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Category: Trends

Why diversity and inclusion are essential in the consulting space

In this article, we take a look at Diversity, Equality and Inclusion (DEI) initiatives today and throw a lens on why they are so important for the consultancy sector in particular.

There is no shortage of experts or research that draw the same conclusion, that diverse and inclusive work environments improve an organisation’s business outcomes.

The focus is often on how robust Diversity, Equality and Inclusion (DEI) practices can improve innovation and engagement within a firm, but there are other advantages too.

 

Why is DEI important?

Despite some high-profile naysayers and backtracking on DEI initiatives, when done correctly, the evidence is copious of the positive impact of having a diverse workforce in an organisation.

Read more about Backtracing on DEI initiatives here.

As championed by members of Forbes Coaches Council, embracing DEI leads to stronger financial performance and helps businesses to attract and retain top talent, as well as better understand their customers.

Read more about Forbes Coaches Council here.

McKinsey’s Diversity Wins report, the third in a series investigating the value of diversity, demonstrates that the business case for gender, ethnic and cultural diversity remains strong, with a close relationship recorded between diversity on executive teams and financial outperformance.

Through data collated from more than 1,000 large companies across 15 countries, firms with gender diversity on executive teams are 25% more likely to record above-average profitability compared with less diverse companies.

Even more compelling is that the data revealed businesses with higher ethnic and cultural diversity outperform those with lower diversity by 36% in profitability.

Despite these findings, many businesses are still slow to progress DEI initiatives, with some even pulling back in the last 12 months.

Read more about the McKinsey’s Diversity Wins report here. 

 

At its core, a consultancy business must have the ability to constantly adapt and pivot as markets shift and client needs change.

 

DEI in consulting

In a detailed study of 79 large companies, Harvard Business Review found that firms with successfully implemented DEI policies and practices have a better structural ability to change, or what the researchers call ‘change power’.

This ability to change, in turn, supports improved financial performance, stronger leadership, company culture and employee engagement.

Companies hire consultancies to guide or manage their business through change, thus for a consultancy to have this ‘change power’ will put the organisation in a strong position to thrive and excel in its service offering.

At its core, a consultancy business must have the ability to constantly adapt and pivot as markets shift and client needs change.

A lack of diversity, whether it be in terms of gender or ethnicity, is also potentially damaging for business development, because a narrower set of perspectives in the executive team will limit its ability to see opportunities and reduce the potential client pool.

Where consultancies lack diversity in the workforce, there is also a risk that new business will be lost where potential clients do not see their own values reflected in the partner business.

Read more about the Harvard Business Review study here.

Barriers to DEI

With such a compelling business case for DEI in consulting, what are the obstacles?

Consulting has long been a male-dominated and traditionally masculine industry, and which has earned a reputation for demanding +80-hour workweeks, poor work-life balance, and little room for family life.

To attract more women, structural barriers must be addressed both at the company level and within society.

Women, particularly those in the family-building stage of life, face significant challenges entering and remaining in consulting.

Maternity leave, childcare responsibilities, and the demands of raising young children often conflict with the expectations of consulting, or at least what many would think consulting is about.

To build a truly diverse and inclusive workforce, the narrative around consulting must change. Flexibility and work-life balance should replace the outdated model of excessive work hours, lack of remote or hybrid work options, constant availability expectations, limited parental leave, and a culture with a “sink or swim” mentality.

This shift is not just about women, it is about creating a sustainable environment for everyone. While it’s crucial to support those in their prime family-building years, especially to increase the number of women in consulting, but true diversity means fostering inclusivity at every stage of life.

Consultancies, particularly those operating in IT and technological innovation, have a unique opportunity to lead in DEI efforts and set the standard, leading the way toward a modern and equitable world of consulting.

By fostering diverse teams, these companies can develop more inclusive and accessible technologies and create solutions that cater to a wider range of users.

 

Where consultancies lack diversity in the workforce, there is also a risk that new business will be lost where potential clients do not see their own values reflected in the partner business.

 

Diversity at emagine

At emagine we have an ongoing commitment to improving diversity and inclusion across the business and are transparent about our progress.

We recognise that whilst we have DEI initiatives and programs in place, there is still work to be done and challenges to face.

For example, whilst our overall workforce demonstrates near gender parity, the split at management level is still unequal, as outlined in the firm’s annual report, despite initiatives to actively recruit more women.

Challenges can include a smaller talent pool, among other barriers, but we are finding ways to address this balance.

Read our annual report here.

To tackle the disparity, we are committed to bolstering diversity across all management layers throughout our organisation.

At the heart of our DEI campaign is the focus on addressing three of the UN’s Sustainable Development Goals (SDGs) in particular, namely goal 5: gender equality, goal 8: decent work and economic growth, and 10: reduced inequalities.

To achieve this, we raise awareness and work towards cultivating a positive working culture where every individual feels valued, respected, and included.

As part of this, we run training sessions covering gender diversity, anti-discrimination, cultural awareness, unconscious bias, and support for minorities. We have also developed an inclusive and gender diverse leadership program to nurture the next generation of leaders.

As a firm, we are also financially committed – through a sustainability-linked loan (SLL) - to reducing the percentage of resignations by 7% and increasing the number of female leaders in the organisation by 6%.

emagine recognises the pivotal role our people play in shaping our identity and driving collective success. By attracting talent from diverse backgrounds and all walks of life, we improve decision-making, client relationships, and overall value.

Building and retaining a diverse workforce not only aligns with our ethical values but also enhances our strategic advantage as we grow our expertise and capabilities as an international business and IT services firm.

After all, by embracing diversity, fostering equity, and promoting inclusion, companies can drive innovation, attract top talent, and better serve global markets.

Read more about our commitment through a sustainability-linked loan (SLL) here.

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