Key takeaways from the Optimizing talent and culture for better returns infographic:
Impact of diverse teams on revenue & profit
- 9.7% more profit increase with 10% more female executives (Science Daily, HBR)
- 15 times more revenue with racial diversity
- More sales revenue is generated by companies with the highest amount of racial diversity compared to those with lower levels of racial diversity.
Sources: Science Daily, HBR
Revenue from innovation
- 19 % higher innovation revenue in diverse companies
- 9% higher EBIT margins in diverse companies
- Companies that foster diversity are likely to be more innovative, leading to higher revenue streams from new products, services, or ideas.
Sources: BCG
The cost of ignoring culture & inclusion
- Companies see an average drop of 3.1% in market cap within 3 days of a ‘bad behavior’ scandal
- $1.4 billion average loss in shareholder value due o sexual harassment and other scandals
- Since 2000, Fortune 1000 companies have paid $2.7 billion in litigation penalties across discrimination and harassment lawsuits based on gender, race, national origin, age, or disability on disclosed cases alone. The majority of verdicts and settlements remain undisclosed.
Sources: HBR, Good Jobs First
Workplace benefits
- 58% better decision-making in diverse teams
- Diverse teams were better at pricing stocks correctly in simulated markets compared to homogenous teams
- Recruiting, retaining, and advancing diverse top talent is critical to remaining competitive
- Companies with inclusive cultures have 22% lower turnover rates
