Firms can bring in robots, but strongest and most resilient brands tap human element, sustainability meet hears

Panellists from Bettr, Marriott and Richemont say promoting and hiring from a diverse pool will lead to a motivated workforce and better business performance

But firms cannot have a one-size-fits-all approach, diversity and inclusion executive says

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A diverse workforce is especially important for sectors such as hospitals, retail and food and beverage, according to Pamela Chng, co-founder of Singapore’s Bettr. Photo: Bloomberg

Published: 3:00pm, 22 Aug 2021Updated: 3:53pm, 24 Aug 2021

Embarking on diversity and inclusiveness initiatives makes business sense, according to panellists at the Post’s Asia Sustainability Conference.

Panellists from Singapore coffee social venture The Bettr Group, US hotel chain operator Marriott International and Switzerland-based luxury goods company Richemont Asia Pacific said last week that promoting and hiring from a diverse pool of people will lead to a motivated workforce and better business performance.

“The resilient and sustainable organisations of the future are those that intentionally create the culture and systems of inclusion and diversity, so that people can bring their best selves to work,” said Pamela Chng, co-founder of Bettr, which works with businesses to offer work opportunities to marginalised women and at-risk youth.

A diverse workforce is key to building resilience in companies’ talent pools, which is especially important for the hospitals, retail and food and beverage sectors, she said. “You can automate and bring in the robots, but at the end of the day, the strongest and most resilient brands are those that tap into the human element,” Chng said, adding that diverse workplaces tend to be more productive and innovative.

An analysis by management consultancy McKinsey of publicly available data from 365 US and UK-based firms found that the top 25 per cent performers on gender diversity were 25 per cent more likely to experience above-average profitability compared to the bottom 25 per cent in 2019. Profitability was measured by earnings before interest and taxes. The outperformance likelihood rose from 21 per cent in 2017 and 15 per cent in 2014.

The corresponding improvement was less marked when it came to ethnic diversity, with an outperformance likelihood of 36 per cent in 2019, compared to 33 per cent in 2017 and 35 per cent in 2014.

Companies that create a diverse and inclusive culture and take care of their employees are better at attracting and retaining talent, especially the younger generation, said Regan Taikitsadaporn, Marriott’s chief human resources officer in Asia-Pacific.