2 July 2013
Re:locate magazine has published an article on new research by PA Consulting Group, which analyses the public reports of 50 US and UK companies over a six-year period.
PA’s research found that firms with gender diversity on their boards generated up to 600 per cent total shareholder return (TSR) during this period, while those without generated less than 100 per cent. The report also demonstrates that culture, gender diversity and performance are inherently linked.
Re:locate reports PA’s finding that organisations with both the strongest financial results and the highest-performance culture had the greatest proportion of women (50 per cent) on their executive leadership teams.
The article quotes PA talent management expert Lesley Uren, who says: “Despite decades of well-meaning interventions, and in the face of incredible pressure from society, many companies have had limited success in accelerating women up the management ladder.
“We started our research with the conviction that something vital was missing from the debate. What we found suggests that organisational culture – something frequently overlooked by other studies – is the key.
“As our findings show, it is absolutely in companies’ best interests to raise their game when it comes to promoting gender diversity. And the way to start is by getting the right culture in place.”