“ Diversity is the grist for evolution ,” says Reeves . “[ It ] helps companies evolve their thinking and avoid getting stuck in the ruts created by yesterday ’ s business model .”
Take clothing retailer Gap ’ s Color Proud Council . Formed in 2018 , the product inclusion initiative
quickly made an impact by launching the True Hues collection for Banana Republic , a line of basics rendered in 11 shades of nude to better match a variety of skin tones . Bodysuit sales rose 21 % higher than in any previous quarter , following three consecutive quarters of declining samestore sales — the result of having diverse perspectives at the table .
Then there ’ s the price of homogeneity .
Teams that are more uniform tend to be less rigorous when making decisions , in part because people are less likely to question the majority ’ s opinion . On the flip side , teams with greater cognitive diversity are more likely to understand their customers . When Slaton Brown led a multicultural marketing team exploring ways to boost back-to-school sales of PCs and printers , they homed in on specific geographic regions with Hispanic families where the younger generations typically translated for older ones . They provided face-to-face HP sales ambassadors on-site , as well as marketing materials in Spanish and English . As a result , they saw sales pop 128 % year over year — a win the team might not have achieved if there weren ’ t diverse perspectives in the room .
“ You have to reflect our markets , obtain authentic insights , and have the ability to empathize with customer needs ,” Slaton Brown says . “ When you know the community that you ’ re selling to , you can show up in a manner that ’ s reflective of its cultural nuances .”
Diversity not only helps companies better understand their customers in the moment , but also in the future . “ Innovation [ includes ] being able to see around the corner in terms of what your future customers might want or need ,” says Monne Williams , a partner at McKinsey & Company and coauthor of
Race in the Workplace : The Black Experience in the US Private Sector . “ Having access to those types of insights in your organization and being able to have those conversations faster and earlier help with the quality of decision-making .”
According to Reeves , diverse companies increase their top and bottom lines during crises — they flourish while others flounder . “ If you dig into this , it ’ s because the flourishers are mobilizing around new sources of growth based on new patterns of need that arise during a crisis or recovery ,” he says . Diversity enables these flourishers to better spot the
anomalies in the marketplace that indicate emerging trends .
There ’ s also the argument that underrepresented groups are often used to operating under pressure , overcoming adversity , and doing more with less , skills that come in handy during a crisis . “ Underrepresented groups tend to be more resilient because they ’ ve dealt with hardships ,” says Slaton Brown .
The greater the breadth of experiences , the more likely it is that someone sees a path forward where others don ’ t . “ Maybe you ’ re a single dad or a veteran . You might be much calmer under pressure and allow others to see a different point of view ,” says Emily M .
$ 170 billion
Losses to US organizations due to turnover related to diversity and equity issues
SOCIETY FOR HUMAN RESOURCES MANAGEMENT
70 % greater likelihood
that diverse organizations can capture new markets when compared with less diverse ones
BOSTON CONSULTING GROUP
95 years
Time it will take Black employees to reach talent parity across all sectors of the economy
MCKINSEY & COMPANY
4.6 % average revenue increase
in 2020 for companies with boards whose directors spanned at least 30 years in age ( boards without this age diversity saw revenue declines )
BOARDREADY
1 % increase in gender diversity
from 2017 to 2019 in global executive teams tracked by McKinsey ( from 14 % to 15 % female members )
MCKINSEY & COMPANY
Dickens , chief of staff , head of government affairs , and corporate secretary for SHRM (
Society for Human Resource Management ). “ Each [ person ] will be able to step up and steady the hand at different times to make crucial decisions .”
Diversity and retention At the current trajectory ,
it would take about 95 years for Black employees to reach talent parity across all levels of the private sector . Companies need to not only do a better job of hiring a more diverse workforce , but also support diverse talent and provide opportunities for growth . When people don ’ t feel valued ,
they ’ re more likely to quit . “ Our research shows that turnover due to diversity and equity issues cost US organizations up to $ 170 billion over the past five years ,” says Dickens .
Given the clear benefits of diverse teams , why are some companies still missing out — and what can they do to change course , especially during a pandemic that has prompted many underrepresented groups to
consider leaving the workforce ?
Listening is critical . “ We held focus groups with our diverse populations to better understand their well-being and what we could do to help them navigate these turbulent times ,” Slaton Brown says . “ We were very honest about the improvements we need to make . And we set very targeted , very ambitious goals in order to make that happen .”
It ’ s also important to consider how these initiatives filter down to the employee experience . “ The person who impacts your day the most is your people manager ,” Dickens says . “ If you don ’ t have well-trained people managers who understand hiring , recruiting , and retention and how people are made to feel in the workplace , then [ leadership efforts are ] going to fail .”
Here ’ s the good news : The way we work is changing , opening up new opportunities to foster retention . Working from home , flexible scheduling , using technology to collaborate in new ways , plus overall increased awareness around diversity , are giving employees more ways to feel valued and more avenues for contributing .
“ If you have talent that sees the possibility of a future for themselves at the leadership table , then you have talent that ’ s committed to creating success ,” says Dickens .
HP / INNOVATION / FALL 2021 53