Let’s talk about people.
As we enter the fourth Industrial revolution, tech companies are looking for ways to step up their game. We’re seeing huge developments in mobile technology, the automotive industry, and even in Artificial Intelligence. But behind all of that innovation, we have people. People with ideas that challenge what we believe to be possible. Getting the right person in the right seat is the deciding factor that makes or breaks any company trying to make an impact in this field. And that’s why it’s important to invest in companies that are effectively investing in people.
This brings me to the topic of diversity.
Diversity is actually a key growth factor for companies in the U.S. According to a study from the Boston Consulting Group (BCG) “increasing the diversity of leadership teams leads to more and better innovation and improved financial performance.” After looking at about 1700 companies of varying sizes, they saw that the companies with more diverse management teams generated up to 19% more revenue due to innovation. What this means is that the inclusion of these people in these spaces brought about an increase in the overall well-being of the company.
That’s a huge deal!
For many companies, especially start-ups in the tech industry, innovation is the key to growth. By simply ensuring that your workspace is diverse, you’re guaranteed to have a direct effect on your bottom line because you’ve encouraged said innovation. And you’re bound to build a company culture of inclusivity and positive transformation. Diversity fosters an environment of exploration and inquisitiveness — it is the antithesis of boredom. In many cases, having a diverse workplace reflects the communities these companies are designed to serve. This makes these companies feel more trustworthy in the eyes of potential clients and customers.
Michigan’s Venture Capitalists have already begun to take advantage of this fact. Over the last five years, the industry has made gains in diversity: ”CEOs from underrepresented minorities account for $53 million, or 13.7 percent, of the $385 million in venture capital invested in 61 startups in Michigan in 2018 compared to just 2.8 percent of the $282 million put into 74 startups in 2015”.
As you can see, it’s not just about filling a quota. It’s about strategically ensuring that your company is well prepared for the next industrial revolution. It’s about effectively generating revenue that would benefit your company in the long run. Diversity in the workplace also means diversity of approach. It means that your team is better equipped to tackle problems from every conceivable angle. Because each person on the team would be able to bring forward a unique perspective that could radically benefit the team.
“It’s Not Just About Filling a Quota”
For start-ups, getting company culture right the first time around ensures that the future of the organization stays bright. But it’s never easy to find the right people to build that culture. A lot of the time, the focus of start-ups when “starting up” is mostly on building the idea and the platform. So, that’s why we serve as a resource to help leaders get a better sense of how to build their respective organizations. As a Talent Partner, we believe that you deserve to have the right people in the right seat. And we’ll help you get there at your pace.