6 of the Biggest Benefits of Diversity in Business

6 of the Biggest Benefits of Diversity in Business

Today, the world’s biggest companies embrace diversity. They are striving to become more inclusive and their efforts are attracting customers and employees from marginalized demographics.

Here are six important ways that diversity can benefit businesses, from improving staff retention to increasing creativity and, ultimately, profitability.

1. Diversity widens the talent pool.

Today, employers cannot simply place an ad and wait for the best talent to compete for open positions. Rather, candidates have many options for employers that align with their working styles, lifestyle needs, and personal values. Businesses need to recognize that diversity is a desirable quality in applicants’ eyes and adapt their hiring practices accordingly.

Unfortunately, unconscious bias remains a stumbling block during recruitment for many organizations. It is also difficult for employers to overcome because we are not even aware we are engaging in it. With a staggering 96 percent of recruiters believing that unconscious bias is a problem, what can we do about it?

Censia Talent Intelligence leverages the power of AI to help clients achieve organizational diversity, widening talent pools by eliminating unconscious bias. Censia expands employers’ options, enabling them to reach a large number of talented professionals. Diversity calls for employers to hire people from a variety of different backgrounds, including factors like gender, age, ethnicity, physical ability, sexual orientation, political and religious beliefs, and socioeconomic background.

2. Diversity improves productivity.

Some employers have anxiety around the issue of diversity. They may mistakenly believe that bringing together individuals from a variety of different backgrounds will create workplace conflict, triggering unrest and negatively impacting productivity.

A growing body of research, however, indicates that the reverse is true. Bringing together workers from different backgrounds and incorporating a variety of skills and experiences has been shown to have a positive impact on workplace productivity.

Cooperation and teamwork thrive in an inclusive environment, making inclusive businesses more financially successful. Statistics published by McKinsey show that companies with an even gender balance are 25 percent more likely to outperform their market rivals.

3. Diversity is the engine of innovation.

Effective problem-solving typically involves working with other people. Each of us has our own unique perspective on the world, shaped by our background, education, and experiences. Combining those individual perspectives leads to more innovative ideas.

Inclusivity drives creativity. In order to excel, a company must harness the power of diversity, irrespective of field, domain, or industry. Research shows that businesses that practice inclusivity benefit from vastly increased creativity, maximizing organizational potential.

Innovation is not merely driven by ideas, but the people behind them. Inclusive, diverse teams come up with more unlikely, but ultimately successful, concepts. Data published by Cloverpop shows that diverse teams also benefit from improved decision-making compared with homogenous teams.

4. Diverse workplaces benefit from reduced staff turnover.

Companies that employ individuals with a variety of different perspectives and personal characteristics make employees feel accepted and valued. When people feel accepted and valued, they tend to be happier. This promotes loyalty and causes them to stay with a company longer.

Creating an inclusive company culture built on diversity, featuring individuals from different generations and segments of society, helps build staff camaraderie and further reduces turnover.

5. Workplace diversity boosts an employer’s reputation and brand.

Businesses that are dedicated to promoting diversity within the workplace set an example for being human, socially responsible organizations. Diversity makes a business more interesting. In addition, by employing a diverse workforce, companies make it easier for people from a variety of different demographics to identify with their brand. This may open the door to new customers, markets, and business partners.

According to a recent McKinsey report, companies that emphasize ethnic and racial diversity in their hiring practices are 36 percent more likely to report above-average financial returns compared to peers in their industry. This demonstrates that building a diverse workforce can significantly enhance the success and profitability of a business.

6. Workplace diversity has a global impact.

Looking at the big picture, by embracing employees of all abilities, experiences, and creeds, companies can make a real difference. By practicing inclusivity, businesses enhance opportunities for individual employees. They also improve the communities they operate in, their specific industries, and society as a whole.

A diverse workforce provides a diverse, global perspective: a point of view rich with individual human experiences and cultural nuance. Inclusive companies benefit from the ability to communicate with diverse markets, providing potential for expansion, both at home and abroad. In the 21st century, embracing inclusion and diversity is crucial for any business.

About the Author

Joanna RileyJoanna (Jo) Riley is an entrepreneur, investor, and advocate in technology, and is currently the CEO and Co-Founder of Censia. Jo has a highly experienced background in building and scaling companies, which she attributes to her deep passion for people and building technologies that allow people to be their best selves. She brings her wide knowledge of the industry to better transform the way enterprise companies hire talent. You can connect with Joanna Riley at @joannakiddriley on Twitter or on Linkedin. Read her full bio here.