In today’s global marketplace, diversity and inclusion can set companies apart. Aside from simply being the right thing to do, it can also be a positive for a company’s profitability and innovation success.
According to the McKinsey report “Diversity Matters,” companies in the top percentile for racial and ethnic diversity are 35 percent more likely to have financial returns above their national industry medians, and those in the top quartile for gender diversity are 15 percent more likely to see greater financial returns.
Diversity and innovation also share a common bond. A recent Harvard Business Review study found that companies with above-average total diversity had both 19 percent higher innovation revenues, and 9 percent higher EBIT margins
To further emphasize the value diversity possesses in the workplace, a Deloitte report noted that organizations with inclusive cultures were six times more likely to be innovative and agile, eight times more likely to achieve better business outcomes, and twice as likely to meet or exceed financial targets.
Diversity and inclusion also pays off in the recruiting wars for millennials and generation Z employees who have grown up in a society where equality is valued, and a goal worth pursuing.
“There is an increasing need for economic inclusion in both society and business,” says Eddie Taylor, founder and president of Taylor Oswald, a full-service insurance brokerage that offers a minority-owned option for businesses looking to incorporate service providers in their diversity-inclusion initiatives. “As the business world continues to evolve, people are starting to think differently when it comes to inclusion and diversity.”
Taylor goes on to say that new way of thinking, followed up by dedicated, sustainable action has tangible meaning and can, when done correctly, benefit not only businesses, but communities.
How does diversity and inclusion fit into a corporate, non-profit, educational and government entity’s risk management strategy? One universal thread these aforementioned groups share is health care.