There’s no denying it – having a diverse workforce is brilliant for business! With ever-increasing globalisation, achieving diversity and inclusion in the workplace is crucial. But what are the actual benefits of diversity in the workplace? Let’s take a gander.
Improved Creativity and Innovation
Having employees from a wide range of backgrounds means you get access to a greater variety of perspectives, ideas and insights. Bringing diverse minds together fosters innovation and creativity as people share their unique experiences and points of view. According to a BCG study, companies with above-average diversity had 19% higher revenues due to innovation [1]. So embracing diversity can lead to game-changing new products, services and solutions!
Better Problem Solving
Diverse teams better reflect your customer base and the world we live in. This allows them to understand different audiences and come up with superior solutions to problems. A study by the University of Illinois found that groups with racial diversity significantly outperformed homogenous groups on problem-solving tasks [2]. Diversity enables teams to overcome cognitive biases and groupthink. Two heads are better than one, and people from different cultures tend to think differently and spot issues that may be missed otherwise.
Increased Profitability
Many studies have demonstrated the positive business impact of diversity. Companies with gender and ethnic diversity are significantly more likely to have financial returns above their industry medians [3]. Diversity is associated with increased sales revenue, greater profits, and higher market value [4]. Customers are also increasingly factoring diversity into their purchasing decisions. So, there are some real competitive benefits of diversity in the workplace.
Access to Top Talent
Focusing on inclusion allows you to recruit from a far wider talent pool. If you want the cream of the crop working for you, it pays to be open-minded about things like educational background, disability, sexual orientation, or flexible working requests. Removing any conscious or unconscious biases helps attract the very best talent. And having a great reputation for diversity makes candidates far more likely to join you.
Better Reputation and Public Image
Having a diverse and inclusive culture reflects well on your employer brand and corporate image. Customers, partners, and investors are looking at workforce diversity as an indicator of fair employment practices. Promoting diversity demonstrates you are an equal opportunities employer focused on progress. Consumers today expect brands to be ethical, so diversity and inclusion can improve customer sentiment.
Higher Employee Engagement
Employees want to feel valued and able to express their authentic selves. Fostering an inclusive culture where everyone is treated equally gives a major boost to morale and commitment. Employees who feel values for their uniqueness are far more engaged, motivated and loyal [5]. Allowing people to celebrate differences means people are happier, less likely to leave and more productive.
The potential benefits of diversity in the workplace are clear. From sparking innovation to raising profits, diversity and inclusion should be a priority focus. While transitioning to a multicultural environment can take time, being patient and keeping an open mind is key. Small consistent steps towards equitable policies and embracing differences can yield amazing rewards. The future is diverse – evolving to get there now will give your business a real competitive advantage.
Get in touch with us if you’re looking for help in implementing an ED&I plan, we’ve got you covered!
- [1] https://www.bcg.com/en-gb/publications/2018/how-diverse-leadership-teams-boost-innovation
- [2] https://insight.kellogg.northwestern.edu/article/better_decisions_through_diversity
- [3] https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters
- [4] https://www.forbes.com/sites/annapowers/2018/06/27/a-study-finds-that-diverse-companies-produce-19-more-revenue/?sh=3f17c5b27ce9
- [5] https://www.apa.org/news/press/releases/2012/03/well-being
