Diversity Recruitment Metrics: Setting and Tracking Goals

Diversity recruitment metrics are crucial for organizations looking to build a diverse and inclusive workforce.

With growing awareness of the importance of diversity, equity, and inclusion (DEI) in the workplace, companies are increasingly focused on measuring their progress in these areas.

In this article, we will explore why measuring diversity recruitment is essential and look at specific key performance indicators (KPIs) and metrics that can be used to track progress.

Why measure diversity recruitment?

Measuring diversity recruitment is essential for several reasons.

It allows organizations to track their progress toward building a diverse and inclusive workforce. Without metrics, knowing whether your diversity recruitment strategy has the desired impact can be challenging.

Additionally, measuring diversity recruitment can help organizations identify and address any barriers or challenges preventing them from achieving their DEI goals.

Another important reason to measure diversity recruitment is that it can help organizations identify and address unconscious bias in the recruitment process. Unconscious bias refers to the unconscious attitudes and beliefs that can influence our behavior and decision-making and result in the underrepresentation of certain groups in the workforce.

By measuring diversity recruitment, organizations can identify where unconscious bias may be present and take steps to address it.

Finally, measuring diversity recruitment can help organizations demonstrate their commitment to DEI to external stakeholders.

With increasing pressure on companies to be transparent about their DEI efforts, having metrics in place can help organizations demonstrate their progress and commitment to building a diverse and inclusive workforce.

KPIs and Metrics for Diversity Recruitment

There are several different KPIs and metrics that organizations can use to measure their progress in diversity recruitment.

Some of the most commonly used include:

1. Representation

This metric measures the percentage of employees from underrepresented groups within the workforce. This can include metrics such as the percentage of women, people of color, and people with disabilities in the workforce.

Representation is an important metric because it allows organizations to track their progress toward building a more diverse workforce.

Underrepresentation of certain groups in the workforce can have a real business impact. A lack of diversity in the workforce can lead to a lack of different perspectives and ideas, which can inhibit innovation and limit the organization’s ability to connect with diverse customers.

Also, studies have shown that diverse teams tend to perform better and have increased creativity and problem-solving skills.

Additionally, not measuring representation can lead to missing out on the potential benefits of having a diverse workforce, such as increased employee engagement, improved employee retention, and improved organizational performance.

Not having a diverse workforce can also lead to potential reputational risks and potential legal issues, as well as missing out on potential business opportunities.

2. Applicant pool diversity

Measuring applicant pool diversity is essential for understanding the diversity of the talent attracted to the organization. This metric measures the diversity of the applicant pool for a given role or across an organization by looking at the percentage of applicants from underrepresented groups.

When applicant pool diversity is not measured, organizations may not be able to identify where there are challenges in attracting a diverse pool of applicants. Without this information, organizations may miss out on potential candidates from underrepresented groups who could bring valuable perspectives and ideas to the organization. This can limit the organization’s ability to connect with diverse customers and inhibit innovation.

Moreover, not measuring applicant pool diversity can also lead to potential reputational risks. A lack of diversity in the applicant pool can be perceived as discrimination or bias and lead to negative perceptions from external stakeholders.

Having a diverse applicant pool is not only a moral imperative but also results in better business outcomes. Studies have shown that companies with diverse applicant pools have better financial performance and make better decisions than those without.

3. Hiring rate

Measuring the hiring rate is an important metric to understand the diversity of the talent selected for the organization. This metric measures the percentage of applicants from underrepresented groups who are ultimately hired. It can help organizations identify barriers or challenges preventing them from hiring a diverse workforce.

When the hiring rate is not measured, organizations may be unable to identify where there are challenges in the hiring process that may be preventing them from hiring a diverse workforce. Without this information, organizations may miss out on potential candidates from underrepresented groups who could bring valuable perspectives and ideas to the organization.

This can limit the organization’s ability to connect with diverse customers and inhibit innovation.

Moreover, not measuring the hiring rate can also lead to potential reputational risks. A lack of diversity in the hired workforce can be perceived as discrimination or bias and lead to negative perceptions from external stakeholders.

Studies have shown that companies with a diverse workforce have better financial performance, improved employee engagement, and make better decisions than those without.

