The Relationship between Diversity and Innovation
Research strongly supports that companies are more innovative when they employ a diverse group of talent. If you were uncertain- here is the proof- from some of the most reputable sources:
According to a study by the Harvard Business Review, companies with more diverse teams are:
- 45% more likely to report that their firm’s market share grew over the previous year and
- 70% more likely to report that the firm captured a new market.
*Harvard Business Review’s report “The Diversity Bonus: How Great Teams Pay Off in the Knowledge Economy”.
According to McKinsey & Company, companies with more diverse executive teams are:
- 33% more likely to outperform their peers on profitability.
Additionally, companies with more diverse boards are:
- 43% more likely to experience higher returns on equity.
*McKinsey & Company’s report “Diversity Matters”.
“According to IBM, companies that focus on gender inclusion and prioritize the advancement of women reap such benefits as:
- 73% are leaders in their industry in customer satisfaction;
- 60% report they are more innovative than their competitors,
- 61% have higher revenue growth than other organizations.”
When employees think their organization is committed to and supportive of diversity, they demonstrate an 83% increase in the ability to innovate.
*IBM’s report “The Business Case for Gender Equality: A Study of Fortune 1000 Companies.
Why you ask??
Diverse people bring diverse thoughts from their diverse lived experiences which leads to:
ENHANCED CREATIVITY
FULLER UNDERSTANDING OF MARKET ISSUES
FRESHER IDEAS
MORE SPONTANEOUS BREAKTHROUGHS