This article is part of WeSTEM+’s new monthly series exploring the benefits, challenges, and real-world impact of Diversity, Equity, and Inclusion in STEM.

Why Diversity Drives Innovation and Profitability in STEM Industries

Imagine a band where every musician plays the triangle. Sure, triangles are delightful, but without a mix of instruments, you’d hardly call it a symphony. Similarly, a STEM team lacking diversity might hit the occasional note but will likely miss out on creating a masterpiece.

Studies have shown that diverse teams are more innovative and financially successful. For instance, companies with diverse management teams have EBIT (Earnings Before Interest and Taxes) margins, a measure of profitability, nearly 10% higher than those with below-average diversity. This means that companies whose management teams include people from various backgrounds and perspectives tend to achieve significantly better financial performance. Diverse teams bring broader insights, creativity, and better problem-solving, ultimately translating into higher earnings and stronger competitive advantage.

Moreover, firms in the top quartile for board-gender diversity are 27% more likely to outperform financially than those in the bottom quartile. This means that companies with the highest level of gender diversity on their boards (the top 25%) have a significantly better chance – 27% higher – of achieving stronger financial performance compared to those with the lowest gender diversity (the bottom 25%). In practical terms, businesses that prioritise gender diversity at the board level tend to make better decisions, benefit from a wider range of perspectives, and thus achieve superior financial results.

Why does this happen? When people from different backgrounds collaborate, they challenge each other’s assumptions, leading to breakthroughs that a homogenous group might overlook.

McKinsey & Company, Diversity matters even more: The case for holistic impact. December 5, 2023.

Case Studies of Companies Benefiting from Diverse Teams

Let’s take a world tour of companies that have embraced diversity and reaped the rewards.

Tweet by @Cisco: “Everyone deserves to be who they are and live authentically with with #PRIDE.

This tech giant has been lauded for its commitment to DEI, topping the FT-Statista list of European Diversity Leaders. Cisco’s initiatives, like the Proximity Initiative, encourage leaders to engage with colleagues from different backgrounds, fostering understanding and allyship. This focus on diversity has contributed to low attrition rates and high employee satisfaction.

Cisco’s Proximity Initiative is a transformative programme designed to bridge the gap between company leaders and employees from underrepresented communities. Initiated in 2019 by Alex Allen , Cisco’s Senior Director of Social Impact and Inclusion, the initiative encourages leaders to engage in one-on-one conversations with colleagues whose backgrounds differ from their own. The primary goal is to foster understanding, empathy, and allyship by delving into the lived experiences of diverse employees. Since its inception, the Proximity Initiative has facilitated over 2,500 meetings, enabling leaders to gain firsthand insights into the challenges faced by their colleagues. These interactions have led to tangible changes within the organisation, including improved allyship, mentorship opportunities, and a more inclusive work environment. By prioritising genuine connections and understanding, Cisco exemplifies how intentional efforts can break down barriers and promote diversity and inclusion in the workplace.

DEI programs at Cisco have contributed to higher employee retention rates. For instance, Nakia Stringfield, a Senior Director of Customer Experience, attributed her 23-year tenure to the support and development opportunities provided by the company’s DEI initiatives. Such programs have been instrumental in helping employees advance their careers and remain engaged. Cisco established the $50 million Aspire Fund to invest in startups and venture funds led by underrepresented groups. This initiative not only promotes diversity in the broader business ecosystem but also opens new avenues for innovation and growth, aligning with Cisco’s inclusive future vision.

Lenovo

Gina Qiao on LinkedIn: Celebrating Individuality and Choosing Allyship on International Women’s Day

The multinational technology company has been recognised for its remarkable DEI achievements.

Lenovo exceeded the goals for gender and racial representation in leadership roles, establishing a Product Diversity Office, and expanding Employee Resource Groups supporting LGBTQ+, Asian, and early-career employees. Recognised as a top employer for disability inclusion, Lenovo scored 100% on the Bloomberg’s Disability Equality Index for three consecutive years. Its robust Supplier Diversity Program supports over 3,000 diverse suppliers, allocating $700 million in spend. Awards include being named among the Best Places to Work for LGBTQ Equality, inclusion in Bloomberg’s Gender-Equality Index, and achieving ‘Ambassador’ status in the Workplace Pride Global Benchmark.