4. Retention rate

Measuring the retention rate of employees from underrepresented groups is a critical metric in assessing the success of a diverse and inclusive workplace. This metric calculates the percentage of employees from underrepresented groups who remain with the organization over time.

By tracking this metric, organizations can identify any issues with retention and take steps to improve it.

When the retention rate is not measured, an organization may not be aware of the factors that contribute to high turnover rates among underrepresented groups. This lack of insight can prevent the organization from addressing the root cause of the issue and implementing practical solutions.

Additionally, a high turnover rate among underrepresented groups can lead to a lack of diversity in the long term and result in a lack of different perspectives and ideas within the organization.

Retention rate is also a crucial metric to monitor as it indicates employee engagement and satisfaction, which can directly impact organizational performance. A diverse and inclusive workplace where employees from underrepresented groups are retained and engaged leads to improved productivity, creativity, and problem-solving skills.

5. Employee engagement

Employee engagement surveys can help organizations identify any challenges employees from underrepresented groups may face in the workplace. This can include issues such as a lack of opportunities for advancement, support, or a sense of belonging.

By tracking this metric, organizations can identify areas for improvement and take steps to increase employee engagement among underrepresented groups.

When employee engagement is not measured, an organization may not be aware of the factors that contribute to low engagement among underrepresented groups. Additionally, low engagement among underrepresented groups can lead to high turnover rates and a lack of diversity in the long term.

Employee engagement is a crucial metric to monitor as it indicates the level of employee satisfaction and commitment, which can directly impact organizational performance. A diverse and inclusive workplace where employees from underrepresented groups are engaged leads to improved productivity, creativity, and problem-solving skills.

Conclusion

Measuring diversity recruitment is crucial for organizations looking to build a diverse and inclusive workforce. By tracking progress, identifying challenges, and addressing unconscious bias, companies can take steps to improve their diversity recruitment efforts.

Additionally, metrics can help organizations demonstrate their commitment to DEI to external stakeholders. By monitoring the representation, applicant pool diversity, hiring rate, retention rate, and employee engagement, organizations can set and track goals and improve their diversity recruitment efforts.

However, it’s important to note that measuring diversity recruitment is not just about numbers; it’s also about creating a culture where all employees feel valued and can thrive.

How to Build a Successful Diversity Recruiting Strategy and Overcome Bias in Hiring

Diversity and inclusion are becoming increasingly important in the modern workplace. Not only is it the right thing to do, but it has also been proven to impact an organization’s bottom line positively.

However, despite the benefits of diversity and inclusion, many organizations struggle to implement effective strategies for recruiting a diverse workforce. One of the biggest challenges is overcoming bias in the hiring process.

This article will dive deeper into what diversity recruiting is, explore the benefits of a diverse workforce, and provide tips on building a successful diversity recruiting strategy while overcoming bias in hiring.

What is Diversity Recruiting?

Diversity recruiting is the process of actively seeking out and recruiting individuals from a wide range of backgrounds and identities to join an organization. This includes individuals from different ethnicities, races, genders, sexual orientations, abilities, and socio-economic backgrounds, veterans, and individuals with diverse experiences and perspectives.

Diversity recruiting aims to build a workforce that reflects the diversity of the communities an organization operates and serves. Diversity recruiting has become a crucial aspect of talent acquisition in today’s globalized business world. The demographics of the workforce and customer base are constantly changing, and organizations must adapt to stay competitive.

For example, a company that operates in a multicultural city should have a workforce that reflects the diversity of that city. Similarly, a company that serves a diverse customer base should have employees who can understand and connect with those customers.

In some scenarios, diversity recruiting is mandated by law. For example, government contractors must have an affirmative action plan to ensure they are not discriminating against certain groups. This includes setting goals for hiring individuals from underrepresented groups and regularly reporting on their progress.

Moreover, in industries such as technology, where the field is dominated by a specific demographic, it becomes crucial for organizations to diversify their workforce to bring in fresh perspectives and ideas to stay competitive and innovative.

Diversity recruiting is not just limited to hiring; it also encompasses the retention and development of diverse talent within an organization. This includes creating a culture that values and respects all employees, providing training and development opportunities, and recognizing and rewarding those committed to diversity and inclusion.

