Equal Pay For Women Is A Growth Accelerator!

By Neal St. Anthony
Star Tribune (Minneapolis)

WWR Article Summary (tl;dr) A new report from Mckinsey & Co. reveals the economic empowerment of women is good for a company’s bottom line! The study of 366 companies found that companies add 1 percentage point to operating profits when they increase management diversity by 10 percent–adding one woman or a person of color for every 10.

Star Tribune (Minneapolis)

Kweilin Moore Ellingrud is the co-author of a just-released McKinsey & Co. report that found “gender parity,” or paying women equally to men, is not just fair. It’s an economic growth accelerator.

“Across 95 countries that we studied, the U.S. is the most gender equal,” said Ellingrud, managing partner in McKinsey’s Minneapolis office. “But even here, it’s a $2.1 trillion opportunity, a 10 percent increase in U.S. gross domestic product [GDP].

“That’s the equivalent of the GDP of the state of Texas.”

Moreover, related research by McKinsey found that “companies in the top quartile for diversity tend to outperform their peers across all geographies.”

A McKinsey study of 366 companies found that, basically, companies add 1 percentage point to operating profits when they increase management diversity by 10 percent — adding one woman or a person of color for every 10.

Companies that employ, including in the executive ranks, minorities and women in numbers that at least approach their representation in the population tend to perform better because they attract more talented job applicants; improve decision making through different perspectives and backgrounds; motivate employees who see that people other than white males can advance, and improve a company’s popularity.

This is important when our economic growth increasingly depends on expanding the pool of trained employees as baby boomers retire.

Ellingrud’s study, published in April by the McKinsey Global Institute, found that the U.S. could increase economic output by $2.1 trillion over the next decade by increasing the female rate of participation in the labor force, their hours and their participation in higher-value jobs, as well as ensuring that they are paid as are men for the same work.

Related News

Leave a Reply

Your email address will not be published. Required fields are marked *