Vivian Lubrano: As our societies and investments become more diverse, it’s crucial for businesses to focus on diversity, equity, and inclusion. It’s not just about social justice, but also about the core principles of business. Companies need to consider how they can incorporate and work with a more diverse workforce and clientele in the future.
Gayle Baldwin: Companies that are proactive in creating teams with cognitive diversity and different ways of thinking have the potential to excel significantly. However, investors may not fully recognize or identify this as a source of alpha.
Vivian Lubrano: It’s exciting when we discover companies that understand the importance of diversity. For instance, the tech company Infosys had to rethink their hiring process. They realized that they needed problem solvers, not just engineers. This led them to recruit from liberal arts and community colleges, resulting in a more diverse workforce and increased growth.
Gayle Baldwin: IQVIA, a research organization, is another example of the importance of human capital strategies. Their business model involves conducting clinical trials for pharmaceutical companies. To succeed, they need to recruit patients and ensure that their employees can empathize with the patients. IQVIA has been thoughtful about their recruitment process, leading to their success in winning a large portion of work during the COVID vaccine trials.
Vivian Lubrano: As the world becomes more diverse, so do investors and employees. Companies that can leverage this diversity can achieve innovation, efficiency, and productivity. That’s why investors should care about how companies implement their diversity, equity, and inclusion programs.
Gayle Baldwin: Especially cognitive diversity, I believe, is an opportunity that many investors may not have fully recognized. The opinions shared here do not constitute investment advice or research and may not reflect the views of all AB portfolio management teams. Over time, these views are subject to change. Mentions of specific securities should not be interpreted as recommendations by AllianceBernstein L.P.
Gayle Baldwin: Companies that are proactive in creating teams with cognitive diversity and different ways of thinking have the potential to excel significantly. However, investors may not fully recognize or identify this as a source of alpha.
Vivian Lubrano: It’s exciting when we discover companies that understand the importance of diversity. For instance, the tech company Infosys had to rethink their hiring process. They realized that they needed problem solvers, not just engineers. This led them to recruit from liberal arts and community colleges, resulting in a more diverse workforce and increased growth.
Gayle Baldwin: IQVIA, a research organization, is another example of the importance of human capital strategies. Their business model involves conducting clinical trials for pharmaceutical companies. To succeed, they need to recruit patients and ensure that their employees can empathize with the patients. IQVIA has been thoughtful about their recruitment process, leading to their success in winning a large portion of work during the COVID vaccine trials.
Vivian Lubrano: As the world becomes more diverse, so do investors and employees. Companies that can leverage this diversity can achieve innovation, efficiency, and productivity. That’s why investors should care about how companies implement their diversity, equity, and inclusion programs.
Gayle Baldwin: Especially cognitive diversity, I believe, is an opportunity that many investors may not have fully recognized. The opinions shared here do not constitute investment advice or research and may not reflect the views of all AB portfolio management teams. Over time, these views are subject to change. Mentions of specific securities should not be interpreted as recommendations by AllianceBernstein L.P.