DIVERSITY RULES

Businesses should go beyond ‘box-ticking’ to ensure their organisations recruit a diversity of talent says the recruiting company Hays. There are now more female directors in British boardrooms than ever before, but this is not a time for complacency, says the organisation, nor is it a time to undervalue the real effect diversity has on a business.

“Gender quotas are very much the public face of the diversity agenda and it is positive to see Britain is making progress,” says Charles Logan, Director at Hays. “But many remain sceptical about the effectiveness of such quotas when it comes to driving performance, change and share value.”

Logan argues that mandatory quotas for diversity could soon become redundant as long as orgnaisations realise that diversity in the workforce has critical importance for their company’s performance.

“Some organisations fear that a box-ticking approach to recruitment is not compatible with the aim of acquiring the very best talent,” explains Logan. “Others say that set quotas harm the notion of promotion on merit, can lead to ‘tokenism’ and can simply result in the same women taking on more boardroom roles, rather than bringing in new blood at higher levels. Yet the perception remains that not enough is done to promote gender diversity.”

In March the law firm Eversheds conducted a global poll of 241 companies and concluded that there was a correlation between smaller, more diverse and more independent boardrooms and share price performance and company success.

“A genuine engagement and willingness to embrace diversity and inclusion when it comes to recruitment and promotion leads to the business benefit of different ways of thinking,” explains Logan. “But sometimes, it can require a shove from above, such as quotas, to encourage employers to make diversity reality.”