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So, what a company should do in order to enhance diversity withing its organization?
- Understand diversity
First of all, it must start with the basics. Most believe that diversity is achieved with hiring more women or more ethnicities in their organization. While it is a good start, diversity does not stop there, but it includes more elements, such as:
- Disability status;
- Educational experience;
- LGBTQ status;
- Parent/family caregiver status;
- Socioeconomic background.
Every such hire can bring a fresh perspective in any company, as it combines different life experiences, and could boost its potential to succeed.
- A diversity leadership improves finances
If being diverse for the sake of it is not enough, take a look at this one. In 2015, McKinsey & Company analyzed the top management and boards of 366 public companies in several industries in Canada, Latin America, the United Kingdom, and the United States. The research found that:
- Companies with leadership in the top quartile for gender diversity were 15% more possible to have financial returns above their competition;
- Companies with leadership in the top quartile for racial and ethnic diversity were 35% more possible to have financial returns above their competition.
In a new report, three years later, McKinsey looked more than 1,000 companies in various industries across 12 countries. It discovered that companies with executive teams in the bottom quartile for both gender diversity and racial and ethnic diversity were 29% less likely to financials that are above average.
- More diversity equals better solutions
A number of studies have shown that diverse teams, with various perspectives, consistently perform better from like-minded experts on complex problems.
This happens because diverse teams avoid one key psychological phenomenon: groupthink. Groupthink happens when groups make irrational or problematic decisions because they feel conformity, and they are not based on analysis and critical evaluation.
- Just hire the best for the job
It’s all great until now, but how do you start becoming a diverse company. The answer is both simple and difficult. Just hire the right people for the job. If someone has the right skills that you require for the job, hire them. It sounds simple, but there are ways to ensure that you find the right person for the job:
- Diversify the pool of potential talent: Advertise roles that serve women and minorities;
- Re-think your hiring processes: Read again your company’s job postings and search for phrases that could subtly limit the number of jobseekers.
Achieving diversity can at first seem as a daunting task. However, if done right, it is certain that it will lead to great results for the company, both in its finances and its problem-solving capacity.
More diverse companies, we believe, are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns
McKinsey & Company.