At GENDEX, we’re dedicated to data, and ensuring that everything we share is backed by research! We have a lot of very, very interesting numbers sitting on our desks, that highlight why ensuring true DEI policies and roll-out in businesses are a win-win. Keeping these numbers to ourselves seems cruel, so these are 2024’s must-know diversity stats.

Parenthood plays a scarily large role in increasing income inequality, and not just because women lose out on income

It’s not news that women face significant biases around parenthood, such as the notion that working mothers are less committed to their jobs, which can inhibit career progression and income growth (sometimes called the motherhood penalty). However, research is indicating more and more that men are, on average, more likely to be paid more or offered promotions faster after having children: in fact, fathers make roughly 20% more than men with no children, a report by Touchstone Extra shows. This is known as the fatherhood bonus.

This dynamic also negatively impacts fathers and families, as fathers perhaps feel they need to be more present and committed to their job, and families opt that the male partner should work more than the female partner, as ultimately the family benefits more from the higher income of the father. There is a dynamic that perpetuates itself, according to Jasmine Tucker, vice president of research at the National Women’s Law Center: “If a kid is sick and someone needs to take time out of their workday, it’s going to be the woman because they are paid less,” Tucker said. “It makes more economic sense. It’s a self-fulfilling prophecy.”

Diversity in companies attracts – and retains – talent (but only when DEI is more than a workplace buzzword)

While many employers often say they want to increase diversity in the workplace, they often cite several reasons why DEI hiring is not prioritised. However, research is showing that DEI is a hugely important factor for both attracting and maintaining talent.

A Linkedin study found that 76% of employees report diversity as an important factor when considering a job. Additionally, when companies speak about their belief in DEI and highlight DEI in action, applications also increase, in fact, “employers who posted about diversity saw 26% more applications from women than employers who posted less”.

It’s also worth noting that employees want to see more diversity and inclusion across the board, including factors such as ways of thinking, age, educational background, socioeconomic status, physical ability and family status.

This also illustrates that no matter what your efforts in diversity have been so far, there is always room for improvement (which will also have long-term business benefits). A survey by Quantum Workplace found that the top three areas of concern for employees were diversity in thought (55%), race/ethnicity (44%), and gender (33%).

Women-led businesses have significantly higher financial returns, but only receive a minute amount of overall funding

Private technology companies led by women are more capital-efficient, achieving 35% higher ROI, and, when venture-backed, 12% higher revenue than startups run by men, according to the Kauffman Foundation. Additionally, women-founded companies in First Round Capital’s portfolio outperformed male-founded companies by 63%.

Despite the severe funding gap, startups founded and co-founded by women actually performed better over time, generating 10% more in cumulative revenue over a five-year period, according to BCG.

In Germany in 2023, 237 women and 1,713 men received fresh capital for their startups; and only 5% of start-ups that received venture capital had all-female founding teams, receiving only 2% of the capital. The EY Startup Barometer also shows that there seems to be a strong correlation between the belief that women are more caring and funding, as female founders were most strongly represented in the healthcare sector (24%),

Women of colour are founding businesses more and more frequently, and returns are growing

“Women-owned businesses are growing much faster than all businesses. From 2007 to 2018, women-owned businesses grew by 58% in terms of the number of firms and 46% in terms of revenue,” according to American Express research advisor Geri Stengel. “What’s driving these numbers are women of color. Women of color over that same period of time are starting businesses at a much faster rate. The number of firms owned by African-American women has grown by 164% since 2007.” And these businesses are generating $140 billion in revenue, marking a substantial economic impact and highlighting their growing importance in the business landscape.

In the EU, women of colour are also increasingly starting businesses. For example, a 2021 report from The European Network for Women Entrepreneurs (ENWE) highlighted that the number of women of colour entrepreneurs had increased by 25% over the previous five years.

Diverse teams are essential for financially successful market expansion (and they make better business decisions)

A McKinsey & Company study from this year found that companies with more diverse executive teams are 33% more likely to outperform their peers in terms of profitability, while similarly a Boston Consulting Group report from 2024 shows that companies with more diverse leadership teams saw a 19% increase in revenue due to improved market share and entry into new markets.

Diverse teams clearly bring different perspectives that help in identifying and capturing new opportunities, and that goes beyond just leadership: The BCG report highlights that companies with diverse teams are 1.7 times more likely to be innovation leaders in their markets, and the McKinsey study shows diverse teams improve problem-solving and innovation capabilities. For instance, companies in the top quartile for ethnic diversity are 35% more likely to have above-average profitability and 70% more likely to capture new markets.

According to a study by LinkedIn, 49% of companies believe it is important for diversity to be part of culture as it allows them to better understand and represent their customers. Which makes sense – companies should strive to build a workforce that mirrors the diverse profile of their customer base.

Crisis impact minorities significantly more because of because of existing inequalities (and could ultimately lead to a a GDP loss of $1 trillion)

The most recent global crisis, COVID-19, had a disproportionately severe impact on women and POC, highlighting the significant biases we need to overcome = and the structural changes necessary to advance toward true equality. For instance, research from Strada carried out in the US found that Black Americans (23%) and Latinos (24%) are more likely than white Americans (15%) and Asian Americans (13%) to have been laid off.

Perhaps more shockingly, Mckinsey found that women’s jobs were “1.8 times more vulnerable to the COVID crisis than men’s jobs; and despite making up 39% of global employment, accounted for 54% of overall job losses.” They looked further, and found that “in a gender-regressive scenario in which no action is taken to counter these effects [of women leaving the workforce for a number of reason and instead taking on more unpaid care work], we estimate that global GDP growth could be $1 trillion lower in 2030 than it would be if women’s unemployment simply tracked that of men in each sector […] Conversely, taking action now to advance gender equality could be valuable, adding $13 trillion to global GDP in 2030 compared with the gender-regressive scenario.”

So what do all these data points tell us? On one hand, we feel inspired to see the topic of DEI in the workplace being criticised and measured, so we are able to make structural changes based on real insights and not just gut feelings. Plus, we see more and more minority groups striking out, building businesses and becoming role models. But on the other hand, it shows us that we still have a long way to go. We, however, are optimistic: many are calling for change, and many are working to ensure change happens. Let’s hope that the numbers we have shared here improve over the coming years!

GENDEX’s research team is diligently collecting and analysing data to demonstrate why investing in diverse founding teams will prove to have better ROI. We’re eager to share their findings with you soon. For more updates, follow us on LinkedIn, subscribe to our newsletter, and check out our YouTube channel.

Written by Emily Hoffschmidt-McDonnell, researched by Rachel Bolte , and edited by Sophie Webber .

See our references here