A new study suggests a 1% increase in racial diversity in management increased tech firms' productivity by $729 per employee.
- Racial diversity in upper and lower management results in greater employee productivity, per a June 9 study in the Academy of Management Journal.
- Researchers Orlando Richard, María del Carmen Triana, and Mingxiang Li analyzed 201 high-tech firms' EEO-1 data — a federally mandated survey that requires categorizing employment data by race/ethnicity, gender and job category.
- The report found that a 1% increase in racial diversity in management increased a tech firm's productivity by $729 per employee and a Fortune 500 firm's productivity by $1,590 per employee.
- Additionally, the study suggested that firms with less diverse upper and lower management were also less capable of "making good business decisions, absorbing information, and obtaining a competitive advantage," HR Dive reported.
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