Benefits of Diversity Recruiting in Modern Workplaces

Diversity in the workplace brings a wide range of benefits to an organization. It leads to a more innovative and creative workforce, as individuals from different backgrounds bring different perspectives and ideas to the table. This can result in more successful problem-solving and decision-making.

Additionally, a diverse workforce can help an organization better serve its customer base and stay competitive in a global market.

Diversity in the workplace also leads to a more engaged and motivated workforce. When employees feel that they belong and are valued, they are more likely to be satisfied with their jobs and stay with the organization for the long term.

Furthermore, a diverse workforce can improve employee retention, as employees are likelier to stay with an organization that values and respects them and includes a diverse workforce in leadership positions.

Tips for Building a Successful Diversity Recruiting Strategy

Diversity recruiting is essential for creating a diverse and inclusive workforce, but it can be challenging to implement effective strategies.

This section will provide practical tips for building a successful diversity recruiting strategy.

From reviewing job descriptions and diversifying recruiting sources to creating an inclusive interview process and committing to diversity and inclusion as a company value, these tips will help organizations overcome bias in the hiring process and build a diverse workforce.

1. Review your job descriptions

Job descriptions are often the first point of contact between an organization and potential candidates, and they must be inclusive and free of bias.

Review your job descriptions for any language that could be interpreted as exclusive, such as “must have X years of experience” or “must have a specific degree.” This can discourage qualified candidates from applying.

Instead, focus on the qualifications and skills for the role, and consider using inclusive language.

2. Diversify your recruiting sources

Don’t limit yourself to the usual job boards and universities.

Instead, reach out to organizations that focus on diversity and inclusion, such as professional associations for underrepresented groups, and attend job fairs and networking events that target diverse candidates.

Additionally, consider using recruiting agencies specializing in diversity recruiting or reaching out to employee resource groups within the organization to identify potential candidates.

3. Create an inclusive interview process

The interview process can often reveal unconscious bias. To overcome this, train your hiring team on how to conduct inclusive interviews.

This includes avoiding asking illegal questions and using structured interview questions that focus on the candidate’s qualifications and experience.

Additionally, consider implementing a diverse interview panel, with representation from different backgrounds and experiences, to ensure a more balanced perspective during the decision-making process.

4. Use blind resume screening

To reduce bias in the initial screening process, consider using blind resume screening.

This means that the candidate’s name and identifying information are removed from their resume before it is reviewed.

This helps to eliminate bias based on factors such as name, address, and educational background and allows for a more objective assessment of the candidate’s qualifications and experience.

5. Consider offering flexible work arrangements

Many underrepresented groups may have caregiving responsibilities that make traditional work arrangements difficult.

You can attract a broader range of candidates by offering flexible work arrangements such as telecommuting or flexible scheduling.

This can also help to retain a diverse workforce, as employees are more likely to stay with an organization that values and respects their individual needs.

6. Assess your current workforce

Look at your current workforce and identify where there may be gaps in diversity. This will help you focus your recruitment efforts on the areas you need to improve.

Additionally, consider conducting an employee engagement survey to gather feedback on what can be done to create a more inclusive and welcoming work environment.

7. Partner with Employee Resource Groups (ERGs)

Employee Resource Groups (ERGs) come together based on a shared identity or interest. They can serve as a valuable resource for diversity recruiting, as they can help to identify potential candidates and provide mentorship and support for new hires.

They can also provide valuable feedback on the organization’s diversity and inclusion efforts and suggest areas of improvement.

8. Commit to diversity and inclusion

Building a diverse workforce is not a one-time effort; it requires ongoing commitment and dedication.

Make sure that diversity and inclusion are a part of your company’s mission and values, and actively work to create a culture that values and respects all employees.

This includes implementing employee training and development programs and recognizing and rewarding those committed to diversity and inclusion.

Conclusion

Building a diverse workforce is essential for the success and longevity of an organization. It brings many benefits to an organization, including increased innovation, better customer service, and improved employee engagement and retention.

However, many organizations struggle to implement effective strategies due to bias in the hiring process. By following the tips outlined in this article, such as reviewing job descriptions, diversifying recruiting sources, creating an inclusive interview process, using blind resume screening, and committing to diversity and inclusion as a company value, organizations can overcome bias in the hiring process and build a successful diversity recruiting strategy.

