Diversity and inclusion (D&I) strategies are currently drivers of growth and evolution for companies, with a direct impact on their productivity and financial performance. This is one of the conclusions of a Michael Page study that analyzes the current challenges and opportunities for business leaders throughout 2019.
According to the study "8 Trends for Executives," diversity is a smart business strategy that contributes to the evolution of companies and their profits. Data points to a growth of approximately 19% in revenue for companies with more inclusive management teams and 60% positive results in decision-making by management teams characterized by diversity—interesting results for companies in the technology, startup, and industrial sectors where innovation is a key factor.
The study shows that diversity is not just a metric to implement, but is now an integral part of companies' financial success.
The analysis further underscores the diversity problem that exists in organizations, highlighting that the business world currently faces a structural challenge and has not yet fully grasped the opportunity it offers. Data reveals that the percentage of women and ethnic minorities in the 16 Fortune 500 companies is still low. In these companies, women represent only 6,4% of management positions, and Caucasians are still the majority (around 73%) of management teams. “ Building more representative management teams is the best strategy to respond to technological development and business evolution. In the coming years, when technological changes will have a significant impact on companies and how people relate to work, D&I strategies are the best way to respond to the evolution of artificial intelligence. Human intelligence, and its infinite diversity, is irreplaceable, whatever the type of machine ,” says Joana Barros, Senior Marketing Executive at Michael Page.
Another conclusion of the study points to the need to consider diversity more comprehensively. Not only associated with the female gender, but also with age, gender, religious orientation, sexual orientation, social context, cultures, and disability. When represented among all employees of an organization, it has a direct impact on the organizational environment, with an increase in productivity and financial performance. The study also reveals that diversity is a reality of today's society and an important driver of innovation. A company with a D&I strategy proves to be much more enriching and will generate better results. Companies that are discovering that when they support and promote a more inclusive work environment, they obtain benefits that exceed expectations. “ As a reflection of society, the trend is for companies to become more open and inclusive, a path that is being followed mainly by larger organizations. Educational programs on the philosophy of diversity and inclusion in companies are important measures that, supported by appropriate legislation, contribute to a smooth but effective change ,” adds Joana Barros. “ Diversity is not optional, neither in the workforce nor in management. The leaders of the most representative organizations must reflect the diversity of people if they intend to keep companies humane and promote a more tolerant society. Peace, prosperity, and development depend on it ,” he concluded.
