Diversity for a profitable business

It’s no secret that many industries including the Real Estate industry have been male-dominated for years and, this is surely to the detriment of lots of industry sectors. In my view it is important that the diversity of a company reflects the diversity of the society it operates within. It is important that the diversity within keeps pace with the diversity outside. However this is not just a vague fashionable notion, their is empirical evidence to show that diversity is better for profitability and – ultimately – it’s better for the workforce as a whole. Put simply, the importance of representation and equality across gender, race, sexual orientation, as well as other relevant characteristics that are reflected within the markets and societies companies operate in are better for business both socially and economically.

There is a positive correlation between the diversity of a company and its financial performance. The report from Harvard Business Review states that “companies with above-average total diversity, measured as the average of six dimensions of diversity (migration, industry, career path, gender, education, age), had both 19% points higher innovation revenues and 9% points higher EBIT margins, on average.” It’s indisputable that diversity leads to profit, so what’s stopping businesses, especially in the Real Estate sector, from taking the necessary steps to improve diversity amongst their employees?

While we all want to act in a certain way because it’s the ‘right thing to do’, leaders of businesses and its stakeholders invariably look to the bottom line before they consider the issue of diversity in the workforce. That said, when doing the right thing leads directly to business success, it’s a win-win and should be the cornerstone of every business strategy. In order to generate those positive returns – as we at Sirius Real Estate did last year – you have to start from the bottom up and look at how your employees are motivated and the positivity they feel about working at a company they want to be a part of, not just a place of work. When people come together for common commercial goal, the results are greater from both financial and personal fulfillment perspectives.

Diversity for company culture

Sirius Real Estate is proud to have been a signatory of the German Charter of Diversity for several years, committing to promoting diversity in the workplace. Of course, it’s relatively easy to sign up to a Charter – but it’s our commitment to the framework and continually reminding ourselves of these principles that has really helped drive our workplace culture forward. As a management team, we regularly challenge ourselves to ensure that we are fostering a culture of respect and an appreciation of every single individual. This had led to Sirius Real Estate employing more females than males across the company (55%-45%).

   

With Germany on the path to full employment, it’s especially important for companies to be places people want to be a part of, given the power and choice a potential employee has when deciding on a job. Creating a diverse business is about leadership, not management. Whereas management is hierarchical, leadership is about participation, communication, collaboration, understanding, and demonstrating by example.

Diversity is something which I take great pride in and believe it is a key tenet to our success as a business in the present and future. Skilled business leaders bring diverse groups of people together to achieve extraordinary things. I’m proud of our story so far at Sirius and it’s clear to me that everyone in the Real Estate sector will benefit from increased diversity, but I’m keen to hear from others within – and outside – the sector – what more can be done. Leave your thoughts, ideas and comments below.