Diversity makes companies stronger during the pandemic (McKinsey report)
Inclusion and diversity is a powerful enabler of business performance. Companies whose leaders welcome diverse talents and include multiple perspectives are likely to emerge from the pandemic stronger, international consultancy McKinsey says in a report.
In the COVID-19 crisis, inclusion and diversity matter more than ever, the company argues.
”For business executives the world over, the covid 19 pandemic is proving to be one of the greatest leadership tests of their careers. Not only must they protect the health of their employees and customers, they must also navigate far-reaching disruption to their operations, plan for recovery, and prepare to reimagine their business models for the next normal.”
However, McKinsey says that on the other hand, some companies appear to be viewing inclusion and diversity (I&D) as a “luxury we cannot afford” during the crisis.
“We believe such companies risk tarnishing their license to operate in the long term and will lose out on opportunities to innovate their business models and strengthen their recovery.”
”If companies deprioritize I&D during the crisis, the impact will be felt not just on the bottom line but in people’s lives. Research and experience warn that diverse talent can be at risk during a downturn for several reasons—for example, downsizing can have a disproportionate impact on the roles typically held by diverse talent.”
As companies send staff home to work, this could reinforce existing exclusive behaviours and unconscious biases and undermine inclusion. In addition, inequality with regard to sharing childcare and home schooling responsibilities, as well as the quality of home workspace (including broadband access), could put women and minorities at a disadvantage during this time of working remotely.”
”There is ample evidence that diverse and inclusive companies are more likely to make better, bolder decisions—a critical capability in the crisis.”
The company says its earlier research has found that the greater the representation, the higher the likelihood of outperformance. Companies with more than 30 per cent women executives were more likely to outperform companies where this percentage ranged from 10 to 30, and in turn these companies were more likely to outperform those with even fewer women executives, or none at all.
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