Simply said, diversity is the range of human differences. These differences include but are not limited to race, ethnicity, gender, sexual orientation, age, socio- economic status, national origin, physical disabilities, religious beliefs or other ideologies. The significance of diversity in the workplace comes from the interactions of these differences.
Compared to organizations of the past, today’s organizations have had to change due to shifts in workforce demographics and the emergence of global markets. Diversity in the workplace is a reality that organizations cannot overlook.
Why is Diversity important in the workplace?
For many businesses diversity related initiatives began as adherence to affirmative action and social justice causes, but as new studies and research revealed the benefits of diversity in the workplace, organizations started looking at it as a means to positively impact the bottom line.
The benefits of diversity and the impact it has on business cannot be ignored. Here are 5 reasons why diversity is important to your organization.
1. A talent pool that resembles and resonates with the current global market
Today’s talent pool isn’t dominated by a single group. Talent is now represented by people from a vast array of backgrounds and life experiences. Companies that want to stay competitive in the market cannot afford to allow discriminatory preferences and practices to impede them from attracting the best available talent.
2. A dynamic work environment
Diversity in the workplace brings varied perspectives, skills and knowledge to an organization. This variety creates a dynamic work environment that will bring about efficient and innovative solutions to tackle the ever evolving and diverse market and economy.
3. Improved business performance
A work environment and organizational culture that values and supports diversity leads to improved business performance. Companies with diverse workforces are more likely to perform better financially (Mckinsey Study 2015). The correlation between diversity and financial performance indicators is undeniable and so is the impact diversity strategies can have on your workforce. It is imperative for companies to design and practice diversity and inclusion strategies to retain and maintain a competitive edge (Mckinsey Study 2018).
4. A satisfied, empowered and engaged workforce
A diverse workplace has also been found to be more satisfying, happier and more productive. A study conducted by Deloitte and the Victorian Equal Opportunity and Human Rights Commission found that an organization’s commitment to diversity has a positive impact on employee performance. Employees feel valued and included in an organization that is committed to promote diversity.
5. To stay at par with the evolving business environment and market
The business environment in which you operate is an ever evolving one. Diversity in terms of talent, customers and markets is the new norm. An organization committed to diversity with a work culture that is open, collaborative and adaptable to change will find it easier to sustain its competitive advantage.
If you have any questions about how diversity and inclusion can impact your business or if you would like to know how to incorporate diversity and inclusion strategies into your business practices and processes, we are here to help. We offer customizable Diversity & Inclusion Services tailored to support your business at every juncture of your journey. Click on the link below to schedule a free consultation to learn more!