Yolanda Lee Conyers, as Lenovo’s first Chief Diversity Officer and President of the Lenovo Foundation, played a foundational role in embedding DEI into the company’s culture. Joining Lenovo in 2007, she was instrumental in establishing an inclusive environment post the IBM PC division acquisition. Her tenure saw the launch of the Product Diversity Office and the achievement of significant representation goals for women and minorities in leadership. Conyers served until December 2020, laying the groundwork for Lenovo’s ongoing DEI efforts. Succeeding Conyers in January 2021, Calvin J. Crosslin brought over 30 years of HR experience to his role as Chief Diversity Officer and President of the Lenovo Foundation. Under his leadership, Lenovo has continued to advance its DEI agenda, focusing on inclusive hiring practices, leadership development programs, and fostering a culture where all employees can thrive. Crosslin emphasises the integration of DEI across all business functions, ensuring it remains a core component of Lenovo’s global strategy.

By fostering a diverse workforce, Lenovo has achieved industry-leading representation, with women comprising 29% of technical roles. This diversity has been instrumental in driving innovation, enabling the company to develop products that cater to a broad customer base across 180 markets. In the U.S., the company aimed for 28% representation of underrepresented racial and ethnic groups in executive positions by 2020 – hey exceeded this, attaining 29% within the same timeframe. Lenovo’s inclusive culture has led to increased employee satisfaction and loyalty. The company’s ‘Lenovo Listens’ survey reported a 94% response rate on DEI-related questions, indicating high engagement levels.

Key Steps Organisations Can Take to Improve DEI in STEM

Got your socks blown off yet? Here’s how your organisation can transform from a monochrome sketch into a vibrant masterpiece.

Leadership Commitment: Ensure that the top brass isn’t just paying lip service to DEI but is genuinely invested. This means embedding DEI into the company’s core values and holding leaders accountable.

Bias Training: Implement regular training sessions to help employees recognise and mitigate their unconscious biases. Think of it as updating the human software to version 2.0.

Inclusive Recruitment: Revamp hiring practices to attract a diverse talent pool. This could involve using neutral language in job postings and ensuring diverse interview panels.

Mentorship Programs: Establish mentorship opportunities, especially for underrepresented groups. It’s like providing a GPS for navigating the corporate labyrinth.

Flexible Work Policies: Recognise that one size doesn’t fit all. Flexible working arrangements can accommodate diverse needs, making the workplace more inclusive.

Regular Assessments: Conduct periodic reviews of DEI initiatives to measure progress and identify areas for improvement. After all, what gets measured gets managed.

In conclusion, embracing DEI in STEM isn’t just about ticking boxes or avoiding awkward PR blunders. It’s about unlocking the full potential of your teams, driving innovation, and boosting profitability.

©️ Julia Khalyavko (She/Her)

Credits:

1. “What makes the most impact on gender diversity in STEM workplaces?” Expertise Delivered.
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5. Allen, Alex. “The Journey and Impact of Getting Proximate.” Cisco Blogs.
6. Allen, Alex. “The Cisco Customer Experience Journey to an Inclusive Culture.” Cisco Blogs.
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8. Williams, Andrew. “How Cisco’s Commitment to DEI Helped It Keep One of Its Best Employees for 23 Years and Counting.”
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11. Greenleaf, Dan. “Case Study: Lenovo’s Diversity and Inclusion Initiative.” LinkedIn.
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13. “Lenovo Receives Top Score as Best Place to Work for Disability Inclusion.” CSRwire.
14. “Supplier Diversity.” Lenovo.
15. “Lenovo Achieves ‘Ambassador’ Status in Workplace Pride Global Benchmark.” Lenovo Newsroom.
16. “Meet Calvin Crosslin, Lenovo’s New Chief Diversity Officer.” Lenovo Newsroom.
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18. “Lenovo Reports 18th Annual ESG Report.” Lenovo Newsroom.