DE&I in Leadership

To accelerate organisational performance, leadership teams must make the critical step from acknowledging the importance of DE&I to actively embedding it within their structures and decision-making processes. This requires deliberate strategies to ensure that diversity becomes a core driver of innovation, resilience, and sustainable success at the executive level.

A detailed analysis of UK boardrooms reveals significant disparities in representation. Women make up 51.0% of the overall population of England and Wales,  but only hold 29% of C-suite positions. 16.1 million (24%) people in the UK have a disability but there are currently no senior managers or executives in any of the FTSE 100 companies who chose to declare a disability. 18% of people (12.3 million) belong to a black, Asian or other ethnic group, yet only 13% of board members identify as ‘minority ethnic’. And if we include socio-economic background into the equation, we see that 93% of the UK public went to a state school yet only 34% achieve FTSE CEO status compared to 66% who were privately educated.

However, things are improving gradually, thanks to increasing awareness of the benefits that diversity brings:

• Creativity and Innovation – The more diverse a company’s board is, the better decisions it makes. DE&I helps leaders solve problems more effectively and offers a deeper understanding of what their customers want.
• Stakeholder representation – C-suite executives who reflect the diversity of both shareholders and employees are better positioned to act in the collective interests of all stakeholders. This alignment fosters greater organisational productivity, drives increased sales, and enhances the organisation’s appeal to investors, ultimately creating a stronger, more resilient business.
• Increasing in valuation – DE&I initiatives add long-term value to organisations, acting as a positive asset, which can be seen as indicative of innovation and future performance. This adds to long-standing research conducted by McKinsey which found more diverse businesses were 33% more likely to have higher profits.
• Enhancing workplace culture – When boardrooms are more diverse employees are more likely to feel represented, feel ‘safer’ psychologically, and be more likely to challenge discriminatory behaviour and practices. This helps attract and retain future leaders who may have experienced discrimination and who can positively affect learning opportunities and outcomes.

How can you make a difference?

Use data to drive DE&I

With the composition of boards coming under scrutiny due to revisions of the Corporate Governance Code, this calls for greater transparency in financial services, for example, which requires annual reports to contain details of DE&I initiatives as well as senior management gender balance, data can prove invaluable to demonstrate real change and future strategies.

Create a diverse pipeline

By having an inclusive boardroom and developing a diverse pipeline to ensure effective succession, leaders can support rising talent and retain them in the face of fierce competition. Your company’s policy should reflect its commitment to diversity in both its board members and its up-and-coming talent.

Partner with an expert

Building a truly inclusive and diverse leadership team requires a strategic approach and access to the right expertise. Partnering with an executive search and talent advisory firm specialising in developing inclusive leadership teams positions your organisation for long-term success.

With the right partner, you gain access to deep networks, proven expertise, and a tailored approach to identifying and securing exceptional leaders who reflect the values and diversity your business needs to thrive in an ever-evolving world.

At Holmes Noble, we partner with clients to build inclusive leadership teams that unlock fresh perspectives and drive growth. Discover how DE&I can transform your organisation.