In our recent International Business Report (IBR) research into diversity, we captured the views of 2,500 business leaders in 35 countries. On average, only 40% of businesses believe diversity is important to their success, and just 14% are taking action to improve the diversity of their senior team. We find that businesses are, for the most part, not ethnically or gender diverse. Age diverse teams are more common, although it is far from the norm to have a senior team member who is under 35 years old.
“Diversity of thought gives businesses a competitive edge, and thus businesses need to embrace diversity in age, gender and ethnicity in their work force especially at senior management level, and look for ways to become inclusive organizations. A diverse workforce is a reflection of a changing world and marketplace, and organisations should thrive to reflect the markets or communities in which they operate within their business model. There are many challenges in managing a diverse workforce that requires strategic planning beyond simply acknowledging differences in people. It involves recognizing the value of differences, combating discrimination, and promoting
inclusiveness. It is pleasing to note that African business leaders are at the forefront in acknowledging the importance of diversity, and I encourage local business leaders to grasp the opportunity to promote the growth of businesses and our community at large through diversification." Anjana Suresh, Partner - Grant Thornton Botswana.
Ethnic diversity
The findings show that the average number of ethnic groups represented by senior management teams worldwide is 1.5. Looking at regional data, only African businesses have more than two ethnic groups at 3.2. The lowest regional figure is 1.2 for the European Union.
At a national level, we found that only six out of 35 countries we surveyed have businesses with typically more than two ethnic groups (which we classify as ethnically diverse) represented in their leadership teams: Botswana, India, Malaysia, Nigeria, the Philippines and South Africa. To some extent, this reflects the ethnic diversity of these countries in general. The populations of Nigeria, India and South Africa are among the 20 most ethnically diverse nations in the world, and Malaysia ranks near the top third.
However, Botswana and the Philippines cannot be accounted for in this way as their populations are far less ethnically diverse. Therefore, it may indicate a difference in attitude and commitment when it comes to increasing ethnic diversity of their leadership teams. In Botswana, a much higher than average number of businesses (58%) believe ethnic diversity is important to their success, while a higher than average number of businesses (18%) in the Philippines have policies in place to increase the ethnic diversity of their senior team.
Age diversity
A 51% majority of businesses think an age diverse team is important, which appears to reflect the composition of senior teams, while Botswana reflects a significantly higher belief in the importance of age diversity at 72%. However, there is still a gap between perceived importance of age diversity and plans to improve it. Only 16% of businesses globally, and 12% of businesses in Botswana are taking action to extend their age range. Companies recognise its value, they just aren’t acting on it. 26% of senior teams, globally, include an individual who is older than 64 years old, while 24% have a senior member who is aged 35 or younger. In Botswana, 10% of senior teams
include an individual who is older than 64 years old, and 72% have a senior member who is aged 35 or younger.
Gender diversity
In 2017, globally a historic milestone was reached: one in four senior roles are now held by women. However, at only 25%, parity between men and women at executive level is still a long way off. In previous research, we have uncovered key obstacles to change to better understand how we can find solutions for greater gender equality. In this year’s upcoming Grant Thornton International Business Report, Women in Business 2018 research, we are investigating the roles played by governments and businesses in encouraging people to act. This will be published on International Women’s Day, 8 March 2018. By considering how different policies interact, we hope to better
understand where active intervention exerts positive influence on business attitudes and behaviours.
Increasing diversity
The “Diversity Snapshot” explores the diversity of senior teams around the world by ethnicity, age and gender. There are a number of positive steps that Grant Thornton has suggested that businesses can take to increase diversity, some of which include:
For the full “Diversity Snaphot” report, please visit www.grantthornton.global/en/insights/articles/women-in-businessdiversity/
Press Release
Diversity in senior leadership teams
15 Feb 2018
Many businesses globally are missing out on opportunities because of a lack of diversity in senior leadership teams. This means that a business does not necessarily reflect the markets or communities in which they operate, and it could be holding them back.
In our recent International Business Report (IBR) research into diversity, we captured the views of 2,500 business leaders in 35 countries. On average, only 40% of businesses believe diversity is important to their success, and just 14% are taking action to improve the diversity of their senior team. We find that businesses are, for the most part, not ethnically or gender diverse. Age diverse teams are more common, although it is far from the norm to have a senior team member who is under 35 years old.
“Diversity of thought gives businesses a competitive edge, and thus businesses need to embrace diversity in age, gender and ethnicity in their work force especially at senior management level, and look for ways to become inclusive organizations. A diverse workforce is a reflection of a changing world and marketplace, and organisations should thrive to reflect the markets or communities in which they operate within their business model. There are many challenges in managing a diverse workforce that requires strategic planning beyond simply acknowledging differences in people. It involves recognizing the value of differences, combating discrimination, and promoting
inclusiveness. It is pleasing to note that African business leaders are at the forefront in acknowledging the importance of diversity, and I encourage local business leaders to grasp the opportunity to promote the growth of businesses and our community at large through diversification." Anjana Suresh, Partner - Grant Thornton Botswana.
Ethnic diversity
The findings show that the average number of ethnic groups represented by senior management teams worldwide is 1.5. Looking at regional data, only African businesses have more than two ethnic groups at 3.2. The lowest regional figure is 1.2 for the European Union.
At a national level, we found that only six out of 35 countries we surveyed have businesses with typically more than two ethnic groups (which we classify as ethnically diverse) represented in their leadership teams: Botswana, India, Malaysia, Nigeria, the Philippines and South Africa. To some extent, this reflects the ethnic diversity of these countries in general. The populations of Nigeria, India and South Africa are among the 20 most ethnically diverse nations in the world, and Malaysia ranks near the top third.
However, Botswana and the Philippines cannot be accounted for in this way as their populations are far less ethnically diverse. Therefore, it may indicate a difference in attitude and commitment when it comes to increasing ethnic diversity of their leadership teams. In Botswana, a much higher than average number of businesses (58%) believe ethnic diversity is important to their success, while a higher than average number of businesses (18%) in the Philippines have policies in place to increase the ethnic diversity of their senior team.
Age diversity
A 51% majority of businesses think an age diverse team is important, which appears to reflect the composition of senior teams, while Botswana reflects a significantly higher belief in the importance of age diversity at 72%. However, there is still a gap between perceived importance of age diversity and plans to improve it. Only 16% of businesses globally, and 12% of businesses in Botswana are taking action to extend their age range. Companies recognise its value, they just aren’t acting on it. 26% of senior teams, globally, include an individual who is older than 64 years old, while 24% have a senior member who is aged 35 or younger. In Botswana, 10% of senior teams
include an individual who is older than 64 years old, and 72% have a senior member who is aged 35 or younger.
Gender diversity
In 2017, globally a historic milestone was reached: one in four senior roles are now held by women. However, at only 25%, parity between men and women at executive level is still a long way off. In previous research, we have uncovered key obstacles to change to better understand how we can find solutions for greater gender equality. In this year’s upcoming Grant Thornton International Business Report, Women in Business 2018 research, we are investigating the roles played by governments and businesses in encouraging people to act. This will be published on International Women’s Day, 8 March 2018. By considering how different policies interact, we hope to better
understand where active intervention exerts positive influence on business attitudes and behaviours.
Increasing diversity
The “Diversity Snapshot” explores the diversity of senior teams around the world by ethnicity, age and gender. There are a number of positive steps that Grant Thornton has suggested that businesses can take to increase diversity, some of which include:
For the full “Diversity Snaphot” report, please visit www.grantthornton.global/en/insights/articles/women-in-businessdiversity/
Grant Thornton uses cookies to monitor the performance of this website and improve user experience
To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.
