Organizations are being asked to identify diverse talent to fill executive-level positions. The lack of diversity in leadership positions is consistently cited as a critical corporate issue, leading recruiters to pursue a wide range of executive diversity initiatives in 2021.
According to an analysis by McKinsey, companies in the top quartile for gender diversity on executive teams were 25% more likely to achieve above-average profitability in 2019 when compared to companies in the fourth quartile. That percentage is up from 21% in 2017 and just 15% in 2014. In the same study, McKinsey found that top-quartile companies for ethnic diversity outperformed those in the fourth quartile by 36% in profitability.
Nonetheless, achieving executive diversity is a challenge for many organizations. It is now more important than ever for recruiters to leverage robust sourcing tools so they can meet diversity requirements for ethnicity, age, gender, and experience.