Get to know the top 7 benefits of workplace diversity.

Business today is increasingly competitive and complex, and that’s not likely to change anytime soon. Because of this, companies are setting out to succeed in cultural diversity in the workplace. If you belong to a company that hires a wide range of diverse individuals, you already know the benefits of workplace diversity. Otherwise, if you are — sad to say — still a part of an old-fashioned, exclusive company, then you are missing out on a lot of great opportunities. 

Before we dive into the main benefits of diversity in the workplace, you need to know what diversity in the workplace exactly means.

What is diversity in the workplace?

Most of us understand the definition of diversity in general; but what does it mean within the context of the workplace? 

Simply put, diversity in the workplace means that the company is open to hiring employees from all sorts of backgrounds. Despite race, sex, religion, and culture, the organization gives a fair share of chances for everyone interested in working with them. When companies hire and retain a diverse set of employees, it brings about various benefits for the employees as well as the company itself. 

But workplace diversity should not just extend to hiring diverse individuals. In 2019, a study by The University of Michigan found that people hired as ‘diversity fronts’ are seen as less competent. Because of that, employers recognized that hiring a diverse range of employees isn’t enough.

In recent years, the meaning of diversity in the workplace has extended to making sure that companies should increase participation, benefits, and performance of the minority. Workplace diversity is not just symbolic recruiting in order to tick a box. Moreover, companies must recognize the value of diversity when it comes to their business.

Benefits of workplace diversity

1. Workplace diversity improves productivity levels.

One of the many benefits of workplace diversity is greater productivity. Since one of the main purposes of diversity is to bring in different talents together, it can result in a workplace that works towards a common goal using different sets of skills.

Take note that a diverse workplace combines employees of different backgrounds, experiences, and ethnicity. Together, they can collaborate to breed a more productive environment.

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2.  One of the benefits of workplace diversity is increased profit.

A 2013 survey led by the Center for Talent Innovation found that 48% of diverse companies in the US improved their market share, while only 33% of less diverse companies reported similar growth.

For the most part, it’s because of the benefits of language diversity. For instance, due to the rise of companies dealing with their business in China, a lot of companies are hiring fluent Mandarin speakers to improve their reputation in Chinese communities. As a result, their companies increased in sales, thus resulting in improved profits. 

3.  It boosts employee engagement.

Forget online research; you can learn about other cultures and ethnicity from your colleagues. Curiosity about various cultures can bring about good relationships within the workplace. When your employees share their personal experience, they are likely to build a strong and trusting relationship with their colleagues.

This healthy relationship can improve employee engagement as well as employee motivation, which is great for the company. 

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4. Workplace diversity gives rise to creative thinking.

Another diverse workplace benefit is increased creativity among teams. A creative team can lead to having a more diverse set of solutions to different problems.

With so many diverse minds coming and collaborating, many innovative solutions arise as every individual share their way of solving problems. When a company encourages diversity in the workplace, it motivates all employees to give their all in performing their duties. 

5. Workplace diversity reduces employee turnover rate.

A company that welcomes diversity has a higher chance to entice a wider pool of candidates for job vacancies. Moreover, higher-educated candidates are more drawn to work for a diverse company because it is proof that the company is progressive and ahead of its time. Job seekers also believe that companies with diverse workforces do not tolerate employee discrimination.

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6. It improves decision making.

Cloverpop found a direct link between decision-making and diversity. According to research, diverse decision-making teams tend to outperform individual decision-makers up to 87% of the time. This is because employees with a different background that come together can come up with better solutions. This leads to improved and informed decision-making processes and outputs.

7. It builds up the company reputation.

There’s a higher chance that a company will boost its reputation and brand when they are dedicated to building and promoting diversity in the workplace. The reason is that people will view them as good, humane, and socially responsible. 

Additionally, workplace diversity makes your company look more relatable. Letting people know that you are open to different beliefs and cultures will make it easier for many different people to relate to your brand and company. Thus, it can open doors to new customers, markets, and business partners.

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Final thoughts on the benefits of workplace diversity

When next planning to recruit new employees, make sure that you put an effort to hire a diverse set of people. But while you are doing this for the good of the company, don’t forget to treat them fairly as you do with the major group. Ensure that you compensate them well, include them in events, and let them feel comfortable and secured in the workplace.

By implementing diversity in the workplace, you can take your company culture and business outputs to a whole new level.