Gender-diverse companies outperform competition
LIFT IOWA STAFF May 23, 2016 | 1:00 pm
1 min read time
243 wordsAll Latest News, Lift IOWA, Women’s and Gender IssuesBY LIFT IOWA STAFF | @LiftIOWA
This week’s Herman Trend Alert? The gender diversity payoff.
The alert was generated following the release of a new report from global financial services firm Morgan Stanley, which found more diverse companies outperform their equals financially.
After analyzing 1,600 companies in developed markets based on gender diversity, Morgan Stanley ranked them based on financial metrics, such as profitability and stock performance. Over the last 10 years, companies ranked higher for gender diversity outperformed their low-diversity competition by 2.3 percent in North America and 1.3 percent in Europe.
The study found “companies that have a balanced workforce of men and women, pay equally, and offer work/life balance programs, such as day care and maternity leave, tend to have better returns on equity.” They also are considered “higher quality” companies by employees as well as investors.
Some characteristics of these high-performing companies included large representation of female staffers, more women in key C-suite positions, fairer pay, diversity policies, and programs that helped women balance their personal and professional lives”.
The Herman Group’s forecast? More companies will embrace the value of gender diversity and reap the accompanying rewards. Those that cling to the past will find themselves unable to recruit the female talent they want and need, and falling behind in profitability.
Herman Trend Alerts are produced by the Herman Group, which consists of strategic business futurists, certified management consultants, authors and professional speakers.
Read more about the trend online.
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