How to Improve Diversity in the Boardroom


18 Jul 2018


With the Hampton-Alexander Review revealing that only 29% of FTSE 100 board positions are occupied by women, we look at how diversity in the boardroom can be improved and how this benefits organisations.


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How Diversity in the Boardroom Benefits Organisations

In an open and diverse world, an inclusive and diverse board will only help to improve reputation and your company brand. This is because it reflects the real world, and shows you have the interests and considerations of multiple demographics in mind. Often, when facing a complex issue, having a diverse board helps solve the problem more effectively. Divergent backgrounds mean tackling the same idea in differing ways, and therefore more likely to come to a competent solution.

Genpact’s Tiger Tyagarajan explains, “To attract the best talent into the company, you need to appeal to 100 percent of the top talent, not 50 percent. To do that, you need strong female role models.” For retailers in particular, the reality is that women make up more than half of global purchasers.

Board diversity is simply better business. Scott Anderson, chairman, president, and CEO of Patterson Companies, states, “The quality of discussions goes up dramatically when you have a more diverse group in the boardroom.”

Rodney McMullen, chairman and CEO of Kroger, adds that “you get questions from perspectives that you hadn’t thought of before, and I think this helps you avoid more blind spots.”

If you are a company that suffered from a wide gender pay gap, hiring women to the board not only shows you are making an effort to reduce the pay gap, it also helps remove any negative attention your business may have received as a result of the report.

Expert Support

For support with promoting diversity in the workplace, pay benchmarking, salary surveys, or any other pay & benefits issue, contact Croner Reward on 01455 858 132.

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