DEI boosts the bottom line for many companies, according to both experts and data. Research shows major firms with women and people of colour at the helm outperform their homogenous peers. A 2020 McKinsey & Company analysis of 1,000 US firms showed companies with more gender diversity within their leadership teams were
25% more likely to have higher profits than their peers who did not. The report also showed companies with the most ethnic and cultural diversity achieved 36% higher profitability than companies with a less diverse C-suite.
As businesses rapidly globalise, DEI is becoming even more important for many firms. US companies that manufacture in America might, for example, have engineers working in Asia, which means employees who can work cross-culturally will be an asset, says
Michele Williams, associate professor at the University of Iowa's Tippie College of Business.
And domestically, as
the population of the US continues to rapidly diversify, the demographics of American workplaces will change as well, says
Gisele Marcus, professor of practice in diversity, equity and inclusion at Washington University in St Louis. Companies that actively engage a diverse pool of talent now will be the most nimble in the future, she says.