Drink it in. Diversity amongst teams isn’t merely a checkbox for companies, but can foster growth, inclusion, and ultimately, belonging in teams. Simone Sullivan shares three insights on team diversity.
Diverse teams can perform better.
Diversify your team, diversify your thinking. Companies with diverse teams consistently outperform their counterparts across various metrics. Let’s have a look at some key stats. A McKinsey report found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability. For ethnic and cultural diversity, this number was 36% (McKinsey & Company, 2020).
Companies with more diverse management teams have 19% higher revenue due to innovation (McKinsey & Company, 2021).
Diversity and Inclusion (D&I): Global Strategic Business Report asserts that diverse companies earn 2.5x higher cash flow per employee.
CIO reports that 83% of millennials are more actively engaged in their work when their employees support D&I initiatives (CIO, 2023).
There’s growth in the discomfort.
Diverse teams don’t just drive revenue growth they foster organisational and personal growth as well. While the research undoubtedly demonstrates the financial benefits of diversity, it’s crucial to acknowledge that diverse teams always have a little bit of discomfort. This discomfort, however, is where personal growth thrives. By bringing together a variety of perspectives and experiences, diverse teams can enhance problem-solving processes, challenge assumptions, and foster creativity. This discomfort becomes a crucible for competitive advantage, fostering growth at both organisational and individual levels.
Psychological safety benefits the organisation, not just the individual.
Inclusive practices are essential to support diversity to ensure that every team member feels valued, respected, and heard. The concept of psychological safety is paramount in creating an environment where diverse voices feel comfortable expressing themselves.
When employees feel valued, respected, and included, they are more engaged, motivated, and productive. This positive work environment not only benefits individuals but also contributes to the overall success and sustainability of the organisation.
Is there such a thing as too much diversity?
While diversity is generally beneficial, it’s important to recognise that diversity can sometimes lead to challenges. Diversity may create difficulties in communication, cohesion, and decision-making processes. Aim for a mix of capacities and perspectives to ensure optimal team performance.
Diversity in teams is not merely a buzzword or a means to an end, it’s a fundamental driver to success. By embracing diversity and fostering inclusivity, companies can unlock new avenues of growth, innovation, and success. However, achieving true diversity requires a commitment beyond surface level. It requires creating a culture where every voice is valued, respected, and included. In an increasingly complex world, diversity isn’t optional; it’s essential for navigating challenges and seizing opportunities.
This article features in the July issue of our quarterly publication Imagine Magazine. Get your free copy and dive into more insights on the topic of Brighter Teams.