Research articles and reports

Published 18 November 2024

Abstract 

Diversity, equity and inclusion (DEI) is a growing strategic focus area. However, measuring DEI remains a challenge, partly due to self-reporting biases and limitations of cross-sectional survey data. This paper proposes a novel measure of DEI using a data set of online employee reviews that encompasses more than 3.2 million reviews posted between 2015 and 2022 on the career intelligence website Glassdoor. We investigate the relationship between this measure of DEI and firm performance for 945 US and UK-listed firms. We find that DEI is associated with higher long-term market performance, with positive impacts larger for growth compared to steady state firms, but not short-term market performance. We find evidence of a mixed relationship between DEI and accounting performance, and a consistent positive relationship with higher innovation. Finally, we examine the interaction between firm DEI and senior management diversity, with results indicating that the positive effects of DEI on long-term market performance and innovation are amplified in firms with higher levels of ethnic diversity in senior management. Overall, we conclude that DEI has either a positive or neutral association with firm performance.

Read the report

Published September 2024

Over the past year, the DaPEW project team has focused on deepening our understanding of the relationship between diversity, inclusion, and productivity through rigorous research, innovative experiments, and engaging events. This year’s report encapsulates the research we believe will reshape the future of diversity and productivity in the UK.

Read the report

IZA Institutue of Labor Economics, published 25 January 2024

Abstract 

Technology is disrupting labor markets. We analyze the demand and reward for skills at occupation and state level across two time periods using job postings. First, we use principal components analysis to derive nine skills groups: 'collaborative leader', 'interpersonal & organized', 'big data', 'cloud computing', 'programming', 'machine learning', 'research', 'math' and 'analytical'. Second, we comment on changes in the price and demand for skills over time. Third, we analyze non-linear returns to all skills groups and their interactions. We find that 'collaborative leader' skills become significant over time and that legacy data skills are replaced over time by innovative ones.

Read the report

IZA Institutue of Labor Economics, published 25 January 2024

Abstract 

This study develops and validates the 'Individual Inclusiveness Inventory'. Collaboration and inclusion are key contributors to successful work outcomes in an increasingly diverse workforce. We capture what makes an individual inclusive of others at work. We define an inclusive individual as someone who actively includes individuals in a group and encourages diversity of thought and background but still encourages the group in a way as to maximise performance and productivity. To develop the 'Individual Inclusiveness Inventory' we combine a deductive and inductive approach: we generate scale items based on the existing literature on inclusion and interviews with 14 experts in diversity and inclusion. The items are then reduced using exploratory factor analysis and confirmed using confirmatory factor analysis in two samples of working professionals in the UK. This results in a two-factor solution where factor 1 'Belonging and Uniqueness' captures the importance of fostering belonging and uniqueness at work and factor 2 'Challenge and Openness' captures being open to challenge and being challenged. 

Published October 2023

Abstract 

We are thrilled to commemorate three impactful years of The Inclusion Initiative. To mark this significant milestone, we are excited to present our 'Three Years of Impact' report, which captures the journey—achievements, lessons, and transformative moments. As we reflect on our journey so far, we are immensely grateful for your invaluable support and contributions. Together, we've made a difference, and we eagerly anticipate the continued collaboration and growth that lies ahead.

Read the report

Published October 2023

Abstract

The annual report for the Diversity and Productivity from Education to Workforce (DaPEW) project summarizes the key activities and insights gathered over the past year. This project addresses the pressing issue of productivity challenges in the UK, which has lagged behind its competitors since the 2008 financial crisis. It also highlights a significant diversity problem, with under-represented groups facing barriers in accessing productive education and career pathways. DaPEW is a collaborative effort led by leading researchers from various UK institutions. Its goal is to conduct rigorous research to understand the intricate link between diversity, inclusion, and productivity in the UK.

Read the report

Citi, published October 2023

Abstract

With AI now upon us and leading us into the “Fourth Industrial Revolution,” this new report notes hiring has evolved from requiring specific education and experience criteria to looking more at detailed skills requirements. The report that follows looks at the changing demand for specific skills in this rapidly changing job market. It discusses the skills that are rising and falling in demand and explores how the wages for these skills are changing. Looking at professional occupations, the authors identify two “soft” skills groups and seven “cognitive” skills groups that are increasingly relevant for the future of work and deemed important based on the frequency in which they appear in job advertisements. Overall, the soft skill collaborative leadership increased in importance over time in terms of demand and hourly wages.

Read the report

IZA Institutue of Labor Economics, published 26 June 2023

Abstract

The post-COVID-19 phenomenon of 'quiet quitting' could be problematic for UK economic growth because unpaid overtime has been a key contributor to business productivity since the 2008 global financial crisis. Here, we explore the extent to which this phenomenon exists in the UK, and whether the tendency for 'quiet quitting' differs across generations. We analysed data from the UK Quarterly Labour Force Survey (QLFS) between 2007-2022 to determine changes in hours worked. Given the ~24,568 million UK full-time workers in 2022, our findings equate to over 55 million discretionary hours lost to the labour market per year between 2019-2022, 48.1% of which is accounted for by Millennials. Thus, we evidence that quiet quitting has interrupted the recovery of working hours in the UK to prepandemic levels, and lost hours are especially attributable to younger cohorts.

Read the report

WIBF, published April 2023

Abstract

To enable our partners and the financial services sector to apply the GOOD FINANCE framework, this manual has two main aims. The first is to provide clear instructions on how firms and their individual leaders can operationalise the GOOD FINANCE framework. The second is to provide clear instructions on how firms and their individual leaders can measure progress for each element of the GOOD FINANCE framework.

Read the report

LSE Research Online, published 20 October 2021

Abstract

We examine how intergenerational mobility impacts on subjective wellbeing (SWB) drawing on data from the British Cohort Study. Our SWB measures encapsulate both life satisfaction and mental health, and we consider both relative and absolute movements in income. We find that relative income mobility is a significant predictor of life satisfaction and mental health, whether people move upward or downward. For absolute income, mobility is only a consistent predictor of SWB and mental health outcomes if the person moves downwards, and in this case the impact is far larger than relative mobility. For both relative and income mobility, downward movements impact SWB to a greater extent than upward movements, consistent with exhibiting loss aversion. Notably, we find that social class mobility does not affect SWB. We present evidence that the significant relative and absolute mobility effects we find operate partially through financial perceptions and consumption changes which can occur because of income mobility.

Read the report 

Research for the World, published 12 January 2021

Abstract

Inclusion doesn’t just help individuals, it has financial benefits for firms, but innovation and creativity are needed if equality of opportunities is to be achieved. Grace Lordan leads The Inclusion Initiative, which aims to help the financial sector identify what will work for them.

Read the report

Published November 2020

Abstract

To set the research agenda for the first phase of TII, we embarked on a piece of qualitative research that involved interviewing senior leaders in TII’s first priority area, Financial and Professional Services, to learn their beliefs about best practice in terms of improving inclusion at the firm level, and the obstacles that stand in the way of progress. With these insights at hand, we set a research agenda for TII that will tackle the most commonly cited obstacles, drawing on current insights from the behavioural science literature. The Inclusion in the City paper outlines what this agenda is. The primary aim being to inspire firms to adopt some of the ideas in this paper for their own in-house inclusion agendas, with their own people.

 Read the report