The Business Benefits Of Gender Diversity In The Workplace
Sivakami is an Experienced Business Leader, and Bestselling Udemy Instructor Partner, she has nearly two decades of rich experience in large Multinational Corporations, like Microsoft and Verizon, and has worked in several Middle and Senior, Global Leadership and Management roles.
Most people would agree that Diversity, Equity, and Inclusion, are the right thing to do. But what most people may not know, or realise, is that Diversity and Inclusion can actually result in growth, and success! On the occasion of International Women’s Day this month, let us specifically look at women in the workplace, and the benefits of Gender Diversity. This has been a topic of discussion for many decades, and with good reason. Women bring a lot of valuable benefits and contributions to the workplace and having a diverse workforce can lead to better outcomes for organizations, their employees, and customers.
Gender Diversity Helps Financial Performance
Research has revealed that having better gender diversity actually helps the financial performance of organizations. In 2020 McKinsey looked at the proportion of Gender Diversity in senior leadership positions across 1000 companies in 15 countries. They found that being in the top quartile of gender diversity in Executive Leadership, made organizations 25 percent more likely to have profitability, higher than the industry median! The study also revealed that companies in the lowest quartile of gender diversity were 27 percent likely to be below industry median for profitability, and more likely to under perform, than those in the median quartiles.
A team of researchers, at the Credit Suisse Research Institute, conducted a ground-breaking study in 2012. They examined more than 2300 companies globally, over a period of six years, looking for any relationship between gender diversity on corporate management Boards, and the company’s financial performance. The Study found that Companies with one or more women on their Boards delivered higher average returns on equity, and better overall growth. The average ROE, or Return on Equity, of companies with at least one woman on the Board was sixteen percent, which was four percent higher, than the average ROE of companies with no women on their Boards, which was twelve percent. Having more than one woman on the Board also had a distinct positive impact on stock prices long term, especially during economic, and other, turbulence. When there was economic upheaval, a recession, Diversity helped provide greater stability.
This is of great significance, especially post-pandemic, and the recent recession, especially in the technology sector. Diversity is essential for innovation, and women can play a critical role in driving innovation.
Gender Diversity Helps Innovation
Diversity is essential for innovation, and women can play a critical role in driving innovation. Women bring varied perspectives and experiences to the table, and this can lead to new ideas, more alternatives, and creative approaches. A diverse team is more likely to consider a wider range of options and identify innovative solutions to modern-day problems. And Studies have indeed found that companies with diverse teams are more innovative and creative than those without. In 2017, Rocio Lorenzo and team, of the Boston Consulting Group, along with the Technical University of Munich, set up a study of 1600 companies across eight countries. The Research team wanted to analyse the relationship between Innovation Revenue, and Diversity. Innovation revenue is the proportion of revenue these companies made from new products and services over the past three years. The study found that there was a clear, positive, and statistically significant correlation, between how diverse these companies were, and the proportion of their innovation revenue, as a part of their total revenue. Companies with the greatest gender diversity in management, where eight out of every 20 managers were female, generated about 34 percent of their revenues from innovative products and services. Companies with the least gender diversity in management, where only one out of 20 managers were female, had innovation revenues of only 25 percent of total revenue! For gender diversity to have an impact on innovation, you need to have more than 20 percent women in leadership, because below that 20 percent threshold, there are too few women to make a difference. "Companies that focus on gender diversity, and inclusion, are viewed more positively by customers and the public".
Gender Diversity Helps Attract & Retain Top Talent
Organisations that embrace gender diversity are more likely to attract top talent from a wide range of backgrounds. A 2021 CNBC Survey Monkey Workforce Happiness Index Survey, of more than 8000 employees across the USA, revealed that most of them preferred to work at an organization that prioritised diversity and inclusion.Diverse employees are also more likely to stay with their organisations, reducing turnover and the associated costs. By embracing gender diversity, companies can also attract and retain a wider range of talent, which can help to improve the quality of their workforce, by providing more varied and alternative options.
Companies that focus on gender diversity, and inclusion are viewed more positively by customers and the public, which can enhance their reputation and brand image. These significant business benefits from Diversity establish the business case for having more women in the workplace. Gender Diversity and Inclusion are not just nice to haves, they are essential for businesses to remain stable, profitable, innovative and competitive in today’s dynamic world.
The best way to start on this journey is by building awareness. And online learning platforms, like Udemy, can be a great way to do this. Udemy courses can contribute towards improving gender diversity in the workplace, by increasing awareness of unconscious bias, and the benefits of workplace diversity, inclusion, engagement and belonging, and by encouraging dialogue and collaboration.
