Why do all the leading companies embrace workplace diversity?
Forbes has recently released the newest list of The Best Employers For Diversity 2019. The list was compiled by surveying 50,000 Americans working for businesses with at least 1,000 employees.
The final list ranks the 500 employers that not only received the most recommendations, but also boast the most diverse boards and executive ranks and the most proactive diversity and inclusion initiatives. Have you seen it?
If you have, you know that all the leading, top companies are on that list. Netflix, SAP, Visa, Nielsen, Procter & Gamble, Walt Disney, Salesforce, KPMG, BuzzFeed…they are all among the top 20 of America’s best employers for diversity.
So why do all the leading companies work so hard to embrace and promote workplace diversity? As PepsiCo states it on their Diversity and Engagement Program’s website, they are well aware that “supporting diversity and engagement is not only the right thing to do, it is the right thing to do for our business”.
Embracing, building and promoting workplace diversity is not only the right, but also the smart thing to do. In the following text, we will examine the data backed research and look for the proven benefits of workplace diversity.
What are the proven benefits of workplace diversity?
There is an abundance of research highlighting many different, tangible benefits of workplace diversity. According to research, diversity in the workplace is an asset for both businesses and their employees. Here are a few top benefits of the workplace diversity:
Benefit #1: Higher revenue
A Boston Consulting Group study found that companies with more diverse management teams have 19% higher revenues. McKinsey & Company have found in their research that companies with more diverse top teams were also top financial performers as well.
AmericanSociological Association found that “companies reporting the highest levels of racial diversity brought in nearly 15 times more sales revenue on average than those with the lowest levels of racial diversity.”
Benefit #2: Attracting Millennials
By the year 2025, 75% of the global workforce will be made up of millennials. This study shows that 47% of millennials are actively looking for diversity and inclusion when sizing up potential employers.
Similarly, a Stepstone study from 2013 found that 60% of new generation candidates are attracted by companies with a diverse profile. For these candidates it was “very important” or at least “important” that their workplace is inclusive of everyone regardless of their nationality, religion, sexual orientation, gender and disability.
Benefit #3: More engaged employees
In their recent study Service Management 3.0: Linking Employee and Customer Engagement, which is one of the largest-scale and most comprehensive studies of its kind, Future Services documented the strong correlation between employee engagement, customer satisfaction and profit.
Gallup has also found that employee engagement and inclusiveness are connected. It found the combination of employee engagement and gender diversity resulted in 46% to 58% higher financial performance.
Benefit #4: Higher innovation rate
According to studies cited by Scientific American, organizations with inclusive cultures have greater innovation, creativity, and bottom line results.
According to Josh Bersin’s research, inclusive companies are 1.7 times more likely to be innovation leaders in their market.
Tying all together: Why do diverse companies produce more revenue?
In short, workplace diversity provides a variety of different perspectives, which results in better decision making and faster problem solving. A greater variety of perspectives also leads to greater creativity and higher rate of innovation in diverse companies.
Employees in diverse companies are more engaged and less likely to quit. Diverse companies also have a better reputation which is why is easier for them to attract top talent. The final result is that companies with diverse workplace achieve higher profits.
We summarized all the most important benefits of workplace diversity in this handy infographic:
Ideas for promoting diversity and inclusion in your workplace
Now that you are aware of all the amazing benefits of workplace diversity, you must be wondering how to build, improve and promote an inclusive company culture at your own workplace.
First of all, you need to make diversity a part of your employer brand. Let the world know your company embraces and welcomes all. State it on your career site and highlight it in your job ads! You can also feature a video of your CEO talking about the importance of diversity for your company.
Second, you should put in some effort and develop an equal opportunity policy and implement it in your company. Make sure that you inform all of your existing employees about your new policy. Provide diversity training to ensure that all of your employees fully understand the benefits of a diverse workplace.
Finally, make it fun! For example, you can start by creating a culturally diverse holiday calendar. Encourage your employees to get involved and celebrate different traditions. Come together and share food, music and celebrations from around the world. It is a great way for all your employees to broaden their horizons, learn something new and connect with their colleagues.
About the Author: Anja Zojčeska, our guest blogger, is a Human Resources Manager and Content Marketing Specialist at the recruitment software company TalentLyft. Her mission is to keep all her co-workers happy and engaged in the workplace. She is also curious about the latest marketing trends and passionate about applying them in recruitment.