It is crucial to continuously assess and measure the progress and success of diversity recruiting efforts, to identify areas where they need to improve, and to make necessary adjustments to their diversity recruiting strategy.

Organizations must also focus on creating a culture that values and respects all employees, providing training and development opportunities, and recognizing and rewarding those committed to diversity and inclusion.

In today’s globalized business world, diversity recruiting is not just a trend or a legal requirement, it is a business imperative that organizations must adopt to thrive.

CEO Worldwide added to London’s 101 Fastest Growing Staffing Agency Startups

We are happy to announce that CEO Worldwide has been added to the list of London’s fastest growing staffing agencies.

This prestigious list, compiled by beststartup.london, recognizes the top 101 startups in the staffing industry that are making a significant impact in the city’s economy. CEO Worldwide’s inclusion on this list is a testament to the company’s exceptional growth and success in the recruitment sector.

With its innovative approach to connecting top talent with top companies, CEO Worldwide has established itself as a premier destination for both job seekers and employers in London.

The company’s position on the list of London’s fastest growing staffing agencies is a clear indication of its outstanding performance and its bright future in the industry.

10 Important Reasons to Have Diversity, Equity and Inclusion (DEI) When Recruiting Executives

You may not realize it, but your workplace diversity can make or break the company you’ve worked hard to build. Having people on your team with different backgrounds and experiences can attract customers in ways that would have never occurred to you. It improves communication and opens doors for unique viewpoints you’d never experience otherwise.

Diversity, Equity, and Inclusion (DEI) have become an essential part of the hiring process – it allows you to cultivate teams with the variety of people necessary to improve your business results and ensure that you remain competitive in the marketplace.

What is Diversity, Equity, and Inclusion (DEI) in Recruitment?

Diversity, equity, and inclusion (DEI) in recruitment refers to actively seeking and recruiting a diverse pool of candidates, ensuring that all candidates are treated fairly throughout the hiring process, and creating an inclusive work environment for all employees. This includes but is not limited to, candidates from different racial, ethnic, and socioeconomic backgrounds, as well as those with different abilities, genders, sexual orientations, and ages.

Creating a diversity recruitment strategy requires targeted outreach programs to reach diverse candidates, such as working with community organizations, professional associations, and other groups that serve underrepresented communities. It also requires reviewing job postings, application materials, and interview questions to ensure that they are inclusive and free of bias.

Important Reasons to Have Diversity, Equity and Inclusion (DEI) When Recruiting Executives

The following are reasons why it is so essential to have Diversity, Equity, and Inclusion (DEI) in mind when recruiting executives-

1. Greater Innovation and Creativity

You can create a culture that encourages greater innovation when your team comprises employees with different perspectives and experiences.

It doesn’t matter if you operate in a conservative industry where your clients want the same things they always get or if you are in a field where change is the only constant. Diversity will inspire new ideas, improving your business functions in ways you may never have imagined.

The next time you hire someone, look for a candidate with a completely different background from yourself who will be able to open your eyes to potential opportunities that you wouldn’t have noticed otherwise.

2. Your Team Will Be More Competitive

Consumers today are highly conscious of the corporate image of companies they patronize, and they do not hesitate to go elsewhere if they feel that the values of a company conflict with their views and lifestyles.

So, it’s vitally important for any business to hire the best employees with the skills necessary to exceed the expectations of those who will buy their products and services. In this respect, diversity can help ensure that your company is equipped with an army of more talented and skilled employees than your competitors.

The better your team is at making every aspect of the business run smoothly, the more likely you will maintain strong brand awareness and customer loyalty. In short, getting well-rounded and diverse employees is one of the best ways to ensure your company continues to thrive.

3. You’ll Be Able To Attract More Customers

When you have access to a pool of potential candidates with diverse backgrounds, your company will be able to attract more customers than it would have had otherwise.

Because you are looking for people who are as skilled and talented as your best employees, you will be able to attract candidates with many different qualities and skills.

This also has the added benefit of being more cost-effective than hiring only people with similar experiences because it will be easier for you to find the right candidate for your business.

The more customers you have, the more money your company will make and the more successful it will be.

