Diversity and Inclusion in the workplace has come a long way in the last 10 years, but there is still much to be done. There is no denying that diversity is important in the workplace. Diversity refers to the variety of differences between individuals. This encompasses ethnicity, race gender, age, sexual orientation, physical abilities and disabilities, religion, political beliefs, education, socioeconomic background, language and culture. When it comes to the workplace, however, diversity is a crucial driver for sparking innovation, bringing different perspectives together to refine an idea. Here are some of the benefits to your organisation in having a diverse and inclusive workforce:
1: Variety of different perspectives
Diversity in the workplace ensures a variety of different perspectives. Employees with different characteristics and backgrounds are also more likely to have a variety of different skills and experiences. This is beneficial to your organisation in numerous ways – for example, when you are planning and executing a new business strategy.
2: Increased creativity
Having a variety of different perspectives from people with different backgrounds you are exposed to increased creativity as you are putting together people who see the same thing in different ways. This leads to fresh ideas and improves the creativity in your workplace.
3: Higher innovation
Diversity in the workplace leads to a higher rate of innovation.
According to global Management Consulting firm McKinsey and Company and their insights into Diversity and Inclusion in 2021, top executive teams in more than a thousand organisations in 15 countries concluded that the most diverse organisations have an edge in their markets. These firms are “more innovative—stronger at anticipating shifts in consumer needs and consumption patterns that make new products and services possible, potentially generating a competitive edge.”
In a diverse workplace, employees are exposed to multiple perspectives and world views. When these various perspectives combine, they often come together in new ways, opening doors to innovation.
4: Faster problem-solving
Companies with higher workplace diversity solve problems faster. Employees from diverse backgrounds have different experiences and views, bringing diverse solutions to the table.
Harvard Business Review found diverse teams are able to solve problems faster than cognitively similar people.
5: Better decision making
Workplace diversity leads to better decision making results.
Huffpost showed the value of diverse teams on decision making, citing that “diverse groups are smarter than homogeneous ones, in terms of solving problems and making decisions. People who bring different experiences, skills and backgrounds to group decision-making process force the group members to examine more alternatives, prepare better for decision-making, and anticipate different viewpoints.”
6: Increased profits
Companies with greater workplace diversity achieve greater profits.
According to Forbes and the research done by McKinsey and Company, companies with more culturally and ethnically diverse executive teams were 33% more likely to see better-than-average profits.
Companies with a diverse workforce make better decisions faster, which gives them an advantage over their competitors.
7: Boosts 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 clear – when employees feel included, they are more engaged. Employees are far more likely to voice their opinions if they feel that others will listen to and respect their point of view. Having a diverse workplace in which different voices are heard and accepted encourages employees to actively engage in their work environment, resulting in higher levels of productivity, increased retention, and overall business success.
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. This means that employees are more likely to feel accepted and valued. When employees feel accepted and valued, they are also happier in their workplace and stay longer with an organisation. As a result, companies with greater diversity in the workplace have lower turnover rates by creating a sense of belonging.
9: Better customer outcomes
Deloitte published a business case, entitled: Missing out: the business case for customer diversity. This case study highlighted how your business can discover extra selling power by advocating for equality. You can view the research here.
Companies that are dedicated to building and promoting diversity in the workplace are seen as good, more human and socially responsible organisations which ultimately creates a better reputation for the brand.
If you have 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 Zip Recruiter, overall, 86% of job seekers say it is somewhat or very important to them personally that people of different backgrounds are represented in the workplace. The survey is the first annual Diversity, Equity and Inclusion (DEI) Survey conducted by ZipRecruiter.
