Why building a diverse team is good for business

Moon Executive Search is one of the first 50 signatories of Change the Race Ratio, a CBI led campaign to increase racial and ethnic participation in British businesses. We signed up to this initiative as firm believers in creating an inclusive culture where talent from all areas of society is given access to opportunities to thrive.

As an executive search firm that undertakes bespoke recruitment campaigns at C Suite and Non-Executive level for listed PLCs, private equity groups, SMEs and equity-backed businesses, we have had a unique insight into trends and attitudes across the business world. This year, we’ve seen a stark increase in the emphasis on diversity and inclusion.

Why now?

The body of evidence supporting the drive towards a more inclusive business community is ever-increasing. However, the latest Parker Review report into ethnic diversity in UK Boards shows progress has stalled on implementing its recommendations: 37% of FTSE 100 and 69% of FTSE 250 companies surveyed still do not have any ethnic minority representation on their boards.

Furthermore, the 2017 McGregor-Smith Review found that the lack of ethnic diversity in business is costing the UK £24 billion a year in lost GDP; suggesting that there is clear evidence for the need to focus on Diversity and inclusion. While Deloitte research suggests when employees feel included in the workplace their ability to innovate increases by 83%.

We have noticed distinct trends from our clients in 2020. More than ever, firms are placing diversity and inclusion at the top of their list of criteria when considering a candidate shortlist. Our role is to highlight recruitment and talent development processes which drive a more diverse pipeline.

The executive challenge

Diversity and inclusion should be based on organisational principles as well as the potential to provide a strategic advantage. There are multiple advantages to having a balanced workforce that refle