Business Case for Diversity

Delivering through diversity
- McKinsey & Company
Business Case for Diversity
Diversity Wins: How inclusion matters
(2020 report)

The business case for gender and ethnic/cultural inclusion and diversity (I&D) is stronger than ever as the business case continues to strengthen. The most diverse companies are now more likely than ever to outperform less diverse peers on profitability. The experience of the diversity winners we have studied suggests that it’s time to be bold, in deploying a systematic approach to I&D, and in purposefully tackling inclusion. Taking a closer look at diversity winners reveals what can drive real progress. - McKinsey & Company
The business case for I&D as a source of competitive advantage is growing stronger. Increasingly, we find that the most diverse companies recognize I&D as more than a social-justice imperative; they also see it as a core enabler of growth and value creation. These diversity winners are pulling ahead of the rest..
Companies in the top quartile for both gender and ethnic diversity are 12 percent more likely to outperform all other companies in the data set.
Diversity Leaders are taking bold and courageous steps to build fairer and more inclusive workplace cultures at all levels of the organization.
A disconnect between what the company says and the progress it is making on the ground can seriously erode credibility both inside and outside of the organization, and further contribute to a lack of experienced inclusion.
While overall sentiment on diversity was 52 percent positive and 31 percent negative, sentiment on inclusion was markedly worse at only 29 percent positive and 61 percent negative.
Many diversity Leaders are seizing the opportunity to advance the I&D agenda, while strengthening their sense of purpose and ability to attract customers and talent.
OVERVIEW
FULL REPORT
Related:
Diversity still matters (2020 article)
Why diversity matters (2015 article)
Delivering Through Diversity
(2018 report)

Latest research reinforces the link between diversity and company financial performance, competitive advantage and growth - McKinsey & Company
It makes sense that a diverse and inclusive employee base – with a range of approaches and perspectives – would be more competitive in a globalized economy.
Companies with the most ethnically/culturally diverse boards worldwide are 43% more likely to experience higher profits.
Companies in the top-quartile for ethnic diversity on their executive teams were 33% more likely to have above-average profitability than companies in the fourth quartile.
Black women potentially suffer a double burden of bias that keeps them from the uppermost levels of corporate leadership.
Companies report that materially improving representation of diverse talent as well as effectively utilizing I&D as an enabler of business impact, are particularly challenging goals.
Companies succeeding on I&D are able to articulate the link between their I&D goals and specific business growth priorities.
OVERVIEW
Related
Diversity still matters (2020 article)
Why diversity matters (2015 article)
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FULL REPORT
Employee Resource Group (ERG) Best Practices & Resources
ERG Best Practices
ERG Best Practices | McKinsey Diversity Report | ERG Resources

Feb 2019 | How to Foster Workplace Belonging Through Successful Employee Resource Groups - Forbes
For companies today, diversity and inclusion are often listed as top organizational priorities. It is great that more companies are investing in diversity and inclusion efforts, however...
Category: Diversity, ERG
Tag: Diversity, ERG, Workforce
Feb 2019 | Don't Get 'Ghosted': How Inclusion Will Keep Your Millennial Employees From Walking - Entrepreneur
If you think back 10 or 15 years, "maintaining diversity" meant getting people of color, women and other underrepresented groups around the table. But just...
Category: Diversity, ERG
Tag: Diversity, Millennials, Workforce
Jan 2019 | Do your employee resource groups need a makeover? - Crain's Chicago Business
In 2015, Discover launched its Pride credit card, tailored to the LGBTQ community. Riverwoods-based Discover says the rainbow-colored card is a success: The number of...
Category: ERG
Tag: Diversity, Workforce
Oct 2018 | How Managers Can Make Casual Networking Events More Inclusive - Harvard Business Review
Research on affinity bias shows that we are naturally drawn to people who are like us. A casual drink here, a few networking events there with like-minded colleagues isn’t so...
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Oct 2018 | How To Start An Employee Resource Group At Your Organization - Forbes
One of the most effective ways to foster an inclusive environment is the utilization of employee resource groups (ERGs). ERGs are employee-led groups that are formed based...
Category: ERG
Tag: Diversity, ERG

