Inclusion as a Growth Driver: How ABB, H&M, and Global Corporations Turn Diversity into Profit

“Diversity is an invitation to the party; inclusion is an opportunity to dance. But the real breakthrough happens when you let the guests choose the music.”
— Vernā Myers, author of What If I Say the Wrong Thing?

Introduction: Inclusion Is Not an Expense, but a Strategic Investment

Today’s business landscape increasingly views DEI (Diversity, Equity & Inclusion) not as a matter of social responsibility but as a catalyst for innovation and growth. Research confirms:

• A +19% increase in innovation-related revenue in companies with high DEI maturity (McKinsey, 2023)
• 2.6 times faster revenue growth (BCG, 2024)
• $3.4 million annual savings per 1,000 employees thanks to reduced turnover (Forbes, 2023)

Nevertheless, 73% of DEI initiatives fail, primarily due to a lack of systematic approach and genuine accountability (McKinsey, 2024). How can one transform slogans into tangible outcomes? Let us consider the practices of ABB, H&M, and the experience of over 21,000 companies that have woven inclusion into the very fabric of their business.

1. Leadership: When KPI Matter More Than Declarations

The Problem
According to the Edelman Trust Barometer (2024), 68% of employees do not trust leadership’s statements on diversity. The underlying reason: the absence of real metrics and transparent accountability.

Solution: Linking Bonuses to DEI Metrics
TechTarget (2023) shows that if 20% of top executives’ bonuses are tied to DEI goals, the promotion rate of women and underrepresented groups to leadership accelerates by 37%.

ABB Case

1. Global Salary Decoder: An AI algorithm that analyzes over 50 salary parameters, exposing unexplained disparities.
   • A 67% reduction in the gender pay gap
   • $2.1 million saved on legal risks
2. Indexed Incentives:
   • 15–20% of senior management’s variable compensation is linked to progress on DEI
   • A 19% increase in the proportion of women in leadership over 18 months

H&M Case

• Public Disclosure of Salary Ranges for 85% of positions: improved upward mobility for underrepresented groups by 42%
• CEO Open Hours (regular listening sessions with LGBTQ+ and other communities): engagement rose by 53%

Formula for Success
Leadership Accountability = Data Transparency + Financial Incentives

2. Hiring: From “Diplomas” to Skills

The Problem
Although skills-based hiring reduces bias by 67% (Harvard Business Review, 2023), fully 89% of HR departments still require formal degrees, leaving many promising candidates from varied educational and social backgrounds “outside the gate.”

ABB Case

• Blind Skills Assessments for engineering positions have boosted the number of women engineers by 34%
• Partnerships with 15 Technical Colleges and HBCUs (historically Black colleges/universities) have driven 53% innovation growth among new hires

H&M Case

• Removed Degree Requirements for 78% of vacancies, leading to a 300% influx of “non-traditional” applicants
• Style Your Future a refugee training program: 19% of participants became full-time employees

Facts and Figures

• Structured interviews reduce hiring bias by 83% (Meta, 2024)
• Substituting “5+ years of experience” with “proficiency in Python” raises the share of Black/Latino applicants by 74% (IBM)

Result: Skills-based hiring broadens the candidate pool, enhancing both the innovative capacity of the team and the diversity of perspectives.

3. Cultural Competence: Training Without Labels

The Problem
63% of employees perceive corporate DEI training as mere “theater” (Gartner, 2024). Conventional webinars often fail to change real behavior or culture.

Solution: Immersive Courses and VR Simulations

• VR Training reduces microaggressions and prejudice-driven incidents by 67% per year (SHRM, 2024)
• AI Simulations offer opportunities to practice communication in various cultural contexts (NASA cut bias complaints by 61%)

ABB Case

• Negotiating Internationally featuring AI-driven simulations, helped boost successful contract signings in Asia by 23%
• Workshops on the “culture of silence” at the firm’s Japanese office enhanced collaboration by 38%

H&M Case

• VR Training for Managers: a 28% drop in microaggressions and conflicts
• The LEAD Program translated into 15 languages: 75% of participants joined an ERG and became active champions of an inclusive culture

Trend for 2025

• Gamification of Content: quests and mini-simulations greatly increase engagement among Millennials and Gen Z (Accenture: +89% engagement)
• Localized Materials (including sign language versions): a 50% drop in turnover among deaf or hard-of-hearing employees (H&M)

4. ERGs: From Support Groups to R&D Hubs

Insight
Employee Resource Groups (ERGs) with budgets of 0.5–1.5% of payroll yield 2.3× ROI through innovation (McKinsey, 2023). They are not mere social clubs but engines for fresh business ideas.