4. Diversity Provides a Range of Skills

However, it’s not just a matter of finding great employees. When you are looking to build a diverse workforce, you have to hire candidates who can adapt their skills and abilities to the needs of your business.

You also need to know that there will be a learning curve when integrating new people into your team. This means you will want employees who can learn on the fly and understand how their new colleagues work for them all to achieve more than they could on their own.

It’s also important to know that candidates from different backgrounds often have very different work ethics and expectations, so you will need to be prepared for some of these challenges in advance.

Planning by instituting diversity training programs, for example, can help make a great first impression on your new employees and show them that your company is invested in the kind of workplace where everyone can thrive.

5. It Improves Overall Business

Diversity, equity, and inclusion (DEI) plays a critical role in the success of any business. Not only does it create a more inclusive and equitable workplace, but it also has a direct impact on a company’s bottom line.

A diverse workforce brings a range of perspectives and experiences, which can inspire new ideas and improve business functions in ways that may have never been imagined. This leads to greater creativity and a competitive edge for the company.

Diverse companies have been found to have better financial performance and higher returns on equity. This is because DEI leads to increased market share, improved customer satisfaction, and increased employee retention.

DEI helps companies to be more compliant with laws and regulations. Failing to comply with laws regarding discrimination can lead to costly lawsuits and reputational damage. By implementing DEI in recruitment, companies can ensure they comply with laws and regulations.

Additionally, DEI helps improve the decision-making process as it brings different perspectives, experiences, and thought processes which can lead to better decision-making.

why it is Important to have Diversity Equity and Inclusion (DEI)

6. Happier Employees

Having Diversity, Equity and Inclusion (DEI) in your workplace will make your employees happier.

Because DEI provides a better work environment, there is more camaraderie among team members and a sense of community that will make the working environment more fun.

Employees who feel they belong to a successful team are much more likely to be engaged with what they are doing and more likely to put forth the extra effort required to succeed.

In the end, this can mean more sales and profits to be made, which is a win-win for everyone in the organization.

7. Increased Productivity

It’s not just the employees who will benefit from DEI – your business will also see more profits and greater productivity.

With a more diverse workforce, your company can address all customer needs, which is one of the keys to success in today’s competitive markets.

When you have a diverse workforce, you become better equipped to attract new customers and address any challenges that may come up in their experience with your company.

8. Understand Your Customers

When a company has a diverse workforce, it is better equipped to understand and relate to its customers’ diverse backgrounds, cultures, and needs. This will help you predict market trends and offer goods and services that appeal to the broadest possible range of your consumer base.

A diverse workforce brings a range of perspectives and experiences, which can help companies better understand the cultural nuances of their customers. This allows companies to create products and services that are more culturally appropriate and appealing to diverse customers.

Diversity allows companies to understand the needs of different customers and provide better service. For example, employees from diverse backgrounds may be able to speak multiple languages, making it easier for customers to communicate with the company.

A diverse workforce can help companies understand the unique needs and preferences of different customer segments, leading to more effective marketing strategies. This includes creating targeted campaigns and messaging that resonates with different communities.

9. More Talent to Choose From

If you are in business, one of the things that can make a massive difference to your bottom line is attracting and retaining employees.

When your company can offer a diverse range of opportunities for those transitioning from other careers, for example, you’ll be able to draw from an increased talent pool. This will give you the best chance of hiring the right people.

10. Higher Revenues Through Diversity, Equity, and Inclusion

Finally, a diverse workforce will enable your company to grow and expand.

As you attract new customers and increase sales, you will see that the profits from these operations will be much higher than they would have been for a less diverse workforce.

Diversity in the workplace is not just about finding the best employees for your company but also about making every aspect of your business better for everyone in your organization.

Female Executive Search will help you achieve executive gender diversity for your company, from your executive leadership team to your Board Non-Executive Directors.

Girl Power Talk: Gender Equity and Diversity


Why Gender Equity and Diversity Matter for Successful Businesses

Most business questions focus on how to generate greater revenue, facilitate higher team productivity, encourage collaboration, have lower employee turnover, and attract a larger section of the market. One answer to each of these questions is to embrace diversity, equity, and inclusion (DEI) in businesses and work cultures.

