McKinsey has been examining diversity in the workplace for several years. This in turn suggests that other kinds of diversity-for example, in age, sexual orientation, and experience (such as a global mind-set and cultural fluency)-are also likely to bring some level of competitive advantage for companies that can attract and retain such diverse talent. More diverse companies, we believe, are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns. While correlation does not equal causation (greater gender and ethnic diversity in corporate leadership doesn’t automatically translate into more profit), the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful. And diversity is probably a competitive differentiator that shifts market share toward more diverse companies over time. Companies in the bottom quartile in these dimensions are statistically less likely to achieve above-average returns. Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians.
It’s also increasingly clear that it makes sense in purely business terms. We know intuitively that diversity matters.
