Who and how you hire matters. Ethnically diverse companies are 35 percent more likely (and gender diverse companies 15 percent more likely) to perform above the national industry median. Diversity brings more to the table than just a measurable increase in the bottom line for your company — our examination of the data from 366 public companies in the US, the UK, Latin America, and Canada found a relationship between diversity and a number of business factors: -Companies in the bottom quartile for gender, ethnic diversity and race have lower-than-average returns than their diverse counterparts. -In the US, every 10 percent increase in racial and ethnic diversity on the senior-executive team increases EBIT 0.8 percent. -Types of diversity and their impact did not directly correlate across international divides. In the US, for example, racial and ethnic diversity makes a bigger impact on financial performance than gender diversity, while in the UK, gender diversity in the top levels of a company increased EBIT by 3.5 percent. -No industry or company in any of the countries studied were in the top quartile on both racial and ethnic diversity and gender diversity. -Diversity is a competitive differentiator, shifting the balance in favor of companies with diversity in competing markets. Diversity is linked to success. Get the rest of our finding in the report “Why diversity matters”: bit.ly/McKDivMatters and let us know your thoughts on Twitter using #McKWomen or #McKGrowth
Posted on: Mon, 26 Jan 2015 20:46:06 +0000
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