Cultivating Diversity

Diversity in the workplace can yield tangible results, yet it’s something many firms struggle to attain. According to McKinsey & Company, ethnically diverse workplaces are 35% more likely to outperform their industry, while those that are gender diverse outperform by 15%.

Companies that ranked in the bottom quartile were statistically less likely to achieve similar results, the study shows. And while greater diversity doesn’t automatically make companies more profitable, the correlation indicates that being diverse can differentiate firms from their competition. Increasingly, companies are looking to gain a competitive edge by hiring diverse talent in order to appeal to a wider range of potential buyers and investors. This is particularly true for the real estate industry as the pool of investors is expanding to include people from places like China, India and Russia, who would be better served by firms with employees who can relate to their viewpoints. The same is true for women and minorities, who often face discrimination in raising capital and other barriers to entering the industry. Serving these diverse clients and employees will require shifts in how companies work with varying constituents.

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