National Diversity Awareness Month: Top 10 Benefits of Workplace Diversity
Diversity is the fuel that will propel businesses into the future.
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By more accurately reflecting society, diverse companies are generally considered to be more in touch, more socially aware and more relatable. In a diverse workplace, customers and employees alike are free of awkward “the only one” situations. No matter how much technology is put into play in the modern business ecosystem, it’s people who are running things. And people want to work with companies where they are comfortable.
A report from Deloitte shows that greater workplace diversity typically results in increased employee engagement. When employees feel comfortable, included — and valued — they are more engaged. They produce better work, and more of it. A study by Changeboard shows that employees in a diverse environment work 12% harder.
Whether working individually or as a team, members of a diverse workforce are more productive. Inclusive leadership can improve team performance by 17%, according to Deloitte. The study by Changeboard cited earlier revealed that diverse teams collaborate up to 57% more effectively.
When members of a diverse team put their heads together to collaborate, they are bringing different histories, backgrounds, perspectives and talents to the table. This variety stimulates creativity. According to Forbes, diverse teams are more creative because each member’s creativity is enhanced by their ability to integrate different points of view, something they call “integrative complexity.” It’s a skill honed by interacting with co-workers and others from different backgrounds. This integrative complexity heightens awareness of underlying connections between different ideas and enhances idea flexibility.
Integrative complexity can also inspire innovation. And this innovation can impact the bottom line. Diverse companies can have up to 13% higher innovation revenues, according to the Harvard Business Review.
Not too surprisingly, the same collection of diverse attributes that ignite greater creativity and innovation also result in improved decision-making. Research by Washington State University found that diverse teams are 87% better than non-diverse teams at making decisions.
Combining greater creativity and innovation with improved decision-making is the formula for quicker, better problem-solving. The Harvard Business Review attributes the quickness to “cognitive diversity” — differences in perspective or information-processing styles. And The New York Times reports that those solutions are 58% more accurate.
By now you’ve no doubt heard about the research from McKinsey & Co. showing that increased diversity among executives translates to increased profitability. McKinsey also took a look at companies’ total workforces and determined that companies in the top quarter for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians. Those in the top quarter for gender diversity are 15% more likely.
The competition for talent is fierce. And today’s workers aren’t looking for just a job and a paycheck. They want an employer whose values align with theirs. In a 2020 study by Glassdoor, 76% of employees and job seekers said a diverse workforce is important. In fact, about one-third said they would not apply for a job at a company with a lack of diversity in its workforce. An Indeed survey revealed that 55% of job seekers considered it very or extremely important to work at a company that prioritizes diversity and inclusion.
Actively seeking diverse candidates for open positions introduces employers to a wider talent pool, something that becomes increasingly important with each passing year. As CNN reports, not only is the millennial generation bigger than the boomer generation, it’s more diverse. only 56% of the 87 million millennials in the country are white as compared to 72% of the 76 million members of the baby boomer generation. And the boomers are aging out of the workforce.
Hiring the best talent is just one half of the equation. The other is retaining those employees once they are in place. Diversity can help there, too.
The inclusive environment of a diverse workplace makes employees feel more comfortable. Their morale is higher and they are more productive, innovative and loyal to the organization, according to Indeed. In their report “Creating Competitive Advantage Through Workforce Diversity,” the Corporate Leadership Council showed that employees in diverse and inclusive organizations are 19% likelier to stay.
Hiring the best talent is just one half of the equation. The other is retaining those employees once they are in place. Diversity can help there, too.
The inclusive environment of a diverse workplace makes employees feel more comfortable. Their morale is higher and they are more productive, innovative and loyal to the organization, according to Indeed. In their report “Creating Competitive Advantage Through Workforce Diversity,” the Corporate Leadership Council showed that employees in diverse and inclusive organizations are 19% likelier to stay.
April is National Diversity Awareness Month. Since 2004, the month has been dedicated to making people aware and appreciative of diversity. To celebrate our differences and similarities and to gain a deeper understanding and appreciation of each other.
The workplace is a microcosm of the community around it. Diversity is easier to achieve in a smaller, more controlled environment, and results are more quickly evident. And the results are plentiful, from improved recruitment and retention to increased innovative and profits.
“Smart teams will do amazing things, but truly diverse teams will do impossible things,” observed Claudia Brind-Woody. Brind-Woody is a managing director for IBM in the U.K. She is also a diversity and inclusion champion and was a member of the inaugural Channel Futures DE&I 101.
So, among the myriad benefits of workplace diversity, which stand out as the top 10? Click through the gallery above to find out.
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