benefits of diversity and inclusion in the workplace
Workplace diversity is not just an inclusion fad, it has direct and measurable benefits. Other than it being a clear ethical, moral, and social responsibility, it is proven that companies who have greater workplace diversity outperform the competition. Let’s find out why.
Variety of different Perspectives
Since by definition, diversity in the workplace means employees will have different traits and characteristics, it also means they are likely to have a variety of different skills and experiences. Consequently, employees in a company with higher workplace diversity will be able to capitalize on these unique perspectives, which is highly beneficial when planning and implementing a business strategy.
Faster Problem-Solving + better decision making
Employees from diverse backgrounds have different experiences and views, therefore diverse teams are able to solve problems faster than cognitively similar people. With a potential array of solutions brought to the table, the best solution can be chosen sooner, which leads to faster problem-solving. For more details, here is the study from Harvard Business Review.
Additionally, researchers from Cloverpop found a direct correlation between workplace diversity and decision making. When diverse teams made a business decision, they outperformed individual decision-makers up to 87% of the time.
Higher employee engagement
The association between workplace diversity and employee engagement is pretty straightforward, when employees feel included, they are more engaged. Deloitte conducted a research which captured the views and experiences of 1,550 employees and showed that engagement is an outcome of diversity and inclusion.
Increases employee retention
Companies with diverse workforce are generally more inclusive of different individual characteristics and perspectives, so consequently all employees to feel accepted and valued. When employees feel accepted and valued, they are happier in their workplace and tend to stay longer with a company. Therefore, companies with greater diversity in the workplace have reduced employee turnover.
Improved hiring results
Workplace diversity is a beneficial asset for attracting top talent from diverse talent pools. According to a survey conducted by Glassdoor, 67% of job seekers said a diverse workforce is important when considering job offers. Diversity in the workplace boosts employer brand and establishes a company as a more desirable place to work.
Increased creativity & innovation
Exposure to different views and perspectives lead to higher creativity. When you put together people who see the same thing in different ways, you are more likely to get a variety of fresh ideas, thus improving the creativity of the workforce.
When various perspectives combine, they often come together in novel ways, opening doors to innovation. This BCG study found a strong, statistically significant positive relationship between diversity and corporate innovation.
Better employer brand = higher profits
Companies who are dedicated to building and promoting diversity in the workplace are seen as good and socially responsible organizations. Succeeding in building a diverse workforce will make it easier for people to relate and will open doors to new markets, customers and business partners.
McKinsey & Company conducted a research which included 180 global companies and found out that companies with more diverse top teams were also top financial performers. The research showed ethnically diverse companies are 35% more likely to yield higher revenue, and gender diverse companies are 15% more likely to yield higher revenue.
The benefits of diversity and inclusion in companies are indisputable, and feed into each other. If the workforce is happy, the best talent is attracted to work there. If the best talent is working there, together they are more innovative and ensure that the business is productive, enthusiastic and successful.
💡 Forward thinking Companies Need forward thinking talent.
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