Are you ready to discover the significant benefits of diversity in the workplace and how it can be a game-changer for your teams and company?
In this blog, we’ll tell you all about the variety of benefits diversity within the workplace can bring to your teams and company as a whole, as well as how to effectively convince other stakeholders that diversity is not just nice to have. In fact, it’s a must-have.
P.S. Being aware of the statistical benefits that diversity can bring is necessary, but how to get started with creating a hiring process, company culture, and working environment that is diverse & inclusive?
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What is diversity in the workplace?
When contemplating diversity in the workplace, one might initially think of demographics. Nevertheless, diversity encompasses much more than mere demographics; it encompasses all the aspects that make us human.
Workplace diversity encompasses various dimensions such as gender and gender identity, cultural diversity, ethnicity and race, sexual orientation, age and generational diversity, neurodiversity, personality, skill diversity, and the inclusion of individuals with disabilities. These are just nine examples of workplace diversity, but the list is by no means exhaustive.
Workplace diversity - a buzzword or competitive advantage?
While the importance of workplace diversity is widely discussed today, the question remains: does it provide real benefits?
Many organizations aim to hire a diverse workforce, but struggle to articulate their reasons and methods. Superficial explanations like “everyone else is doing it” often prevail. While it’s commendable that companies are recognizing diversity’s societal benefits, it’s crucial to understand its business advantages.
Unfortunately, some companies prioritize diversity for the wrong reasons, like meeting quotas or expanding talent pools in a competitive job market. However, a genuine commitment to diversity goes beyond these surface-level motivations.
Diversity is more than just a corporate social responsibility; it’s a proven business case.
13 benefits of diversity in the workplace statistics
We will focus on the benefits of diversity classified under the three following categories:
- Improved performance from a diverse workforce
- Benefits of workplace diversity on a company-wide level
- Positive effects of workplace diversity on talent attraction
Improved performance as a result of diversity within the workplace
#1 Enhanced creativity within teams
Research has shown that there is a strong relationship between diversity in culturally diverse teams and overall team creativity. The more diverse your teams in terms of characteristics, backgrounds, skills and experiences, the more increased the likelihood of generating a wider range of new and fresh ideas.
Ultimately leading to a significant competitive advantage in your industry because creativity is what drives growth, therefore making it vital to any business. After all – two differently thinking minds are better than two minds that think the same.
#2 Effective problem-solving
Diversity not only leads to higher creativity within teams but also to improved problem-solving. Research by HBR has shown that if your workplace is diverse, especially cognitively diverse, your employees will be better at solving problems than within teams in which there are only cognitively similar people.
#3 Better business decisions 87% of the time
The more diverse the team, the more informed and improved their decision-making processes and overall results. Additionally, a white paper by Cloverpop also discovered that if your teams are diverse and inclusive, they are capable of making better business decisions twice as fast as teams that are not.
#4 Productivity levels increase by 32%
Productivity is important in every sphere of life, especially when it comes to the efficiency of employees and the overall quality of the work they do. By fostering diversity within the workplace, you can ensure that your employees are capable of working better as a team which leads to 32% higher productivity levels and an overall boost in collective confidence.
Benefits of workplace diversity on a company-wide level
#5 Profitability increases by between 25 - 35%
Companies with high levels of racial and ethnic diversity are 35% more likely to report above-average financial returns. On top of that, companies in which the executive teams are diverse, as suggested by McKinsey, are 25% more likely to generate greater profits than companies that lack diversity within executive teams.
So, if your teams are diverse, they will be better at dealing with challenging work environments, as well as adversity, and as a result, increase their overall performance levels.
#6 70% more successful at capturing new markets
According to research conducted by the Harvard Business Review, teams and companies that are diverse in terms of composition are 70% more likely to capture a new market than firms that are not diverse.
Through different skill sets, language knowledge and perspectives, it also allows you to open the door the new markets faster and more successfully.
#7 45% increase in revenue directly attributed to innovation as a result of diversity
The more diversity, the more innovation within companies. When your teams are built on the basis of hiring people with different perspectives, past experiences, as well as mindsets – they will be more likely to come up with disruptive and innovative solutions to various problems.
