Diversity is the solution, not a problem to solve
The Diversity Project
The Diversity Project aims to attract, develop and retain diverse talent across the investment management profession. Fostering inclusive and more diverse workplaces can play an important role in addressing some of the most important business issues, including creating better outcomes for customers; increasing innovation; helping to attract and retain talent; enhancing reputation and brand; and ultimately generating higher returns. Together with the Diversity Project we have summarised a number of findings from various pieces of research that go some way towards evidencing the benefits that diversity can provide.*
* It should be noted that whilst the research reviewed is not exhaustive and does not in itself “prove” the business benefits of a diverse organisation it does provide strong indicators of the benefits to go alongside the undisputed moral and ethical arguments for ensuring equal opportunities for all employees and creating inclusive workplaces..”
Key findings
Diverse businesses create better outcomes for customers
With the future growth of financial services being predicated on firms successfully serving increasingly diverse markets and customers, analysis indicates that having a diverse workforce can enable organisations to better understand different segments of the population, anticipate their needs and deliver to them.
Diverse businesses create better business returns
There is various research and analysis that indicates that organisations with greater gender diversity in their leadership teams are more likely to be more profitable and generate greater shareholder returns. Similar analysis indicates greater returns for those organisations with greater ethnic diversity in their leadership teams.
Diverse teams are more innovative and create more value
Research shows that executives recognise that a diverse set of experiences, perspectives, and backgrounds are crucial to innovation and the development of new ideas. Research indicates that diversity-leading organisations are rated by their leaders as more agile than their more homogenous counterparts, and more likely to experiment and embrace failure in pursuit of different and innovative approaches.
Diverse firms are more attractive to potential and existing employees
Having a diverse and inclusive workforce is crucial for companies that want to attract and retain talent. Research shows that a diverse and inclusive workplace is an important element of attracting and retaining talent, both male and female. Research indicates that organisations who embrace technology, flexibility and new ways of working will find themselves not only more attractive to potential and existing employees, but can lead to an increase in productivity and morale.
Firms who have diversity and inclusion as a business priority improve their reputation and brand
A focus on diversity makes a positive impact upon company image and reputation, resulting in increased attraction and retention of talent and improved stakeholder relationships. Evidence shows that leaders believe that diverse teams enhance the promotion of the employer brand.
Katy Bennett
