Have you started thinking about introducing more diversity to your company? Maybe you have, perhaps you haven’t. But what if I told you that diverse companies have a 2.5 times bigger cash flow per worker? Believe it or not, that’s just the tip of the iceberg!
Diversity in the workplace is beneficial on a multitude of levels. You could say that being diverse is essential for your company to grow. Here’s how different types of diversity can help your business reach its full potential.
You must increase team diversity to introduce some “fresh blood” to your teams. According to research, 76% of the current workforce pays excellent attention to company diversity when looking for new opportunities. For instance, 37% wouldn’t even consider joining a company if people of color rated the employer’s diversity efforts as poor.
As expected, diversity will become an even more significant deciding factor for the “workforce in the making,” namely, generation Z. At the moment, 83% of them agree a company’s diversity policy is essential when choosing a future employer.
Undoubtedly, increasing your company’s diversity isn’t just recommended for attracting new professionals it’s becoming inevitable. By the way, this also translates to talent retention. You have higher chances of preventing competition from “stealing” your professionals if they’re happy with you.
Better company reputation
Whichever niche you’re in, the struggle to keep the current clients and attract new ones is natural. With so many similar products and a plethora of identical online reviews, the one thing that’s a deal breaker for the customer is nothing else but reputation.
Tough to build and even harder to keep, a good reputation can save your business. Luckily, investing in diversity can help you immensely, or 54%. That’s how much diversity and inclusion contribute to a company’s reputation.
A good reputation is vital for more than just successfully selling products and services. It matters to stakeholders more than ever. Having a special finance report to entice new investments is no longer enough. Your reputation as a company that nurtures diversity could make you appear much more trustworthy than just the latest finance forecasts.
Access to new markets
You may wish to present your services on a geographically distant market or target a specific ethnicity or gender. Either way, the whole process will be less risky if you already have a group in your company reflecting the target customers’ needs. You’ll have fewer barriers and more advantages when constructing strategies and plans for the new markets.
Faster solutions
According to a Harvard study on teams and problem-solving, diverse groups have better chances at solving issues due to their different points of view. This makes sense with various teams. For example, you’ll have employees used to their distinctive thinking patterns. When you place them in an environment where teammates have opinions and suggestions they haven’t considered before, you’re pushing them to adapt to new ways while boosting their creativity to overcome obstacles.
A diverse team has better chances of reacting quickly in unprecedented crises simply because they’re already used to adapting to new approaches.
However, bear in mind that diversity isn’t all about gender, age, ethnicity, or race diversity. Encourage your HR department to hire candidates who have a different mindset from the rest of the team or don’t fit into the company’s standard. To find someone who can help you think outside the box, you should employ someone who doesn’t fit the company’s mold perfectly.
Maximum productivity
This one almost goes without saying. As your team becomes better at problem-solving, it’ll also become more creative, and you’ll receive applications from talented experts. While the money keeps pouring in thanks to your reputation, it’s only logical to deduce that your productivity figures will soar.
The above arguments are pretty straightforward, but let’s introduce one more, a crucial one for productivity — happiness.
It’s a fact hardly anyone can deny: a happy worker is Productive, as they can achieve better results by about 12%. An encouraging working environment is one of the reasons for employees’ satisfaction. It feels good to belong to a group that values you for who you are and supports new approaches, thus encouraging collaboration within the team and, consequently, the entire company. Eventually, an excellent working atmosphere translates into optimal results and higher profits.
Stronger executive teams
So far, we have focused on exemplifying how cultural, cognitive, gender, and ethnic diversity influence all your employees. Now it’s time to examine why diversity is essential in modern-day leadership.
If you’re unsure how to add more diversity to your teams, perhaps you should begin by analyzing the diversity levels among the top managers. Companies with over 30% female executives have better chances of beating competitors. If this diversity is present across all levels, there’s a fair chance of being 48% more successful than those companies that pay no attention to variety.
So, what is it that diverse leaders do to ensure such success? First of all, their position is inspiring. Their teams see that hard work and expertise pay off, regardless of cultural or ethnic background. Everyone stands a fair chance at advancing in the company. Secondly, everything I’ve already mentioned regarding innovation and dealing with challenges applies to the top levels of management, too.
With more diversity and inclusion among your managers, you can count on vigorous and visionary leaders.
Diversity and inclusion are significant factors in today’s business world, and if you’re to triumph, you’d better work hard on setting up such a business environment.
