In the news
Diversity improves the bottom line
According to a recent poll by Harrier Human Capital, 63% of respondents say their organisation has a strategy in place for managing an increasingly diverse workforce.
This is pleasing news given the strong evidence showing clear economic benefits for cultural and gender diversity. Companies with high executive and board diversity have ROEs an average of 53% higher than those with low levels and EBIT margins 14% higher.
A recent study of diversity in Fortune 1000 companies found diversity amongst corporate leaders to be significantly linked to revenues, net income and book-to-market equity.
The poll result suggests companies are finding positive ways to minimise the costs, employee impact and reputational damage associated with discrimination or harassment.
US research has shown that when a company has a diversity complaint that goes public, their share price will drop within 24 hours. Conversely, when employers win a diversity award their share price will increase within ten days. Some 70 per cent of employees exposed to racial discrimination, violence or harassment will take time off or leave the organisation.
37% of poll respondents however, indicated their organisation had no strategy in place for managing diversity.
Harrier CEO Kelly Quirk recently partnered with Rabia Siddique, a criminal and human rights lawyer awarded a Queen’s commendation for human rights work, to discuss gender diversity across the global and Australian landscapes at the Australasian Talent Conference in Sydney. The presentation focussed on the need for change and the need for positive, progressive strategies to engage, recruit and retain women in leadership and business.
Harrier will release a major white paper on gender diversity later in the year.