Diverse companies are more successful

Companies with greater gender and ethnic diversity are more likely to succeed financially than those with a more homogeneous workforce, according to an international survey of more than 1,200 firms by business consultancy McKinsey.

Those among the top 25% for gender and ethnic diversity respectively are 39% more likely to outperform financially than those in the bottom quartiles for either measure, a gap that’s grown from 15% for gender representation since 2015.

Companies with less diverse executive teams also face a significant penalty, with those among the worst quartile 66% less likely to outperform.

“McKinsey has delivered a comprehensive global perspective on the relationship between leadership diversity and company performance,” claims the report. “This year, the business case is the strongest it has been since we’ve been tracking it.”