US executives who have transformed their organisations to succeed in the digital economy are more likely to see the cultural value and positive financial impact of a diverse workforce, according to research from SAP and Oxford Economics announced at the Tech Inclusion 2016 Conference in San Francisco.
The Leaders 2020 study found that 49 per cent of the executives at US companies that are digital leaders have a positive view of the impact of diversity, with 39 per cent saying it has had a positive influence on culture and 34 per cent saying it has had a positive impact on financial performance.
Conversely, the research found greater skepticism about the benefits of diversity among US companies that lack the technology, processes or workforce required to be a fully digital business.
“Diversity is no longer a ‘nice-to-have’ for companies,” said Jewell Parkinson, head of human resources, SAP North America. “This study is evidence of the correlation between organisations that embrace diversity and have better performance because they attract better talent, generate greater employee satisfaction and build stronger unity in problem solving and innovation.”
The study revealed that 42 per cent of executives and 43 per cent of employees believe their companies have effective diversity programs in place and that 24 per cent of executives expect an increase in the number of diverse senior leaders in the coming years.
Only 12 per cent of US companies surveyed reported being a leader in digital transformation, compared to 16 per cent globally. Leaders 2020 is a survey of 4100 executives and employees across 21 countries.
To assist organisations seeking to prepare for digital transformation, the research recommended adopting five best practices: emphasise diversity, listen to millennial executives, communicate a company-wide digital vision, continuously update executive and employee skill sets and flatten the organisation to enable fast and efficient decisions.
