Diversity in Leadership: Why It’s Imperative for All Businesses

It’s becoming increasingly important for businesses to have diverse leadership teams that reflect a variety of backgrounds and perspectives. Diversity naturally leads to a range of fresh ideas that can drive innovation and help businesses succeed in competitive climates. 

However, despite this, women make up just 37% of senior manager and director roles in the U.S, according to McKinsey & Company. The study also found that businesses with strong gender diversity were 25% more likely to make more money, which shows the benefits of diversity in executive teams. 

In this article, we will explore the importance of diversity in leadership, the benefits of having diverse leadership teams, and how to ensure diversity is a focus in your business. 

Explore our executive search and talent strategy services to discover how CSG Talent can help your business improve its diversity in leadership. 

What is Inclusive Leadership?

Inclusive leadership is about creating an environment where everyone feels valued and empowered to contribute. To be inclusive, leaders should actively encourage a variety of different perspectives and make decisions based on fairness and equality. Even at the senior end of their career, leaders can always continue learning and developing, so being aware of their own biases and working to eliminate them is crucial. 

Inclusive leadership is also about recognising the unique strengths of each individual and leveraging them to drive innovation and growth. This type of leadership not only improves the culture within a business, but also yields long-term results. 

The Benefits of Having Diverse Leadership Teams

For Businesses

Diverse leadership teams are key to the success of businesses in the modern world. According to research by Josh Bersin, businesses that ranked as more inclusive were 1.7 times more likely to be innovation leaders in their market. These fresh approaches lead to better problem-solving and smarter decision-making, helping businesses thrive. In fact, a study by the Boston Consulting Group found that companies with more diverse management teams have 19% higher revenue due to increased innovation. 

An inclusive leadership team can also lead to more diverse hiring practices throughout the company. It shows potential candidates that the business values diversity and is committed to creating equal opportunities for everyone. This can attract top talent from a variety of different backgrounds and give businesses access to a wider talent pool. According to a survey from Glassdoor, 76% of respondents say that a diverse workforce is an important factor when considering businesses and job offers, and nearly a third would not apply to a job at a company where there is a lack of diversity. 

A leadership team that shows it is committed to inclusion can also improve a company’s brand reputation. Customers and clients are more likely to trust and support businesses that align with their values, and employees take pride in being part of a business that genuinely cares about inclusivity. 

For Individuals

Working within a diverse team gives leaders the opportunity to grow and learn, as they can experience different perspectives that could provide them with a new way of thinking, no matter how experienced they are. It also helps leaders navigate global markets with greater ease and confidence as they become more understanding of different cultures and backgrounds. 

When employees see diversity at the top, it sends a powerful message that anyone can succeed, regardless of their background. This helps boost morale and loyalty, creating a workplace where people feel valued and motivated to perform at their very best. According to research from Deloitte, 83% of Millennials are actively engaged in their work when their companies foster a more inclusive work environment. 

Diverse leadership also helps to create a sense of belonging for everyone in the business and naturally creates a culture where differences are embraced, and all voices are heard. This kind of environment benefits everyone by encouraging collaboration and promoting fairness. 

Diversity in Leadership Within the Life Sciences Sector

The life sciences sector has made significant strides in diversity, particularly when it comes to representation across different backgrounds. Because of the nature of life sciences and how it focuses on helping and healing people, there is a broad mindset within the industry. It’s very patient-focused, so there’s a natural openness to understanding and embracing different cultures and perspectives, and this mindset has helped make the industry more diverse. 

One particular area of growth is the rise of women in leadership roles in women’s health markets. The growth of this sector has naturally brought more female leaders to the forefront and initiatives promoting women in STEM, such as the L'Oréal-UNESCO For Women in Science programmes, have also contributed to breaking barriers and encouraging gender diversity across all levels of the life sciences industry. However, there are still major challenges in advancing younger, diverse talent into senior roles, as the majority of leadership positions are filled by individuals with decades of experience. 

Frankie Skellington, Strategic Growth Consultant at CSG Talent, is determined to do everything she can to improve diversity in the life sciences sector: 

“Diversity is crucial in life sciences because we are working to create a better future for everyone, and the only way we can do so is through true representation across the entire industry. Women's health is largely led by women, but there are still many male-dominated service and support areas, so I would like to see more female engineers, and there is a push for this in many of the companies with which I work. 

“Hopefully as recruiters we can help squash barriers by representing more diverse talent. We actively work against any signs of conscious bias and undertake diversity and inclusion training ourselves so that when we approach candidates, we ensure that we are working with a diverse range of people regardless of who they are, where they are from, or how they identify.” 

Frankie is optimistic about the future of diversity in leadership roles in the life sciences sector: 

“I’d really like to think there will be an increase in diversity in the coming years. How great would it be to see more variety in boardrooms and meetings? As a female in a very male-dominated recruitment industry, I would love to see greater diversity everywhere, and I strive to be a part of that. The tides are definitely turning, it just takes time.” 

How to Make Diversity a Focus in Your Business

Making diversity a priority in your business is important so that everyone has access to greater opportunities where they can thrive and succeed. As a leader, you should start by setting clear, measurable goals, such as increasing representation in leadership roles or diversifying your board. These goals should align with your overall business strategy so that diversity becomes a key part of your company’s identity, rather than a separate initiative. 

When advertising a job vacancy, it is crucial to review the language you use. In the UK, under the Equality Act 2010, employers are obligated to create job adverts that uphold the principles of gender equality and avoid any form of gender discrimination. You should also try to make sure that there are team members from a variety of different backgrounds present on interview panels to eliminate any bias. 

To make sure all employees feel motivated and valued, you should create opportunities for development by investing in mentorship and leadership training programmes to help diverse talent progress. According to Vorecol, research shows that businesses with strong leadership development programmes experience a 25% increase in employee engagement levels. These programmes should support employees from all backgrounds, be accessible for all, and build confidence, skills, and networks. 

It’s also important to make sure everyone feels they belong, so acknowledge cultural holidays and offer flexible policies to accommodate different needs, such as prayer rooms or dietary options at events. 

Partner with CSG Talent to Improve Diversity in Leadership

Achieving a strong level of diversity requires a strategic recruitment approach that allows companies to attract and identify the right talent for executive roles. At CSG Talent, we’re passionate about helping businesses build diverse leadership teams that drive innovation and encourage individuality. 

As specialists in executive search, we offer training and development programmes that help our recruitment specialists connect businesses around the world with exceptional talent from a variety of backgrounds. Our commitment to diversity and inclusion is reflected within our business as we work to eliminate bias and encourage representation across all industries. 

By partnering with CSG Talent, you’ll gain access to a diverse network of skilled talent and recruitment specialists who are dedicated to helping you achieve your goals. 

To explore how we can support your business, contact our team of experts today. 

For more diversity and inclusion insights, listen to our podcast: Conversations with CSG. 

Also, download our free resource: How to Create a Diverse Hiring Strategy.