A company’s culture stems from its leadership. From the decisions they make to the behaviours they tolerate.
But when leadership lacks diversity, the culture can negatively impact those further down the company structure.
To create a company culture where people are free to be themselves, feel supported and genuinely want to contribute, diversity must be reflected in senior and C suite roles.
In the new season of our podcast, “Morgan Latif Presents”, we’re bringing you “Diversity and Inclusion in Focus”. A topic that’s as complex as it is crucial, which we’ll be breaking down over a series of eight discussions with experts.
First up, in season 3, episodes 1 and 2, we speak with Steven Cox and Shereen Daniels.
Steven, CEO and Founder of Equativo, speaks about his executive leadership experience and details how he became Fujitsu’s first-ever global ambassador for Diversity & Inclusion. We go over frameworks for implementing D&I measures alongside looking at the issues from an employee lifecycle perspective.
We sat down with Shereen to discuss the fundamental steps all businesses must take if they’re serious about tackling racism at work. Shereen, also known as “The HR Conversationalist”, is the founder of HR Rewired, a consultancy dedicated to advancing racial equity that’s got thousands of businesses talking about race.
Overall, both Steven and Shereen stress how diversity alone isn’t enough. For there to be real, long-lasting change, there must be measures in place to increase inclusion.
As Laura Sherbin, Co-President of Coqual, a non-profit think tank formerly known as the Center for Talent Innovation (CTI), explains:
“In the context of the workplace, diversity equals representation. Without inclusion, however, the crucial connections that attract diverse talent, encourage their participation, foster innovation, and lead to business growth won’t happen.”
With plenty of tangible benefits of diversity and inclusion in leadership teams, it’s an issue that many businesses should make a priority. Companies can do this by creating long-term plans, sticking to them and acting accordingly where needed. Allow spaces for employees and leadership alike to openly address internal issues, discuss the topic further and learn from each other.
Business benefits to increasing diversity in leadership
A 2017 study revealed that diversity must be followed up with inclusivity at all levels of decision-making to maximise business performance. Results showed:
- Inclusive teams make better business decisions up to 87% of the time.
- Teams that follow an inclusive process make decisions twice as fast with half the meetings.
- Decisions made and executed by diverse teams delivered 60% better results.
Its been found that companies who invest in sustainable D&I strategies see:
- More than 6% increase in on-the-job effort
- 5% increase in employees’ intent to stay with the organisation
- 3% increase in individual performance
As a result of these improvements and better decisions, McKinsey & Co found in a study of 1,000 companies across 12 countries that companies in the top quartile for gender diversity were 21% more likely to experience above-average profitability. Meanwhile, ethnic and cultural diversity resulted in a 33% increase in performance.
McKinsey also found that companies with more diverse leadership are better at winning top talent, improving employee satisfaction and decision making – leading to a virtuous cycle of positive returns. They also suggest that diversity in other areas such as age and experience is likely to bring a competitive advantage for companies that continue attracting and retaining diverse talent.
It’s this commitment to inclusion through attraction and retention that allows diversity, and the benefits it brings, to flourish.
Without inclusion, employees feel overlooked and may not share ideas or insights. But with a focus on inclusion combined with diversity, businesses benefit from a potent mix of engaged talent that’s happy to contribute their ideas and more willing to commit to the company, and its goals, in the long term.
Leaders need to cultivate a genuine sense of belonging because happier people who feel included and welcome perform better. And this benefits everybody.
Want to understand this topic further? Then you can’t miss out on our interviews with Steven and Shereen. Our in-depth conversations will expand your mind and teach you new ways to approach the topic successfully.
If you’re serious about change, speak to us about our leadership and coaching service. This program will help you successfully transform internal culture, allowing your leaders and their teams to be their best selves and achieve peak performance.
For more insights from the Morgan Latif team, follow us on LinkedIn and subscribe to our podcast on Apple Podcasts or Spotify.
