We keep reading about companies that try to make an effort, such as delivery giant UPS, and companies that fall short of understanding the root causes of the problem, such as banking group Wells Fargo. While UPS announced in November 2020 to eliminate gender-specific rules and celebrate diversity rather than corporate restrictions by making every employee feel “comfortable, genuine and authentic”, Wells Fargo chief executive Charlie Scharf got into hot water with a statement he made during a Zoom meeting in August 2020 claiming that the only reason why Wells Fargo did not meet its diversity goals was because there is not enough qualified minority talent.
But why is diversity such a big deal and why is diversity and inclusion so hard to achieve?
This is a long journey that requires a lot of effort but well worth it.
According to two McKinsey reports, ‘Why Diversity Matters’ (2015) and ‘Delivering through Diversity‘ (2018), gender diverse companies (top quartile for diversity) are 15% more likely to financially outperform those in the bottom quartile for diversity, while ethnically diverse companies are even 35% more likely to do so. The reports found that: “In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every 10 percent increase in racial and ethnic diversity on the senior executive team, earnings before interest and tax (EBIT) rise 0.8 percent.”
The McKinsey reports as well as other studies have consistently shown over time that making DEI a priority is not just the right thing to do but provides businesses with the following advantages:
increased profit
more creativity and innovation
better customer insight
more objectivity and less cognitive bias
higher level of employee satisfaction
boost in recognition, value, and global image
higher success rate in employee retention and attracting new talent
But how do we get DEI right and benefit from the advantages of diverse teams?
Learn more about this topic in crossculture2go Coach Renata Urban’s free webinar, part of the WTCPB series about international business, global markets, and intercultural communication. Renata provides background information and research on diverse teams and why diversity is beneficial, she talks about the role of the individual and the group in a team, what managers of diverse teams can do to achieve team cohesion and efficiency, and how team building activities and a code of conduct can help create and maintain successful diverse teams.
Watch here:
Renata Urban
Growing up, living and working in different countries and with people from all over the world has had a significant impact on my cultural perceptions, the languages I speak, my understanding of cross-cultural cooperation, and who I am as a trainer today. I am a trained, certified, and experienced language teacher, intercultural coach, and communication skills trainer who is patient and resourceful, who understands your unique situation, who cares and will help you achieve your goals.