Most people would agree that Diversity, Equity, and Inclusion, are the right thing to do. But what most people may not know, or realise, is that Diversity and Inclusion can actually result in growth, and success! On the occasion of International Women’s Day this month, let us specifically look at women in the workplace, and the benefits of Gender Diversity. This has been a topic of discussion for many decades, and with good reason. Women bring a lot of valuable benefits and contributions to the workplace and having a diverse workforce can lead to better outcomes for organizations, their employees, and customers.
Gender Diversity Helps Financial Performance
Research has revealed that having better gender diversity actually helps the financial performance of organizations. In 2020 McKinsey looked at the proportion of Gender Diversity in senior leadership positions across 1000 companies in 15 countries. They found that being in the top quartile of gender diversity in Executive Leadership, made organizations 25 percent more likely to have profitability, higher than the industry median! The study also revealed that companies in the lowest quartile of gender diversity were 27 percent likely to be below industry median for profitability, and more likely to under perform, than those in the median quartiles.
Women bring varied perspectives and experiences to the table, and this can lead to new ideas, more alternatives, & creative approaches
A team of researchers, at the Credit Suisse Research Institute, conducted a ground-breaking study in 2012. They examined more than 2300 companies globally, over a period of six years, looking for any relationship between gender diversity on corporate management Boards, and the company’s financial performance. The Study found that Companies with one or more women on their Boards delivered higher average returns on equity, and better overall growth. The average ROE, or Return on Equity, of companies with at least one woman on the Board was sixteen percent, which was four percent higher, than the average ROE of companies with no women on their Boards, which was twelve percent. Having more than one woman on the Board also had a distinct positive impact on stock prices long term, especially during economic, and other, turbulence. When there was economic upheaval, a recession, Diversity helped provide greater stability.
This is of great significance, especially post-pandemic, and the recent recession, especially in the technology sector. Diversity is essential for innovation, and women can play a critical role in driving innovation.
Gender Diversity Helps Innovation
Diversity is essential for innovation, and women can play a critical role in driving innovation. Women bring varied perspectives and experiences to the table, and this can lead to new ideas, more alternatives, and creative approaches. A diverse team is more likely to consider a wider range of options and identify innovative solutions to modern-day problems. And Studies have indeed found that companies with diverse teams are more innovative and creative than those without. In 2017, Rocio Lorenzo and team, of the Boston Consulting Group, along with the Technical University of Munich, set up a study of 1600 companies across eight countries. The Research team wanted to analyse the relationship between Innovation Revenue, and Diversity. Innovation revenue is the proportion of revenue these companies made from new products and services over the past three years. The study found that there was a clear, positive, and statistically significant correlation, between how diverse these companies were, and the proportion of their innovation revenue, as a part of their total revenue. Companies with the greatest gender diversity in management, where eight out of every 20 managers were female, generated about 34 percent of their revenues from innovative products and services. Companies with the least gender diversity in management, where only one out of 20 managers were female, had innovation revenues of only 25 percent of total revenue! For gender diversity to have an impact on innovation, you need to have more than 20 percent women in leadership, because below that 20 percent threshold, there are too few women to make a difference. "Companies that focus on gender diversity, and inclusion, are viewed more positively by customers and the public".
Gender Diversity Helps Attract & Retain Top Talent
Organisations that embrace gender diversity are more likely to attract top talent from a wide range of backgrounds. A 2021 CNBC Survey Monkey Workforce Happiness Index Survey, of more than 8000 employees across the USA, revealed that most of them preferred to work at an organization that prioritised diversity and inclusion.Diverse employees are also more likely to stay with their organisations, reducing turnover and the associated costs. By embracing gender diversity, companies can also attract and retain a wider range of talent, which can help to improve the quality of their workforce, by providing more varied and alternative options.
Companies that focus on gender diversity, and inclusion are viewed more positively by customers and the public, which can enhance their reputation and brand image. These significant business benefits from Diversity establish the business case for having more women in the workplace. Gender Diversity and Inclusion are not just nice to haves, they are essential for businesses to remain stable, profitable, innovative and competitive in today’s dynamic world.
The best way to start on this journey is by building awareness. And online learning platforms, like Udemy, can be a great way to do this. Udemy courses can contribute towards improving gender diversity in the workplace, by increasing awareness of unconscious bias, and the benefits of workplace diversity, inclusion, engagement and belonging, and by encouraging dialogue and collaboration.
