Advantages Of Diversity: 8 Advantages At The Workplace

Diversity is the understanding that every person is unique and recognition of the individual differences amongst people. The differences can be race, age, gender, sexual orientation, religion, etc. It is a set of practices that consists of the understanding and appreciation of the interdependence of humanity, culture, and the natural environment, the exercise of mutual respect for diverse qualities and experiences, and forming alliances across diversity so that diverse people can work together and destroy all forms of discrimination. 

People are the powerhouse of any organization, and having diverse employees will boost the company's revenue and reputation. There will be more employee engagement and retention. Diverse companies can expand their businesses into broader markets. They will be more creative and profitable. 

Let's Look at the Advantages of Diversity:

1. More Innovation

Hiring employees belonging to different backgrounds would bring varied perspectives for any activity to be performed. Today's market is very competitive and needs constant innovation. Without diversity, no company can survive. Having a diverse workplace increases the chances of innovation. The management can combine different ideas, views, and perspectives from the diverse employees, creating a diverse notion for innovation. 

Each employee has a different experience that can be put to use for solving problems. Learning from the diverse backgrounds of the employees benefits decision-making and problem-solving. This leads to an increase in the creativity and productivity of the organization as a whole. 

2. Higher Revenue And Profits 

Diverse employees provide better financial performance for the company. Studies have shown that companies having diverse leaders have 19% higher revenue and capture more significant markets. Diversity offers a variety of interests, opinions, arguments, performance, and feedback. Therefore, the company reaches well-informed decisions, which leads to better and increased profits. According to a study conducted by Mckinsey, public companies in the US having diverse executive boards have a 95% higher return on equity than those having homogenous executive boards. Various studies have shown that companies with a diverse workforce are more profitable than those with a homogenous workforce. 

A report by Mckinsey in 2015 demonstrated that public companies having more ethnically and racially diverse management are 35% more likely to be financially successful when compared to other companies. Companies possessing a diverse workforce can make better decisions faster, which gives them a more significant advantage over their competitors. Therefore, they achieve better business results and gain more profits. 

3. Improves creativity

Creativity is the mental capability and ability for the development of unique ideas and concepts. It is essential and crucial for any company's survival, sustenance, and growth, and a diverse workforce helps improve creativity for the organization. They have the potential to provide diverse solutions to any problems that may arise in the organization.

There are diverse solutions as every employee contributes their way of thinking, operating, and solving problems. Companies having diverse workforce encourage their employees to perform to the best of their abilities. When several people approach problems and challenges from various perspectives, they will bring up creative solutions. Therefore, diversity increases creativity and market growth.

4. Reduce Employee Turnover 

A company that focuses on diversity attracts a vast pool of applicants for its various positions. Higher-educated candidates know that a company giving due importance to diversity in its workplace is progressive, the ideal place to work, and desire to work there. When companies hire from a vast pool of candidates, they usually gain the best, high-quality ones available. 

As the employees feel that their differences on various grounds are accepted and respected in the workplace, they are happier and satisfied. Thus, they are more likely to stay in the organization and contribute their talents and skills for its sound. Therefore, companies having a diverse workforce have lower turnover rates as they have created a sense of belonging for the employees. 

5. Boosts Company's Reputation 

Diversity provides goodwill for the company in the community and public. Companies that recruit employees of different races, religions, genders, ages, sexual orientations, etc., gradually gain a good reputation among the masses. Potential candidates want to work in places where there is equal treatment of every employee. 

The clients feel valued and thus, offer more business to the organization. Diverse employees possess various skills and experiences, allowing the company to spread multiple services globally to its customers. They can cater to the needs of the customers in a better manner and on a personal level. It increases the brand value, brings new customers, clients, partners, and helps the company to gain exposure to new and diverse markets. 

6. Attract And Retain Talent

The best candidates can be attracted by reducing unconscious bias during recruitment. Candidates look for companies that are fun and enjoyable to work with. If not, they would be least interested in working or even applying to a company that does not incorporate diversity in its policy. Therefore, prioritizing diversity is very important. Glassdoor states that 57% of employees want their employees to be more diverse and inclusive. 

A diverse company is more appealing to candidates as well as the existing employees in the company. These organizations are seen as socially responsible and possess a good reputation. When the company finds the right people for the jobs, they always ensure everyone is treated equally and valued. In such a situation, people are likely to stay in the organization. Hence, there is the retention of talent. 

7. Global Impact 

When a company has employees with different backgrounds and varied abilities and experiences, they can make a difference. They can make a difference in the areas they operate by making a difference in the lives of their employees. The company gains the potential and ability to compete on a global level. Moreover, a diverse workforce gives varied perspectives, considering all human cultures and experiences. It increases their chances of communication and expansion to diversified markets. Therefore, diversity helps the business to develop, grow and sustain in a global market. 

8. Reduced Fear And Improved Performance 

Diversity in the workplace indicates that employers treat every employee equally. A diversified workforce helps to include people in the organization, no matter what their backgrounds are. Inclusion allows the employee to open up to the management as the barriers are broken down. There is a reduction of fear of rejection as they realize the employers are not rejecting them but the ideas they voice. A report in 2013 by Deloitte has shown that when the employees feel included, innovation is increased by 83%. Diverse teams show 60% improvement in decision-making.

Conclusion

Diverse companies are more creative, innovative, and profitable. A company cannot exist in such a competitive market without having a diverse workforce. Companies have been struggling to break down their biases and appropriately incorporate diversity in their workplaces. The company can get rid of discrimination in the workplace by involving more :

-women in the technological areas, 

-bringing gender diversity in sales, 

-fighting gender roles in leadership roles, 

-dealing with gender discrimination, 

-fostering an age-inclusive workplace, 

-building the case for disability inclusion, 

-considering candidates with non-traditional backgrounds 

-removing unconscious bias in the hiring process of the organization.