Why Diversity in the Workplace Matters?
Why Diversity in the Workplace Matters
It’s a question that many people wonder about but – perhaps – aren’t quite brave enough to ask. Why does diversity matter in the average workplace? In 1963, The Equal Pay Act ensured that women were entitled to equal pay for equal work. The Equalities Act of 2010 ensured that employees of all races were entitled to the same.
We’ve written into law how important it is to treat all employees with the same respect (and monetary reward), but does diversity make a difference to business? Let’s take a look at some statistics that show just how important diversity is, not just for a fairer world, but potentially for a more successful business.
Investors Actively Seek Diverse Companies
If you’re a key decision-maker in a business then you might be involved in seeking funding, either through small shares, or angel investors. Those larger investors are interested in investing smart and making serious money on their returns.
One of the trends that keeps cropping up as of late, is a swing toward investment in female-owned tech businesses. There are multiple reasons for this, which we’ll cover in plenty of detail below. But, as a starting point, achieving great investments in your company is one of the best ways to set it up for success. So, consider a gender diverse team a huge asset in securing that investment.
Decision Making Improves Dramatically
With a couple of important investors under your belt, it’s time to look at the inner workings of the business. Coaching your hiring team on diversity and inclusion can reap huge rewards – particularly when it comes to decision-making. In fact, statistics show that diverse teams – in age, race, and gender – are 87% better at making decisions than their non-diverse competitors.
A percentage increase like this is the stuff of dreams! It’s something that needs to be taken seriously. Most big businesses would pay millions for this kind of improvement. Now you know that all that needs to be done is to hire the – right people – for the job, from a variety of demographics.
Diversity Breeds Innovation
As well as better decision-making, a diverse team tends to be a more innovative one. Highly diverse companies are 1.7 times more likely than non-diverse teams to become innovation leaders in their field. Plus, they’re 1.8 times more likely to be able to adapt to a fluctuating marketplace.
As anyone who’s been in business for more than a few months knows, a fluctuating marketplace is a fact of life! Being able to adapt, overcome, and innovate at the same time gives diverse teams an enormous advantage.
Diverse Management Teams Reap Rewards
While the best case will always be to have a diverse team throughout the levels, there are significant gains to be made with diversity in the upper tiers of your business. Companies with diverse executive management teams are a third more likely to outperform their competitors in terms of profitability. For almost everybody in business, profitability is the biggest consideration, so ensuring an inclusive management team is essential. Plus, those same management teams have been shown to increase revenue by around 19% on average.
Inclusivity Creates Loyalty
Another big benefit to having a diverse and inclusive team is that people want to join it! Oh, and stay part of it too. More than two-thirds of job seekers rank workplace diversity as an important factor when sifting through job offers. Compile this with the fact that employees at diverse companies are three and a half times as likely to contribute to their full potential and you’ll see why inclusivity is so important.
There’s nothing more frustrating than hiring who you believe to be the right person for the job, only to find out that they give 10% of their efforts to it. The stats suggest that truly diverse teams don’t have to face this challenge nearly as often. Plus, the retention of employees is better too, saving money on the hiring and onboarding process, as well as keeping a solid, friendly, and dedicated team.
The Bottom Line: Diversity Correlates With Financial Success
All of these reasons for keeping a diverse team correlate to one thing: financial success. Employees value diversity and inclusion, making them harder working, more innovative, and more likely to stick around. Higher-ups value diversity too and pass down their skills more effectively when part of a genuinely diverse workplace.
In this day and age, it should go without saying that it’s not just important to tick diversity boxes when hiring. It’s essential to achieve – true diversity – in order to get a more rounded view of how your company is performing and the ways that it can improve. Your target market might be pretty diverse – what better way to reach your customers in a way that they can relate to? Utilize your diverse team, meet your customers with a team that they can see themselves in. Not only are you ensuring a fairer world for all workers, but you’re making profits while doing it. That, in business, is what they call a win-win.
