Workforce diversity, both in leadership and the rank-and-file, is one of those ideals to which companies aspire without needing a true “business” reason. For some, it’s “the right thing to do.” For others, it’s merely a way to preclude lawsuits. As such, diversity is often low on the human resources totem pole, and many companies do not make systematic efforts to boost diversity.
Now, a new study suggests that increasing gender diversity in the executive ranks can improve the bottom line. According to a report by the Peterson Institute for International Economics and EY, the audit firm formerly known as Ernst & Young, companies with at least 30 percent women in leadership roles may boost their net profit margins by about 15 percent compared with those without female leaders.