Indeed, in the case of maintaining and promoting gender diversity, there is a strategic advantage that can lead to improved financial performance, innovation, and competitiveness.
“Diverse teams have a huge impact on profitability, largely through the ability to challenge thinking,” explains Laura Salter, Financial Planning Director at Forvis Mazars and at Independent Women, the female-led financial advisory arm that specialises in wealth management for women. “In traditional industries in particular, things are done the way they’ve always been done – and those ways are relatively gendered".
"But the ability to encourage diverse thought creates innovative decisions, which drive businesses forward, and leads to better, more balanced decision making.”
At the same time, diverse teams are more reflective of your customers, and of society as a whole. This means you’re able to better understand the needs of your customers – something that provides a massive advantage to businesses in the current competitive landscape.
The benefits of a diverse workforce extend beyond just the customer-facing aspects of a business, too, says Salter, who emphasises the importance of showing empathy and understanding, internally and externally.
“It brings your best talent through,” she says. “If you can show you understand the individual and encourage them to become the leader that they can be, that also brings you better leaders – which therefore takes the business forward and drives growth.”
On the flip side of the coin, companies can face potential reputational damage if they do choose to scale back their DE&I initiatives. 2024 YouGov research found that across 17 international markets, on average 70% of consumers would boycott a brand if they object to its conduct. Boycotting brands whose operations may be deemed unethical ranks the second most common reason.
Salter warns that “for those that are going back, the potential is that it’s a very short-term view. They’re not looking to their future customers in generations’ time or their future workforce. It’s very much based on short termism and looking to appease the current political pressures.”
There is also the potential impact on investor confidence and long-term shareholder value.
“We increasingly get asked about the sustainability of our investment portfolios that we help clients with,” says Salter. “We have bespoke sustainable models, and increasingly we are seeing clients use them – or at least if they don’t use them, be very conscious about the profile of their overall investment portfolio.”
So what can you do as a business leader to encourage gender diversity within your organisation? Here are three simple steps:
There are significant benefits to groups such as women’s networks or other affiliate groups. And rather than allowing these networks to operate in isolation, you should actively encourage them to interact and amplify each other’s voices.
By fostering collaboration and cross-pollination between different employee groups, you can create a more inclusive and cohesive culture.
It may be time to reevaluate how you reward and recognise different employee contributions. Relying too heavily on financial targets can drive a specific type of behaviour that may not align with the broader needs of the business or the team. Instead, consider how to better recognise the value that individuals bring to the organisation, their strengths, and also where they need to be supported.
For example, women are often more likely to engage in activities that benefit the team or organisation as a whole, but may not be directly tied to financial targets. While these efforts can largely go unnoticed, if they were taken away, the team would be far less productive and far less efficient. So recognise and reward activities that could include team-building, mentoring, and other initiatives that may not directly impact the bottom line but are essential to a thriving workplace.
Additionally, it is important to recognise the value that diverse experiences, including time spent outside the traditional workforce, can bring to an organisation.
Many high-performing women express concerns about the relevance of their personal circumstances to their professional roles. It pays to actively work to dispel this notion and instead embrace the unique perspectives and skills that employees with non-linear career paths can offer. By doing so, you can tap into a broader pool of talent and unlock new avenues for innovation and growth.
In conclusion, the C-suite perspective on DE&I is clear: it is a critical driver of profitability and long-term success. By fostering a diverse and inclusive workforce, companies can unlock innovative thinking, better understand their customers, and attract and retain top talent.
However, this requires a holistic approach that goes beyond simply setting diversity targets. It means rethinking reward structures, supporting employee networks, and recognising the value of diverse experiences.
Created by women, Independent Women is the UK’s longest-running and only national IFA specialising in wealth management for women. Independent Women is a trading name of Forvis Mazars Financial Planning Ltd, which is wholly owned by Forivs Mazars LLP, the UK firm of Forvis Mazars, an international advisory and accountancy group.
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