Why diversity matters?

Did you know –
 There are more CEOs in US organizations named John, than there are women.
 For every 100 men promoted and hired to manager, only 72 women are promoted and hired.
 1 in 4 women think their gender has played a role in missing out on a raise, promotion or chance to get ahead.

In India, the situation is even worse. Gender disparities in the country are rooted in socio-economic realities, that cause survival, safety, education and economic inequalities between genders.

Over the past decade, the number of women across levels especially leadership levels has grown, but they continue to be under-represented. Before we get into the why and how behind the current situation, let’s first address the question – is gender diversity important for an organization? McKinsey has been conducting continued research on the subject, and the results of their research have repeatedly shown that diversity, inclusion, and performance go hand in hand. Over the past five years, the likelihood that diverse companies will out-earn their industry peers has grown. So have the penalties for companies lacking diversity. Similarly, their previous research found that women tend to demonstrate, more often than men, five of the nine types of leadership behaviour that improve organizational performance. Women also more frequently apply three of the four types of behaviour—intellectual stimulation, inspiration, and participative decision making—that most effectively address the global challenges of the future. Furthermore, diversity in any form, gender included, brings in varied ideas on the table, bringing about new problem solving experiences.

Example – Several reports have shown that in the 2008–09 global financial crisis, banks with a higher share of women on their boards were more stable than their peers. This research also suggests that banks run by women might be less vulnerable in a crisis.2 We are witnessing now that cities and countries with women leaders are thought to be facing the COVID-19 pandemic more successfully than those without them.3 It may be, as a McKinsey research suggests, that female leadership has a trust advantage giving women the edge in certain crisis situations.

Now that we have established why it makes business sense to pay adequate attention to a healthy balance in the genders they employ, let us take a look at how can we do that.

Over the past decade, we see a lot of companies talking about efforts in the diversity and inclusion space. Yet the progress remains sluggish. Some of the steps that could work favorably in this direction would be

1. Include your managers in the discussion. Get their buy-in on why this is relevant and critical for the organization. Inclusion and a fair voice & opportunities for all should not be seen as a challenge by the majority.
2. Identify, accept and work on the biases. While some biases we may be aware of at an individual level, some others could be unconscious biases. It is critical for organizations to set up systems in place to check the biases that could come up in decision making.
3. Devise robust redressal systems. According to HBR, approximately half of all discrimination and harassment complaints lead to some type of retaliation..
4. Work with data. Look at gender data over a period of time for your own organization, and compared to your peers to get an understanding of the progress that you have made, and the work that still needs to be done.
5. While there has been enough talk about glass ceiling faced by women, it is typically understood as something that prevents women from reaching the top levels in an organization. A study conducted by leanin.org suggests that the biggest obstacle that women face is the first step up to manager, or the “broken rung.” This broken rung results in more women getting stuck at the entry level and fewer women becoming managers. As a result, there are significantly fewer women to advance to higher levels. To get to gender parity across the entire pipeline, companies must fix the broken rung.
6. Mentor young women. Especially so by senior women at workplace, who understand the challenges of being the underrepresented gender at work.
7. Build flexibility into the job. Provide suitable flexible working options and arrangements for maternity and child care. Encourage men in your organization to take advantage of family friendly policies to provide a balanced work environment at work and home.
8. Learn from success stories. Understand how companies that have been successful in taking advantage of the diversity story have made it possible for themselves.

Ultimately, everyone gains with inclusion – socially, psychologically and economically.
1 Leanin.org
2 David Lipton, Boosting Growth Through Diversity in Financial Leadership, IMF
3 Tomas Chamorro-Premuzic, Are Women Better At Managing The Covid19 Pandemic?, Forbes