Successful organizations are those willing to adjust and adapt in response to societal changes. Embracing diversity in senior leadership is a key part of this adaptability.
Having a diverse senior leadership team is essential, as it brings a range of perspectives and experiences to the decision-making process. This variety not only fosters innovation but also reflects the diverse makeup of the customer base, leading to better understanding and service. When organizations prioritize diversity at the top, they open doors and inspire future leaders, demonstrating that rising through the ranks is achievable despite facing numerous barriers along the way. This representation within organizations is crucial for paving the way for a more inclusive and equitable future.
Discussions surrounding boardroom disparities often focus solely on gender, with an average of 42% of directors saying gender diversity is very important on their boards, according to PwC’s 2023 Annual Corporate Directors Survey. For comparison, just 37% say the same about racial diversity. Ethnicity, disability, socio-economic status, and sexuality are all underrepresented areas, with the importance of rectifying this often being overlooked.
As we look to diversify our workforces, it’s crucial that we tackle all aspects of diversity and take an intersectional approach to inclusion.
Embracing new perspectives
Naturally, diverse workforces welcome diversity of thought, allowing for greater innovation and an environment where employees feel more comfortable with expressing their true selves. As a majority of our waking hours are spent at work, the latter is crucial for our well-being and motivation levels.
93% of directors believe diversity brings unique perspectives to the boardroom. The boardroom is where policies are established and agendas are set, so having a wide range of diverse perspectives is vital. Outside of your own company policies, embracing different viewpoints enables you to have a deeper understanding of your clients’ needs, too. It’s unlikely that you have a homogeneous client base, and the more diverse your workforce, the more likely you are to be in tune with understanding clients’ needs.
Empowering employees
Visibility is hugely important, as diverse leaders act – often unintentionally – as role models for those around them. When an employee witnesses a colleague overcoming the same barriers they’re faced with, it’s a powerful signal that the organization actively supports the progression of diverse talent, opening up a wealth of future possibilities.
In the earliest stages of our careers, we often look to others for inspiration, guidance, and reassurance – evidence that we’re on the right path. Mentors can provide invaluable support here, allowing more junior employees to build confidence and better establish their voice within the business. In doing so, this strengthens the company’s internal talent pipeline, saving considerable investment of time and money on recruitment further down the line.
Leveraging long-term gains
McKinsey’s ‘Diversity Matters’ report, published in 2015, made it clear that racially diverse companies outperform their competitors by 35%, with gender diverse ones doing so by 15%. A combination of the two would suggest that a truly diverse organization could expect to see a 25% net increase in performance.
Emphasizing narrowing disparities in pay, promotions, and the treatment of different lived experiences, backgrounds, and cultures will not only begin to remove some of the obstacles faced by underrepresented employees but also establish a more open, accepting company culture where all team members feel valued and accepted.
When successfully executed, inclusion policies increase awareness of your ambition to increase the representation of diverse groups and ensure all team members are aware of your organization’s stance on inclusion and diversity, efforts to eradicate unconscious bias, and commitment to developing talent from within.
Find out how you can increase diversity in your leadership teams with our Inclusive Recruitment Guide.
