Benefits of a Diverse Workforce
by Rebecca Ferlotti
Over time, “diversity” and “inclusion” shifted from buzzwords to attainable and necessary goals for business owners. It is important to look at your teams differences when identifying diversity shortcomings, and not only pay attention to demographics, but also psychographics. Many companies are moving toward a more holistic hiring process that seeks out a broader talent pool and takes extra measures to remove biases. Ultimately, the advantages of having workplace diversity far exceed having a homogeneous team. Companies in which most employees are of a similar cultural background and also have low racial and gender diversity are 29% less likely to achieve above-average profitability. With all the added benefits such as creativity, trust, and reliability, the decision to make diversity a priority is not a difficult choice.
There are many benefits of a diverse workforce:
- Increased Productivity
- Encourages Creativity
- Reduces Employee Turnover
- Builds Trust within your Team
- Attracts a Diverse Clientele and Workplace Diversity
- Improves Company’s Reputation
Diversity Increases Productivity
Having workforce diversity can help increase your employee productivity and increase competitive advantage. Recruiting exceptional employees with varied viewpoints and experience can generate new and different solutions for your customers. Diversity in the workplace can also increase employees’ interest in working harder and more effectively so they can solve problems more quickly.
Diversity Encourages Creativity
With any business, it is important to look at the big picture to spur innovative ideas. Creative sweet spot begins with hiring a diverse group of people all with unique world views and experiences. If everyone on your team looks the same, acts the same, and thinks the same, a business may stay steady, but is highly unlikely to remain on an upwards of profit trajectory.
A study done for the American Psychological Association uncovered when individuals have intercultural friend groups, they were more likely to showcase desirable employee traits such as entrepreneurial spirit. When your team members are exposed to that diversity, creativity is right around the corner.
Diversity Can Reduce Employee Turnover Rates
When you as a business owner embrace diversity in the workplace, this helps attract and retain a broader range of candidates for job positions. When you have candidates, who are familiar with diversity in the workplace, they may feel more welcomed, and this results in wanting to work within the company and lower employee turnover rates. Overtime, more candidates will apply for job positions within the company and for those who are recruiting diverse candidates results in a higher qualified workplace.
Diversity Builds Trust with Your Team
When your team members feel left out, they’re less likely to innovate. However, if you support diversity and inclusion, there is an 83% uptick in innovation. A diverse team begins with an inclusive environment. So, all employees and C-level managers need to be on board, continually fostering and buying into the concept that diversity is the key to success.
Train employees to use inclusive language — ensuring no one is misgendering another employee, among other protocols. Also, have a way for employees to report discrimination. Make diversity a crucial part of your organizational success, and your team will thrive.
Hiring a Diverse Workforce Reflects Your Diverse Clientele
Consumers are not all the same. If you have a team with diverse backgrounds, you have a better chance someone will be able to relate to each customer. Much of that relatability is affected by perceived similarities or attributes customers believe they have in common with employees. Discussions they have with your team members cause an affinity to grow as they uncover actual similarities. In a ubiquitous internet-driven world with global market capabilities, a diverse and inclusive work environment gives your company the highest chance for success to attract and retain a wide-ranging clientele and inclusive workplace.
Diversity Improves Your Reputation
Often, employees are attracted to companies who have a diverse workplace because it shows that the company or recruitment agency does not hold unconscious bias against other employees or job seekers. When looking for a job, a potential candidate wants to know that the company they could be working for treats all employees equally regardless of ethnicity, gender, or race. To improve your reputation, boost your employer brand, and maintain engaged employees, you must keep diversity in mind when hiring.
As you can see, there are many benefits of diversity in the workplace. Companies have made great strides in fostering an inclusive work space that allows teams with diverse cultural backgrounds to thrive. However, there are always more initiatives and better ways to reach out to diverse job candidates. The core to a diverse team is its management. Continue to hold each other accountable, no matter who needs a reminder, and your business will have a better chance to thrive.