Studies have shown that improving DEI in the workplace is not just the right thing to do, but a smart executive decision. The latest Mckinsey report (2018) adds to the list, suggesting businesses that have continuously shown above-average performance in this sector are 21% more likely to have better than average profits. So, when studies repeatedly reiterate this fact, then why hasn’t our capitalist world seized this opportunity yet?

Read the complete article here

What Makes Female CEOs Different and Why You Should Hire Them?


Female CEOs have been making waves in the business world. Many have made their way to the top of the ladder by being innovative, hardworking, and dedicated to their companies. Female CEOs are now leading the world’s largest companies. The number of female CEOs in Fortune 500 companies has gone up to 15 percent over the last year, and it is expected to rise to 25 percent by 2025.

Female CEOs have their way of doing things different from male CEOs, but they also have specific skills that make them successful leaders. Here is what makes female CEOs different and why you should hire them.

They Are Better Listeners

All CEOs need to be good listeners. But listening is a rare skill in men and very common in women. They take their time to understand and ask questions before making decisions. They build consensus with employees, customers, and other stakeholders before deciding. This makes them more effective leaders because they can quickly identify problems and implement solutions.

They Know How to Delegate Work

Women tend to be better at delegating tasks than men, making them more effective leaders because they can delegate tasks effectively. Although this can be learned over time, women tend to learn it faster than men because they have more experience delegating tasks within their departments or across an organization. This means that women will have fewer employees reporting directly to them and can focus on higher-level strategic goals instead of micro-management at work.

They’re Better at Managing Conflict

This is one of the biggest differences between male and female CEOs. Men tend to be less empathetic and less able to manage conflict than women. Women are better at understanding emotions and being diplomatic when dealing with people, making them more effective leaders.

Females are more likely to use both words and actions as tools for resolving conflict. When there’s conflict, they’ll usually step back from the situation and try to find a solution together rather than letting things escalate into drama and arguments that could hurt morale and productivity in an organization.

female ceos lead by example

They Understand How to Lead by Example

Women tend to be better listeners than men because they’re more attuned to their team members’ needs and concerns. They also tend to have high expectations for their employees, which helps keep their team motivated and productive in high-pressure situations.

They’re More Likely to Understand the Needs of Their Employees

Women are better at working with others and understanding their employees. They are also more likely than men to be good at recognizing how their actions affect others and how those actions affect the organization as a whole. Whether meeting with individual employees or focusing on creating a culture of employee engagement, women CEOs will understand what it takes to make a company successful.

Women Are More Likely to Focus on Long-Term Goals Rather Than Short-Term Gains

Women tend to prioritize long-term goals over short-term gains, which can lead them to focus on the bigger picture rather than trying to hit quarterly targets or make quick profits by spending money without thinking about its impact on the overall bottom line. This kind of thinking can help companies weather economic downturns and keep them out front of competitors in an increasingly competitive marketplace where customers are looking for value above all else – even if that means waiting longer for new products or services or paying more for existing ones than they might have done previously.

They Are More Likely to Be Empathetic Than Men

Women tend to be more empathetic than men, which can translate into better management skills when dealing with employees and customers. This is because women tend to have a deeper understanding of human emotion, what motivates people, and how they react to certain situations. They also tend to be more patient than men, making them excellent at handling difficult positions without losing their cool or becoming frustrated by others’ poor performance or attitude problems.

Final Thought

Female CEOs are different than their male counterparts. They have other goals, various strategies, and different ways of thinking. But one thing is for sure: Female CEOs are here to stay. If you want to know why you should hire female executives, this article has covered some reasons.

Patrick Mataix on Bridging the Gender Gap With Female Executive Search

What is the story behind Female Executive Search?

The majority of the women we have interviewed over the past 4 years (more than 350 across the globe) testify how difficult it is for them to access top level management or board positions. There is no room for error and they have to continuously outperform their male colleagues. Still, at the end of the month their paychecks prove the inequality of perception by a staggering gender pay gap of above 20%.

