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Diversity and Inclusion, performance levers Tutorial

Explore how diversity and inclusion act as powerful performance levers in organizations. Contrary to skepticism, studies reveal a strong correlation between diverse teams and financial success. Discover compelling evidence, including McKinsey's findings, that highlight how embracing diverse perspectives enhances competitiveness and innovation. Don't miss out on this invaluable insight into transforming workplace dynamics!

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that can combine financial performance and social ethics.

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This is one of the main goals of

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organizations that have implemented a diversity management policy.

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They sought to improve the company's competitiveness

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and performance by focusing on diversity.

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Diversity is a broad concept,

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we talk about diversity of people,

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organizations,

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ways of thinking.

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First and foremost,

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diversity of people,

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gender,

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age,

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origin,

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religious beliefs,

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sexual orientation,

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physical and mental conditions is the most talked about.

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But the diversity that drives performance goes beyond the diversity of people.

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We can also cite organizational diversity,

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diversity via international locations,

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diversity of professions,

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diversity of values.

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Let's also mention diversity in style of interactions and ways of thinking.

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Daring to hire people with diverse backgrounds and training,

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people undergoing professional retraining,

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people with few diplomas,

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allowing them to easily evolve within the organization,

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stopping the diploma barrier.

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Welcoming students on work study programs

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and offer them the opportunity to stay.

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hire recruits from prestigious universities as

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well as post-secondary schools or colleges.

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Let those at the top not all be graduates from the same school,

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be it Oxford or Harvard.

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In short,

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be open to diversity in the broadest sense.

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Knowing that this diversity will make it more challenging to include everyone.

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Seriously,

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is it worth it?

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Is diversity really a performance driver?

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Some say it's never been proven,

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and that's fair enough.

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There have been many studies,

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but they only prove the correlation between diversity and performance.

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Yes,

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higher performing organizations have more diversity in them.

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A recent McKinsey article reminds us of this.

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Our research confirms that gender,

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ethnic and cultural diversity,

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particularly in leadership teams,

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continues to be correlated with financial performance.

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Also from McKinsey,

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research shows that company profits and stock performance can be nearly 50% higher

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when women are well represented at the top.

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In 2015,

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McKinsey wrote a report entitled Diversity Matters based on a

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study of 400 listed companies from different countries and sectors.

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Here are some of the correlations observed.

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Companies with high levels of racial and ethnic diversity

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are 35% more likely to have superior financial results.

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Companies with a high level of gender parity are

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15% more likely to have higher financial results.

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Also,

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according to McKinsey,

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closing the gender gap in the workplace by 2025

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would generate an additional $12 trillion in GDP.

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Gender diversity would yield an estimated 25% higher return,

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while ethnic diversity would boost the estimated higher return to 36%.

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More recently,

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a McKinsey and Company report from 2018

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found that companies with diverse workforces increased their

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chances of achieving financial performance above industry norms by

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35%.

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McKinsey is not alone in publishing studies

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in favor of diversity and even inclusion.

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According to a 2017 survey by Delotte,

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companies that incorporate inclusion principles into their hiring,

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promotion,

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development,

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leadership,

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and team management practices generate up to 30% more revenue per employee

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and are even more profitable than their competitors.

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In other videos,

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we will see how studies prove that

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diversity and inclusion also contribute to change,

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innovation,

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problem solving,

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and thus generate financial benefits within the organization.

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We will also see how discrimination has a huge financial cost

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for organizations that have not opted for diversity and inclusion policies.

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Would you like a figure to help you understand the cost of discrimination?

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The study,

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the economic cost of discrimination conducted by France Strategy in 2016

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indicates that reducing discrimination

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against women and minorities would result in a

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€150 billion jump in the French economy,

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or nearly 7% GDP.

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In conclusion,

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there is no real proof that diversity and

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inclusion improves the financial performance of organizations,

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but

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it turns out that organizations that promote diversity

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and inclusion have a better financial performance.

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In light of these surveys and other observed advantages,

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many organizations have taken the plunge to promote diversity and inclusion.

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