Published: January 2018
The benefits of diversity
Companies with more diverse leadership teams are more likely to outperform financially. A recent McKinsey study of 1,007 companies in 12 countries placed them into quartiles for gender and ethnic diversity. Companies in the 1st quartile for gender diversity were 21% more likely to outperform on profitability than those in the 4th quartile, while companies in the first quartile for ethnic diversity were 33% more likely to outperform those in the 4th.
The chart below shows the financial performance above national industry median. If diversity had no effect, all quartiles would have a 50% likelihoodto outperform.
4th Quartile (Least Diverse): 45%
1st Quartile (Most Diverse): 55%
Diversity Boost (to financial performance): +21%
4th Quartile (Least Diverse): 44%
1st Quartile (Most Diverse): 59%
Diversity Boost (to financial performance): +33%