Findings show lack of diversity in senior leadership impacts performance and market growth.
NEW YORK, September 25, 2013 – The vast majority of white-collar employees in the United States, 78 percent, work for companies that fail to realize their full innovative potential because their leadership lacks the inclusive behaviors needed to effectively “unlock” the innovative potential of an inherently diverse workforce. These findings are part of the “Innovation, Diversity and Market Growth” report, the first national survey that quantifies the correlation between diverse companies and market outcomes, and were released today by the Center for Talent Innovation (CTI), a leading global talent think tank.
The findings show that innovation draws on diversity in two ways: employees with inherent diversity best understand markets and end-users that companies today are most keen to reach; and leaders with acquired diversity are best equipped to unlock the insights of these employees. At companies that harness both inherent diversity in their workforce and acquired diversity in leadership (“two-dimensional” diversity), employees are 75 percent more likely to have had a marketable idea implemented than employees at companies that fail to harness these drivers.
Publicly traded companies with “two-dimensional diversity” are 45 percent more likely than publicly
traded companies lacking it to have grown market share in the last 12 months and 70 percent more
likely to have captured a new market.
– Ensuring that everyone speaks up and gets heard (63 percent vs. 29 percent)
– Making it safe to risk proposing novel ideas (74 percent vs. 34 percent)
– Empowering team members to make decisions (82 percent vs. 40 percent)