Importance of diversity in the workplace

What exactly is diversity in the workplace?

Diversity in the workplace refers to a company that hires people who are diverse in terms of gender, religion, race, age, ethnicity, sexual orientation, education, and other factors. Diversity in the workplace has numerous advantages from both an internal and external standpoint. In the section below, we’ll be discussing some of the benefits that come from diversity in the workplace. These include new perspective, wider talent pool, more innovation, better employee performance, and increased profits.

Benefits of workplace diversity

1. New perspectives

Whenever you hire people from all sorts of backgrounds, ethnicities, and cultures, you're bringing a new set of ideas to the workplace. This can result in advantages such as improved problem solving and enhanced productivity. To put it into perspective, if all of your employees have the same background and experiences, they are likely to think similarly. This holds a company back from improved decision-making abilities which are a direct result of collaboration within a diverse group.

2. Wider talent pool

A study by Glassdoor found that 76% of job seekers report that a diverse workforce is an important factor when evaluating companies and job offers. This because the traditional well-paying job just isn’t enough anymore for employees. Employees want to be at a place where they can learn, grow, and be challenged. As a result, a company that values diversity will attract a larger spectrum of candidates seeking a progressive workplace.

3. More innovation

Diversity in the workplace fosters creativity. A recent study found that inclusive companies are 1.7 times more likely to be innovation leaders in their market. Diverse teams have a better chance of unlocking the innovation that accelerates market expansion. 74% of millennials believe that their organization is more innovative when it has a culture of inclusion. Nonlinear creative thinking and the adaptation that innovation requires are further enabled by diversity in the workplace.

4. Improved employee performance

Diversity and inclusion are closely connected. In a Deloitte survey, 83% of millennials reported higher levels of engagement when they believed their company fosters an inclusive culture. Employees are more likely to feel comfortable being themselves in a work setting where they see a representation of a diversity of cultures, backgrounds, and ways of thinking. As a result, employees are happier and more productive. 

5. Increased profits

Diverse organizations are better positioned to address the needs of different consumer groups. Companies that proactively recruit and support talent from under-represented groups are 70% more likely to capture new markets than companies that do not. Studies show that diverse companies enjoy 2.3 times higher cash flow per employee. They also found that companies with diverse boards of directors saw increased profitability in 43% of cases. The numbers don’t lie, diversity leads to profits.

Although 41% of managers say they are “too busy” to implement diversity initiates, it is important they do so quickly. Workplace diversity drives turnover, significantly affecting the retention of underrepresented groups. By creating an inclusive workplace environment companies are opening the doors to innovation, higher profits, and overall employee satisfaction. In conclusion, now is the perfect time to diversify your workplace!

Lucy
RaezerConnect