In the modern workplace, the importance of diverse leadership cannot be overstated.
However, when we talk about diversity, we refer to a broad-spectrum of identities encompassing race and ethnicity, gender, cultural background, age, sexual orientation, disabilities, and different educational backgrounds, among many others. According to a report by the Canadian Securities Administrators (CSA), the number of board seats occupied by women in publicly listed Canadian companies increased from about 11% to 27% over the last nine years.
Diversity in leadership ensures that leadership or management teams reflect a wide variety of human experiences and perspectives. Yet people of colour (or racialized people) hold only about 10.4% of board positions across various sectors in eight major Canadian cities, according to a study by Toronto Metropolitan University’s Diversity Institute. This underrepresentation, as one indicator, means that many experiences and perspectives are missing from leadership discussions and might limit innovation.
Diverse leadership improves company culture
A diverse leadership team brings a wealth of experiences and perspectives that can transform company culture. According to Catalyst, diverse leadership fosters an inclusive environment where employees feel valued and understood, regardless of their background. This inclusivity boosts morale, maximizes productivity, and enhances teamwork. Thus, leading to a more cohesive and motivated workforce.
Where collaboration and problem-solving are crucial, a diverse leadership team can bridge cultural gaps and promote a sense of unity. This helps in not only managing a diverse workforce but also understanding and meeting the needs of diverse clients.
Diverse leadership enhances decision making
Diverse leadership significantly enhances decision-making processes. Leaders from varied backgrounds bring different perspectives, which can lead to more creative and effective solutions. Research from McKinsey & Company shows that companies with diverse executive teams are 25% more likely to have above-average profitability. This is because diverse teams can identify and mitigate risks more effectively, ensuring more reliable and well-rounded decisions.
This can mean the difference between a successful project and one that fails to meet expectations. Leaders who understand various cultural and social differences can make more informed decisions about project design, community engagement, and workforce management.
Diverse leadership encourages innovation
Innovation thrives in environments where diverse ideas are encouraged and nurtured. Harvard Business Review found that diverse teams are more innovative because they draw on a wider range of experiences and knowledge bases.
By promoting diversity in leadership, employers can tap into this wellspring of creativity. Leaders who bring different perspectives can inspire their teams to think outside the box, leading to groundbreaking projects and advancements in construction methods and technologies.
Diversity in leadership helps build a positive reputation
Additionally, companies prioritizing diversity in leadership send a powerful message about their values and commitment to equity. This enhances their reputation and attracts top talent who want to work for an inclusive and forward-thinking organization.
According to a Deloitte report, organizations that embrace diversity and inclusive cultures are twice as likely to achieve or surpass their financial goals, three times more likely to perform at a high level, and six times more likely to be innovative and adaptable.
A positive reputation can lead to more business opportunities and partnerships. Clients and stakeholders increasingly seek companies that demonstrate a commitment to social responsibility, including inclusion, diversity, equity, and accessibility.
Practical steps to enhance diversity in leadership
Here are some practical steps to improve diversity in leadership:
Commit to inclusive hiring practices
Ensure that job postings and recruitment processes are free from bias and attract a diverse pool of candidates. Use platforms that promote work opportunities among diverse candidates in Canada, such as HireDiverse, to reach a wider audience.
Provide training and development
Offer leadership development programs focusing on inclusion, diversity, equity, and accessibility to help people be more inclusive leaders.
Create mentorship programs
Establish mentorship and sponsorship programs to support the career progression of underrepresented groups within the organization.
Promote an inclusive culture
Encourage open dialogue about inclusion, diversity, equity, and accessibility within the workplace. Implement policies and practices that promote equity and respect for all employees.
Final thoughts
Diversity in leadership is not just a goal but a vital component of a successful, innovative, and inclusive company. Diverse leadership can lead to better decision-making, improved company culture, and a stronger reputation. By embracing diversity at the top, companies can unlock the full potential of their teams and drive meaningful change across the industry.
Michael Bach is an author and speaker, a thought leader in inclusion, diversity, equity, and accessibility, and an IDEA consultant to BuildForce Canada.
Respectful and Inclusive Workplaces
