Diversity matters, but it isn’t automatic. As leaders, we need to take initiative and create opportunities for all groups.
The Impact of Diversity
Diversity has never been more important to business success. Ethnic and racial minorities make up an increasingly large percentage of the population and demand representation. More women are creating diversity in tech, prompting an increased need for Silicon Valley women role models. To succeed in this world, we as leaders need to step up and make space.
Research shows that diverse companies do better on multiple levels. Here are two of the most important.
Stronger Talent
According to Glassdoor, 76% of job seekers heavily consider workforce diversity when comparing potential employers and job opportunities. The percentage is higher among candidates of color. One in three candidates wouldn’t apply where the workforce isn’t diverse enough.
The takeaway? Companies without a diversity and inclusion focus will lose top talent.
Higher Profits
Diverse teams don’t just have more ideas — they also make more money. Gartner research shows that more inclusive teams financially outperform their less diverse counterparts by 50% on average.
Also, according to McKinsey & Company, making the top quartile for C-suite ethnic diversity increases the likelihood of above-average fiscal performance by 36% over businesses in the lowest quartile. Top-notch gender diversity increases odds by 25%. Women in technology and engineering need to rise to the top.
Key Leadership Actions
To reiterate, diversity isn’t automatic. As leaders, there are important leadership actions we need to take to create opportunities for all groups.
Diversify Recruiting and Promotion
The first step is prioritizing a clear diversity strategy. That means specifying what the company will do to increase the representation of ethnic and gender minorities, especially at higher levels. Women in product design make up about a quarter of the entire profession, but only 4% of C-suite executives are women of color. All women in technology need to see themselves in leadership.
Center Diverse Ideas
The presence of diversity isn’t enough. We need to invite employees from historically underrepresented backgrounds to share their perspectives and experiences. This messaging has to be explicit.
Offer Quality Training
Only 25% of employees participate in bias training over the course of a year. Leaders need to emphasize the value of diverse ideas by creating anti-bias messaging and making time for diversity training.
Focus on the Workplace Experience
McKinsey research showed that although employees’ feelings about diversity are 52% positive, their feelings about inclusion are 61% negative.
Negative sentiments were highest when employees answered questions about equality and openness to differences. This indicates a disconnect between diversity in hiring practices and the workplace experience.
To solve this problem, leaders need to emphasize inclusion at all levels. They need to involve managers and supervisors in creating an environment where all voices have value, especially those who have experienced silencing in the past.
Track Diversity Data
Leaders need to hold their organizations accountable by tracking diversity and representation at all levels. That means tracking the company’s hiring, promotion, and compensation practices. It also means reviewing policy to ensure it’s free from bias.
Moving Toward a Diverse Workplace
According to McKinsey & Company, women leaders are up to twice as likely to dedicate significant time to diversity, equity, and inclusion efforts including recruiting a diverse workforce. Diversity begets diversity, but it needs to start from somewhere.
We need to think about who we hire and promote, and whose ideas we hear. Today’s entry-level candidate might be tomorrow’s role model for STEM women — but only if we elevate her voice.
Sources:
Frey, William H. “The nation is diversifying even faster than predicted, according to new census data.” The Brookings Institution, 1 July 2020, https://www.brookings.edu/research/new-census-data-shows-the-nation-is-diversifying-even-faster-than-predicted.
Hupfer, Susanne, Mazumder, Sayantani, Bucaille, Ariane, and Crossan, Gillian. “Women in the tech industry: Gaining ground, but facing new headwinds.” Deloitte, 1 December 2021, https://www2.deloitte.com/us/en/insights/industry/technology/technology-media-and-telecom-predictions/2022/statistics-show-women-in-technology-are-facing-new-headwinds.html.
Glassdoor Team. “Glassdoor’s Diversity and Inclusion Workplace Survey.” Glassdoor, 29 September 2020, https://www.glassdoor.com/blog/glassdoors-diversity-and-inclusion-workplace-survey.
Sakpal, Manasi. “Diversity and Inclusion Build High-Performance Teams.” Gartner, 20 September 2019, https://www.gartner.com/smarterwithgartner/diversity-and-inclusion-build-high-performance-teams.
Dixon-Fyle, Sundiatu, Dolan, Kevin, Hunt, Vivian, and Prince, Sara. “Diversity wins: How inclusion matters.” McKinsey & Company, 19 May 2020, https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters.
“Product Designer Demographics and Statistics in the US.” Zippia, 29 January 2021, https://www.zippia.com/product-designer-jobs/demographics.
Burns, Tiffany, Huang, Jess, Krivkovich, Alexis, Rambachan, Ishanaa, Trkulja, Tijana, and Yee, Lareina. “Women in the Workplace 2021.” McKinsey & Company, 27 September 2021, https://www.mckinsey.com/featured-insights/diversity-and-inclusion/women-in-the-workplace.