Why Diversity Makes Your Company Richer

By Glenn Stearns
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Why Diversity Makes Your Company Richer

An open letter from Glenn Stearns, CEO of Kind Lending

Listen up! If you’re a leader in the workplace, this one’s for you…

But! If you’re still working your way up the corporate ladder, it may be just as important (if not more so) that you read on and take what I say to heart. In fact, I strongly believe that it will be CRITICAL to the success of your venture and future-team that you hang onto this information until you make it to the top of the pecking order.

I’m writing today to tell you about a well known, but waaaay undervalued, philosophy that the top companies all around the world are using to boost their bottom line.

Best Buy, Sony and Coca-Cola (just to name a few) are rated as the most diverse and inclusive employers in the world. What makes this worth talking about is the encouraging effect that the title has had on their profit margins.

All three have seen meteoric growth since they implemented inclusive hiring policies several years ago.

For me, this makes strong diversity policy a no-brainer. But if you want to see the data, then I’ve got you covered…

Read on, underdogs!

1. Women Make Legendary Leaders

As if you needed any evidence for this. A recent analysis by the Peterson Institute for International Economics makes it clear as day:

In an international survey of 21,980 firms, researchers found that the presence of women in leadership roles was linked directly with higher performance of the company as a whole.

The paper suggests two possible explanations for this:

This could be the payoff in workplace morale of nondiscriminatory policies that helped women reach these positions. In addition, the presence of high-powered women was suggested to have fostered a more diverse approach to problem solving.

Either way, if you’re looking for someone to head up a team, the data suggests that you should look to your leading ladies.

2. Trust The Numbers

Higher workforce engagement, better decision making, and more comprehensive consumer insights are just three of the reasons that diverse companies lead their industries in profits and productivity.

A 2018 study by McKinsey & Co. found that among the top performers across multiple industries, those with a significant female presence in the boardroom had higher profits than those without.

This doesn’t just apply to women. That same study found that firms with cultural and ethnic diversity in their executive teams are 33% more likely to soar above their peers’ profit margins.

3. Keep Your Hiring On The Cutting Edge

Everybody knows that fresh talent is what keeps the gears of your business moving. The new co-worker isn’t just bringing their paper lunch bag to work. They’re bringing their value as a team member, and a new set of eyes to approach each problem with.

The latter is worth its weight in gold. Literally!

What diversity-minded hiring practices do is guarantee that your problem is being solved with as many unique minds as possible. Hiring people with different life experiences, backgrounds, and ideas is going to get you to the top of your field and keep you there.

Oh, and it’s just a damn good thing to do. In the end that should be the only reason you need.

Signing off,