ABB Case

• Women in STEM: a 28% decline in turnover among female engineers
• Global Young Professionals: a 23% increase in the pace of cross-departmental projects

H&M Case

• Pride@H&M: a 19% increase in LGBTQ+ representation in leadership, and an extra $12 million in sales through collaborative campaigns
• ADAPT (for employees with disabilities): drove the creation of adaptive clothing lines, generating $8.6 million in revenue

Measuring ERGs’ Effectiveness

• KPIs: impact on customer NPS, product launch speed, and revenue from ERG-inspired products
• Budget: $50–150 per member per year; regular presentations of ERG initiatives to senior leadership

5. Transparency: Data Instead of Slogans

The Problem
82% of companies do not publish diversity or pay equity data (Deloitte, 2024), eroding trust among employees and job seekers.

Solution: Radical Transparency

• Pay Equity Reports can attract 74% more underrepresented candidates (Harvard Business Review, 2024)
• Pulse Surveys with anonymous data collection increase engagement by 83% (ABB)

ABB Case

• Global Inclusion Dashboard with 12 KPIs: ranging from supplier diversity to psychological safety
• AI Analytics in Slack/Teams to detect microaggressions

H&M Case

• DEI Impact Radar in 1,200 stores: locations scoring above 80/100 saw a 42% rise in foot traffic
• Openly Sharing Pay Discrepancies: spurred a 42% faster promotion rate among underrepresented groups

Tools

• BLISS Index (Bias-Free, Leadership, Inclusion, Safety, Support)
• AI-Driven Sentiment Analysis for real-time feedback (Accenture: +80% reporting of microaggressions)

6. Inclusion in the Supply Chain: The New Frontier of Profit

Inclusion extends beyond internal policy to partnerships and vendor selection.

Data
Allocating 10%+ of procurement to diverse suppliers yields a 2.3× higher ROI (BCG, 2023).

ABB Case

• 15% of Materials sourced from women-owned businesses: a 23% reduction in supply chain risk
• Collaboration with Disability-Owned Tech Firms: a 37% boost in Asian customer satisfaction (CSAT)

H&M Case

• Every Voice Matters campaign using models with disabilities: +$12 million in sales
• 8% of Marketing Budget for creators from marginalized communities: +28% market penetration in Latin America

Conclusion: Inclusion = Innovation and Resilience

All the examples point to a common truth: inclusion is no longer a “nice to have” but the core of a successful business strategy. According to BCG (2024), each 10% increase in workforce diversity yields a 9% rise in revenue. McKinsey (2023) calculates that every dollar invested in well-crafted DEI practices returns $2.3 in innovation and employee loyalty.

A Quick-Start Checklist

1. Link 20% of Executive Bonuses to DEI indicators.
2. Replace Formal Requirements with skills-based job descriptions.
3. Implement VR or Immersive Courses to enhance cultural competence.
4. Publish Pay Equity Data and conduct anonymous employee surveys.
5. Invest 1% of Your Payroll in ERGs, turning them into innovation hubs.
6. Expand Inclusion Across the Supply Chain, with at least 10% of purchases from minority-owned businesses.

“Diversity is a fact. Inclusion is an action. Yet a true breakthrough occurs when you let people not only dance but choose the music,”
Vernā Myers observes.

ABB and H&M demonstrate that an intentional, systematic approach to DEI not only strengthens corporate culture but creates a competitive edge through fresh ideas, diverse talent pools, and stronger customer loyalty.

Glossary

• Psychological Safety: the team’s ability to speak openly and make mistakes without fear of reprisal (ABB: +83% engagement).
• Intersectionality: accounting for overlapping identities (H&M: +$8.6 million from adaptive clothing for people with disabilities).
• Skills-Based Hiring: recruiting based on essential competencies rather than formal credentials (H&M: +300% “non-traditional” applicants).
• ERGs (Employee Resource Groups): employee collectives that solve business problems through the prism of their shared identity (H&M: $12 million in sales via Pride@H&M).

Sources

1. ABB Reports
2. H&M Inclusion & Diversity Impact Report
3. BCG Diversity & Inclusion Report
4. Tagliaro, C., Migliore, A., Mosca, E.I. and Capolongo, S. (2024), “Room for diversity: a review of research and industry approaches to inclusive workplaces”, Journal of Corporate Real Estate, Vol. 26 No. 2, pp. 131-152.
5. Shore, L.M., Cleveland, J.N. and Sanchez, D. (2018), “Inclusive workplaces: A review and model”, Human Resource Management Review, Vol. 28 No. 2, pp. 176-189.
6. Nishii, L.H. (2013), “The benefits of climate for inclusion for gender-diverse groups”, Academy of Management Journal, Vol. 56 No. 6, pp. 1754-1774.
7. Ferdman, B.M. and Deane, B.R. (eds) (2014), Diversity at Work: The Practice of Inclusion, Jossey-Bass, San Francisco, CA.
8. Mor Barak, M.E. (2015), “Inclusion is the key to diversity management, but what is inclusion?”, Human Service Organizations: Management, Leadership & Governance, Vol. 39 No. 2, pp. 83-88.

All cases and statistics verified through open corporate sources and independent research.