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Writer's pictureMunnazir Zarin

7 Research-Backed Advantages of Workplace Diversity

What exactly is workplace diversity?

A varied organisation is made up of people who differ in a variety of ways, such as gender, age, race, sexual orientation, education, and so on.

Of course, your HRIS statistics only tell half the story. Your diversity stats are meaningless unless every employee has a fair and inclusive employee experience. This is why it is critical to prioritise inclusivity in your D&I projects.


The Advantages of Workplace Diversity

Of course, diversity is an admirable goal for any organisation. But did you know they're also more profitable, effective, and likely to dominate their industry?

Still not convinced? Continue reading to learn about the research-backed benefits of workplace diversity:

1. Diverse teams solve challenges more quickly.

Diverse teams solve problems faster and make better decisions by 87 percent. That is, teams made up of people from many walks of life and with a variety of personality types are far better at dealing with new, uncertain, and complex situations.

This means that a diversified workforce is designed to endure and grow regardless of what changes occur in your sector or the wider globe.


2. Your employees value diversity.

Do you believe that diversity programmes are merely tick-box exercises? Then you might be shocked to learn that your team values diversity and inclusion. Indeed, 69 percent of executives consider diversity and inclusion to be a critical problem, and 13 percent of employees track how frequently top managers mention diversity and inclusion in meetings. Everyone should have a seat at the table, according to the typical employee. Almost half of 1,500 employees polled believed their company should increase staff diversity in terms of gender, colour, and ethnicity.

3. Employers of choice are diverse organisations.

A diverse workforce is crucial to 76 percent of job searchers and employees when evaluating career prospects and firms. Another survey of over 1,300 people found that 80 percent believe inclusion efforts are vital when choosing a company.

Diverse organisations are more likely to become preferred employers. If diversity and inclusion are an afterthought in your organisation, you'll be attempting to establish an employer brand while slamming on the brakes.

4. Diverse teams outperform one another.

Diversity can have a significant influence on your company's bottom line. In fact, inclusive and diverse businesses:

  • Are 35% more likely than their competitors to outperform them,

  • Seventy percent more inclined to explore uncharted markets,

  • Increase cash flow per employee by 2.3 times.

Furthermore, organisations that are in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians—and 35% more likely if they rank in the upper quarter for racial and cultural diversity.

In a nutshell, varied businesses are more profitable.

5. Diverse teams produce more innovative results.

Inclusive businesses have a 1.7 higher chance of being creative.

And it's not difficult to see why. A diverse group of people will find it easier to come up with creative solutions to challenges than a group of people who all have similar life experiences.

This is not lost on your staff. In fact, 74% of millennial employees say their organisation is more innovative when it has an inclusive culture. Make diversity a priority, and your team will not only come up with greater ideas, but they will also feel more dynamic and creative.

6. Employees from various organisations are more engaged.

Improving employee engagement is high on most companies' wish lists. Diversity and inclusion, as one of the seven core employee engagement factors, plays a significant role in this. In fact, millennials are 83% more likely to be engaged at work in inclusive organisations.

Make your workplace more inclusive, and your entire staff will likely love their work more, get more done, and stay for longer.

7. Diverse leadership teams perform better.

Businesses with varied management teams produce 19% more income than those with less diverse management teams. Furthermore, organisations with diverse boards see much higher earnings.

In the United Kingdom, every 10% increase in gender diversity among senior management teams correlates to a 3.5 percent rise in revenues before interest and taxes.

Even the most jaded capitalist cannot argue with those figures. Diversity in the boardroom is not a gimmick. Companies that include diversity and inclusion at every level of their operations, on the other hand, tend to outperform their competition.

How to Begin with Workplace Diversity

Diversity, equity, and inclusion often appear to be daunting obstacles to overcome. True workplace diversity, as opposed to a box-ticking exercise based on surface-level statistics, begins with employee listening. And a well-planned D&I survey can create a safe area for your employees to provide you with open and actionable feedback on where you're falling short.

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