Sept 2018 | How To Retain Diverse Talent - Forbes
The importance of employee resource groups (ERGs) cannot be overstated ... Creating ERGs can foster inclusion and belonging, and impact retention rates.
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Apr 2018 | The ABCs of ERGs - NIH
An Employee Resource Group (ERG) is an organizationally supported group of employees drawn together by characteristics that the group has in common.
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Mar 2018 | Employee Resource Groups - Diversity Best Practices
Relevant and up to date resources.
Dec 2017 | Did Deloitte abandon ERGs too soon? -TEKsystems
Perhaps. 90 percent of ERG participants at TEKsystems say their ERG makes them feel more engaged with our company.
Nov 2017 | I n What Ways do Employee Business Resource Groups Positively Impact the Company's Business Results? - Cornell University ILR School
Despite the recent questioning of ERGs and their effectiveness, well-managed ERGs can ignite inclusion and are critical to the success of diversity initiatives in the workplace.
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Oct 2017 | Employee Resource Groups: Moving from Concept to Implementation - Mallinckrofd Pharmaceuticals
Teams are voluntary, employee led and consist of individuals who join together based on common interests, backgrounds or demographic factors.
Sept 2017 | More Than A “Club:” How To Make Employee Resource Groups Matter - Jopwell
D&I can’t succeed in a silo: The needs of each group differ, but the lessons that come from individual experiences often benefit more than a single ERG.
Aug 2017 | Best of Both: ERGs AND Inclusion - Diversity Best Practices
Despite the growing need for discussions about intersectionality and how to address it, the fact remains that people from underrepresented groups are still,well,...
Jan 2016 | What's Next for Employee Resource Groups? - Association for Talent Development
There is evidence that ERGs are evolving with the times. For example, many organizations are now referring to them as business resource groups (BRGs) to reflect an increased business focus.
Oct 2016 | Employee Resource Groups Can Help Boost Bottom Line - Bloomberg
ERGs can also have a significant impact on a company’s bottom line by supporting the brand image, improving retention and increasing employee productivity.
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"AAEN delivered on everything they promised ... from start to finish to follow up. They're a top notch organization."
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Delivering through diversity

- McKinsey & Company

Companies in the top quartile for both gender and ethnic diversity are 12 percent more likely to outperform all other companies in the data set.

Diversity Leaders are taking bold and courageous steps to build fairer and more inclusive workplace cultures at all levels of the organization.

A disconnect between what the company says and the progress it is making on the ground can seriously erode credibility both inside and outside of the organization, and further contribute to a lack of experienced inclusion.

While overall sentiment on diversity was 52 percent positive and 31 percent negative, sentiment on inclusion was markedly worse at only 29 percent positive and 61 percent negative.

Many diversity Leaders are seizing the opportunity to advance the I&D agenda, while strengthening their sense of purpose and ability to attract customers and talent.

Related:Diversity still matters (2020 article)Why diversity matters (2015 article)

Delivering Through Diversity(2018 report) Latest research reinforces the link between diversity and company financial performance, competitive advantage and growth - McKinsey & Company

It makes sense that a diverse and inclusive employee base – with a range of approaches and perspectives – would be more competitive in a globalized economy.

Companies with the most ethnically/culturally diverse boards worldwide are 43% more likely to experience higher profits.

Companies in the top-quartile for ethnic diversity on their executive teams were 33% more likely to have above-average profitability than companies in the fourth quartile.

Black women potentially suffer a double burden of bias that keeps them from the uppermost levels of corporate leadership.

Companies report that materially improving representation of diverse talent as well as effectively utilizing I&D as an enabler of business impact, are particularly challenging goals.

Companies succeeding on I&D are able to articulate the link between their I&D goals and specific business growth priorities.

RelatedDiversity still matters (2020 article)Why diversity matters (2015 article)

Employee Resource Group (ERG) Best Practices & Resources

ERG Best Practices

ERG Best Practices | McKinsey Diversity Report | ERG Resources

Feb 2019 | How to Foster Workplace Belonging Through Successful Employee Resource Groups - Forbes

Feb 2019 | Don't Get 'Ghosted': How Inclusion Will Keep Your Millennial Employees From Walking - Entrepreneur

Jan 2019 | Do your employee resource groups need a makeover? - Crain's Chicago Business

Oct 2018 | How Managers Can Make Casual Networking Events More Inclusive - Harvard Business Review

Oct 2018 | How To Start An Employee Resource Group At Your Organization - Forbes

Sept 2018 | How To Retain Diverse Talent - Forbes

Apr 2018 | The ABCs of ERGs - NIH

Mar 2018 | Employee Resource Groups - Diversity Best Practices

Dec 2017 | Did Deloitte abandon ERGs too soon? -TEKsystems

Nov 2017 | In What Ways do Employee Business Resource Groups Positively Impact the Company's Business Results? - Cornell University ILR School

Oct 2017 | Employee Resource Groups: Moving from Concept to Implementation - Mallinckrofd Pharmaceuticals

Sept 2017 | More Than A “Club:” How To Make Employee Resource Groups Matter - Jopwell

Aug 2017 | Best of Both: ERGs AND Inclusion - Diversity Best Practices

Jan 2016 | What's Next for Employee Resource Groups? - Association for Talent Development

Oct 2016 | Employee Resource Groups Can Help Boost Bottom Line - Bloomberg

"AAEN's events are the best! Always well organized and very well attended ... a high quality crowd every time."

- John

"You can count on our sponsorship and participation every year."

- Corporate Partner

"A friend referred me to AAEN when I moved to the Bay Area. That one connection changed my life - professionally and socially."

- David

"AAEN delivered on everything they promised ... from start to finish to follow up. They're a top notch organization."

- Corporate Partner

"You guys rock!"

- Faith

Related:
Diversity still matters (2020 article)
Why diversity matters (2015 article)

Delivering Through Diversity
(2018 report)

Latest research reinforces the link between diversity and company financial performance, competitive advantage and growth - McKinsey & Company

Related
Diversity still matters (2020 article)
Why diversity matters (2015 article)

Nov 2017 | I n What Ways do Employee Business Resource Groups Positively Impact the Company's Business Results? - Cornell University ILR School