Diversity McKinsey 2023

This summary is provided by the IPR Center for Diversity, Equity, and Inclusion

McKinsey & Company launched its fourth comprehensive global report on diversity, “Diversity Matters Even More” that investigates the relationship of diversity with financial performance, environmental and social impact, employee satisfaction, and business growth.   

The report reviewed publicly available data from 1,265 companies across 23 countries from September – October 2022. Financial data came from the Corporate Performance Analytics database by McKinsey and S&P Global.

Key findings include:

1.) Organizations in the top quartile of ethnic representation were 39% more likely to financially outperform organizations in the bottom quartile.
2.) Organizations with more than 30% female employees (the top quartile of representation) were significantly more likely to financially outperform organizations compared to organizations with less than 30% female employees.
3.) Companies in the top quartile for both gender and ethnic diversity in executive teams were 9% more likely to financially outperform their peers.
— Organizations in the bottom quartile for gender and ethnic diversity were 66% percent less likely to outperform financially, on average.
4.) U.S. organizations that reached 50% representation of women on their executive teams are considered to be leaders in diversity.
— Leading U.S. organizations have 39% of executives from historically underrepresented ethnicities, on average.

Find the original report here.

Heidy Modarelli handles Growth & Marketing for IPR. She has previously written for Entrepreneur, TechCrunch, The Next Web, and VentureBeat.
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