Diverse Teams Increase Revenue

Implementing a diversity, equity and inclusion (DEI) strategy is a top priority for companies. Aside from positioning companies in the market, these strategies have to be implemented if every voice in the enterprise is to add value. However, despite the spotlight on the issue, diversity is not commonly understood beyond the issue of gender. Nationality, culture, gender and sexual orientation have to be valued in an intersectional manner and included in the organization’s strategies to leverage the benefits of a diverse team. 

“It is so natural to follow the status quo and interact with similar people that we do not realize how intolerant we are when someone different is included in work teams,” said Lizette Ibarra, Chief Empowerment Officer and Founder, Latina Chief.

There are two types of traits that make each human different. The first are inherent characteristics, which we cannot change. Second is the acquired diversity, which we are obtaining via life experience. The combination of both forms all the characteristics that make us different.

“Diversity makes people look at the same object through different lenses. The most diverse organizations are the ones that generate the most innovation,” added Ibarra. 

Racially diverse teams outperform non-diverse crews by 36 percent in terms of profitability. Meanwhile, teams where men and women are equal earn 41 percent more revenue. Yet despite the multiple benefits that diversity engenders, discrimination is always present even in an unconscious way. 

Everyone is susceptible to unconscious bias. Unfortunately, these biases tend to impact decisions. For example, in Germany, a foreigner has 19 percent fewer opportunities to get a call back for an interview due to the racial discrimination that permeates the system.

There are different types of discrimination such as those linked to gender, race and social status. In Mexico, the share of women in the workforce is 36 percent and, on average, women occupy less than 8 percent of the executive and leadership positions. Meanwhile, in the US there are more men named John and Joe as CEOS than the total women CEOs, Ibarra stated.

There are different reasons of why women are underrepresented within corporate management. Some are causes inherent to the environment, such as the preconception that STEM careers are only for men. In addition, women dedicate 16.6 hours a week to invisible work, which includes housework and care, compared to the 10.6 hours that a man dedicates to it. This factor has a significant impact on labor desertion. A disproportionate appreciation of masculine behavioral stereotypes adds to these problems.

Racial discrimination is equally concerning. In the US, Black employees still face more obstacles to getting a job. This type of discrimination can even take place when someone is married to a person of a certain ethnicity. “Particularly in the US, the Black Lives Matter movement created an awareness and urgency concerning diversity, equity and inclusion,” Francisco Ruiz Maza, Country Manager Mexico, Russell Reynolds to MBN. 

Discrimination regarding social class is often acknowledged as the forgotten dimension of diversity. Being born in a less privileged position gives people 34 percent less probability to occupy a managing role, emphasized Ibarra.

To build a solid DIE strategy, leaders must be involved since they uniquely can create the essential conditions for an organization to transform. From their position, they can assign roles and measure results. Meanwhile, companies have to define why diversity matters and link it to their business objectives. 

“Representation quotas and measurement of numbers work for certain stages, but cannot be the long-term metric. It is important to connect the DEI agenda with the business metrics, translating the diversity strategy and connecting it with the business strategy,” said Daniel Berino, VP of Human Resources LATAM, Clarios.

Furthermore, they need to question whom they want to represent and acknowledge that to understand different consumers, companies need to promote internal diversity. They can also implement unconscious bias training and mentorship programs. It is also recommended to provide holistic health and financial wellness strategies that address the needs of minorities. Companies can also challenge current maternity leave policies and consider granting flexible work hours depending on specific needs. 

“Flexibility is critical for employees but it also depends on the generation. Many baby boomers, for example, prefer to go to the office. For that reason, companies need to understand that there are different types of associates: some want to be in the office all the time, while others prefer more flexibility,” said Cristina Meson, VP Human Resources, Heineken Mexico to MBN.