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Compliance

Elisabeth Cooke
In Compliance,

The Business Case for Healthy Teams

1) Increased Productivity and Performance

Healthy teams deliver stronger results. A 2017 study published in the Harvard Business Review found that employees in high-functioning teams were 25% more productive than their peers in less collaborative settings. Teams that bring together a variety of viewpoints, backgrounds, and thought patterns are better equipped to tackle complex challenges and adapt quickly. According to McKinsey & Company, companies in the top quartile for ethnic and cultural representation on executive teams are 33% more likely to outperform their peers on profitability.

2) Higher Employee Retention

When individuals feel respected and included—regardless of their identity—they are far more likely to remain with their employer. Great Place to Work research shows that organizations where employees feel safe being themselves have up to 50% lower turnover rates. Creating teams that celebrate differences, and ensure every voice is heard, leads to deeper loyalty and engagement.

3) Better Health and Lower Absenteeism

A team culture that respects individuality and encourages connection across lines of difference creates an environment where people are less likely to feel isolated or marginalized. This kind of support translates into better mental health outcomes and fewer missed days. According to the American Psychological Association, such workplaces report 41% less absenteeism and reduced burnout—critical in a world where stress and mental fatigue are rising across industries.

4) Enhanced Innovation and Creativity

Innovation thrives when people from different walks of life come together with equal space to contribute. Research from Boston Consulting Group found that companies with more varied leadership teams reported 19% higher innovation revenues. The mix of cultural experiences, perspectives, and values can fuel breakthroughs that homogeneous teams often miss. Inclusion in brainstorming and decision-making processes helps generate bold, out-of-the-box thinking.

5) Improved Customer Satisfaction

Customers are not monolithic, and companies with teams that reflect a broad cross-section of society are better equipped to understand and serve their markets. Teams that include a range of voices—across ethnicity, identity, and lived experience—are more likely to develop products, services, and communication strategies that resonate widely. According to a Temkin Group study, organizations with highly engaged employees see 147% higher earnings per share and greater customer satisfaction scores.

How to Build and Sustain Strong Teams

  • Modeling inclusive leadership, where everyone feels empowered to speak and contribute.
  • Ensuring all team members have equal access to growth opportunities, feedback, and recognition.
  • Creating space for dialogue, especially across lines of difference, to deepen understanding and empathy.
  • Encouraging work-life balance and mental health awareness, particularly for those who may experience additional pressures or discrimination outside of work.
  • Celebrating individual and collective wins, reinforcing shared values while honoring personal contributions.

Conclusion

Teams built on respect, openness, and collaboration—especially across different life experiences, identities, and backgrounds—are a competitive advantage. They bring fresh perspectives, stronger problem-solving capabilities, and deeper connections both internally and with customers. As the nature of work continues to evolve, organizations that prioritize human connection and belonging will be better positioned to innovate, retain talent, and grow sustainably.

Elisabeth Cooke
In Compliance, Diversity, Inclusion

Update: Diversity Reporting For Publicly Listed Companies In Canada – How To Do It

Laptop with Candle Stick Chart

Diversity has been building momentum in business for nearly 20 years. We have had significant changes in law that identify the importance of diversity and inclusion, for instance, the express inclusion of ‘gender identity and gender expression’ and Community Benefits Agreements in BC. Helping to fuel the enactment and compliance of that legislation has been 15 years’ worth of powerful business cases articulating the financial and cultural value of a diverse and inclusive workplace. Publicly listed companies in Canada are facing an increase in the legal requirements regarding reporting on diversity on boards and senior management. 

In late 2014, the Canadian Securities Administrators (CSA) published “comply or explain” rules regarding women in director and executive officer positions in publicly listed companies on the Toronto Stock Exchange (TSX). These requirements were codified in the National Instrument 58-101 (the Disclosure Requirements), thereby creating an annual positive duty for issuers in participating jurisdictions (all but BC and PEI) to disclose female representation. The requirements go a step further, requiring issuers to disclose if they have issued policies relating to female representation, term limits, and targets and mechanisms to address female representation in director and executive officer roles. If issuers do not adopt any such mechanisms or consider female representation more broadly, they must explain their reasons for doing so, thus creating a “comply or explain” rule. 

More recently, the British Columbia Securities Commission (BCSC) published a notice and request for comments asking for comment on the gender diversity Disclosure Requirement in NI 58-101. Notably, BC based TSX-listed and other non-venture issuers must comply with the Disclosure Requirements as they do report in at least one of the Participating Jurisdictions (i.e. all but PEI).

The BCSC’s request for comment on gender diversity tells us one thing – the Commission is focusing on how the disclosure process can be improved and what mechanisms and governance policies are satisfactory to demonstrate gender diversity on publicly listed companies on the TSX.

New Reporting Changes as of January 2020

As of 1 January 2020, Canada became the first jurisdiction in the world to require the disclosure of diversity beyond gender. Currently, all federally incorporated public companies in Canada must report on their policies and practices relating to board of directors and senior management, and, going a step further, they must include the percentage of people in those roles who are women, Aboriginal persons, members of visible minorities, and persons with disabilities. 

How to Measure and Report on Diversity

This is where we can help. Our products help you to measure diversity and improve inclusion.  We safely and securely measure data using evidence-based research to get a real picture of diversity and employee engagement. Essentially, act as the ‘go between’ – a trusted third party for employers and employees. Companies face significant challenges trying to gather this data on their own, including: compliance issues, data security, and expertise in diversity and inclusion. Not to mention the fact that employees can be reluctant to share that information with their employers! We go a step further than other companies and help you identify problems and create real solutions that help your company reach your diversity goals. We also use Canadian servers and comply with all Canadian privacy legislation and global best practices. 

When it comes to reporting on diversity we can provide you with the most robust data points you need for reporting and help you build the map to achieve your goals for the future. 

Elisabeth can be reached at [email protected]

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