Diversity is important, we all know that. As famous author Stephen R. Covey said:
“Strength lies in differences, not in similarities.''
We couldn't agree more. So from a business perspective, what are the exact strengths we are talking about here? We have listed some amazing benefits of diversity in the workplace for you below.
1. Boosts Innovation
Diversity boosts innovation. Having a team with people from different backgrounds, perspectives and experiences will result in a wider range of solutions to problems. People from different paths of life will challenge each others way of thinking and more creative ideas can be born.
One employee might be excellent in brainstorming and coming up with new out-of-the-box ideas, where as another employee has the skills and experience to execute a project. By working together and benefiting from each others skill sets, diverse teams can come up with and create unique products and services. This will give your business a great competitive advantage and can help your company to become a leader in your field.
2. Higher profitability
It has actually been proven that a diverse workforce leads to increased financial revenue for a business. In a 2017 study by McKinsey and Co, with over 1000 companies in 12 different countries, results showed that companies that were in the top quartile for gender diversity were 21 percent more likely to experience above-average profitability. This study shows that diversity actually plays a valuable role in generating more revenue for your business and should be more important for you than something to just strive for.
3. Open doors globally
Planning to expand your business to other markets? A team of individuals from different ethnicities and cultures will benefit your company when scaling up globally. Having people on your team that understands cultural differences and help you overcome language barriers will help you conquer obstacles when entering a new market. Diverse employees that speak multiple languages will open new doors for your business and make it possible for you to expand your client base significantly.
A diverse team of people, with unique cultural backgrounds, can combat foreign challenges and satisfy clients from other parts of the world. Key for when your business is entering a new territory.
4. Improve your company’s culture and attract top talent
A diverse and inclusive work environment will make your employees feel more happy and comfortable to be their own unique self, which improves your company’s culture. A workplace where there is equality will make employees feel safe and encouraged to achieve their best.
Having a good company culture is also key for attracting top talent, which is getting harder for businesses in a time of talent scarcity and tough competition from other companies. Top candidates are not just looking for an impressive title and a high salary, they want to work for a company where they are happy and where they feel valued. Working actively to keep a positive company culture where there is diversity is therefore one key to attract the top talented you are looking for.
A further benefit of having a positive company culture where diversity plays a part, is that it helps you to retain employees for longer, as they are happy to stay where they feel appreciated for their individuality and unique contribution.
In the previously mentioned study by McKinsey and Co it was also revealed that ethnic and cultural diversity resulted in a business performance increase of 33 percent. Diversity and inclusion in the workplace boosts confidence in every employees ability to achieve at their best. Motivated and confident employees are more productive which positively impacts your business performance.
A diverse workforce bring different talents, skills, and experiences to the table which is a great benefit for your business and its performance. Also cross over of skills is very beneficial when helping each other out in a team, varied skills and experiences in a team also means employees can learn from each other - resulting in more skilled employees that work for the success of your business.
At Troi we put diversity at the heart of everything we do. Diversity is not just important from an ethical standpoint, it clearly has positive impacts on various different business areas. If you want your business to succeed in the long-run, you should consider developing a diversity program and continuously work on ways to improve inclusion and equality in the workplace. But various company diversity initiatives are not always enough, it all starts with your recruiting strategy, having processes in place at an early stage is the first step towards a diverse workforce.
So yes, diversity is indeed important.. and it is not just necessity, it is key if you want your business to perform at its absolute best.