A study by BCG suggests that especially diversity within leadership and management teams can lead to more and higher levels of innovation, which in result lead to improved financial performance.
#8 68.3% improved employee retention
Workplace diversity is also beneficial for employee retention: if everyone feels included, accepted and valued for who they are, you will lower your turnover rate and this will result in 68.3% improved employee retention.
#9 Leads to employee engagement of 101%
Creating workplaces that are diverse and inclusive leads to happier and more engaged employees. If your employees are working within an environment in which they feel like they can bring their authentic selves to work every day without being discriminated against – there will be a massive boost in overall employee morale to work.
Research by Deloitte found that the combination of diversity and inclusion within a workplace leads to the highest levels of employee engagement – 101%!
#10 More positive company culture
If your workplace is diverse and inclusive, it will leave a positive impact on your organizational culture.
When interacting with people from different backgrounds, nationalities, views, beliefs and from different life stages, your employees will be able to form better awareness of each other’s world views. This way raising awareness surrounding the importance of the constant exchange of opinions and thoughts, as well as the crucial role that diversity plays within the workplace.
Positive effects of workplace diversity on talent attraction
#11 76% of job seekers are looking at diversity when making a final decision about accepting a job offer
In a Diversity Hiring Survey by Glassdoor, when looking for a new job place, the first thing that job seekers tend to take a look at is whether the workforce at the company is diverse or not. Basically, this means that every job seeker wants to know whether you as a company are motivated to work on your diversity goals from a genuine or commercial point of view.
If you don’t practice what you preach – you’ll miss out on the diverse talent.
#12 73.2% more likely to attract top talent
A report by McKinsey highlights that diverse companies not only are better at decision making and have increased employee engagement but also are better able to attract and retain top talent. Creating equal opportunities starts with you and the best way to attract today’s top talent is by focusing on diversity.
#13 Enhanced employer reputation
Companies that are striving towards diversity are companies that are trying to make the world a better place simply because it’s the right thing to do. Without a doubt that leaves a positive impact on their reputation within the job market – because who would want to work for a company that does not value diversity.
To sum up:
How to convince other stakeholders that workplace diversity is a must-have
To convince management of the importance of workplace diversity, consider the following approaches:
Make diversity and inclusion tangible
The first step to convincing other stakeholders that workplace diversity is a must-have is to make it tangible.
Assessing the diversity landscape within the organization provides a starting point for understanding gaps and opportunities. By examining representation, inclusion initiatives, and employee feedback, stakeholders can gain a tangible understanding of the existing diversity challenges. This reflection sets the foundation for demonstrating the need for diversity and creating a roadmap for future improvement.
Use statistics to back up your claims
In your conversation with other stakeholders, it is essential to illustrate the interconnection between diversity, creativity, and improved business performance. Back up your assertions about the advantages of workplace diversity with concrete evidence and real-life examples. Use statistics and data to emphasize the positive impact that diversity can bring to your company.
Make sure to emphasize the benefits of workplace diversity prominently, drawing inspiration from this blog that outlines the statistical advantages diversity can offer. By presenting a clear and compelling case, you can effectively convey the value of diversity and its potential to drive creativity and enhance overall business performance.
Emphasize their role in ensuring DE&I
Explain to the stakeholders that ensuring a diverse workplace starts with their active involvement and support:
- Emphasize the significance of their role as key decision-makers and influencers within the organization.
- Make them feel important and valued, as they have the ability to shape a workforce that excels and remains future-proof.
- Highlight how stakeholders’ commitment to diversity can lead to the creation of high-performing teams and contribute to the long-term success of the company.
How can you know whether your DEI efforts are paying off?
The only way to assess whether something is working or not is by setting up the right metrics to track progress. Also when it comes to DE&I. Diversity and inclusion metrics allow you to gain valuable insights into your current workforce dynamics. On top of that allowing you to continuously assess your progress when trying to ensure inclusive hiring practices.
Now, we suggest starting with 4 diversity & inclusion metrics:
- Diversity of employees vs. application pool
- Diversity across organisation levels
- Employee job satisfaction
- Employee retention rate