Research shows that many managers and executives are most comfortable hiring people who look, act and/or think like them. Homogenous teams are perceived as easier to manage and less prone to conflict. Sounds good, right? The problem is that numerous studies show that teams comprised of people of the same race, gender, age and/or backgrounds tend to be significantly less effective and innovative than diverse teams.
One study of more than 7,600 European companies, published in Economic Geography, found that businesses run by culturally diverse leadership teams were more likely to develop new products than those with homogenous teams. In a study published in Innovation: Management, Policy & Practice, gender diverse research and development teams from 4,277 companies in Spain were linked to high levels of innovation. In a study of 2,400 companies conducted by Credit Suisse, organizations with at least one female board member yielded a higher return on equity and higher net income growth than those that did not have any women board members. A McKinsey study of 366 public companies came to the same conclusion.
So why do so many companies fail to put together diverse teams of employees? Aside from the perceived comfort of working with someone who looks, acts and thinks like yours truly, some managers and executives also fear that diverse teams invite more conflict than homogenous teams and as a result, are less effective. Research does show that diverse teams do tend have more conflict than non-diverse teams, but that’s one of the factors that makes them so effective and innovative. Even slight differences in backgrounds have been proven to improve team decision making when it comes to complex problems. (Scott Page, a professor at the University of Michigan, came up with a mathematical model that supports that idea.)
The solution isn’t as difficult as you may think. Start by being aware of the bias against diverse teams and make sure you — or those responsible for assembling teams at your company — are aware of this bias, too. Then make a sincere effort toward greater diversity. Equally important: Setting clear standards for those putting teams together and for measuring the effectiveness of all teams. Empirical data is a powerful way to demonstrate the power of a diverse team.