Mckinsey released a new diversity matters report that finds that the companies in the top quartile for gender and racial or ethnic diversity are more likely to outperform above national industry means. Home digital downloads research documents why diversity matters mckinsey. N 589 companies 6 geographies for ethnicity 1 average economic profit 201115 and average ebit margin 201115. Mckinsey research again reports cultural and ethnic diversity outperforms gender diversity. The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the workplace in several. Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians. In the end, each one of us needs to decide if we want to work towards a solution, or not. January 2015 why diversity matters vivian hunt, dennis layton, and sara prince new. The bank enables diversity in payment types and providers through the policy and rules we set and the infrastructure we operate.
Use this graphic and accompanying tool to raise awareness. In my opinion, this is one of the most cited sources that is used to justify the business case for diversity in organisations, when i say that i mean people generally use this report as evidence to support their argument when claiming that diversity is good for business, specifically because it leads to more profits. Without more than symbolic representation, we risk going backward instead of forward. Use this graphic and accompanying tool to raise awareness, move toward mobilization and action, and enact change. The analysis found a statistically significant relationship between a more diverse leadership team and better financial performance. Mckinsey s latest research, released in a 40page january 2018 report entitled delivering through diversity, measured the. Apr 26, 2017 the study comes at a time when diversitys business benefits have become a topic of intense discussion. The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the workplace in several western.
About the authors vivian hunt is a senior partner in mckinsey s london office, where sundiatu dixonfyle is a senior expert. A new study shows a clear link between diversity and innovation and quantifies the impact of diversity on companies ability to generate new sources of revenue. Bishop claude alexander, pastor of the park church in charlotte, north carolina the future of christian higher education is in educating the diversity of gods followers for the work of christ on earth. Companies in the topquartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more. Lareina yee is a senior partner in the san francisco office. This article is adapted from the report diversity matters pdf1,732kb, which was rereleased in february 2015. Mckinsey recently completed a follow up study to that report in which they analyzed more than 1,000 companies across 12 countries, looking at. Mckinsey report reinforces again link between diversity. Brriieeff whhy yegg e enndderr ddiivverrssiitty mmaatttterrss. Why diversity matters in your workplace and how to achieve it. Genderdiverse companies are 15 percent more likely to outperform, while ethnically diverse companies are 35 percent more likely.
View why diversity matters mckinsey report jan 2015. Mckinsey diversity matters database likelihood of financial performance 1 above national industry median, by diversity quartile 2 percent, n991 companies 12 geographies for gender. May 09, 2018 diversity and inclusion matters to the workforce of the future. Sep 28, 2017 mckinsey s report, diversity matters, was published in 2015, but in light of the growing discussion on diversity in the it industry, a summary of the results will prove helpful to many. Yet, our power structures are still fairly homogeneous mostly male, middleaged, white, heterosexual, and in many cases from catholic upbringing 4. Why diversity matters in your workplace and how to achieve. As many of my website followers are aware, mckinsey released a study in 2015 entitled why diversity matters covering the benefits of corporations that housed a diverse workforce and leadership. Five reasons why diversity and inclusion at work matters. He spoke with reit magazine about his work on decisionmaking. Companies with higher levels of gender diversity and with hr policies and practices that focus on gender diversity are linked to lower levels of employee turnover. Page expounds the virtues of diversity and inclusion in a culture.
Delivering growth through diversity in the workplace mckinsey. Diversity and inclusion matters to the workforce of the future. Each of the projects that diversity matters undertakes works towards that goal. Our latest report, diversity matters, examined proprietary data sets for 366 public companies across a range of industries in canada, latin america, the united kingdom, and the united states. Mckinsey report delivering through diversity diversity uk. That is why my work is in diversity to look for solutions and share them. Its also increasingly clear that it makes sense in purely business terms. For a selection of earlier research on this topic, see. Its study entitled delivering through diversity reaffirms the global relevance of the link between diversity and performance. Mckinseys latest research, released in a 40page january 2018 report entitled delivering through diversity, measured the. Why diversity matters in your workplace and how to. We live in a diverse world in terms of gender, race, religion, sexual orientation 3. Mckinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you.
