A report from McKinsley has recently stated that companies that work with diversity recruitment increase their revenues. The fact that there is such a strong connection between diversity and profitability has made more and more companies prioritize an open-minded and objective recruitment process.
McKinsley has for a long time studied diversity and inclusion in various workplaces, and what effect it has on the company’s profitability. The results showed, among other things, that the enterprises that had management groups with an even gender balance, on average, also had a 25 per cent greater probability of increased profitability than enterprises with different gender balances.
The report also shows that companies with more than 30 percent female managers were more likely to perform better than companies with fewer or no female managers.
Businesses with a greater degree of inclusion and diversity also make better decisions. A five-year study of more than 1,000 companies in 15 countries showed that “inclusive companies with greater diversity are more likely to make better and bolder decisions”. This is an ability that becomes extra important during crises, such as during the corona pandemic.
Diversity and inclusion are important from several perspectives
It is not just the financial results that are worth noting. Inclusion and diversity are becoming an increasingly important parameter, especially when young people choose an employer. The State of the Candidate survey from 2020 shows that 83 percent of job seekers in Generation Z (people born between 1996-2012) see the company’s work for diversity and inclusion as an important factor in choosing an employer.
By recruiting objectively, the risk of candidates being rejected for the wrong reason is reduced. The probability that the person who has the best conditions for success in the role gets the job increases when subjective opinions are set aside. An open-minded recruitment helps to create more dynamic teams. Employees with different experiences can contribute with several perspectives and solutions to the challenges that the company faces.
The McKinsley survey showed that companies with the highest diversity in terms of ethnicity were 35 percent more likely to achieve financial gain than the average. Companies that do not take advantage of a diverse workforce will fall behind.
A place for everyone creates benefits
Diversity and inclusion have a proven positive effect on innovation, performance, team spirit and the ability to make decisions. This is obviously an area companies should prioritize to ensure continued growth. Existing employees should receive training in the company’s diversity and inclusion work to ensure that there is awareness and commitment among all employees.
In a workplace where there is room for everyone, regardless of background, gender, religion, ethnicity or sexual orientation, the likelihood of employees thriving increases. Committed employees who thrive, perform better and stay longer in the company.
