To work actively with Diversity & Inclusion (D&I) isn’t just the right thing to do – it can also make the organization more productive. This according to a recent study published in the Academy of Management (AOM) Journal, showing the connection between racial diversity and productivity.
A number of researchers (Mingxiang Li, Orlando Richard and María del Carmen Triana) analyzed more than 200 tech companies, finding that “firms with unequal levels of racial diversity in upper and lower management were less capable of making good business decisions, absorbing information and obtaining a competitive advantage…” I.e. that there are a bunch of negative effects of not having racial diversity throughout the hierarchy – from the top and out into every corner of the organisation. And while companies with more diversity in the top leadership – than in lower management – did outperform companies where these were reversed, the study emphasised “the “critical role” that lower management plays in organizations.” Underlining the importance of thinking diversity in management across the board – whether your organisation is tech-based or not.
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While focus on D&I has increased in the last few years, many are struggling with diversity on a managerial level. Which is to say that diversity in organisations may have increased overall, but said diversity isn’t as prevalent in managerial positions. Which is certainly a problem, and where the authors of the above study suggest that organisations “approach diversity as a means of learning from different perspectives”.
And you know what? Focusing on diversity isn’t just the right thing to do, and it isn’t just an awesome way to boost productivity. It can also aid recruitment efforts, as people want to work for companies whose values include D&I. Where a diverse leadership is a good way to showcase your commitment to Diversity & Inclusion, and that adds yet another reason to work actively with the area.
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