In this blog post, you will learn about the top 10 benefits of diversity in the workplace. Creating such environment is not just an inclusion fad - it has tangible and direct benefits. Companies who have greater workplace diversity outperform their competitors, increase employee engagement and achieve higher profits!
Top 10 Benefits of Diversity in the Workplace
What is diversity in the workplace?
Diversity in the workplace means that a company employs a wide range of diverse individuals with different characteristics.
By implementing that mindset, your company will become a more inclusive place for people of varying gender, age, religion, race, ethnicity, cultural background, sexual orientation, languages, education, abilities, etc. Consequently, creating a more accepting culture has a strong positive effect on individuals and connects everyone in your company.
Workplace diversity - inclusion fad or a competitive advantage?
Even though this topic has been sparking the interest of many HR professionals for years now, its importance has never been as prominent as today. Actually, workplace diversity was one of the key workplace trends in 2020. With the pandemic caused by Covid-19, companies have turned to the global workforce and started hiring more and more diverse teams while working remotely.
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Building such culture is something that most companies strive to achieve now. But why is that so? Is it just about improving a company’s reputation and promoting inclusion at the workplace?
While your company’s reputation and inclusion are definitely important goals worth pursuing, workplace diversity has many other immediate and tangible benefits related directly to your company’s bottom line.
Thus, workplace diversity is not just a politically correct fad - it is a serious competitive advantage. The research even showed that you can outperform your competitors and achieve greater profits! So, let's see other benefits as well!
What are the benefits?
Here is the list of the top 10 benefits of diversity in the workplace:
#1: Variety of different perspectives
Diversity in the workplace ensures a variety of different perspectives.
Since it means that employees will have different characteristics and backgrounds, they are also more likely to have a variety of different skills and experiences.
Consequently, employees in a company with higher workplace diversity will have access to a variety of different perspectives, which is highly beneficial when it comes to planning and executing a business strategy.
#2: Increased creativity
In addition to having a variety of different perspectives from people with different backgrounds, the exposure to a such variety leads to increased creativity.
When you put together people who see the same thing in different ways, you are more likely to get a melting pot of fresh, new ideas, thus improving the creativity of your workforce.
#3: Higher innovation
Diversity in the workplace leads to higher innovation rate.
According to Josh Bersin's research, inclusive companies are 1.7 times more likely to be innovation leaders in their market.
In a diverse workplace, employees are exposed to multiple perspectives and worldviews. When these various perspectives combine, they often come together in novel ways, opening doors to innovation.
#4: Faster problem-solving
Companies with higher workplace diversity solve problems faster.
Harvard Business Review found diverse teams are able to solve problems faster than cognitively similar people.
Employees from diverse backgrounds have different experiences and views, which is why they are able to will bring diverse solutions to the table. Thus, the best solution can be chosen sooner, which leads to faster problem-solving.
#5: Better decision making
Workplace diversity leads to better decision making results.
A white paper from the online decision-making platform Cloverpop has found a direct link between workplace diversity and decision-making. Researchers found that when diverse teams made a business decision, they outperformed individual decision-makers up to 87% of the time.
When employees with different backgrounds and perspectives come together, they come up with more solutions, which leads to the more informed and improved decision-making processes and results.
#6: Increased profits
Companies with greater workplace diversity achieve greater profits.
McKinsey & Company, a global management consulting firm, conducted research that included 180 companies in France, Germany, the United Kingdom, and the United States. They found out that companies with more diverse top teams were also top financial performers.
Companies with a diverse workforce make better decisions faster, which gives them a serious advantage over their competitors. As a result, companies with diversity in the workplace achieve better business results and reap more profit.
#7: Higher employee engagement
Workplace diversity leads to higher employee engagement.
Deloitte conducted research that captured the views and experiences of 1,550 employees in three large Australian businesses operating in manufacturing, retail and healthcare. This research showed that engagement is an outcome of diversity and inclusion.
The link between workplace diversity and employee engagement is pretty straightforward - when employees feel included, they are more engaged.
#8: Reduced employee turnover
Workplace diversity is beneficial for employee retention.
Companies with a diverse workforce are generally more inclusive of different individual characteristics and perspectives.
Diversity and inclusion in the workplace cause all employees to feel accepted and valued. When employees feel accepted and valued, they are also happier in their workplace and stay longer with a company. As a result, companies with greater diversity in the workplace have lower turnover rates. By creating commitment to diversity and employees create a sense of belonging to the company and are less likely to leave.
#9: Better company reputation
Companies that are dedicated to building and promoting diversity in the workplace are seen as good, more human and socially responsible organizations which ultimately creates a better reputation for the brand.
Workplace diversity also makes your company look more interesting. Finally, if you present a diverse workforce, you will make it easier for many different people to relate to your company and your brand, opening doors to new markets, customers and business partners.
#10: Improved hiring results
Diversity in the workplace boosts a company’s employer brand and presents a company as a more desirable place to work. Workplace diversity is an especially 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.
Workplace diversity infographic
How can you leverage the advantages of workplace diversity?
Workplace diversity can take your company culture and your business results to a whole new level.
If you want to leverage all the advantages of workplace diversity, first you need to learn how to build and manage workplace diversity in an effective way.