Numerous studies have shown that organizations who are proactive about diversity and inclusion perform significantly better than those who are not. A Harvard Business Review study showed that companies with higher than average diversity had 19% higher revenues in innovation. A McKinsey & Company study found that organizations with gender-diverse executive teams are 21% more likely to outperform others in profitability. And 43% of companies with diverse boards of directors show higher profits.
In addition to better financial performance, companies with a culture of diversity and inclusion have higher employee engagement and attract more talent. According to Glassdoor, 67% of job seekers consider workplace diversity an important factor when considering employment opportunities.
And yet, Silicon Valley is still struggling to diversify its workforce. Despite a variety of programs to increase diversity, data in a recent Morning Consult article indicated that at Facebook, Twitter and Google less than 6% of employees are Hispanic and less than 5% are African-American. Likewise, their executive teams and boards are made up predominantly of White men.
So, what does it take for companies to be more reflective of our increasingly diverse society and to create more opportunities for diverse candidates at the top? It takes leaders who show the way.
One such leader is Alexis Ohanian, co-founder of Reddit, who announced recently that he’s stepping down from the Reddit board and urging Reddit to fill his seat with a Black candidate. He said on his Instagram site, “I believe resignation can actually be an act of leadership from people in power right now.” Ohanian also pledged $1M to Colin Kaepernick’s Know Your Rights Camp. Hear more of what Ohanian has to say about leading the way to increased diversity and inclusion both in hi-tech and in venture funding in this Instagram video interview.
If you need help in incorporating diversity into your hiring practices and/or culture, please contact me at michelle@connecttohr.com.
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