Well-meaning corporations have prioritized diversity by cultivating an inclusive culture and providing equal opportunities, but it seemingly isn’t enough.
According to a recent study by Glassdoor, 57% of workers think their company could do more diversity-wise. Channel everything towards inclusion because 76% of job seekers consider an inclusive workplace important when evaluating appointments.
A quick look at most job opportunities proves that more employers acknowledge the power of diversity. Here are some of the benefits of diversity in your workplace.
Table of Contents
What Diversity Entails
Diversity in the workplace involves employing different individuals with unique characteristics and different backgrounds. To promote a diverse workforce, give preference to people from minority groups and historically marginalized communities.
In short, consider employing diverse individuals from different demographics irrespective of their:
- Sexual orientation
- Gender diversity
- Race and ethnicity
- Cultural diversity
- Age and generation
- Disability
- Socio-economic background
- Spiritual beliefs
The Benefits of Promoting Diversity
1. Broadens Your Company’s Talent Pool
If your company guarantees diverse groups’ inclusion, you’re likely to attract candidates with a broader range of skills. A Harvard Business Review article notes that it pays to build a talent factory based on cultural and strategic objectives.
To achieve this, overlook traits that hardly add value to your company to increase the likelihood of finding superior candidates. After all, differences in personalities, worldviews, and cultural backgrounds add to cognitive diversity, key in business development.
2. Increases Profitability
The more customers you bring on board, the broader your market scope as you attract people from different cultures. As a result, your profit margin will increase thanks to diverse representation, innovation, and viewpoints.
A McKinsey study found that public companies in the US with diverse teams have a 95% return on equity. This is higher than companies with homogenous management.
3. Protects Your Company’s Reputation
A company that fails to meet the needs of its workforce will experience low employee retention. A high employee turnover will ruin your company’s reputation in the long run.
Diverse companies build a positive reputation through equity and inclusivity, attracting potential workers and customers alike. Failing to embrace diversity in the aforementioned sectors will drag your brand through the mud.
4. Stimulates Creativity and Innovation
Start-ups, techs, and industrial companies need creativity and innovation to stay afloat. Thankfully, diverse employees have different perspectives and viewpoints that will boost your business through better decision-making.
If you encourage your workforce to share their ideas continually, you will receive new perspectives for creative and innovative ideas. Innovation and creativity open doors to new markets, boosting your business by generating more revenue.
5. Creates New Market Opportunities
Employing individuals from different backgrounds gives your potential customers a sense of belonging. Like humans, your customers feel confident and valued when they see “one of their own” in your managerial team.
In addition, the innovative and creative ideas fostered by diversity enable your business to appeal to a targeted population. Consequently, promoting diversity in your workforce will make it easier to access new market opportunities.
6. Improves Productivity
Most millennials, who make up the largest workforce, have a low tolerance for a rigid work environment. Their spontaneous nature makes them feel bored with routine and staying in one place.
To boost the productivity of your employees, create a flexible system that will appeal to most job seekers. It will increase your employees’ engagement and improve their performance, reflecting their output.
7. Reduces Employee Turnover
According to a Forbes article, you must invest in diversity, equity, and inclusion to keep talent and customers. Naturally, workers feel a diverse workplace is progressive, so they are more likely to stick to such a company.
That’s because a workplace with such cultural diversity is less likely to face employment discrimination. With the word out, that will increase the range of job seekers, which also means cognitive diversity.
How to Promote Diversity
Here are some tips on how to promote diversity in your workplace:
Before Recruitment
- Discuss with your employees about diversity.
- Identify and correct bias and prejudice.
- Educate your employees on the benefits of embracing diversity.
- Formulate workplace diversity policies.
During Recruitment
- Show the audience how your company’s culture promotes diversity.
- Encourage job seekers from all demographics to apply.
- Seal loopholes that may compromise equity and inclusivity during the recruitment process.
- Hire qualified individuals who embrace diversity.
After Recruitment
- Value the skills and contributions of every employee.
- Implement your workplace diversity policies.
- Serve and treat all your clients and customers with respect and dignity.
- Address any bias and prejudice swiftly and effectively.
Bottom Line
Diverse backgrounds in your workplace create a positive work environment, boosting productivity and revenue. Failing to build an inclusive environment may ruin your company’s reputation.
Some of the benefits of promoting diversity in your workplace include broadened talent pool, improved worker retention, and heightened creativity and innovation.