Miamidade county office of human rights and fair employment practices 111 nw 1st st. Mckinsey updates its 2015 study on diversity supplierty news. Organization article january 2015 why diversity matters by vivian hunt, dennis. Everything you need to know about the famous mckinsey. Delivering through diversity executive summary 2 ocal context matters. The new report delivering through diversity reinforces the link between diversity and company financial performance. Back in 2015 mckinsey ran the numbers and came up with the conclusion. To learn more about diversity matters diversity matters contact. How great teams pay off in the knowledge economy, university of michigan professor scott e. Mckinsey report reinforces again link between diversity and. The new analysis expands on our 2015 report, why diversity matters, by drawing on an enlarged data set of more.
Social norms, attitudes and practices in the philippines. Download delivering through diversity, the full report on which this article is based pdf 7 mb. A 2015 mckinsey report on 366 public companies found that. Diverse teams are still really good for business, mckinsey.
In this research, we looked at metrics such as financial results and the. All books are in clear copy here, and all files are secure so dont worry about it. To learn more about diversity matters diversity matters. As a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at. View why diversity mattersmckinsey report jan 2015. Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns. Mckinsey reported a statistically significant relationship between a more diverse leadership team and better financial performance. The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the. About the authors vivian hunt is a director in mckinseys london office, where dennis layton is a principal. The first report, women matter, published in 2007, identified a positive relationship. Mckinsey recently completed a follow up study to that report in which they analyzed more than 1,000 companies across 12 countries, looking at their respective profits. Genderdiverse companies are 15 percent more likely to outperform, while ethnically diverse companies are 35 percent more likely to outperform. Why diversity matters in the knowledge economy nareit.
Detailed information on the use of cookies on this site, and how you can decline them, is provided in our cookie policy. Why diversity matters vivian hunt, dennis layton, and sara prince january 2015 diversitys dividend whats the likelihood that companies in the top artile for diversity financially otperform those in the bottom artile 1 1results show likelihood of. Diversity still makes companies more profitable, says mckinsey. The opportunity in diversity the makeup of our population has been changing steadily in recent years, in ways. Companies with more diverse leadership teams make more money just to be sure, mckinsey repeated its analysis with a broader data set of 1,000 companies covering 12 countries. The diversity matters research looks at the relationship between the level of diversity and company financial performance. Deloittes reported an 80 percent improvement in business performance when levels of diversity and inclusion were high. Racial diversity among financial planners, february 2018.
This article is adapted from the report diversity matters pdf 1,732kb, which was rereleased in february 2015. Our latest research reinforces the link between diversity and company financial performanceand. Jan 18, 2018 as a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at their respective profits and value creation. Mckinsey has been examining diversity in the workplace for several years. About the authors vivian hunt is a director in mckinsey s london office, where dennis layton is a principal. Dec 06, 2017 this shifted the narrative around diversity in the workplace, emphasising its position as a lever for value creation on par with any other item on a ceos agenda. Mar 21, 20 why diversity matters leaders working to create diverse and inclusive workplaces in which women can advance must make the connection between diversity initiatives and their organizations business goals.
An important catalyst is the renewal of rtgs, where we are making both policy. View basket kpmg meet the millennials june 2017 has been added to your basket. Whhy yegg e enndderr ddiivverrssiitty mmaatttterrss diversity in leadership and openness to new perspectives is crucial for charting the course in business. Mckinsey research again reports cultural and ethnic diversity. This shifted the narrative around diversity in the workplace, emphasising its position as a lever for value creation on par with any other item on a ceos agenda. Talent diverse organizations are more successful at retaining talent 3. Why diversity matters leaders working to create diverse and inclusive workplaces in which women can advance must make the connection between diversity initiatives and their organizations business goals. The new analysis expands on the management consulting firms 2015 report, why diversity matters, by drawing on an enlarged data set of more than 1,000 companies covering 12 countries, measuring not only profitability in terms of earnings before interest and taxes, or ebit but also longerterm value creation or economic profit, exploring diversity at different levels of the organization. In the past, the indirect benefits of diversity were sufficientan expansion of the job candidate pool at all levels, or an increase in social and political status for the company. Why diversity matters mckinsey pimfa building personal. Mckinseys report, diversity matters, was published in 2015, but in light of the growing discussion on diversity in the it industry, a summary of.
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