With the government’s new board of senior industry bosses aiming to boost diversity and inclusion in the workplace, having just met for the first time, it begs the question of why focusing on this issue is still important in 2019.
The board of any business is its mind and its backbone. Ultimately, it makes the decisions which take the business forwards.
With diversity comes original thought and more creativity, directly translating into business profit and growth. As McKinsey & Co found, businesses with more ethnically and culturally diverse boards are 43% more likely to see above-average profits.
Therefore, it only makes sense that a company’s board is as diverse as possible. So when hiring for these roles, including in corporate retail and corporate food establishments, you have to consider this.
This new governing board, known as Men As Change Agents (MACA), met for the first time on September 25 to take the next steps in achieving more equality and diversity at the top of workplaces.
Among its efforts will be supporting the Hampton-Alexander Review to help with the target of 33% of executive-level FTSE 350 business leaders being women by the end of 2020.
The board further discussed the new figure that the top 25% of companies for gender diversity on their executive boards are 21% more likely to have profits above their industry average.
So what are the benefits of businesses having a more diverse board?
Having a variety of perspectives within the core of the company is one. One person cannot consider everything they need to because if they have never experienced it or even come across it themselves, it will never pop into their mind.
A diverse board also leads the way for the rest of the business to follow suit. It shows both current and potential employees that the company is inclusive and celebrates individuality.
Diversity can help your global game. Bringing in executives from different backgrounds may mean they have connections in other parts of the world. This can be invaluable for both local contacts and knowledge of other countries.
Finally, diversity encourages creativity. If you have an executive board in which everyone looks or acts the same, everyone in the company is going to think they should look and act a certain way. This could easily curb employees’ innovative ideas and creativity, which is negative for both the individual and the company.