The inclusivity in companies enhances their economic performance

“A study by McKinsey & Co. asserts that ‘companies with greater diversity have more opportunities than ever to outperform less diverse competitors in terms of profitability.’ The report, published in 2020, analyzed the performance of hundreds of companies over the five-year period from 2014 to 2019. The conclusion was clear: a higher representation of female executives correlates with a greater likelihood of superior company performance, especially when women make up more than 30% of the management team.

The key factor lies in the ability to make good decisions. An article from Forbes indicates that teams make better choices than individuals two out of every three times. However, teams composed solely of men make better choices half the time, whereas gender-diverse groups do so three out of every four times.

It is relevant to emphasize that gender parity is part of a much larger whole. Gender parity must be accompanied by diversity in geographic, socioeconomic, and age backgrounds.

For example, a board of directors consisting of five men and five women of the same age who grew up in the same city, with the same values and in similar socioeconomic situations, is likely to make poorer decisions than one composed of seven men and three women of different ages with various geographic, ethnic, and socioeconomic backgrounds. The more diverse the mix, the better the results.

In this regard, a Forbes survey found that 85% of business leaders believe that ‘a diverse and inclusive workforce is crucial for fostering different perspectives and ideas that drive innovation.’ This assertion is supported by a Harvard Business Review study, which concluded that companies with higher levels of inclusion achieve 19% more revenue from innovation.

Diversity is not only beneficial in terms of profitability and decision-making for companies. It is also attractive to candidates seeking to join them. When looking for employment, 76% of employees and job seekers value an inclusive workplace. When it comes to hiring and retaining talent, companies must recognize that their employees are likely to be more engaged if they feel that their company values diverse ideas. In inclusive environments, employees tend to feel more valued and develop a greater sense of belonging, a condition that typically enhances their performance and productivity.”