Where competencies fit, we systematically present one female and one male for every position. 20% of these placements are female, a figure that has grown by 50% in the past six months. We have placed women in CEO positions globally. There have also been strides made in regulations around the world, with quotas being brought in for board and management level positions. Of course, there’s still work to be done—especially as the world recovers from the impact of the COVID crisis; something that impacted the careers of women more so than men…

Click here to read the complete interview on girlpowertalk.com

Executive Recruitment Is Broken

How To Secure The Right Candidate On Your Terms In 2021

Established recruiters have somehow presided over decades of innovation across multiple sectors, without ever really taking inspiration from their clients. They’ve remained committed to an overpriced and inefficient model at the expense of speed, flexibility and quality. But businesses are losing patience. Fortunately, a service-driven revolution is already underway to redefine C-level executive placement. In this short paper you will discover:

  • Why businesses should demand more from recruiters
  • How technology can streamline outdated processes
  • The importance of transparent pricing and flexibility
  • How differentiators combine to become truly disruptive.

Who should read this paper?

This paper is specially created for C-level executives managing businesses anywhere in the world.

Why Diversity At Board-Level Matters

Why diversity at board-level matters

The importance of having a professionally and socially diverse board cannot be overstated in today’s corporate world. However, despite the benefits of diversity in the C-suite, equal representation of gender, race, religion, age, sexual orientation and disability in corporate boardrooms is still a long way off. To make a case for why organizations should be more committed to increasing representation at board-level, in this blog, we will take a look at the benefits of a diverse board to understand what organizations stand to gain when they prioritize diversity in corporate governance.

The benefit of different perspectives

Different genders, ages, ethnicities, cultures, disabilities, sexualities can each bring different perspectives and multiple insights to the table from their different personal life experiences. A diverse board with executives capable of communicating diverse opinions will provide an ample opportunity for robust discussions, well-rounded decision-making and more innovative solutions.

Productive board discussions require diverse and varied perspectives that would disrupt the status quo, and it would be difficult to get different views if every board member shared similar social and professional backgrounds. Moreover, if all board directors were always on the same page, why would there be a need for a board at all?

More representation

When there is diversity at board-level, then it is very likely such diversity is going to be reflected throughout all departments in the organization. Essentially, companies with substantial representation of minority groups in top positions are more likely to hire and promote employees in these groups. This type of representation does not only attract top talent to the company, it also lends the idea of a diverse corporation which puts the corporations in a good light in the eyes of shareholders, investors, customers, regulators, the media and other entities. 

Also, diversity in boardrooms, be it in gender, sexuality, ethnicity, etc., means a board of directors from diverse backgrounds who set the stage for tackling ideas from different angles and multiple perspectives. Such a company would be better informed with decision-making when it comes to handling issues that represent the diversity that exists within their workplaces and the societies they operate in.

Shareholders want it

Unsurprisingly, shareholders in many listed companies are demanding for more representation in senior level management including but not limited to diversity of gender, race, age and expertise. The 2017 Board Diversity Survey by Deloitte revealed that 95% of the respondents were in support of more diversity in the workforce.

The demand for more diversity in boardrooms by shareholders has been no doubt spurred by the fast-changing global economy which necessitates corporations to have as much representation as possible on their boards. Moreover, a board that lacks diversity would be less likely to accurately understand and therefore tackle the needs of their, most likely, diverse audiences. Diversity at board level will enable corporations to become more sensitive to those who live and work in the real world to some extent and that’s what shareholders want.

Companies with diverse boards perform better

Several studies have shown a correlation between business performance and diversity in corporate governance. Boards are better equipped to perform at their very best when professional, social and cultural diversity which promotes diversity of thought and perspectives are abundant on the board table. A 2015 report from McKinsey & Company, and a 2016 report from the Peterson Institute for International Economics both showed that companies with more diversity in corporate governance achieved better profits than others. 

A more recent 2018 report from McKinsey & Company only further strengthens the need for diversity as the analysis demonstrated companies with gender, cultural and ethnic diversity in C-suite were 43% more likely to see better-than-average profits. Thus, a diverse board can give corporations a competitive edge in their respective industries that will help them improve performance and increase profits.

The benefits of having a socially and professionally diverse board are too valuable to ignore. In addition to the fact that diversity projects an impression of an inclusive company, the varied life and professional experience that those from different walks of life bring to a board are crucial to making decisions that represent every person that comes into contact with your organization.

Does your board lack diversity? CEO Worldwide can help! We can connect you with a selection of vetted Non-Exclusive Directors relevant to your business within daystake a look at our 9,400+ vetted NEDs now.