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. 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 and value creation.” The consulting firm discovered similar results as their first study, backing the belief that a diverse workforce increases profitability.
According to Techcrunch, the study revealed that “companies in the top quartile for ethnic diversity at the executive level are 33 percent more likely to have above-average profitability than companies in the bottom quartile.” In a similar light, the McKinsey report “Delivering through Diversity” showed that gender diversity is also good for business as companies in the top quartile for gender diversity were “21 percent more likely to have above-average profitability than companies in the bottom quartile.”
The report also dispelled the pipeline problem belief noting that “women received 35 percent and 33 percent of bachelor and masters degrees, respectively, yet make up just 17 percent of executives at TMT companies. Meanwhile, people of color received 30 percent of the bachelor degrees in science, technology, engineering and math since 2000, yet just 12 percent of executives in McKinsey’s sample are people of color.”
An update of the industry changing diversity report was much needed and its interesting to see certain assumptions eliminated by simple facts. In the future I would like to see the report expanded to include impact per region in countries like America, but for now as a follow up to a very import report, this is fantastic information. Check out the report below