How inclusion matters
The business case for inclusion and diversity is growing stronger than ever
While companies have been slow to make significant progress, a close look at “diversity winners” shows that a systematic business-led approach and bold, concerted action on inclusion are needed to make progress.
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Diversity wins
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Representation varies by region and industry
By region
By industry
Inclusion matters
Even when companies are more diverse, many appear as yet unable to cultivate inclusive work environments in an effective and consistent way thus missing out on the benefits of diversity.
Overall sentiment on diversity is positive
But sentiment on inclusion is the opposite
31%
52%
negative
positive
61%
29%
negative
positive
Where is the disconnect?
Diversity does not guarantee inclusion. Companies need to make a concerted effort to ensure equality, fairness and openness to reap the full benefits of diversity.
ISSUES: EQUALITY AND FAIRNESS
Negative sentiment around equality ranged from
63%–80%
across the industries.
Heavy on favoritism. How you are promoted depends on which supervisor you get.”
“
This toxic environment is not built to develop or care for minorities or people with disabilities.”
“
38%–56%
of negative sentiment across industries
Openness of the working environment was also of significant concern, ranging from
Openness, including bias & discrimination
I don't feel valued or a sense of belonging, I feel like a number who's opinion is not valued.
“
Management does not foster an inclusive culture for all levels of employees.”
“
Representation for minorities remains on average below 25% for gender and ethnicity
Average representation in 2019 leadership teams, %
Executives
Board
Gender
Ethnicity
1
21
North America
UK
Sub-Saharan Africa
Asia-Pacific
Latam
Continental Europe
26
18
30
18
30
9
11
8
11
14
37
By region
North America
UK
Sub-Saharan Africa
Asia-Pacific
Latam
Continental Europe
13
17
9
8
27
38
33
28
11
n/a
n/a
n/a
Average gender and ethnic representation by industry in 2019 , %
Representation for minorities remains on average below 30% for gender and below 20% for ethnicity
Finance, insurance, & professional services
21
30
18
24
By industry
Healthcare & pharmaceuticals
Telecom, media and technology
Transportation, logistics, and tourism
Consumer goods & retail
Energy, basic materials and environment
Heavy industry
16
25
15
29
14
26
13
22
12
24
Finance, insurance, & professional services
Healthcare & pharmaceuticals
Telecom, media and technology
Transportation, logistics, and tourism
Energy, basic materials and environment
Heavy industry
Consumer goods & retail
14
15
16
16
20
21
10
17
13
16
13
18
12
12
Only for regions with company ethnicity data. US, UK, Brazil, Mexico, Singapore and South Africa
Gender: n = 1039, companies with gender data in 2019. Ethnicity: n = 533, companies with ethnicity data in 2019
Ethnic representation
Female representation
Representation in US and UK, %
One-third of the firms we tracked since 2014 have achieved real gains in executive team diversity. However about 50% have made little or no progress and, within that, many have seen gender and ethnic minority representation even go backwards.
There is a widening gap between leaders and laggards
2014
2019
% of companies
Diversity leaders
Fast movers
Resting on laurels
Moderate movers
Laggards
26
40
7
27
28
22
12
19
9
8
Female representation
5%
28%
29%
10%
28%
15%
24%
22%
12%
28%
% of companies
17
32
1
18
18
12
3
10
1
0
Ethnic representation
Taking bold action
Our analysis of diversity winners in our data set, coupled with extensive insights from our research and practice on I&D, has helped identify the winning actions and practices of diversity winners when it comes to inclusion. Together, these imperatives translate into five key action steps.
1
Ensure representation of diverse talent
Build a business case for diversity that prioritizes the organization’s needs.
Focus on advancing diverse talent across the organization and fix “broken rungs” on the corporate ladder.
Plan for capabilities the organization will need—and set targets for those specific areas.
Open the door to large-scale reskilling to access diverse talent that may be re-entering the workforce.
2
Strengthen leadership and accountability for I&D
Define inclusive leadership as a core competency that is specified in job descriptions, assessed in performance reviews, supported by capability-building, and role-modeled by leaders and managers.
Advocate I&D among their teams, promoting flexible ways of working, tackling bias, and advocating for “conscious inclusion” of diverse team members
3
Enable equality of opportunity through fairness and transparency
Train performance evaluators to minimize bias in their decision making.
Support review committees with observers to flag decisions influenced by unconscious bias.
Deploy software tools to debias recruiting and, increasingly, advancement processes.
4
Promote openness and tackle discrimination
Strengthen awareness of the multiple forms microaggressions take, through training that sensitizes employees to be more conscious of their communication styles.
Build a company culture which encourages open, productive discussion of difficult topics.
5
Foster belonging through unequivocal support for multivariate diversity
Ensure clear communication and behavior from managers signaling their support to diversity in its varied forms, through their support for diverse individuals as well as employee resource groups.
Encourage and build capabilities among diverse talent to contribute their unique strengths, engage authentically and bring their whole selves to work, often through tailored leadership-development programs.
1
1
Ethnicity
1
Gender
Find out more
Take a deeper dive by reading Diversity Wins: How inclusion matters.
See the full report
See the full report
Figures don't sum because of rounding.
1
1