Recent research from McKinsey & Company shows that companies in the top quartile for gender and race diversity are more likely to have financial returns above their national industry medians. The research also reported that McKinsey and Company believes that more diverse companies are better able to win top talent and improve their customer orientation, employee satisfaction and decision making.
“ This compelling research will go a long way to help engage senior leaders that have so far refused to or failed to grip the businss argument for diversity and equality ”
RfO Director Sandra Kerr OBE, attended the launch of the research in November 2014 and said that ' this compelling research will go a long way to help engage senior leaders that have so far refused to or failed to grip the businss argument for diversity and equality'
Sandra went on to say' this is not something that businesses can tackle alone - engagement from senior political figures is necessary'
In the Race for Opportunity ‘Race at the Top’ report, published June 2014, we called for a review of Black, Asian and Minority Ethnic (BAME) representation at senior levels – and earlier last year both Vince Cable and Chuka Umunna announced plans to carry out a race review if they are elected in 2015. Vince Cable has also set out a goal of 20 per cent of FTSE board members being BAME by 2020.
The McKinsey report Diversity Matters also shows that companies that are good at gender diversity are not automatically good at race diversity (and vice versa) but if a company is good at both there is a higher payback - and penalty if they are not good at either.
McKinsey examined diversity in the workplace for several years across a range of industries in Canada,Latin America,the United Kingdom and the United States. 366 public companies were examined across a selection of metrics such as financial results and the composition of management and boards.