Increasing diversity in management is good for productivity, a study suggests

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  • Racial diversity in upper and lower management results in greater employee productivity, per a June 9 study in the Academy of Management Journal.
  • Researchers Orlando Richard, MarĂ­a del Carmen Triana, and Mingxiang Li analysed 201 high-tech firms’ EEO-1 data – a federally mandated survey that requires categorising employment data by race/ethnicity, gender and job category.
  • The report found that a 1% increase in racial diversity in management increased a tech firm’s productivity by $US729 per employee and a Fortune 500 firm’s productivity by $US1,590 per employee.
  • Additionally, the study suggested that firms with less diverse upper and lower management were also less capable of “making good business decisions, absorbing information, and obtaining a competitive advantage,” HR Dive reported.
  • Read more on HR Dive.
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