So we don’t need to do anything, do we?

Britain’s most successful companies tend to have a large proportion of women in senior management roles but the UK lags behind the US and Australia on diversity at the top, new research suggests.

Between 2011 and 2015, the most gender diverse quarter of companies were 20pc more likely than the least diverse to have above average financial performance, a report by management consultants McKinsey found.

Dame Vivian Hunt, who runs McKinsey’s UK business, said: “The correlation between diversity and financial performance is clear across different sectors and geographies: more diverse teams equals significant financial outperformance.”

Now that we all know this profit maximising firms will be employing women in those jobs, won’t they?

15 thoughts on “So we don’t need to do anything, do we?”

  1. Question: is the gender diversity index structured so that no women in senior management = 0, and all women in senior management = 1? Gender diversity being a code word for percentage of women in senior management. Therefore the most successful companies have no men in senior management, right?

  2. Bloke in North Dorset

    And it’s in the nterest of SJWs and free marketers not to make it compulsory. We want the inefficient and incompetent managers to be found out and they want mysoginists to be found out.

    So, to use a hackneyed phrase, letting the market sort it out is a win-win.

    A Bootleggers and baptists situation.

  3. Do these results control for fctors such as age of the company and what business sector they are in? And who their customers are.

    I personally doubt that having women in management positions is enough by itself magically to make a difference whether for the better or worse. If they are genuinely there on merit that tends to suggest an open mindset which will help profitability. If they are there to make up the numbers then only government customers will make profiability possible.

  4. A questionable conclusion.

    Let’s see what the returns of those firms which have overpromoted women look like in five years.

  5. BiI
    If they are there to make up the numbers then only government customers will make profiability possible.

    That’s worked out oh so well for Carillion.

  6. I suspect what we’re looking at is a tendency for companies, once they reach a certain level of financial performance, to start worrying about things like diversity in order to keep the SJW mobs at bay. Some may even believe it. What will be interesting, as Paul Rain says, is how these companies are faring in a few years’ time. The example of Carillion suggests they might not even be solvent.

  7. As Gamecock points out, anybody can play the correlation game.

    Back in the Eighties I was asked to compile a report for the Bank of England demonstrating what wonderful creatures non-executive directors were and how boards with lots of them produced better returns for the company. Easily done.

    I could just as easily have ‘proved’ the opposite.

  8. Pingback: Correlation, but in which direction? | White Sun of the Desert

  9. Red alert! the UK lags other countries, of my choosing, at a measurement of value to me, although those responsible both know what they are doing and have the information at hand to tell them when they should start doing things differently.

  10. Perhaps Dame Vivian Hunt talks a lot about equality to distract people from the fact she pays 24% less to women?

  11. Didn’t Jordan Peterson, just the other night, explain quite well, in the face of heckling from Cathy New(wo)man, that there is no pay gap?

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