The Value of Workplace Diversity: How it Benefits Companies

The United States may be the most ethnically diverse country in the world. While such diversity can create challenges for American society, it also represents enormous opportunity and potential unmatched in less diversified countries.

Diversity in the workplace means the acceptance and inclusion of employees of all backgrounds. A diverse workplace is an important asset, since it acknowledges the individual strengths of each employee and the potential they bring. Smart companies value diversity and actively seek to promote it within their ranks.

And workplace diversity is not only fair and just for all, it’s good for business too. Here are some recognized benefits derived from having a diversified workforce:

It Generates Varying Points of View

Diversity in the workplace ensures a variety of different perspectives. Employees with different cultures and backgrounds are more likely to have a wide range of different experiences, and hence, will see events and opportunities in varying ways. This multitude of viewpoints can be highly beneficial when it comes to planning and executing specific business strategies.

It Sparks Creativity

When you put together people who see the same thing in different ways, you’re more likely to get a variety of fresh, new ideas, thus improving the creativity of your workforce.

It Inspires Innovation

Innovation is the child of creativity, so the creativity derived from having a diverse workforce can lead to novel approaches and solutions. This in turn can open the door to lasting and meaningful innovation.

It Promotes Faster Problem-Solving

Employees from diverse backgrounds have different experiences and perspectives. This will lead to them bringing a variety of different solutions to the table when there’s a problem. With a good set of possible solutions to choose from, the team can determine which one seems best and move forward. Better inputs can lead to better and faster outputs.

It Promotes Better Decision Making

Innovative and creative thinking creates more options and choices for solutions, and encourages more informed, prudent decision-making. Several heads, especially when coming from diverse backgrounds, are definitely better than one when it comes to making key decisions.

It Bolsters Profits

Here’s a benefit that’s sure to appeal to every executive out there. 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 that companies with diversity in the workplace achieved better business results and reaped higher profits. Simply put, greater workplace diversity means greater profits.

It Fosters Higher Employee Engagement

Deloitte conducted research that captured the views and experiences of 1,500+ employees in manufacturing, retail, and healthcare. Their research showed that engagement – how much an employee feels a part of the company they work for – is linked to diversity and inclusion.

That link is pretty straightforward: when employees feel included, they’re more engaged.

It Reduces Employee Turnover

When employees feel accepted and valued, they’re happier in their workplace and stay longer with a company. As a result, companies with greater diversity in the workplace typically have lower turnover rates. Employees working in inclusive environments have a greater sense of belonging to a company and are less likely to leave.

It Enhances a Company’s Reputation

Companies dedicated to promoting diversity in the workplace are generally viewed as good, progressive, and socially responsible organizations. Such recognition works to greatly enhance and build a brand’s reputation.

Additionally, if you present a diverse workforce, you’ll make it easier for many different people to relate to your company and your brand, opening your company and brand to new markets, customers, and business partners.

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Workplace diversity isn’t just an ethical and moral ideal worth promoting for its own sake, it’s good business too. It’s a business strategy that should be on every company’s agenda.

For the reasons listed above and more, work to increase and support diversity in your organization. You’ll reap the benefits many times over. An old saying goes that every good team is greater than the sum of its parts. This saying has been borne out in countless industries from manufacturing to finance. It also proves true in the world of sports. So, if it’s clear that cohesive teams perform better, why is it rare to see a team performing well over a sustained period of time? Read our article on Building Cohesiveness in Your Team: 10 Best Practices!

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