and inclusion is a competitive advantage – half of them consider it “significant.” The Deloitte study included 'more than 10,000 HR & business leaders in 140 countries.’2
This promises rewarding efforts or a good ROI. It also points to the fact that the positive effects of diversity do not just appear automatically. Inclusive talent practices require far-reaching steps in recruiting, hiring, developing, promoting, and leading; they might require a sustainable change in corporate culture, sometimes a new vision, and always the strong support of the organization's CEO and leadership.
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1 Delivering growth through diversity in the workplace, McKinsey, 2018
2 Rewriting the rules for the digital age, Global Human Capital Trends, Deloitte, 2017
3 Explanations ... │ Inclusion is it ... │ Better Thinking ...